NYC Council moves on compromise ‘City of Yes’ plan. Here’s what’s in and what’s out

Two key New York City Council committees approved the Eric Adams administration’s marquee housing plan Thursday evening, striking a deal that scaled aspects of the proposal back while also committing a whopping $5 billion in funding for City Council priorities. 

Negotiations over the City of Yes for Housing Opportunity plan stretched well into the afternoon Thursday, delaying the zoning and land use committee votes by more than five hours. The zoning subcommittee approved the plan by a vote of 4-3, while the land use committee approved it 8-2. 

While it isn’t completely clear to what degree the changes will impact the original estimate that the plan would lead to the creation of up to 109,000 homes over the next 15 years, that number has been revised down to an estimated 80,000 units, according to both the City Council and City Hall.

The modifications to the plan sparked some disappointment from progressive City Council members and many advocates who’d hoped to see a full elimination of parking mandates citywide. “The Land Use Committee has designated the largest parking mandate-free district in the country and significantly lowered the number of required parking spots in areas where mandates still exist, which will help create much more urgently needed housing,” Sara Lind, co-executive director of pro-open streets group Open Plans said in a statement. “That said, this was a once-in-a-generation chance and we believe far too many New Yorkers still live in car dependence and transit deserts that are caused in part by parking mandates.”

After the City Planning Commission approves the modified plan, the full City Council is expected to vote on the proposal Dec. 5. Here’s a breakdown of some of the key aspects of the modified plan and how it compares to the initial proposal. 

PARKING MANDATES

What City Hall wanted: The original plan proposed the elimination of rules that required developers to include a specific number of off-street parking spaces with new housing. This would have applied all across the city, allowing developers to choose whether or not to build the spaces going forward. 

What the City Council approved: The modified plan introduces a three-tiered system for parking mandates, which would apply to different parts of the city. In the first zone, in areas with good access to transit, parking mandates will be completely eliminated – as the original version proposes. In the second zone, areas with more limited access to transit, parking mandates are heavily reduced, and in the third zone, mandates will largely remain what they are today.

FUNDING

What City Hall wanted: The proposal didn’t initially come with any set funding allocations, although Eric Adams administration officials had verbally acknowledged they agree that zoning reform alone isn’t enough to tackle the city’s housing crisis. 

What the City Council approved: In a major win for Speaker Adams, the mayor’s administration committed $5 billion – $1 billion of which will come from the state’s next budget – to secure a deal on the proposal, including $1 billion for housing capital, $2 billion for infrastructure projects related to sewer and flood infrastructure, street improvements and open space, and $1 billion in expense funding for tenant protections, voucher assistance, flood monitoring and neighborhood planning over the next 10 years. The $1 billion from Gov. Kathy Hochul will go toward housing capital over the next five years. The mayor’s administration reportedly appealed to Hochul for $1 billion to support the deal, and she assented in an eleventh-hour move to save the proposal. 

ACCESSORY DWELLING UNITS

What City Hall wanted: The proposal would have legalized the building of small independent units – such as a backyard cottage, garage conversions and basement apartments – on lots for one or two family residences. Each unit could be a maximum size of 800 square feet, no taller than two stories, and wouldn’t be allowed in special coastal risk districts (areas that are currently at “exceptional risk” from flooding that may face even more risk in the future). With the exception of basement apartments, units would still be allowed in the city’s less severe coastal flood zones.

What the City Council approved: The modified plan will allow the construction of accessory dwelling units on lots for one or two family residences – with some caveats. The units can only be one story unless they are built above parking. Ground level and basement units would be banned in coastal flood zones and areas identified by the city as vulnerable to inland flooding from heavy rain. Backyard units wouldn’t be allowed in single family zoning districts and historic districts unless the property is near public transit. Homeowners would also be required to live on the property.

TOWN CENTER ZONING

What City Hall wanted: The proposal would re-legalize two to four stories of housing above storefronts on commercial streets in low-density areas. While this type of mixed-use development was once permitted in many low-density neighborhoods, current zoning laws – like height and floor area limits – bar this possibility. 

What the City Council approved: Two to four stories of housing will be allowed above storefronts in some commercial zones, but it won’t be permitted in single isolated commercial blocks or in areas that are mostly developed with one- to two-family homes.

TRANSIT-ORIENTED DEVELOPMENT

What City Hall wanted: The proposal would allow the construction of three- to five-story apartment buildings within half a mile of subway or rail stations.

What the City Council approved: The modified plan will still allow the construction of three- to five-story apartment buildings near subway or rail stations, but they must be within just a quarter mile of  Long Island Rail Road and Metro-North outermost stations. Single-family districts would also be exempted from development. Large housing projects with more than 50 units could only be built if 20% of the apartments are affordable to households that earn 80% of the area median income.

UNIVERSAL AFFORDABILITY PREFERENCE

What City Hall wanted: The proposal would have allowed developers to build at least 20% more apartments in medium- and high-density neighborhoods if the additional units are affordable to households that earn an average of 60% of the area median income.

What the City Council approved: The modified plan will still allow developers to build at least 20% more apartments, but the additional units must be affordable to households that earn 40% of the area median income.