The NYU Furman Center Submits Testimony on the City of Yes for Housing Opportunity
NYU Furman Center’s Executive Director Matthew Murphy on October 22 testified on City of Yes for Housing Opportunity before the New York City Council Subcommittee on Zoning and Franchise, stressing the necessity of why it is essential to remove unnecessary obstacles that prevent New York City from adding the affordable and market-rate housing it urgently needs.
The city’s severe housing shortage threatens its ability to support its existing population and sustain its economic vitality and diversity. High housing costs and lack of options will continue to constrain the city’s growth, driving away current residents and deterring new talent from coming to New York, which has long thrived on attracting people from across the country and the world. COYHO takes a significant step in addressing these challenges by eliminating key barriers to housing development, creating a path for both affordable housing and market-rate housing in every neighborhood to meet rising demand and ensure New York can remain a place of opportunity for all.
New York City’s housing stock has not kept pace with demand. As of 2023, the city’s vacancy rate was just 1.4 percent—well below the 7 percent threshold needed for a healthy, functioning housing market.
To respond to this critical issue, which is central to New York City’s future, the city needs to make it easier to build affordable housing and market-rate housing.
COYHO tackles these issues with a comprehensive set of provisions that, collectively, aim to increase both affordable and market-rate housing by eliminating long standing impediments to multifamily development. As a package, COYHO would make better use of New York City’s limited land, help slow the increase in development costs, and unlock the potential for more housing across all neighborhoods. Importantly, it includes measures designed to address the uneven distribution of housing growth that has exacerbated inequality in recent years.
Key provisions of COYHO include:
● Eliminating minimum parking requirements: This will reduce residential construction costs, making development more financially feasible, and freeing up space for more housing, particularly in transit-rich neighborhoods.
● Aligning with 485-X to make permanently affordable development a likely outcome in denser parts of the city: Under the Universal Affordability Preference (UAP), COYHO allows for increased density in multifamily zones if permanent affordable housing (affordable to households earning an average of 60% AMI) is included, but project financing will rely on the use of the 485-X property tax benefit. The added density will not be sufficient to make the development and operation of affordable housing feasible unless a tax incentive like 485-x is available.
● Expanding the ability to convert obsolete office buildings to housing: This will help repurpose underutilized commercial space, adding much-needed residential units in parts of the city where housing demand is strong (affordable and market rate, again when paired with the 467-m property tax benefit). ● Removing constraints on low-rise housing: Allows more low-rise multifamily housing and ADUs in low-density districts, increasing housing options. This could add smaller, more affordable units in neighborhoods that have seen little housing growth.
● Creating town center zoning: Promotes mixed-use development, adding residential units above commercial spaces.
● Transit-Oriented Development (TOD): Encourages higher-density housing near transit hubs, increasing housing supply in well-connected areas. This can lead to more multifamily buildings, enhancing housing access near public transportation.
● Promoting campus-style development: Supports large-scale projects that combine housing with other uses, boosting overall housing production. These projects could introduce a mix of market-rate and affordable units, alongside commercial or institutional spaces.
● Reviving SRO development: Encourages the construction of single-room occupancy units, which can offer a lower-cost housing option for single individuals.
COYHO is a long-term solution for a long-term challenge, and works to address New York City’s critical need for additional housing—both affordable and market rate. It provides a framework for ensuring that all neighborhoods contribute to meeting the need. While no proposal is perfect, COYHO’s benefits far outweigh its potential trade-offs. Decisive action is needed to ensure that New York City remains a place where opportunity is available to all who aspire to pursue their dreams here, regardless of their income level.
Read the rest of the prepared testimony here.
