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New York · Through 2026-09-11

N.Y. General City Law § 81-d: Incentive zoning; definitions, purposes, conditions, procedures

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Where this section sits in the code
  1. General City Law
  2. Article 5-A. Buildings and Use Districts

§ 81-d. Incentive zoning; definitions, purposes, conditions,

procedures. 1. Definitions. As used in this section:

(a) "Incentives or bonuses" shall mean adjustments to the permissible

population density, area, height, open space, use, or other provisions

of a zoning ordinance, local law, or regulation for a specific purpose

authorized by the legislative body of a city.

(b) "Community benefits or amenities" shall mean open space, housing

for persons of low or moderate income, parks, elder care, day care, or

other specific physical, social, or cultural amenities, or cash in lieu

thereof, of benefit to the residents of the community authorized by the

legislative body of a city.

(c) "Incentive zoning" shall mean the system by which specific

incentives or bonuses are granted, pursuant to this section, on

condition that specific physical, social, or cultural benefits or

amenities would inure to the community.

2. Authority and purposes. In addition to existing powers and

authorities to regulate by planning or zoning, including authorization

to provide for the granting of incentives, or bonuses pursuant to other

enabling law, a legislative body of a city is hereby empowered, as part

of a zoning ordinance, local law or regulation, to provide for a system

of zoning incentives, or bonuses, as the legislative body deems

necessary and appropriate, consistent with the purposes and conditions

set forth in this section. The purpose of the system of incentive or

bonus zoning shall be to advance the city's specific physical, cultural

and social policies in accordance with the city's comprehensive plan and

in coordination with other community planning mechanisms or land use

techniques. The system of zoning incentives or bonuses shall be in

accordance with a locally-adopted comprehensive plan.

3. Implementation. A system of zoning incentives or bonuses may be

provided subject to the conditions hereinafter set forth. (a) The

legislative body of a city shall provide for the system of zoning

incentives or bonuses pursuant to this section as part of the zoning

ordinance, local law, or regulations. In providing for such system, the

legislative body shall follow the procedure for adopting and amending

its zoning ordinance, local law, or regulations, including all

provisions for notice and public hearing applicable for changes or

amendments to such ordinances, laws, or regulations.

(b) Each zoning district in which incentives or bonuses may be awarded

under this section shall be designated in the city zoning ordinance,

local law or regulations, or amendment thereto.

(c) Each zoning district in which incentives or bonuses may be

authorized shall have been found by the legislative body of a city,

after evaluating the effects of any potential incentives which are

possible by virtue of the provision of community amenities, to contain

adequate resources, environmental quality and public facilities,

including adequate transportation, water supply, waste disposal and fire

protection. Further, the legislative body of a city shall, in

designating such districts, determine that there will be no significant

environmentally damaging consequences and that such incentives or

bonuses are compatible with the development otherwise permitted.

(d) A generic environmental impact statement pursuant to article eight

of the environmental conservation law and regulations adopted by the

department of environmental conservation shall be prepared by the

legislative body of a city for any zoning district in which the granting

of incentives or bonuses have a significant effect on the environment

before any such district is designated, and such statement shall be

supplemented from time to time by the legislative body of a city if

there are material changes in circumstances that may result in

significant adverse impacts. Any zoning ordinance, local law, or

regulation enacted pursuant to this section shall provide that any

applicant for incentives or bonuses shall pay a proportionate share of

the cost of preparing such environmental impact statement, and that such

charge shall be added to any site-specific charge made pursuant to the

provisions of section 8-0109 of the environmental conservation law.

(e) The legislative body of a city shall set forth the procedure by

which incentives may be provided to specific lands. Such procedure shall

describe:

(i) the incentives, or bonuses, which may be granted by the city to

the applicant;

(ii) the community benefits or amenities which may be accepted from

the applicant by the city;

(iii) criteria for approval, including methods required for

determining the adequacy of community amenities to be accepted from the

applicant in exchange for the particular bonus or incentive to be

granted to the applicant by the city;

(iv) the procedure for obtaining bonuses, including applications and

the review process, and the imposition of terms and conditions attached

to any approval; and

(v) provision for a public hearing, if such public hearing is required

as part of a zoning ordinance, local law, or regulation adopted pursuant

to this section, and give public notice thereof by the publication in

the official newspaper of such hearing at least five days prior to the

date thereof.

(f) All other requirements of article eight of the environmental

conservation law shall be complied with by project sponsors for actions

in areas for which a generic environmental impact statement has been

prepared, including preparation of an environmental assessment form and

a supplemental environmental impact statement, if necessary.

(g) Prior to the adoption or amendment of the zoning ordinance, local

law, or regulation, pursuant to this section to establish a system of

zoning incentives or bonuses, the legislative body of a city shall

evaluate the impact of the provision of such system of zoning incentives

or bonuses upon the potential development of affordable housing gained

by the provision of any such incentive or bonus afforded to an applicant

or lost in the provision by an applicant of any community amenity to the

city. Further, the legislative body of a city shall determine that there

is approximate equivalence between potential affordable housing lost or

gained or that the city has or will take reasonable action to compensate

for any negative impact upon the availability or potential development

of affordable housing caused by the provisions of this section.

(h) If the legislative body of a city determines that a suitable

community benefit or amenity is not immediately feasible, or otherwise

not practical, the legislative body may require, in lieu thereof, a

payment to the city of a sum determined by the legislative body. If cash

is accepted in lieu of other community benefit or amenity, provision

shall be made for such sum to be deposited in a trust fund to be used by

the legislative body of the city exclusively for specific community

benefits authorized by such legislative body.

4. Invalidations. Nothing in this section shall be construed to

invalidate any provision for incentives or bonuses heretofore adopted by

any city legislative body.

Collected 2026-09-14T19:32:45Z. Source file · JSON

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