On October 21, 2024, the New York City Council held a hearing on the “City of Yes for Housing Opportunity” proposal, a plan aimed at addressing the city’s housing affordability crisis. This initiative seeks to simplify the housing development process, remove barriers, and create more opportunities for affordable housing throughout the city.
The hearing discussed proposed changes designed to make it easier for developers to start projects, particularly in areas currently constrained by strict zoning laws. The goal is to update zoning regulations to meet the city’s growing housing needs, enabling the development of more housing units in neighborhoods that can accommodate this growth.
Impact of Accessory Dwelling Units (ADUs)
Council Member Mercedes Narcisse raised questions about how Accessory Dwelling Units (ADUs)—secondary housing units built on the same lot as a primary residence—would impact property values and taxes. Daniel Garodnick, from the Department of City Planning, responded that adding an ADU could increase property values, though the effect would vary by neighborhood. He emphasized that homeowners need to evaluate if adding an ADU is beneficial for them, as it could potentially lead to higher property taxes.
The presentation also outlined the benefits and drawbacks of ADUs. On the positive side, ADUs can provide extra income for homeowners, especially older residents who need financial support. However, increased property values can also result in higher property taxes, which might make it challenging for some homeowners to afford.
Concerns About Increased Property Values and Taxes
Council Member David Carr expressed concerns about how increased development rights might affect property values, even if owners choose not to utilize these rights. The potential to construct an ADU could lead to higher assessed property values, which in turn might lead to increased property taxes, putting pressure on middle- and working-class homeowners to sell or develop. Garodnick acknowledged these concerns and stated that the Department of Finance had assured them that simply having the option to add an ADU would not automatically increase property assessments. He promised to follow up to ensure homeowners receive clear and accurate information.
Balancing Growth with Affordability
The “City of Yes for Housing Opportunity” proposal presents both opportunities and challenges. On one hand, streamlined regulations could make development more accessible. On the other hand, increased property values could lead to higher taxes, potentially putting financial pressure on some homeowners. The City Council will continue to refine the plan to balance growth with affordability, aiming to address housing needs without unduly burdening existing residents.
We will closely monitor these developments as they could significantly impact residential development and property taxes across the city.
R&E Coverage of “City of Yes”
- City of Yes for Housing Opportunity: What Real Estate Professionals Need to Know | Rosenberg & Estis, P.C.
- City of Yes for Economic Opportunity (COYEO) Text Amendments | Rosenberg & Estis, P.C.
- R&E Counsel David J. Rosenberg Serves as Esteemed Moderator at City of Yes Event | Rosenberg & Estis, P.C.
- R&E Counsel David J. Rosenberg Participated in Virtual Roundtable “Unlock NYC’s Potential: City of Yes.” | Rosenberg & Estis, P.C.
- City of Yes for Housing Opportunity: NYC Mayor Eric Adams Announces Final Set of Proposed Revisions to Zoning Resolution | Rosenberg & Estis, P.C.
- Mayor Adams’ Proposed “City of Yes for Housing Opportunity” | Rosenberg & Estis, P.C.