On December 5, 2024, the New York City Council approved with modifications the NYC Department of City Planning’s (DCP) City of Yes for Housing Opportunity, the third and final of Mayor Adams’ City of Yes initiatives. The new citywide zoning text seeks to facilitate housing development throughout the five boroughs and is the largest comprehensive overhaul of the city’s zoning regulations since 1961.

“In the face of our long-standing housing crisis, the greatest city in the world has just passed the most pro-housing legislation in our history,” said First Deputy Mayor Maria Torres-Springer in a press release. “‘City of Yes for Housing Opportunity’ marks the start of a new era of affordability and access for everyday New Yorkers.”

DCP’s proposal was approved by the City Planning Commission (CPC) on September 25, 2024. Subsequent modifications by the city council were the result of extensive negotiations in response to concerns raised by some council members that a citywide “one-size fits all” solution to the city’s housing crisis ignores unique characteristics and needs of individual communities.

As part of its agreement to move forward with the proposal, the city council secured $5 billion in commitments from Mayor Adams and Governor Hochul to implement its “City for All” commitments. City for All aims to deepen affordability and preserve existing affordable housing, support affordable home ownership, protect tenants, provide neighborhood planning services, and bolster agencies’ capacity to implement these goals.

“Today, the Council made historic strides to create more homes and make our city more affordable by approving the modified Zoning for Housing Opportunity text amendment with $5 billion of major investments in our City for All housing plan,” said City Council Speaker Adrienne Adams. “By taking a major step to address the housing shortage, while supporting existing homeowners and tenants, making housing more affordable, expanding homeownership opportunities, and strengthening the infrastructure of neighborhoods, we are advancing a safer and stronger city.”

Many key components of DCP’s original proposal have been maintained

Universal Affordability Preference (UAP)

The adopted text replaces the Voluntary Inclusionary Housing Program with the UAP program, applicable in mid- and high-density residential zoning districts (R6 to R12) throughout the city. UAP developments may take advantage of increased floor area and height through the provision of permanently affordable housing, generally at an average area median income (AMI) of 60 percent, with lower income bands required for certain large projects.

Conversion of Office Buildings to Housing

The adopted text expands provisions facilitating the conversion of offices and other non-residential buildings to a range of housing types such as supportive housing and dormitories, in addition to traditional residential use. These conversion provisions are now applicable to buildings constructed prior to1991 in most areas of the city. This is a significant expansion to the prior rules, which typically limited conversions to portions of Manhattan, Brooklyn, and Queens and buildings built prior to 1961, with exceptions.

Campus Infill

The adopted text includes provisions that will facilitate infill development on large sites or campuses with multiple buildings (excluding NYCHA) by modifying prior regulations that hindered new construction to provide greater flexibility in terms of building proximity, lot coverage, and height.

New Residential Districts

The adopted text introduces new medium density residential zoning districts (R6-2 and R6D) allowing development of up to 3 FAR of residential use with provision of UAP, and new high-density residential districts allowing development of up to 15 FAR (R11 and R11A) or 18 FAR (R12) of residential use with provision of UAP. City of Yes for Housing Opportunity did not include any rezonings and mapping these new districts would require separate applications and public review. The state cap on 12 FAR for residential use was lifted earlier this year, which paved the way for this change.

Key modifications made by the City Council

Parking

DCP’s original proposal called for the citywide elimination of all residential parking requirements for new developments. The adopted text includes a three-tiered system: (1) in areas with good access to public transportation, residential parking requirements for new developments would be eliminated; (2) in areas with limited access to public transportation, the requirement would be largely reduced, but not eliminated; and (3) in the remaining areas, the requirement would remain largely unchanged.

Affordability

One of the city council’s stated goals was to ensure development of significant affordable housing. The council modified DCP’s original proposal to create affordable housing requirements for certain larger developments in low-density zoning districts and to require deeper affordability for large UAP developments in medium- and high-density residential zoning districts. This is the first time an affordable housing provision has applied to low-density residential zoning districts.

Transit-Oriented Development and Town Centers

DCP’s original proposal sought to allow three-to-five-story apartment buildings on large lots located on wide streets and within a half-mile radius of a subway or rail station and along commercial corridors in low-density residential zoning districts (R1 to R5). The city council’s modifications reduce the applicability of these provisions to prevent development of larger apartment buildings in areas characterized by one- to two-family homes and to reflect existing transportation patterns around the city’s outermost Long Island Railroad and Metro North stations.

Ancillary Dwelling Units (ADUs)

DCP’s original proposal introduced the concept of ADUs and would have allowed a variety of ADU typologies in low-density residential zoning districts. The city council scaled back DCP’s ADU proposal to restrict ground floor and basement ADUs in flood-prone areas and in rear yards where ADUs would conflict with existing neighborhood character unless they are near transit.

Small Units and Shared Housing

DCP’s original proposal would have allowed smaller units and shared housing units throughout the city. The city council limited smaller units to the city’s highest density areas. The city council would need to amend regulations outside of the Zoning Resolution that regulate shared housing to correspond with the adopted text.

In addition to the zoning provisions described above, the adopted text also includes:

• related changes to bulk regulations including floor area, yards, lot coverage, density, building envelopes, and heights to accommodate proposed increases in density;
• zoning fixes to facilitate development of two-family and small apartment buildings in lower density districts where permitted;
• eliminating the “sliver law,” which restricted building heights on certain narrow properties, for the majority of new developments; and
• simpler, more ministerial processes for certain developments above railroad rights-of-way, and the transfer of development rights from landmark buildings to support on-going preservation of historic buildings.

“New York City’s housing crisis has persisted for so long that many assume high rents, scarce housing, and landlords holding all the cards are just a fact of life. But these outcomes are the result of policy choices, and today, we are officially choosing a new path,” said CPC Chair and DCP Director Dan Garodnick. “These critical changes in our zoning rules will help tackle our housing shortage and create the homes New Yorkers need, all while avoiding significant changes in any one area.”

With this vote, the Adams administration has completed an aggressive, forward-thinking series of citywide zoning text amendments that have reformed the city’s zoning regulations. We look forward to seeing the realization of much needed housing and helping our clients navigate these extensive changes.