Additional Modifications to Zoning Resolution Under City of Yes for Housing Opportunity

New York City Mayor Eric Adams announced in June 2022 the City of Yes zoning initiative, intended to modernize and update the City's Zoning Resolution by promoting environmental sustainability, easing restrictions on small businesses and creating affordable housing. The first two components – Carbon Neutrality and Economic Opportunity – were enacted in December 2023 and June 2024, respectively, without significant controversy. The New York City Council on Dec. 5, 2024, approved the third and final proposal of the zoning initiative, the City of Yes for Housing Opportunity (COY HO).

COY HO is a comprehensive set of changes to the Zoning Resolution designed to stimulate the production of housing generally and particularly affordable housing. These changes include the easing of parking requirements, allowing more density in the form of affordable housing, permitting accessory dwelling units and facilitating conversion of office buildings to residential uses. Although the City Council modified some of the original proposal, the enacted text constitutes the broadest and most sweeping changes to the New York City Zoning Resolution since its original passage in 1961.

Previously, Holland & Knight focused on the changes related to the affordable housing programs in the Zoning Resolution. This Holland & Knight alert will discuss some of the other modifications made by COY HO.¹

Increased Density

COY HO increased the maximum permitted residential floor area ratio (FAR)² for many districts. These maximum FARs can be achieved only through the use of the Uniform Affordability Preference (UAP) Program as discussed in Holland & Knight's previous alert. Where UAP is not utilized, the maximum FARs are unchanged from those permitted prior to the adoption of COY HO. COY HO also modifies building envelopes in certain districts to accommodate the additional floor area permitted.

The following table provides some examples:

* Located within 100 feet of a wide street and outside the Manhattan Core

Creation of New Higher Density Residential Districts

In May 2024, the New York State Legislature amended the Multiple Dwelling Law to allow residential buildings to exceed 12 FAR under certain circumstances. Using this authority, COY HO establishes two new residential districts: R11 and R12. The maximum residential FAR in R11 districts is 15 and in R12 districts is 18. These districts have no immediate applicability and need to be mapped by subsequent zoning map actions. The Mandatory Inclusionary Housing Program will apply in both districts.

Sliver Law

COY HO eliminates the so-called "sliver law" for buildings in a district with a letter designation (e.g., R7X, R9A, etc.) and for buildings that are located in residential districts without a letter designation but elect to comply with the height limitations in such districts.

Changes to Infill Development

In R6 through R10 districts, lots previously constructed with towers-in-the-park buildings pursuant to height factor zoning restrictions may now be developed with new infill buildings that comply with Quality Housing FAR requirements. Instead of open space requirements that previously applied, yard and lot coverage restrictions now apply to these zoning lots.

Dwelling Unit Limitations

Residential buildings in Manhattan south of 96th Street and downtown Brooklyn will no longer be subject to limitations on unit size.

Conversion of Office Buildings

COY HO enlarges universe of office buildings eligible for conversion to residential. Prior to COY HO, only office buildings built prior to 1961 or 1977 could be converted. COY HO allows any office building constructed prior to Dec. 31, 1990,³ to be converted to residences.

COY HO removes the requirement to utilize 30 percent to 50 percent of the rooftop for recreational use for the residents and provides that conversions need to comply only with the standard recreational use regulations.

Parking

As approved by the City Planning Commission, COY HO would have eliminated parking requirements for all new residential buildings. The City Council modified this proposal to create three geographical zones with different parking regulations:

• Zone 1 consists of Manhattan (except Inwood), Long Island City, parts of Western Queens and Brooklyn, and has no parking requirements.
• Zone 2 is composed of areas outside Zone 1 that have access to mass transit. In Zone 2, parking is still required (except for affordable housing) but at lower percentages than previously.
• Zone 3 is the remainder of the City, and most parking regulations are unchanged.

Landmark transfers

COY HO expands the area to which floor area can be transferred from a landmark building to include all lots on the same block as the landmarked building and any lot facing the landmark building on adjacent blocks. It also allows most transfers of floor area from a landmark building with a certification by the chair of the City Planning Commission.

A special permit is still required where an increase in maximum height is greater than 25 percent above the allowed height and for transfers in commercial and manufacturing districts with a FAR of 15 or greater where the floor area transfer exceeds 30 percent.

Split Zoning Lots

For zoning lots located in two districts, COY HO allows floor area to move from the zoning district with a lower FAR to the portion with a higher FAR, provided that the receiving portion is within 100 feet of a wide street and that the FAR of the receiving portion is not increased by more than 20 percent.

Vesting

The COY HO amendments include vesting provisions to grandfather projects under the prior zoning. These vesting rules allow buildings that have filed an application with the City's Department of Buildings as of Dec. 5, 2024, and receive zoning approval within one year of that date to proceed under the prior zoning. There are also special vesting rules relating to the old Voluntary Inclusionary Housing (VIH) Program that were discussed in detail in the prior client alert.

Changes in Lower Density Districts

• Except in R1 and R2 districts, three- to five-story apartment buildings are allowed for areas near mass transit, provided that buildings with 50 or more units must provide 20 percent of the floor area as affordable housing.
• Allows three- to five-story apartment buildings on most blocks in residential districts with a commercial overlay, provided that buildings with 50 or more units must provide 20 percent of the floor area as affordable housing.
• Accessory dwelling units are permitted in certain low-density districts.

Notes

¹ The full extent of the City of Yes for Housing Opportunity (COY HO) amendments is too numerous to discuss in any summary. Please contact the authors if you wish to discuss a specific development or have questions concerning other aspects of COY HO.

² Floor area ratio (FAR) is the ratio of total building floor area to the area of its zoning lot.

³ In Special Mixed Use Districts, the cutoff date remains Dec. 10, 1997.

Information contained in this alert is for the general education and knowledge of our readers. It is not designed to be, and should not be used as, the sole source of information when analyzing and resolving a legal problem, and it should not be substituted for legal advice, which relies on a specific factual analysis. Moreover, the laws of each jurisdiction are different and are constantly changing. This information is not intended to create, and receipt of it does not constitute, an attorney-client relationship. If you have specific questions regarding a particular fact situation, we urge you to consult the authors of this publication, your Holland & Knight representative or other competent legal counsel.