Land Use & Zoning

In New York, 'incentive zoning' allows a developer to receive bonus floor area or density in exchange for:

APaying a fee to the city's housing fund

BProviding a public benefit, such as affordable housing, public plazas, community facilities, or subway improvements✓ Correct

CAgreeing to preserve the existing building facade

DSubmitting environmental studies to the local planning board

Explanation

Incentive zoning (as used in the NYC Zoning Resolution) allows developers to receive a density bonus (extra floor area ratio or FAR) in exchange for providing specified public benefits, such as affordable housing, public open space (plazas, arcades), or community facilities. These arrangements must be approved through the formal land use review process.

People Also Study

Key Terms to Know

Zoning

Local government regulations that control land use by dividing areas into zones specifying permitted uses, building sizes, and densities.

Variance

Official permission to use land in a way that does not conform to the applicable zoning ordinance, granted by a zoning board when strict enforcement would cause undue hardship.

Debt-to-Income Ratio (DTI)

A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.

Eminent Domain

The power of government to take private property for public use, with the requirement to pay the owner just compensation.