Last week, the City Planning Commission voted to approve Mayor Adams’ “City of Yes for Housing Opportunity” plan in a 10-3 vote. Renters and buyers alike are facing low inventory, and this housing policy overhaul promises to deliver over 100,000 new housing units to the local market over the next 15 years, mostly by virtue of zoning changes that would allow new housing to take shape.

“City of Yes” features seven initiatives designed to move the dial on housing expansion. The next step is for it to go before City Council, where tighter odds are predicted owing to objections from local residents and developers alike. As we wait to see how this plays out, we take a look at the proposed changes.

#1. Universal Affordability Preference

The new Universal Affordability Preference tool will allow buildings to add up to 20 percent more housing units, but only if the units are considered "affordable." While this may sound like a great idea, it is also where the "City of Yes" remains a bit fuzzy. City councilors maintain that "affordable" means that a family of five looking for a three-bedroom would not pay more than a third of their family income on rent, but what does this look like in reality?

Let’s say you have two local high school teachers with a combined income of approximately $140,000 annually looking for a home for themselves and their three young children. A third of their gross income would be roughly $46,000 annually, which means an “affordable” three-bedroom unit is anything under $3,900 monthly. Although a three-bedroom under $4,000 would represent a deal in the current market where the average price on a Manhattan three-bedroom is over $9,500, whether such an apartment is truly affordable to a middle-class family is questionable.

After taxes and other deductions, the monthly take-home pay of a couple making roughly $140,000 in New York City is likely closer to $7,000. This means that in reality, the couple would still be spending roughly half or more than half of their take-home pay on housing and the rest on transportation, childcare, food, recurring bills, and other basic necessities.

Indeed, some activists are heartened by the idea of more housing, but are concerned that it will not be truly affordable. One of the City Planning Commission members who voted no objected on exactly these grounds (h/t City Limits).

#2. Office to residential conversions

Since the pandemic emptied out many office buildings, there have been calls to convert empty and underused office buildings into residential buildings. In response, the "City of Yes" plan includes several zoning bylaw updates that, in theory, will speed up conversion efforts. In the meantime, the City has also launched a “one-stop shop” for owners interested in converting their properties.

However, converting office buildings into residential buildings is easier said than done. While Mayor Adams and his team estimate that office-to-residential conversions could produce up to 20,000 new units of housing for 40,000 New Yorkers, the cost of and likelihood of these conversions happening remains uncertain. Due to the large floor plates found in most office buildings, which require fewer windows and air shafts than residential units, conversion projects, if they are possible at all, are nearly always costly and complex to complete. As such, even with such initiatives, many architectural engineers believe that only a small portion of local offices will ever be successfully converted into residential units.

#3. Town center zoning

Across New York City’s five boroughs, residential units can be found above commercial properties. With the launch of “City of Yes,” more residential properties will be permitted above existing commercial properties. The hope is that this initiative will bring more housing to major transit corridors, helping to increase housing and public transit usage. But for this plan to work, a high percentage of developers will need to determine that constructing low-rise residential buildings on and near transit corridors is a good investment.

#4. Removing parking mandates

Starting in the 1950s, developers were required by law to build additional parking whenever they built additional residential units. While this car-positive law was already being phased out in parts of Manhattan by the early 1970s, the law is still in place in many of the city's less densely populated neighborhoods. In addition to increasing the cost of new housing, the law has, over time, become increasingly misaligned with New Yorkers' priorities and the current administration's commitment to becoming Carbon Neutral by 2050.

With the "City of Yes," housing and parking will no longer be linked, freeing developers to add new housing units citywide without adding new parking spaces. While this is terrific for new residential buildings in Manhattan and Downtown Brooklyn, residents of areas without such extensive public transportation options worry that not enough parking will leave them with not enough options to get around.

#5. Accessory dwelling units

Although most New Yorkers don’t have a backyard, for those who do, ADUs (accessory dwelling units) are now legal. “City of Yes” will legalize ADUs (up to 800 square feet) on one- and two-family properties across all five boroughs. In the fall of 2023, the City launched its ADU initiative with the Plus One ADU Program, which provided financing for fifteen lucky local homeowners to start their ADU projects.

AMNY ran an editorial by the New York City Department for the Aging Commissioner and New York State AARP Director endorsing this aspect of the plan for how it could help older New Yorkers. However, residents of neighborhoods like Bayside, Queens have expressed concern that the legalization of ADUs will eat into the green space that made the areas attractive to begin with.

#6. Transit oriented development

In many New York City neighborhoods, zoning laws restrict not only high-rise developments but also three- to five-story developments. Over time, this has pushed many New Yorkers into the far reaches of outer boroughs and increased their commuting times to school and work. "City of Yes" proposes to lift the limit on constructing low-rise multi-dwelling units near existing transit hubs to help more New Yorkers live closer to transit centers.

A March 2024 report by the Regional Plan Association went so far as to say that “[transit-oriented development] is the key to solving our region’s affordable housing crisis,” but acknowledged that outdated zoning restrictions both in New York City and the surrounding suburbs are keeping this from going forward. This part of “City of Yes” could help spur the development of new units, but only if developers agree that building residential units close to transit hubs will likely yield a strong return on investment over time.

#7. Campus housing

When most people hear “campus housing,” they think of dormitories and buildings located near the city’s top universities. But in the context of “City of Yes,” campus refers to large lots that include those owned by faith-based organizations. These lots are often home to both underutilized space and abundant development rights, but current zoning requirements keep both the organizations and developers from making the most of them. “City of Yes” seeks to make it easier to add contextual, height-sensitive buildings to these areas.