The Housing Policy Gap That the Mamdani Administration Must Address

The passage of the City of Yes for Housing Opportunity legislation in December 2024 marked a generational overhaul of New York City’s zoning framework, introducing new tools to address the city’s housing shortage. The question now facing the Mamdani administration is not whether those tools exist — it’s whether they will be applied clearly and to their full potential.

That question is no longer theoretical. The administration is confronting its first major land use decision, and how it’s resolved will shape housing production for years to come.

At the center is the Universal Affordability Preference (UAP), a core component of City of Yes. This voluntary program allows developers to build larger residential projects in exchange for including permanently affordable housing. Paired with the state’s 485x tax abatement, UAP is intended to unlock mixed-income housing across a broader range of neighborhoods.

A recent draft interpretation from the Department of Buildings, however, risks undermining that potential by reducing the amount of residential space and active ground-floor uses UAP projects can deliver.

The impact is significant. The Department of City Planning projects that City of Yes will generate roughly 82,000 new housing units by 2040, of which we estimate more than 40,000 are expected from UAP-driven development. These projects represent the backbone of future housing production: mixed-use buildings in neighborhoods across the city.

Under the current draft interpretation, those projects could deliver 10 to 15 percent less housing than intended — an estimated loss of roughly 5,000 homes over the next decade — along with millions of square feet of ground-floor space for retail, services and community facilities.

That loss extends beyond housing. Mayor Zohran Mamdani has made universal child care a central priority, and delivering that commitment requires new space. The ground floors of mixed-use buildings are among the most practical places to provide it. When UAP works as designed, it produces both housing and essential neighborhood infrastructure, including needed child care and medical spaces. A more restrictive interpretation would limit those opportunities.

The market is already adapting the tools City of Yes provides. Many developers are pursuing 99-unit mixed-income rental buildings that align with 485x wage thresholds. These projects typically include 20 to 25 permanently affordable units and are financially viable. Over time, several thousand similar developments could meaningfully expand the city’s housing supply.

There is, however, a legitimate issue within the program. As written, UAP does not establish a minimum number of affordable units required to access its floor area benefits. That ambiguity creates risk that some projects could seek additional density while contributing only minimal affordable housing, even as little as one unit.

That legislative gap should be carefully addressed. But overcorrecting in a way that discourages well-structured mixed-income projects would undermine the program’s core purpose.

A 99-unit building with 20 affordable homes reflects the kind of outcome City of Yes was designed to achieve. These projects should be able to access UAP’s benefits clearly and predictably. The goal should be to reinforce the program’s integrity without introducing uncertainty that diminishes development.

There are practical ways to strike that balance, including establishing a minimum affordability threshold or requiring participation in recognized mixed-income frameworks. The specific mechanism is a policy choice. What matters is clear, consistent guidance aligned with maximizing both housing and community benefits.

This decision will set the tone for how the Mamdani administration implements City of Yes. With the right approach, UAP can deliver not just more housing, but also better neighborhoods — places that integrate homes with the services New Yorkers rely on.

The framework already exists. Now the administration must ensure it’s applied in a way that fully realizes its promise.

Brian Ezra is founder of Avery Hall Investments, a Brooklyn-based real estate development firm with more than 2,000 apartments in New York City.