City Council Approves City of Yes for Housing Opportunity

On Thursday, Dec. 5, 2024, the City Council voted to approve the City of Yes for Housing Opportunity zoning text amendment (COYHO).

As discussed in our earlier alert, COYHO is a sweeping overhaul of zoning regulations that seeks to address New York City’s severe housing shortage by enabling more housing and a wider variety of housing types in every neighborhood in the city. The City Council also negotiated a $5 billion commitment from the city and state to support the proposal, including funding for housing capital and infrastructure projects.

We have highlighted the major components of COYHO in higher-density zoning districts (R6 – R10) as approved by the City Council below:

Universal Affordability Preference (UAP): A 20% increase in the basic maximum floor area ratio (FAR) and a commensurate increase in building height in R6 and higher zoning districts are now allowed for projects that provide permanently affordable housing. The average cost of the UAP units across all income bands is required to be affordable for families earning 60% of the Area Median Income. However, to ensure deeper affordability, 20% of UAP units in projects with at least 10,000 square feet of UAP floor area must be affordable for families earning 40% of the Area Median Income.

All UAP units must be located on-site, with the exception of affordable units in R10 districts and sites located in former Inclusionary Housing Designated Areas, which can continue to be located off-site. Existing Inclusionary Housing certificates can continue to be purchased and will generate market-rate floor area at the ratio available prior to the adoption of COYHO.

Residential Conversions: The universe of buildings eligible for residential conversion under the more relaxed light and air standards of Article 7B of the NYS Multiple Dwelling Law has been extended to nonresidential buildings (other than hotels) located anywhere in the city that were constructed prior to 1991.

Parking: Residential parking requirements were either eliminated or reduced in much of the city, as follows: (1) no parking is required in Manhattan (except for Community District 12) and parts of Western Queens and Brooklyn; (2) parking requirements are reduced in most of the Bronx, central Brooklyn and central Queens; and (3) parking requirements are maintained in eastern areas of Brooklyn, the Bronx and Queens, and most of Staten Island, with certain exemptions and reductions.

New Higher-Density Residential Districts: Two new residential zoning districts were established that allow 15 FAR (R11 district) and 18 FAR (R12 district). These districts are not yet mapped in the city, though they are included in the zoning changes proposed as part of the Midtown South Mixed-Use Plan. They may also be mapped in the future pursuant to private rezoning applications.

Landmarks Transfers: Floor area from landmark buildings can now be transferred by a ministerial City Planning Commission certification to receiving sites on surrounding blocks rather than simply across the street. The increase in floor area permitted for these transfers in all but the highest-density (15 FAR and higher) zoning districts remains at 20% of the receiving zoning lot’s floor area. The potential for an unlimited increase in a receiving zoning lot’s floor area in the 15 FAR and higher districts remains, but any increase greater than 30% of the receiving site’s floor area cannot be authorized by a certification and remains subject to approval by special permit. Bulk modifications to accommodate additional floor area are also available: by authorization for a height increase up to 25% and by special permit for a height increase above 25%.

Small Units: The minimum unit size restriction was eliminated in Manhattan below 96th Street and downtown Brooklyn.

COYHO is a comprehensive zoning change that offers numerous benefits for the development of new housing. Those benefits can be fully realized through an understanding of its complex mix of new and existing zoning controls. We welcome the opportunity to help you in assessing how COYHO may affect your current or future development projects.