The recently adopted City of Yes for Housing Opportunity (COYHO) text amendment effected a sweeping overhaul of the city's zoning regulations, as discussed in our recent client alert. Last week's client alert discussed COYHO's changes to the framework for landmark transfers. This alert addresses changes to the floor area bonus for affordable housing under COYHO's Universal Affordability Preference — UAP — provisions.
COYHO includes several key differences from the current Inclusionary Housing bonus framework:
- Increased Floor Area Ratio (FAR): A floor area
increase is now allowed in all R6 through R10 districts for
developments that provide affordable housing under the UAP program.
The additional floor area is in most cases equal to 20% of the
floor area available for market rate development. Some districts
also received an increase in the permitted base FAR.
- Bonus Floor Area: UAP floor area is not
considered to be bonus floor area. All floor area above the market
rate maximum is required to be provided as affordable housing,
which means that the UAP increase is 1-to-1, compared to the
1.25-to-1 bonus that was available in former Inclusionary Housing
Designated Areas (IHDAs), and the 3.5-to-1 bonus that was available
in former R10 inclusionary areas.
- Location of UAP Units: All UAP units must be
located on-site, with the exception of sites located in
R10-equivalent districts and former IHDAs, which are eligible for
additional market rate floor area where off-site UAP affordable
housing is provided through the purchase of Inclusionary Housing
certificates. Future certificates will generate market rate floor
area on a 1-to-1 basis. Existing Inclusionary Housing certificates
and in-process certificates that meet specified vesting conditions
can continue to generate market rate floor area at the ratios
applicable prior to the adoption of COYHO.
- Recreation Space Bonus: The recreation space
bonus that was formerly available to residential uses in the
Special Midtown District and Special Lower Manhattan District has
been eliminated. UAP sites, with either on-site or off-site
affordable housing, are eligible to achieve 12 FAR of residential
floor area.
- AMI Levels: The UAP units must be affordable
to families earning a weighted average of 60% of Area Median Income
(AMI). Up to three income bands may be provided, with no band
exceeding 100% of AMI. In projects with at least 10,000 square feet
of affordable floor area, 20% of the UAP floor area must be
affordable for families earning 40% of AMI. The old R10
inclusionary areas and IHDAs required affordable housing not to
exceed 80% AMI.
Note that these income levels will differ in many situations from the income levels required by the 485-x tax exemption program.
- Additional Height: In R6 through R10 districts, greater heights are allowed for developments using a UAP floor area increase. Such developments must follow contextual bulk regulations, with maximum base heights, maximum building heights, and required setbacks (though "tower" massing is available in some cases).
There are many nuances to the COYHO amendments, which vary based on a property's zoning district and site conditions. Kramer Levin's Land Use team is here to assist you in evaluating development options for your particular site.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.