By Jenn Martin

If you’ve been following New York City news over the past year, you’ve heard of Mayor Adams’ “City of Yes,” outlining plans to modernize and update the city’s zoning regulations to “support small businesses, create affordable housing, and promote sustainability.”

But what does “City of Yes” really mean? Understanding the complexity of the proposal and the expansive amount of coverage it has gotten in the media, IMG’s NYC Team went ahead and answered the questions on everyone’s minds.

What is “City of Yes?”

Mayor Eric Adams’ “City of Yes” plan has three major components focused on carbon neutrality, economic opportunity, and housing opportunity:

• City of Yes for Carbon Neutrality: This was the first “City of Yes” initiative aimed at “decarbonizing” and reducing the city’s greenhouse gas emissions. Its goal was to modernize the city’s zoning regulations to support its climate goals in response to the global climate emergency. To achieve this goal by 2050, the plan promised to transform New York’s energy grid, make its waste streams cleaner, retrofit its buildings, and shift to electric vehicles, transit, and other modes of transportation. It was adopted by the City Council on December 6, 2023.
• City of Yes for Economic Opportunity: The second initiative outlines new zoning rules that remove outdated limitations on businesses, reduce retail vacancy, support growing industries, and help local retail and commercial corridors thrive. It was passed by the City Council on June 6, 2024, and is now reflected in New York City’s Zoning Resolution.
• City of Yes for Housing Opportunity: The final initiative addresses New York City’s housing shortage. The zoning reform proposal will address the housing crisis by making it possible to build more housing across New York’s five boroughs. It went through public review in the spring and summer of 2024, and was approved by the City Planning Commission (CPC) in September. Most recently, on November 21, Mayor Eric Adams and the City Council came to an agreement on a modified “City of Yes for Housing Opportunity” deal, moving forward a revised initiative that would drive more housing development. As part of the last-minute deal, the administration has pledged to spend $5 billion in city and state funds on sewers, streets, open spaces, and staffing at housing agencies, as well as on affordable housing programs and infrastructure improvements. The modified plan will go to the full City Council for a final vote at the December 5th meeting, where it is expected to pass.

What does “City of Yes” mean for the life sciences?

On June 6, 2024, the City Council approved the “Zoning for Economic Opportunity” plan, updating New York’s outdated zoning regulations, which previously hadn’t changed since 1961. Applied citywide, the plan permits small businesses with more development opportunities, supports economic growth, and expands industries such as New York City’s $3 billion life sciences industry. These updated zoning regulations will allow life science labs and research facilities to expand in commercial districts near universities and hospitals, subject to certain limitations.

The new development regulations will support the city’s existing plans to strengthen the life sciences industry. Previously in 2016, The Economic Development Corporation, launched its $1 billion LifeSciNYC under former Mayor Bill de Blasio which promised to add 10 million square footage of lab space and 40,000 life sciences jobs over the next decade. With this increased ability to build and open new lab space in additional city districts, the “Zoning for Economic Opportunity” plan will allow for more jobs growth in the life science sector.

What does “City of Yes” mean for housing?

The original “City of Yes for Housing Opportunity” plan had three separate proposals that impacted real estate developers: to end parking mandates for new housing in some neighborhoods, to allow for the development of Accessory Dwelling Units (ADUs) (i.e., backyard and basement dwelling units), and for housing to be built above businesses on commercial streets in low-density areas.

It also allowed developers to build apartment buildings near transit stations in areas of the city that were previously off-limits, and to construct larger buildings, with the requirement that some housing be reserved for lower-or-moderate income residents or the homeless.

In the modified proposal, the administration estimates that it could add 80,000 housing units in the city’s outer borough, low-density neighborhoods over the next 15 years.

The plan will also prohibit the development of ground floor and basement ADUs in coastal flood zones, restrict single-family districts from building near transit stations, add affordability requirements to transit-oriented and “town center” projects, and increase affordability requirements for new density bonus programs. It will provide a 20% affordability incentive, whereby large projects of 50 units or more can take advantage of Transit Oriented Development if 20% of the housing units in said project are affordable at 80% Area Median Income (AMI).

Regarding parking mandates, the new proposal will separate the city into three tiers with different parking-space requirements and preserve parking minimums for new housing projects in most neighborhoods. Real estate developers will most likely view this as a positive. With the removal of parking mandates, it will enable them to increase housing and bring in more revenue than parking spots.

With its third and final initiative likely to pass this December, Mayor Adams’ three-pronged “City of Yes” plan is set to have a long-lasting impact on the future of New York City. At IMG, we will be looking to see how the changes impact our clients, particularly in the life science and real estate sectors.