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Summary: City of Yes

December 13, 2024

By Shimon Shkury, Ariel Property Advisors


Summary: City of Yes


Below is a preliminary summary of the City of Yes for Housing Opportunity, a citywide rezoning that will enable the creation of over 82,000 new homes over the next 15 years and invest $5 billion towards critical infrastructure updates and housing. The new law will increase the density of many development sites, including properties Ariel Property Advisors is marketing throughout New York City.



Program Before the City of Yes City of Yes for Housing Opportunity
Universal Affordability Preference (UAP) Voluntary Inclusionary Housing (VIH) promoted affordable housing development in recognized zones, allowing a higher FAR in exchange for setting aside 20% of units for renters at or below 80% of AMI. The Universal Affordability Preference (UAP) applies citywide to zoning districts R6 through R12 and eliminates the Voluntary Inclusionary Housing Program (VIH). Developers can build up to the as-of-right FAR entirely at market rates. Any additional residential FAR above this must be allocated to affordable units averaging 60% AMI or below. If more than 10,000 SF of affordable space is required, 20% of the affordable units must be at 40% AMI, with the weighted average of all affordable housing units still at 60% AMI. The highest permitted affordability tier is 100% AMI.
Parking Restrictions New housing outside the Manhattan Core and Long Island City Area required accessory off-street parking. Rolls back parking mandates for new residential construction through a three-zone system.
  • Inner Transit Zone – Eliminated in Manhattan (except Washington Heights and Inwood), LIC, parts of Western Queens, and Brooklyn.
  • Outer Transit Zone – Significantly reduced
  • Outside all Transit Zones – Maintained most parking requirements.
New High-Density Residential Districts The highest density was R10:
  • Base FAR: 10
  • Inclusionary FAR: 12

The 2025 NY State Budget lifted the FAR cap of 12.
Establishes two new high-density zoning districts:
  • R11 - Base FAR: 12 / Inclusionary FAR: 15
  • R12 - Base FAR: 15 / Inclusionary FAR: 18

Any area rezoned to either an R11 or R12 district would become a Mandatory Inclusionary Housing (MIH) zone. Therefore, only Inclusionary FAR would apply.
Conversion of Non-Residential Buildings to Housing Office buildings constructed after 1961 in most areas of New York City could be converted to residential use if they complied with residential zoning requirements and new construction bulk regulations. For buildings erected before 1961 in specific areas of Brooklyn, Manhattan, and Queens, bulk regulations were more flexible, facilitating office-to-residential conversions. Seeks to extend flexible bulk regulations for residential conversions to include buildings constructed before 1991 across most areas of the city.
Transfer of Landmark/Historical District Air Rights Landmarks could only transfer development rights to adjacent lots. Once development rights were transferred, the granting lot’s development capacity was permanently reduced. This remained true even if the landmark designation was removed or the lot redeveloped. Applies to any building designated as a landmark (excluding cemeteries, statues, monuments, or bridges). Allows landmark air rights transfers to any lot on the same block, across the street, or at intersecting streets, plus high-density commercial districts (FAR ≥15). Approval is streamlined through a City Planning Commission Chairperson certification instead of discretionary review. Increased floor area for receiving lots is generally capped at 20%, rising to 30% in commercial/manufacturing districts with FAR ≥15; transfers beyond 30% require additional approval.
Transit-Oriented Development (TOD) and Town Centers Restrictive zoning made it virtually impossible to build new mixed-use buildings that matched their counterparts from decades past. As a result, many commercial corridors were left with underutilized single-story buildings. Allows 3-5 story apartment buildings in low-density, transit-adjacent areas. For projects over 50,000 SF, 20% of units must be permanently affordable at 80% AMI. The same affordability rules apply to town center developments with 2-4 additional stories above commercial uses, though they cannot be located on blocks with mainly single- and two-family homes.
Dwelling Unit Factor (DUF) In all districts, the maximum number of dwelling units on a zoning lot is determined by dividing the maximum residential floor area by the applicable factor for the zoning district. The maximum residential floor area is calculated by subtracting non-residential floor area and space allocated to affordable senior housing from the total permitted floor area. For shared-use areas, floor area is proportionately allocated based on each user's share of the total zoning lot area. Dwelling Unit Factor (DUF) requirements were eliminated in Manhattan below 96th Street and the Special Downtown Brooklyn District.

Standardized DUF of 680 SF in all other areas.

Does not apply to senior housing and single or two-family residences.
Floor Area Provisions for Amenities Amenity space included within the floor area ratio for the building, reducing the amount of allowed residential units within the building. Up to 5% of a building’s residential floor area can be excluded from FAR calculations if used for resident amenities (e.g., recreation, co-working, libraries, laundry). Circulation spaces don’t count, and amenities must be accessible to residents.
Campus Infill Development was not allowed on large campuses or lots because of outdated and conflicting rules. Allows contextually scaled projects on large sites (≥1.5 acres), including faith-based campuses, with special rules for coverage and height.


R5 Districts:
  • Applies transit-adjacent rules.
  • Open sky easements are excluded from lot coverage.
  • The entire site is limited to 50% residential coverage; individual lots may exceed if they meet standard rules.
  • Must replace any lost open recreational space on-site.
  • Buildings must be within 100’ of a street line.
  • Height can increase by up to 10’ or match existing building heights, whichever is lower.

R6–R12 Districts:
  • Large sites: 50% residential coverage cap.
  • Sites 30,000 SF to under 1.5 acres: 65% coverage allowed.
Accessory Dwelling Unit (ADUs) Zoning laws and building codes often prohibited additional dwelling units on single-family lots, and stringent requirements for basements and cellars further constrained the creation of Accessory Dwelling Units (ADUs). Legalizes 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. Can include backyard cottages and converted garages with a maximum floor area of 800 square feet. Only one ADU is allowed per single- or two-family residence on a zoning lot.

To download the table above please click here.

More information is available from Shimon Shkury at 212.544.9500 ext.11 or e-mail sshkury@arielpa.com.

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