Governor Hochul, Mayor Adams and Council Speaker Adams Celebrate Passage of Most Pro-Housing Proposal in New York City History

New York City Council Votes in Favor of “City of Yes for Housing Opportunity,” Creating 80,000 New Homes Over Next 15 Years, and Investing $5 Billion Towards Critical Infrastructure Updates and Housing

Includes Governor Hochul’s $1 Billion in New State Commitments To Support Affordable Housing

Complements New York State’s Historic Housing Package Secured by Governor Hochul in the FY25 Enacted Budget To Build More Homes Statewide To Address Affordability

Governor Kathy Hochul, New York City Mayor Eric Adams, New York City Council Speaker Adrienne Adams and New York City Department of City Planning Director and City Planning Commission Chair Dan Garodnick today celebrated the passage of “City of Yes for Housing Opportunity,” the most pro-housing zoning proposal in New York City history. As the city confronts a generational housing crisis with a 1.4 percent rental vacancy rate, 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, including all of the 12 years of the Bloomberg administration and all eight years of the de Blasio administration.

“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,” Governor 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 Eric 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. Our administration proposed and fought hard for this proposal for more than a year, and now New Yorkers are the ones who will benefit from lower rent. I want to thank everyone who worked so hard to come together and collaborate on this landmark legislation, especially City Council Speaker Adams and Governor Hochul, the City Hall and agency teams that kept this plan moving forward no matter what, the advocates who knew we had to get this done, and everyday New Yorkers who made their voices heard. 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. This shows that our city can ensure every area helps contribute to confronting the housing crisis by creating more housing, while respecting the differences of neighborhoods across the five boroughs and investing in New Yorkers.”

Highlights of the historic City of Yes agreement include:

• Creating the Universal Affordability Preference (UAP), allowing roughly 20 percent more housing in medium- and high-density developments, as long as the additional homes are permanently affordable. If UAP had been in place since 2014, an additional 20,000 income-restricted homes could have been created.
• 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.

The passage of City of Yes complements several significant milestones that are a part of Governor Hochul’s historic housing agenda. Most recently, Governor Hochul and 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 made possible by Governor Hochul as part of the FY25 Enacted Budget. The FY25 Enacted Budget also included numerous bold 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.

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. He 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. Finally, Mayor Adams 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. Additionally, thanks to her strong leadership and shared commitment to building housing, Governor Hochul is committing another $1 billion to housing capital over the next five years, subject to State Budget approval.