Politics
NYC City Council Expands Inclusionary Zoning Requirements; Greenwich Village Developments Must Reserve 25 Percent of Units for Lower-Income Households
Greenwich Village residents will see new residential projects near Washington Square Park and along Sixth Avenue allocate units for households earning under 60 percent of area median income starting in 2027.
How we reported this
The New York City Council approved an expansion of inclusionary zoning on July 7 that requires all new residential buildings with 10 or more units to set aside 25 percent of apartments for households earning below 60 percent of area median income.
The measure updates rules first adopted in 2016 and applies to projects that receive city subsidies or zoning variances. Council records show the vote passed 35 to 12 after review of the Department of City Planning's 2025 housing needs assessment, which identified a shortfall of 420,000 units through 2030.
Application to Greenwich Village Projects
Developments in Greenwich Village will fall under the same 25 percent threshold already in place in parts of Brooklyn and the Bronx. Local advocates note that the rule will cover sites currently under review near the Jefferson Market Library and on West 4th Street, where two buildings totaling 180 units received preliminary approvals last month.
Residents who work in the neighborhood's retail and service sectors may qualify for the new units if their incomes meet the limit of roughly $52,000 for a single person. Construction activity tied to the policy is projected to add 1,200 temporary jobs in Manhattan Community Board 2 through 2029, according to the city's capital budget documents for fiscal year 2027.
Comparison with Other Cities and Next Steps
New York City's 25 percent set-aside exceeds the 15 percent requirement in Chicago and the 20 percent target in Boston for comparable developments. The legislation states that the higher percentage applies uniformly across all five boroughs rather than varying by district.
The Department of Housing Preservation and Development will begin reviewing compliance plans in September 2026. City budget papers allocate $120 million for enforcement staffing and monitoring through fiscal year 2028.