OneLIC Rezoning Passes City Council, Could Add 15K New Homes

The OneLIC Neighborhood Plan got the green light from the New York City Council on Wednesday, likely the final Eric Adams-era rezoning before Mayor-elect Zohran Mamdani is sworn in on Jan. 1.

The rezoning allows developers to build approximately 14,700 homes in Long Island City, Queens, as well as 3.5 million square feet of commercial and industrial space.

“With our five neighborhood plans and historic ‘City of Yes’ initiative all passed, we’ve laid the foundation for over 130,000 homes and changed the conversation around housing in our city,” Adams said in a statement. “The OneLIC plan is not only the largest neighborhood rezoning in at least a quarter of a century, but a plan that will deliver the housing, jobs and public space this vibrant neighborhood needs, while creating a more affordable city for working-class New Yorkers.”

OneLIC is the first rezoning of the neighborhood since 2001, when a business-related rezoning created an accidental housing boom that left manufacturing districts intact where there wasn’t enough demand. The new rezoning faces challenges from shortfalls in the 485x program, which allows developers to pay construction workers $16 per hour for developments under 99 units, as opposed to prevailing wages for larger projects.

“Following the [2001] rezoning, many blocks remained zoned for manufacturing — notwithstanding a clear lack of industrial business or employment,” Mitch Korbey, chair of land use and zoning practice group at Herrick Feinstein, said in a statement. “Unfortunately, the 485x tax abatement program’s labor requirements will result in many developments capping out at 99 units — leading to inefficiencies and likely fewer affordable units than otherwise would be possible.”

Mamdani backed the rezoning despite his opposition to Innovation QNS, a proposed $2 billion development for more than 3,000 housing units that was approved by City Council in 2022 but scrapped by the developers in September. Both proposals fall in his State Assembly district.

The rezoning also had the backing of housing advocacy groups, including those that also supported the Charter Revision Commission‘s ballot initiatives that were adopted by voters on Nov. 4.

“After an inclusive, two-year public process, the OneLIC plan delivers urgently needed new homes and opens more of the Long Island City waterfront to everyone,” Andrew Fine, chief of staff and policy director at Open New York, said in a statement. “The proposal earned broad support from neighbors, winning endorsements from both local community boards and a supermajority of speakers at the council hearing this fall. In a city where rezonings of this scale are all too rare, Long Island City is fortunate to have Councilmember Julie Won prioritizing thousands of homes that the community and the city need.”

Mark Hallum can be reached at mhallum@commercialobserver.com.