NYC Council Passes Aggressive New Zoning Plan Adding 80,000 Homes, Upgrading Infrastructure
NEW YORK—State and city officials hailed the New York City Council’s passage on Dec. 5 of New York City Mayor Eric Adams’ “City of Yes” zoning proposal that is expected to create 80,000 new homes in the five boroughs and spur billions of dollars in investment.
Characterized as “the most pro-housing zoning proposal in New York City history,” the plan’s passage comes as the city confronts a generational housing crisis with a 1.4% rental vacancy rate. The measure passed by a 31-20 margin.
The citywide rezoning will enable the creation of 80,000 new homes over the next 15 years and invest $5 billion, which includes $1 billion in state funding, towards critical infrastructure updates and housing. The City of Yes proposal alone exceeds all the housing created from rezonings during any mayoral administration of the last 50 years, city officials stated.
It was described as a shot to solve New York’s affordability crisis by building more housing and characterized as the most powerful pro-housing legislation in three generations
New York City Mayor Eric Adams described it as “the most pro-housing piece of legislation in city history.”
New York City Council Speaker Adrienne Adams added that the City 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.”
Program Highlights Include:
- Creating the Universal Affordability Preference, allowing roughly 20% more housing in medium- and high-density developments, as long as the additional homes are permanently affordable.
- Legalizing small accessory dwelling units for one- and two-family homes, with some restrictions in limited areas to address concerns around flooding and neighborhood context. These small homes, which include backyard cottages and converted garages, can give homeowners extra income and allow families to age in place.
- Permitting transit-oriented development and Town Center zoning, to create three-, four- and five-story apartment buildings near most transit and along commercial corridors, respectively, with an affordability incentive for projects with more than roughly 50 homes.
- Allowing height-limited, contextual development on large campuses or lots, including those owned by faith-based organizations, that previously could not use their existing development rights because of outdated and conflicting rules.
- Rolling back parking mandates for new residential construction through a three-zone system that lifts them entirely in Zone 1, reduces them in Zone 2 and keeps them in place in Zone 3. Zone 1 will be the most populous parking mandate-free area in the U.S.—nearly triple the population of Austin, TX, the largest U.S. city to lift parking mandates.
- Enacting new high-density zoning districts that would allow more housing, including mandatory affordable housing in high-demand central areas where it is urgently needed.
- Re-legalizing small and shared housing models with common facilities like kitchens.
- Making it easier to convert offices and other non-residential buildings into housing.
City of Yes for Housing Opportunity invests $5 billion toward the city’s housing and critical infrastructure updates. Mayor Adams is committing $1 billion for housing capital.
Infrastructure Improvements
The city is also investing $2 billion in infrastructure projects—to be reflected in upcoming financial plans—that will support investments in sewer and flood infrastructure, street improvements and open space. In addition, the city will spend $1 billion in expense funding over 10 years in tenant protection, voucher assistance and combatting source-of-income discrimination, flood monitoring and neighborhood planning.