August 2013

FURMAN CENTER MOELIS INSTITUTE FOR REAL ESTATE & URBAN POLICY FOR AFFORDABLE HOUSING POLICY NEW YORK UNIVERSITY NEW YORK UNIVERSITY SCHOOL OF LAW • WAGNER SCHOOL OF PUBLIC SERVICE SCHOOL OF LAW • WAGNER SCHOOL OF PUBLIC SERVICE

6Should the next mayor permit more distant transfers of unused development rights to support the development of affordable housing?

In a very dense city with a significant need for affordable housing, unused development rights are an important potential source of additional capacity. At least one mayoral candidate has proposed allowing wider transfer of development rights to support the development of affordable housing. Many communities, however, fear the increased density that additional transfers would create.

#NYChousing | 10 ISSUES FOR NYC’S NEXT MAYOR WWW.FURMANCENTER.ORG | @FURMANCENTERNYU 2 #NYChousing | 10 ISSUES FOR NYC’S NEXT MAYOR CENTER FURMAN NEW FOR REALESTATE&URBANPOLICY SCHOOL OFLAW•WAGNERPUBLICSERVIC 2. 1. transfer development rights inthree ways: to owners property allows city The (TDR) programs. rights development transferable city’s the of throughone lot developmentanother torights unused the transfer to able be may owner the lot, the on permitted area floor maximum the than smaller is building existing the If lot. the of area land the times five to equal area floor a with structure a build FAR can owner a an five, has of building a if example, given For a parcel. on build can owner an much how of determinant primary the as (FAR) ratio area floor uses Resolution Zoning City’s York New THE BASICS

YO Districts 1-6andBrooklyn Community Districts1-2,2013 property recordsproperty Source: Furman Center analysis ofNewYork PlanningData and publicly Department ofCity recorded City TABLE 1: to rights landmarks development unused of transfer to owners the allow permit, Landmark transfers, which require a special the city. in transferredare rights development way that primary the are mergers lot Zoning block. same the on properties right, adjacent to of as rights, to development owner transfer an permit mergers lot Zoning RK UNIVERSITY Stuyvesant Town/Turtle Bay Midtown Clinton/Chelsea Lower EastSide/Chinatown Greenwich Village/Soho Financial District Fort Greene/Brooklyn Heights Greenpoint/Williamsburg Community District Unused Development Rights by ManhattanCommunity Community District, E Manhattan Manhattan Manhattan Manhattan Manhattan Manhattan Brooklyn Brooklyn Borough

LS INSTITUT MOELIS FOR AFFORDABLEHOUSINGPOLICY NEW SCHOOL OFLAW•WAGNERPUBLICSERVICE Policy Source: Furman Center for Real Estate andUrban the sameintersection. touches that corner another on lot any to the street, or, if the landmark is on a corner, across block, same the on parcels adjacent YO RK UNIVERSIT Capacity (square feet) Unused Development 21,416,120 52,099,066 45,958,441 20,230,060 12,460,943 21,664,998 46,652,705 86,948,150 E Y August 2013 3 #NYChousing | 10 ISSUES FOR NYC’S NEXT MAYOR CENTER FURMAN NEW FOR REALESTATE&URBANPOLICY SCHOOL OFLAW•WAGNERPUBLICSERVIC property records. are from Furman Center analysis of publicly recorded 1 All ofthedataaboutdevelopment rights transfers transfer to permitted of not majority are vast the properties of owners Currently, & CONSIDERATIONS QUESTIONS and Northwest Brooklyn). Downtown and below Street (Manhattan 59th place historically taken have transfers TDR where city the of areas the in just of unused development rights exist show, feet square 1 additional of Figure millions and 1 Table As 3. rnfr, n ol 2 landmark 2 transfers. only and other transfers, 4 transfers, Chelsea West 16 transfers, also District Theater were 11 There Manhattan. in Street 59th below were which of zoning lot mergers, a vast majority to square327 throughtransferredwere feet those of City million 5.4 than York New More others. by owned properties in rights million square feet of development 6.8 than more transferred owners property 2011, and 2003 Between

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1,000,000 + 100,000 -1,000,000 10,000 -100,000 1 -10,000 0 August 2013 4 #NYChousing | 10 ISSUES FOR NYC’S NEXT MAYOR CENTER FURMAN NEW FOR REALESTATE&URBANPOLICY SCHOOL OFLAW•WAGNERPUBLICSERVIC mlmn a e TR rga lne to linked program TDR affordable housing. First, how to new far would owners a need implement would could it before questions of number administration a answer next The historic many city’s the districts. in allowed be not new would transfers Further, TDR by enabled development TDRs. uses new that any on development factor limiting a remain would they modified, explicitly sky-exposure Unless requirements. and space, open limits set-back, height and include These transfer. the by affected not are that size building’s a limiting regulations other are there FAR, their exceed new freely.transfersTDR While tobuildings permit on checks more TDRstransfer to allowedwere owners if of number even effect in remain would that development a are There the building usingtheTDRs willbedifferent. of neighbors the and site underbuilt the of neighbors the away, farther transferred density is additional the if But transfer. the by enabled is that building larger the by created transferring the neighbors TDRs building will smaller also the bear of the any benefit burdens the enjoy that because to neighborhood, difference a the of much make to unlikely is property underbuilt the to adjacent lot the on density.additional density additional Allowing with transfers neighborhoods certain overwhelm could wider that however, worry, Some of new affordable housing. construction encouraging 3) and growth; economic support and demand accommodate YO RK UNIVERSITY furmancenter.org E

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