On Thursday, December 5th, Governor Kathy Hochul, Mayor Eric Adams, and City Council Speaker Adrienne Adams announced the historic passage of the “City of Yes for Housing Opportunity” initiative, heralded as New York City’s most pro-housing zoning reform in history. The legislation aims to address the city’s housing crisis by enabling the creation of 80,000 homes over the next 15 years, supported by a $5 billion investment in housing and infrastructure.
Governor Hochul underscored the urgency of the initiative: “Our only shot at solving New York’s affordability crisis is by building more housing—that’s why I’m committing $1 billion for projects that will make ‘City of Yes’ a reality….I signed the most powerful pro-housing legislation in three generations earlier this year, but the work is far from over. That’s why it’s critical for New York City to move forward with zoning reforms that will create more of the homes New Yorkers so desperately need.”
Mayor Adams emphasized its importance for New Yorkers, stating, “Today is a historic day in New York City, but, more importantly, for working-class New Yorkers. We showed the nation that government can still be bold and brave by passing the most pro-housing piece of legislation in city history. Our administration proposed and fought hard for this proposal for more than a year, and now New Yorkers are the ones who will benefit from lower rent….This historic day brings hope for working-class families struggling with high rents and limited housing options.”
Key Features of the City of Yes Plan
The initiative introduces transformative zoning changes, including the Universal Affordability Preference (UAP), which allows 20% additional housing in medium and high-density developments, provided the units are permanently affordable. Had this policy been active since 2014, it could have resulted in 20,000 more affordable homes.
Other significant provisions include the legalization of accessory dwelling units (ADUs), such as backyard cottages and garages, enabling homeowners to generate income while increasing the housing supply. The plan also facilitates transit-oriented development, permitting multi-story residential buildings near transit hubs and commercial corridors with affordability incentives.
Additionally, outdated parking mandates are being rolled back to free up land for housing in high-demand areas. Office-to-residential conversions and re-legalized shared housing models are also prioritized to maximize available resources.
Combating New York City’s Housing Crisis
New York City faces a severe housing shortage, with a rental vacancy rate of just 1.4% and escalating housing costs. Speaker Adrienne Adams described the initiative as a “major step forward” in addressing these challenges. “By supporting tenants, expanding homeownership opportunities, and creating more homes, we are advancing a safer and stronger city,” she stated.
Speaker Adams continued, “Today, the Council made historic strides to create more homes and make our city more affordable by approving the modified Zoning for Housing Opportunity text amendment with $5 billion of major investments in our City for All housing plan.”
Mayor Adams emphasized the comprehensive nature of the plan: “This is not just about housing—it’s about creating opportunity and stability for every New Yorker. ‘City of Yes’ will forever change our city’s history.”
Historic Investments in Housing and Infrastructure
The initiative includes $5 billion in investments, covering $2 billion for infrastructure projects like flood mitigation, sewer upgrades, and public spaces, alongside $1 billion for housing capital. Mayor Adams also committed $1 billion over the next decade to support tenant protections, voucher assistance, and combating housing discrimination.
Governor Hochul highlighted the collaborative effort, stating, “This initiative demonstrates how state and city leaders can unite to address pressing issues like affordability and housing supply.”
Community Engagement and Support
The City of Yes underwent extensive public review, with over 175 community board meetings and broad support from housing advocates, labor unions, and faith organizations. Rachel Fee, Executive Director of the New York Housing Conference, praised the initiative as a “once-in-a-generation opportunity to address affordability and repair the city’s history of segregation.”
Shams DaBaron, a housing advocate, emphasized its potential to combat homelessness: “I’m deeply thankful to Mayor Eric Adams for his courage and commitment to making housing the solution. I’ve walked the streets with him, visited shelters, and brought others with lived experience into City Hall. This administration has listened and acted. The entire team has worked tirelessly to do right by New Yorkers. Housing is the real solution, and today’s decision shows how we can make that a reality for every New Yorker.”
Alignment with Governor Hochul’s Statewide Housing Agenda
The initiative aligns with Governor Hochul’s broader housing policies, including the FY25 budget’s five-year, $25 billion plan to create or preserve 100,000 affordable homes. The budget also includes $500 million for state-owned property developments and protections for renters and homeowners.
“These complementary efforts at the state and city levels are essential to creating a more affordable, equitable New York,” Hochul remarked.
Looking Ahead: A New Era for Housing in NYC
The City of Yes initiative marks a significant milestone in New York City’s housing policy, signaling a shift toward a more inclusive and sustainable future. As implementation begins, its success will depend on sustained collaboration among city leaders, advocates, and community members.
Mayor Adams concluded, “This initiative lays the foundation for a brighter future where every New Yorker has the chance to thrive. Together, we’re building a city that works for all.”
The City of Yes represents a bold commitment to addressing New York City’s housing challenges, setting a national example for innovative urban policy.
