New York City Council Approves Final City of Yes Housing Opportunity Element | JD Supra

New York City has taken what it intends to be a significant step toward addressing its housing crisis with the City Council’s December 5, 2024, approval of the third, and final, element of Mayor Adams’ City of Yes housing and zoning reform plan. This revised framework, which includes a $5 billion investment to construct new housing, reflects the city’s stated commitment to affordability, infrastructure investment, and equitable development while addressing key concerns raised during its deliberation.

The original City of Yes plan, as we detailed in a previous post here, aimed to overhaul NYC’s zoning regulations to boost housing supply and affordability. Key proposals included (a) expanded office-to-residential conversions, (b) relaxed or eliminated parking minimums, (c) shared-amenity housing models; and (d) increased density and expanded building envelopes to accommodate affordable units.

The City Council met City of Yes with some resistance and set forth its own, competing, plan, named City for All. The Council’s proposal introduced critical changes and a $5 billion pledge to support affordable housing and infrastructure improvements.

These additional provisions were subsequently incorporated into the final City of Yes plan after discussions between the Council and the Mayor. Some amendments of the plan as a result of these negotiations include increased affordability, mandating more affordable housing in transit-accessible areas, enhanced infrastructure funding by prioritizing repairs for Section 9 housing units and boosting resources for housing agencies, and a higher focus on housing voucher utilization to reduce housing insecurity.

The revised plan is designed to create up to 80,000 new housing units across New York, with measures tailored to the city’s diverse neighborhoods.

The final version of the law also scales back significantly on the parking reductions included in the original City of Yes plan. The revised parking requirements will be based on a tiered parking system oriented around transit access.

The plan supports construction of three- to five-story apartment buildings near high-transit zones. However, larger developments with 50+ units must ensure 20% affordability for households earning up to 80% of the area median income.

The updated, final City of Yes is intended to balance the goals of increasing housing supply and affordability with the realities of infrastructure and neighborhood needs. While challenges remain, such as ensuring effective implementation and addressing potential displacement concerns, the plan represents a collaborative approach to tackling New York City’s housing crisis. The ultimate effects are yet to be seen, particularly in terms of whether the plan will successfully attract the level of private investment needed to meet its housing and affordability goals.

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