With City of Yes, the Mayor has adopted a new approach focusing almost exclusively on providing as many new units as possible. To this end, parking requirements, density restrictions, floor area caps and yard regulations have either gotten significantly reduced or altogether thrown out the window.
The largest zoning change in 40 years, City of Yes turns the proverbial envelope on its head. Expect NYC to look like the Wild West for a couple of years while the market figures it out.
Since the introduction of Quality Housing in the 1980's, the City has always focused on keeping the City "contextual." The goal has been to provide an increasingly higher amount of floor area, through both localized up-zonings and Inclusionary Housing. This 'update' will change the character of almost every neighborhood, making it very "un-contextual".
Traditional pricing metrics, like FAR, now take a back seat. Developers now have to find an efficient method to determine the optimal number of units to stuff on the lot. As property values (and property taxes) get inflated by higher FAR ratios, construction costs now trend more closely to price-per-unit than price-per-square foot.
We recommend looking seriously at the upcoming changes to best learn how to work within them. The new regulations are likely to go into effect by the end of the year, presenting a unique opportunity to find new values.
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