COYHO’s New UAP Framework for Affordable Housing

The recently adopted City of Yes for Housing Opportunity (COYHO) text amendment effected a sweeping overhaul of the city’s zoning regulations, as discussed in our recent client alert. Last week’s client alert discussed COYHO’s changes to the framework for landmark transfers. This alert addresses changes to the floor area bonus for affordable housing under COYHO’s Universal Affordability Preference — UAP — provisions.

COYHO includes several key differences from the current Inclusionary Housing bonus framework:

• Increased Floor Area Ratio (FAR): A floor area increase is now allowed in all R6 through R10 districts for developments that provide affordable housing under the UAP program. The additional floor area is in most cases equal to 20% of the floor area available for market rate development. Some districts also received an increase in the permitted base FAR.
  
  
• Bonus Floor Area: UAP floor area is not considered to be bonus floor area. All floor area above the market rate maximum is required to be provided as affordable housing, which means that the UAP increase is 1-to-1, compared to the 1.25-to-1 bonus that was available in former Inclusionary Housing Designated Areas (IHDAs), and the 3.5-to-1 bonus that was available in former R10 inclusionary areas.
  
  
• Location of UAP Units: All UAP units must be located on-site, with the exception of sites located in R10-equivalent districts and former IHDAs, which are eligible for additional market rate floor area where off-site UAP affordable housing is provided through the purchase of Inclusionary Housing certificates. Future certificates will generate market rate floor area on a 1-to-1 basis. Existing Inclusionary Housing certificates and in-process certificates that meet specified vesting conditions can continue to generate market rate floor area at the ratios applicable prior to the adoption of COYHO.
  
  
• Recreation Space Bonus: The recreation space bonus that was formerly available to residential uses in the Special Midtown District and Special Lower Manhattan District has been eliminated. UAP sites, with either on-site or off-site affordable housing, are eligible to achieve 12 FAR of residential floor area.
  
  
• AMI Levels: The UAP units must be affordable to families earning a weighted average of 60% of Area Median Income (AMI). Up to three income bands may be provided, with no band exceeding 100% of AMI. In projects with at least 10,000 square feet of affordable floor area, 20% of the UAP floor area must be affordable for families earning 40% of AMI. The old R10 inclusionary areas and IHDAs required affordable housing not to exceed 80% AMI.
  
  Note that these income levels will differ in many situations from the income levels required by the 485-x tax exemption program.

• Additional Height: In R6 through R10 districts, greater heights are allowed for developments using a UAP floor area increase. Such developments must follow contextual bulk regulations, with maximum base heights, maximum building heights, and required setbacks (though “tower” massing is available in some cases).

There are many nuances to the COYHO amendments, which vary based on a property’s zoning district and site conditions. Kramer Levin’s Land Use team is here to assist you in evaluating development options for your particular site.