Over the last few years, Bed-Stuy is growing rapidly into one of Brooklyn’s premiere development markets. Last year alone saw the construction of 20 new buildings, totaling 210,051 SF. Additionally, 21 alt 1’s added another 278,165 SF, and there were 21 applications for demolition permits. National chains once hesitant to enter Bed-Stuy have recently opened their first locations in the neighborhood, including Shake Shack and Chipotle in the past year.  This rapid growth brings both increased change and demand. It is imperative that property owners stay informed about the latest zoning initiatives to understand the maximum value and vision of their property. It is time for unique communities like Bed-Stuy to reach their full potential. With the “City of Yes” initiative on the horizon, owners and developers in the area who are used to hearing “no” from the city when aiming to build meaningful projects in the community will soon be hearing “YES.”

New York City's ambitious "City of Yes" initiative is set to reshape the urban landscape, bringing both opportunities and challenges to development site owners in Bedford-Stuyvesant. As the city battles a housing crisis, this sweeping zoning reform aims to unlock new potential for housing development across all neighborhoods, including this historic Brooklyn enclave.

Universal Affordability Preference (R6-R10 Zoning)

With the vast majority of Bed-Stuy encompassing medium and high-density zoning, the universal affordability preference (UAP) aspect of “City of Yes” proposal is critical to understand. UAP would allow buildings to include at least 20% more housing if the additional homes are permanently affordable.  This program lets developers build larger projects while also addressing the housing shortage.  This proposal would encourage affordable housing throughout Brooklyn, rather than concentrating it in select neighborhoods. Today, most zoning districts only allow affordable senior housing to be 20% larger than other buildings through the Affordable Independent Residences for Seniors (AIRS) program. UAP expands this framework to include all forms of affordable and supportive housing, broadening opportunities for all those seeking affordable homes. For developers, this means it will be easier to build affordable housing and, in turn, larger buildings in every medium and high-density zoning district.

For example, a development site with R6 zoning would see the normal 3.0 FAR limit increase to 3.9 FAR under this initiative. Anything above the 3.0 FAR basic limit must be allocated to permanently affordable units, creating 10-12 more affordable homes for people in need. The impact of UAP on property values will differ for each owner.

Transit-Oriented Development: Enhancing Connectivity (Residential Only)

Another key element of the "City of Yes" initiative is Transit-Oriented Development (TOD). This strategy focuses on enabling modest apartment buildings in areas with favorable access to public transit, such as the Greater Transit Zone within Bed-Stuy.

Development sites within half a mile of subway or rail stations stand to benefit significantly from TOD. The zoning allows for the construction of slightly larger apartment buildings, typically three to five stories high, which are highly sought after due to their convenient access to public transportation.

TOD zoning provides extra FAR and height allowances, maximizing land use and enhancing the profitability of development projects. This approach supports sustainable development by reducing reliance on cars and meets the growing demand for housing near transit hubs.

For example, an R5 zoned property on a wide street that is over 5,000 SF within half a mile of a transit station would see the FAR increase from 1.25 to 2.00 with TOD. This takes the maximum unit capacity in this building from 18 units to as many as 30 units.

By focusing on areas near transit, TOD encourages sustainable living practices. This not only benefits the environment but also aligns with market trends showing a preference for transit-accessible living, further boosting the appeal of development sites in these zones.

While these “City of Yes” ideas are transformative and intriguing to discuss, this proposal is still in the public information phase. Community board hearings began in the spring, with the entire process expected to run for seven months. A city council vote on the housing opportunity should be anticipated before the end of this year.