Legal & Regulatory
Is the Big Apple now the City of Yes?
The City of Yes for Economic Opportunity initiative was passed on 6 June 2024, being the most substantial change to NYC's zoning laws since their first passing in 1961.
Key Changes
The key changes included:
Floor area bonus for affordable housing
UAP (Universal Affordability Preference) provides for height increases, a 20% increase in the maximum permitted floor area, as well as height increases, in medium and high-density zoning districts (R6–R10) throughout the City for developments that dedicate the additional floor area to permanently affordable housing. Previously floor area increases were limited to mandatory inclusionary housing areas and voluntary inclusion housing areas. UAP now is citywide in R6–R10 districts, replacing the voluntary inclusion housing program.
Relaxation of parking requirements
There has been an elimination of parking requirements for new developments in Manhattan (except Inwood), Long Island City and parts of Western Queens and Brooklyn, as well as other reductions in parking requirements in the city.
Expansion of floor area transfers from landmark buildings
The transfer of floor area from a landmark building has increased. A transfer can now take place to all of the lots on the same lot as well as all of the lots facing the landmark building's block or adjacent block. This involves a new 20% limit on increased FAR for the receiving site, using a new non-discretionary chair certification system.
Zoning Lot Split
Zoning lot changes allow floor area to move "uphill" within a split lot, from the zoning district with a lower FAR to the portion with a higher FAR. This will allow the higher FAR to be exceeded by up to 20% provided the receiving portion is within 100 feet of a wide street.
Conversion of Office Buildings
Existing provisions have been broadened to allow non-residential buildings located anywhere in the City and constructed before 1991 to be converted to residential use (including supportive housing and dormitories), provided that residential use is a permitted use in the zoning district in which the building is located.
Accessory dwellings (ADUs) in low density zoning districts
City of Yes allows ADUs in one and two-family homes in all low-density districts, with restrictions on certain types in certain areas to address concerns around flooding and neighbourhood context.
So, is it a yes for City of Yes?
The initial signs are positive.
- 8,850 new storefront businesses opened, including 500 previously vacant storefronts.
- At the end of 2025, there were 12,000 new housing units as a result of the rule changes, per figures from Mayor Adams' office.
City of Yes amendments are too voluminous to discuss in this short piece. Should you have any questions on how any of the amendments impact on your business please consult your zoning / planning advisor or attorney.
Credits
- (1)AECOM — "City of Yes": Unlocking New York City's housing potential | AECOM Insights
- (2)BCLP — New York City council adopts significant zoning changes under City of Yes for Housing Opportunity | Bryan Cave Leighton Paisner
- (3)DCP — City of Yes for Housing Opportunity | Department of City Planning