New York Construction Report staff writer
New York City has approved the “City of Yes for Housing Opportunity” plan, described as the most pro-housing zoning reform in the city’s history. The plan aims to create 80,000 new homes over the next 15 years, with a $5 billion investment in critical infrastructure improvements.
As the city grapples with a severe housing shortage and a rental vacancy rate of just 1.4%, the plan is designed to reshape the urban landscape by enabling more inclusive and affordable housing across the five boroughs. The proposal includes $1 billion in state funding from Gov. Kathy Hochul’s administration, along with local investments to support the infrastructure needed for these new homes.
“Our only shot at solving New York’s affordability crisis is by building more housing,” Gov. Kathy Hochul said. “That’s why I’m committing $1 billion for projects that will turn the ‘City of Yes’ into a reality. This zoning reform is critical for providing the homes New Yorkers need and complements the housing laws I signed earlier this year.”
Mayor Eric Adams called the approval a historic win for working-class New Yorkers. “This is the most pro-housing piece of legislation in the city’s history,” Adams said. “It will make the American Dream more achievable for New Yorkers by creating affordable housing and helping lower rents.”
The “City of Yes” plan, developed over the past year through collaboration among city officials, housing advocates, labor unions, and residents, aims to address the city’s housing shortage while ensuring protections for tenants and investments in neighborhood infrastructure. City Council Speaker Adrienne Adams emphasized the importance of balancing housing growth with tenant protections and community needs.
“We’ve made historic strides to create more homes and make our city more affordable,” she said. “This legislation ensures every neighborhood contributes to solving the housing crisis while investing in vital infrastructure.”
The proposal introduces several key changes to zoning laws to expand housing options:
- Universal Affordability Preference (UAP): This rule allows for 20% more housing in medium- and high-density areas, provided the units are permanently affordable. UAP could have created an additional 20,000 income-restricted homes since 2014.
- Accessory Dwelling Units (ADUs): Homeowners will now be allowed to build small units, such as backyard cottages or garage apartments, offering extra income opportunities and allowing families to age in place.
- Transit-Oriented Development: The plan encourages higher-density housing near transit hubs, with incentives for developers to include more affordable units in these areas.
- Parking Mandate Reforms: A new three-zone system will eliminate parking requirements in the city’s most densely populated areas, reducing construction costs and freeing up space for housing.
- Re-zoning for Small and Shared Housing Models: The plan re-legalizes small shared housing units with communal kitchens and simplifies the process of converting non-residential spaces into residential units.
- Infrastructure Investment: The proposal includes $5 billion to upgrade infrastructure, including improvements to sewer systems, flood prevention measures, streets, and public spaces.
Rachel Fee, executive director of the New York Housing Conference, called the plan a “once-in-a-generation opportunity” to address the city’s housing needs. “This is a major step forward in repairing New York’s history of segregation and exclusion,” she said.
Manny Pastreich, president of 32BJ SEIU, praised the proposal for its potential to ease the financial burden on working families. “By creating 80,000 new units, this plan helps working-class families who are struggling to stay in the city they love,” he said.
The plan aligns with broader efforts by Gov. Hochul to address New York state’s housing crisis, including tax incentives and the Pro-Housing Communities Program, which encourages localities to build more housing statewide.
While passing the “City of Yes” plan is a critical step, city and state officials stressed that more work is needed to fully address the housing crisis.
“We are just beginning the fight to solve New York City’s housing crisis,” Adams said. “This is the start of a new era of affordability and access, and we will continue to work tirelessly to make this vision a reality.”
