Regulatory Obstacles Challenge NYC's Housing Solution

One proposed fix for New York City's ongoing housing crisis is facing significant regulatory barriers. The plan to utilize spaces like attics, basements, and backyards for additional housing units is encountering substantial opposition from regulations.

Zoning Reforms and Their Potential

Under newly implemented zoning laws, owners of certain one- and two-family homes may now add 'accessory dwelling units' (ADUs) either to rent, house family, or even to live in themselves. This initiative could enhance property value and provide supplemental income while tackling the city's acute shortage of affordable housing. Moreover, it aims to legalize numerous pre-existing basement units by aligning them with health and safety standards.

Nevertheless, these changes come with limitations. The law precludes ADUs on properties with attached rowhomes or townhouses and restricts them on lots situated more than half a mile from public transport. Ground and basement ADUs cannot be added in flood-prone zones. Plus, backyard units are confined to covering only one-third of the available yard space and are forbidden in historical districts.

New York State's Role

The introduction of ADUs does not solely depend on city regulations but is also governed by New York State’s Multiple Dwelling Law (MDL). This law mandates that buildings of three or more units possess infrastructure commonly found in larger complexes, such as sprinkler systems and specific basement ceiling heights, which may be financially burdensome for current buildings to adopt.

According to Marcel Negret from the Regional Plan Association, many locations that might add an ADU could inadvertently trigger the MDL, rendering them impractical for design purposes. Nevertheless, exemptions exist. Detached ADUs aren't subject to the MDL since they don't form part of an existing building. Additionally, certain city neighborhoods are engaged in a basement legalization effort that exempts them from some MDL stipulations.

Amending the Laws

State legislators could modify the MDL to ease ADU implementation challenges within the city—an action the city has advocated for, according to Eric Kober of the Manhattan Institute. However, he is skeptical that state lawmakers will prioritize this issue. Kober also points out that the requirement for homeowners to reside on the same property as the ADU is counterproductive, as it disenfranchises private developers from constructing ADUs.

Expectations are low for the immediate effect of these reforms as the city anticipates that less than one in 200 eligible homeowners will proceed with adding ADUs per annum. Negret predicts that out of the 82,000 additional homes planned under the City of Yes initiative over the next 15 years, only a few thousand will constitute ADUs, a drastic reduction from earlier projections following downsizing by the city council.

Ongoing Developments

Legalizing ADUs is only the beginning. The city is crafting new regulations that will impact where and how ADUs can be constructed, such as updated flood maps. These initiatives are still underway, and it's uncertain when the final rules will be set in stone.

Eventually, the city plans to launch a comprehensive online portal to assist homeowners through the ADU creation process, including offering pre-approved design templates. New York is drawing inspiration from cities like Los Angeles and Seattle, which capitalize on ADUs as a relatively straightforward housing solution. Following California's easing of ADU restrictions, these units constituted nearly 20% of homes built in 2023.

However, legal barriers persist. ADU legalization alone often does not yield a significant increase in home construction without complementary changes to local land use laws and planning regulations. Common impediments include requirements for owner-occupancy, mandatory off-street parking, and complex permit reviews.

Pilot Programs and Future Outlook

Last year, New York City launched the Plus One ADU program, granting funds to select homeowners for adding units in existing household spaces. Although this initiative has expanded, it still only aids properties pre-zoned for additional units.

Dan Garodnick of the Department of City Planning emphasized that ADUs are a proven strategy to support families needing more space, extra income, and the ability to age in place.