Thursday, December 5, 2024

New York City Council Passes Historic Citywide Zoning Reforms Estimated to Create over 82,000 New Homes, Tackling Affordability Crisis throughout City

 

Council modifications address affordability and neighborhood differences; agreement will invest $5 billion in City for All housing plan

Council also voted on bills to establish basement apartments and ADUs in city codes, support building rehabilitation, track approved housing projects, and update flood maps and sewer plans

Today, the New York City Council passed a historic citywide zoning reform that is estimated to create over 82,000 new homes throughout the five boroughs. Together with an agreement to invest $5 billion in the Council’s City for All housing plan to support affordable housing, homeownership, and neighborhood infrastructure improvements, the Council-modified zoning changes represent one of the most significant advancements of housing solutions in New York City history. It is another major step by the Council to address the city’s housing and affordability crisis, building on Speaker Adrienne Adams’ Fair Housing Framework Act and the recently passed FARE Act to reform broker fees.

The Council also passed legislation to provide complementary legal frameworks to the zoning reforms for ADUs and basement apartments, as well as to better track approved affordable housing developments, provide tax abatements for the maintenance and preservation of affordable housing buildings, update flood maps and sewer maintenance plans, and support older adults aging in place.

“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,” said Speaker Adrienne Adams. “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.”

Building More Homes, Investing in Affordability and Neighborhoods

City of Yes: Zoning for Housing Opportunity – A citywide zoning text amendment, initiated by the Department of City Planning and modified by the Council, to change residential height, density, parking requirements, affordability, urban design, and other aspects within city zoning regulations. It is the first citywide zoning text amendment designed to increase housing production across all neighborhoods and is estimated to create over 82,000 housing units over 15 years.

In response to robust community engagement, the Council modified the proposal in three primary ways: to make new housing development more contextual with existing neighborhoods, particularly for blocks of small homes; to increase the amount of affordable housing that will be created and make sure it reaches New Yorkers with lower incomes; and to protect existing tenants and homeowners.

Council modifications precisely tailored certain proposals to reflect a neighborhoods’ public transit, flood risks, and existing homes, while preserving all key elements in the initial text amendment and the core fair housing principle that every neighborhood contribute to housing production. A key modification by the Council includes establishing affordable housing incentives in low-density areas that make inclusionary zoning citywide for the first time in New York City, ensuring the creation of affordable housing is possible in every part of the city. The Council also advanced modifications to establish greater affordable housing levels for existing and new zoning incentive programs, so they reach New Yorkers with incomes at or below 40% of area median income (approximately $43,000 for an individual and $62,000 for a family of four).

The modifications are detailed here.

In addition to the zoning changes, the Council secured $5 billion in City and State funding commitments for its City for All housing plan. The funding will support affordable housing, NYCHA, Mitchel-Lamas, affordable homeownership, sewer, street and open space infrastructure improvements, tenant protections, city housing agencies, and new neighborhood planning efforts to create more housing in future years.

Establishing Basement and Ancillary Dwelling Unit Legalization

Introduction 1127-A, would establish a basement and cellar dwelling unit legalization program in certain community districts. The Department of Buildings would inspect such units prior to issuing an authorization and, if issued, the building owner would be permitted to do any necessary construction on the unit to legalize the unit and apply for an amended or partial certificate of occupancy. The Department of Housing Preservation and Development would be required to provide technical assistance and outreach to owners of eligible basement or cellar residences.

Introduction 1128-A, would set forth eligibility and design requirements for ancillary dwelling units (ADUs) in one- or two-family dwellings, including utility systems and fire prevention requirements. This bill would prohibit basement and cellar ADUs in coastal and inland flood hazard areas, to mirror such prohibitions in the New York City Zoning Resolution. In localities where ADUs are legalized, homeowners have used them in variety of ways including supplementing their income, downsizing while renting out the primary residence, and sustaining multigenerational living.

Renewing the J-51 Tax Abatement Program

Introduction 654-A, would implement a renewed version of the J-51 program for rehabilitation and renovation projects of certain multiple dwelling buildings. Following the expiration of J-51 in June 2022, the State Legislature passed, and the Governor signed, legislation authorizing the City to enact a new, altered version of the J-51 program. Eligible buildings would include: condos and coops where the average assessed valuation is under $45,000 per unit, and rental buildings where more than half the units are affordable, they are operated by limited-profit housing companies, or they receive substantial governmental assistance. Owners of these buildings could recover up to 70% of the cost of work to rehabilitate these buildings in the form of tax abatements for up to 20 years. The Department of Housing Preservation and Development would establish a certified reasonable cost schedule to identify the work and costs that qualify for this program and will report annually on its implementation and enforcement.

Improving Transparency of Affordable Housing Project Status

Introduction 850, would require the Department of Housing Preservation and Development to submit biannual reports to the Council regarding city-financed affordable housing development projects involving the disposition of city property. The reports would include the date the developer was selected by HPD, the date the project received ULURP approval, the 6-month cycle during which the disposition is expected to occur, and the actual closing date for projects that have already closed. 

Updating Flood Maps and Sewage Flooding Plans

Introduction 814-A, would require that the Department of Environmental Protection (DEP) update the sewer backup prevention plan by 2025 and conduct regular updates thereafter. DEP regularly conducts field investigations in response to complaints of sewer backups, but the outcome of those investigations is not always shared. Therefore, the bill would also require DEP to provide timely notice to residents and complainants when it determines that certain sewer backups have occurred.

Introduction 815-A, would require DEP, in consultation with DOB and the Office of Long-Term Planning and Sustainability, to create and regularly update an interim flood risk map identifying areas at risk of flooding due to 10-year rainfall events and sea level rise (as projected for the year 2050), as well as coastal flood areas with a 1% or greater chance of flooding in any given year (including the impacts of sea level rise as projected for the year 2080).   

Supporting Older Adults with Aging in Place

Introduction 1022-A, would require the Commissioner of the Department for the Aging to conduct a three-year study on Naturally Occurring Retirement Communities (NORCs) and Neighborhood Naturally Occurring Retirement Communities (N-NORCs) in New York City. The study would identify potential NORCs and N-NORCs, assess the needs of older adults, evaluate necessary improvements, and collect data on demographic trends and health outcomes. Within two years of completing the study, the Commissioner would be required to develop and implement a plan to support aging in place within these communities.

Introduction 1054-A, would require the Commissioner of the Department for the Aging to submit a 10-year Aging in Place Plan that would focus on assisting older adults with aging in place throughout New York City, and would include proposed projects and recommendations.


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