On December 5, 2024, the NYC city council passed the City of Yes (COY) rezoning plan, the largest zoning change in many decades, which aims to create 80,000 new units over the next decade. This rezoning changed so much that many ideas got completely lost in the press coverage. We heard a lot about parking requirements, but we haven't seen anyone explain how the plan provides for additional buildable area near transit. Hello, Transit-Oriented Development.

The idea is simple: Enable more construction for lots that are close to mass transit. How does this work in practice? 

1. The lot has to fit criteria (details below) to be deemed a "Qualifying Residential Site"
2. If so, the lot gets an FAR bonus (and also more height).

See the example below as provided by the COY documentation (warning: the FAR numbers are outdated and should be taken from the table below):

While this sounds eminently sensible, there's one big question: How important is this change? Will this lead to meaningful new construction? 

The conditions

To start with some terminology: The updated zoning code introduces the term "Qualifying Residential Site" (QRS), which includes two types of lots:

1. Transit-oriented-development (TOD), the focus of this post
2. Town-center housing: Upzoning residential use in commercial districts. We won't talk about this here, because we'll cover this in a designated post.

To qualify as TOD, here's what you need, per page 97 of the zoning code (warning, 100MB), full text in the appendix.

1. Zoning districts R3-R5 (of any sub-type)
2. Big lot, 5,000 sq feet or larger
3. Greater Transit Zone: Simplified, this includes all of Manhattan, and then all locations within a half-mile of mass transit.
4. Frontage with wide street or the short dimension of a block

What do I get? FAR and Height, mostly

The table below shows the changes to the floor-area-ratio (FAR). There are some districts that do not see FAR increases, but they might still see increases in the maximum height.

How does this look in practice?

Staten Island makes a good example, because it has many large lots. Below, we show the neighborhood of New Dorp. Notice that the grey line in the map is the subway, and anything within a half-mile of a subway station qualifying for the "Greater Transit Zone". The solid purple color describes areas outside of this zone, which do not qualify regardless of any other aspects of the lot.

In this neighborhood, a large share of the residential area qualifies for QRS, because Staten Island has many low-density districts (R3-R5), and because there are many more lot sizes exceeding 5,000 sq feet than in other boroughs.

The total: More than 23,000 lots

We find that more than 23,000 lots qualify for TOD. Below, we show the average  share eligible per neighborhood. What stands out:

• We see barely any TOD lots in Manhattan. The likely reason is that there are few low-density districts with large lots.
• Staten Island sees many TOD lots, but only around the subway line
• TOD lots disappear when moving towards the outer end of Queens, likely because there are now nearby subway stations

Our Takeaway: Lots of opportunity

There are now over 23,000 lots that see substantial increases in FAR and height. Since the calculation is complicated, it's likely that most of this information is not known, and that you can find great opportunities when you know exactly which lots got up-zoned.

At zonedinsights.com, we make it possible to take this to the next level:

1. We provide a filter to select TOD lots
2. We make the full list of lots available as bulk data to subscribers of our "pro" plan

We also encourage you to email us and let us know how can improve this analysis, or what else you'd want us to work on next.

Appendix

Definition of Qualifying Residential Site

See See page 97 of the zoning code (warning, 100MB)

 “qualifying residential site” is a #zoning lot#, or portion thereof:

(a) in an R1 through R5 District, that:

1. meets the following criteria:
   has a minimum #lot area# of at least 5,000 square feet;
   (ii) is located within the #Greater Transit Zone#. For the purposes of this
   definition, the geography of the #Outer Transit Zone# shall only include
   those #mass transit stations# existing on December 5, 2024;
   (iii) has frontage along a #wide street# or along the #short dimension of a
   block#; and
   (iv) is not located within an R1 or R2 District; or
2. is located within the #Greater Transit Zone# and includes a #building# that
   contains floor space allocated to #community facility# #uses# existing on
   December 5, 2024;
   (3) is located outside of the #Greater Transit Zone#, has a minimum #lot area# of at
   least 5,000 square feet and includes a #building# that contains floor space
   allocated to #community facility# #uses# existing on December 5, 2024; or
   (4) is located in an R3-2, R4, R5 or R5B District, and contains #qualifying senior
   housing#;

(b) in a C1, C2 or C4 District mapped within, or with a #residential equivalent# of, an R1
through R5 District:

1.  where the #Commercial District# the #zoning lot# is located within meets the
   following criteria:
   (i) the #Commercial District# extends continuously over an entire #block#
   frontage, and along the same #street# frontage, a #Commercial District# is
   mapped on at least one of the adjoining #block# frontages; and
   (ii) along the long dimension of the #Commercial District#, not more than 50
   percent of the #zoning lots# located entirely within such #Commercial
   District# are #developed# with #single#- or #two-family# #residences#
   existing on December 5, 2024; or
2. where the conditions of (b)(1) cannot be met, the #zoning lot# meets one of the
   criteria set forth in paragraph (a). For the purposes of applying such provisions,
   where #Residence District# limitations apply, they shall not extend where a
   #Commercial District# is mapped within such #Residence Districts#; or
   (c) in an M1 District paired with an R1 through R5 District.

For #qualifying residential sites# utilizing the #floor area ratio# provisions of Section 23-21,
where the permitted #residential floor area# on the #zoning lot# exceeds 50,000 square feet, all
of the #residential floor area# that exceeds an amount equivalent to the maximum #floor area
ratio# in such Section divided by 1.2, shall be restricted pursuant to an #affordable housing
regulatory agreement#, or restricted pursuant to a or #restrictive declaration# to occupancy by
#households# having an income less than or equal to a weighted average of 80 percent of the
#income index# at initial occupancy, with no more than three #income bands# and no #income
band# exceeding 100 percent of the #income index#, and shall meet any additional requirements
as specified by HPD in the #guidelines#, as those terms are defined in Section 27-111 (General
definitions).