New York Governor Kathy Hochul has announced new proposed legislation that would repeal a law that limits the population density for residential buildings in New York City. The repeal, if successful, would make it easier for New York City to develop residential buildings with high population density limits. This, in turn, could help make housing more affordable in a city where affordable living space is increasingly rare.
What is the Law The Governor Wants to Repeal?
The proposed legislation would repeal Section 26(3) of the Multiple Dwelling Law (MDL), which limits the maximum residential density in New York City to a floor area ratio (FAR) of 12. The floor area ratio is the amount of available floor space compared to the total amount of buildable land on a particular plot of property. In effect, Section 26(3) makes it so that residential buildings in the city can have no more than twelve times the amount of floor space available than there is buildable land, limiting the amount of living space any single building can have.
What Does This Law Do?
Section 26(3) of the MDL is a type of land use law that limits how certain properties can be developed. Areas with a lower FAR have a lower population density than those with a higher FAR, potentially affecting its value to both real estate developers and property owners. By limiting the FAR within the city, it also places a hard limit on the amount of residential space that is available within a specific area, making it harder to develop land for residential use.
What Would Repealing This Law Do?
By repealing this limit on residential density, developers would now be able to build residential buildings that hold far more people than they currently do. New buildings could be constructed to allow more people to live within them than are currently allowed, and existing buildings could be upgraded to allow more living space. This, in turn, could help to make housing more available for people who struggle to find places to live in New York City.
How Issues Does This Proposal Face?
Aside from potential political issues, there are several legal issues the law can face. The biggest issue is that the existing New York City Zoning Resolution also limits the FAR to 12, regardless of what the state law says. Fully repealing the current FAR limit would thus require changing the city’s zoning resolution before it could fully go into effect. If it is able to overcome this hurdle, however, it could significantly change the real estate market throughout the City.
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