On December 5, 2024, the New York City Council adopted an amendment to New York’s zoning laws known as City of Yes: Zoning for Housing Opportunity (“COYHO”). This landmark update overhauls the 1961 zoning regulations, which have long been criticized for contributing to housing shortages, inflating housing prices, and both creating oversaturated neighborhoods while stunting development in underutilized areas. The stated goal of COYHO is to enable the creation of over 80,000 new homes by 2040, supported by a $5 billion commitment from the New York City Council. COYHO aims to achieve these ambitious objectives through various measures, including incentivizing affordable housing construction, loosening restrictions on what qualifies as legal dwelling spaces, and reducing barriers like outdated parking mandates. Details of regarding the various components of COYHO, including an illustrated guide and other informational materials, can be found by accessing New York City Department of Planning’s website.
The adoption of COYHO signals a promising future for condominium, co-operative, and HOA development in New York City. The initiatives encouraging office-to-residential conversions would potentially open up entire neighborhoods for conversions to residential condominiums and co-ops. “Mixed use” condominiums may also see a significant increase in inventory due to COYHO’s incentives for constructing residential units above commercial spaces, especially in areas near transit lines that may be highly marketable to commuters. The elimination of parking mandates and the broader definition of legal dwelling spaces introduce much-needed flexibility that could redefine how new developments are designed.
Our team at Starr Associates is encouraged to see city officials promoting creativity and adaptability in their approach to our ever-expanding and changing city. COYHO represents a shift towards a more inclusive and forward-thinking vision for urban growth, emphasizing innovation to meet New York City’s evolving housing needs.