Housing Advocates Hail City Council’s Passage Of New York City’s ‘City of Yes’ Zoning Plan

NEW YORK—State and city officials hailed the New York City Council’s passage on Dec. 5 of New York City Mayor Eric Adams’ “City of Yes” zoning proposal that is expected to create 80,000 new homes in the five boroughs and spur billions of dollars in investment.

Characterized as “the most pro-housing zoning proposal in New York City history,” the plan’s passage comes as the city confronts a generational housing crisis with a 1.4% rental vacancy rate. The measure passed by a 31-20 margin, according to multiple published reports.

The citywide rezoning will enable the creation of 80,000 new homes over the next 15 years and invest $5 billion, which includes $1 billion in state funding, towards critical infrastructure updates and housing. The City of Yes proposal alone exceeds all the housing created from rezonings during any mayoral administration of the last 50 years, city officials stated.

“Our only shot at solving New York’s affordability crisis is by building more housing — and that’s why I’m committing $1 billion for projects that will make ‘City of Yes’ a reality,” Gov. Kathy Hochul said. “I signed the most powerful pro-housing legislation in three generations earlier this year, but the work is far from over. That’s why it’s critical for New York City to move forward with zoning reforms that will create more of the homes New Yorkers so desperately need.”

New York City Mayor Adams said, “Today is a historic day in New York City, but, more importantly, for working-class New Yorkers. We showed the nation that government can still be bold and brave by passing the most pro-housing piece of legislation in city history.” He later added, A home is more than just four walls and a roof. It’s the key to unlocking the American Dream, a path towards stability, and an opportunity that’s been out of grasp for too many for too long. City of Yes will forever change the course of our city’s history by bringing that dream closer to reality for New Yorkers—and it all started by saying ‘yes.’”

New York City Council Speaker Adrienne Adams said, “Today, the Council made historic strides to create more homes and make our city more affordable by approving the modified Zoning for Housing Opportunity text amendment with $5 billion of major investments in our City for All housing plan. By taking a major step to address the housing shortage, while supporting existing homeowners and tenants, making housing more affordable, expanding homeownership opportunities, and strengthening the infrastructure of neighborhoods, we are advancing a safer and stronger city.”

Highlights of the historic City of Yes agreement include:

• Creating the Universal Affordability Preference (UAP), allowing roughly 20% more housing in medium- and high-density developments, as long as the additional homes are permanently affordable.
• Legalizing small accessory dwelling units (ADU) for one- and two-family homes, with some restrictions in limited areas to address concerns around flooding and neighborhood context. These small homes, which include backyard cottages and converted garages, can give homeowners extra income and allow families to age in place.
• Permitting transit-oriented development and Town Center zoning, to create three-, four-, and five-story apartment buildings near most transit and along commercial corridors, respectively, with an affordability incentive for projects with more than roughly 50 homes.
• Allowing height-limited, contextual development on large campuses or lots, including those owned by faith-based organizations, that previously could not use their existing development rights because of outdated and conflicting rules.
• Rolling back parking mandates for new residential construction through a three-zone system that lifts them entirely in Zone 1, reduces them in Zone 2, and keeps them in place in Zone 3. Zone 1 will be the most populous parking mandate-free area in the U.S.—nearly triple the population of Austin, the largest U.S. city to lift parking mandates.
• Enacting new high-density zoning districts that would allow more housing, including mandatory affordable housing in high-demand central areas where it is urgently needed.
• Re-legalizing small and shared housing models with common facilities like kitchens.
• Making it easier to convert offices and other non-residential buildings into housing.

City of Yes for Housing Opportunity invests $5 billion towards the city’s housing and critical infrastructure updates. Mayor Adams is committing $1 billion for housing capital. The city is also investing $2 billion in infrastructure projects—to be reflected in upcoming financial plans—that will support investments in sewer and flood infrastructure, street improvements and open space. In addition, the city will spend $1 billion in expense funding over 10 years in tenant protection, voucher assistance and combatting source-of-income discrimination, flood monitoring and neighborhood planning.

The passage of the City of Yes plan was hailed by housing advocates and business advocacy groups.

Partnership for New York City President and CEO Kathryn Wylde said, “The development and passage of this first comprehensive update of the city’s 1961 zoning resolution is a significant breakthrough in terms of removing obstacles to private investment in the development of the new housing that the city so desperately needs. This is a credit to the Adams Administration, the City Planning Department, and the City Council. It illustrates how much we can accomplish when New Yorkers come together to solve big problems.”

The Community Preservation Corporation CEO Rafael E. Cestero said, “From reducing onerous parking mandates to establishing a universal affordability preference in medium- and high-density neighborhoods, this historic vote to advance City of Yes represents the most meaningful effort to upgrade our city’s zoning regulations to address the housing problem in New York City in at least half a century. This will allow our neighborhoods to increase their housing stock, expand economic opportunity, and make New York City a much more affordable and equitable place to live.”

Recently, Gov. Hochul and New York City First Deputy Mayor Maria Torres-Springer celebrated the creation of more than 70,000 housing options under the 421-a program by extending the construction completion deadline, which was part of the FY25 Enacted Budget. The FY25 Enacted Budget also included numerous initiatives to address New York’s housing crisis by increasing the housing supply, promoting affordability, strengthening protections for New York renters and homeowners, and combating bias and discrimination in housing.