City Council Approves Inclusionary Zoning Rules for Upper West Side Housing

The New York City Council passed the Inclusionary Zoning Update Act by a 34 to 13 margin on July 7 at City Hall. The measure mandates that projects with 50 or more units reserve 15 percent of apartments for households earning no more than 60 percent of area median income. The rule covers new construction on the Upper West Side and other Manhattan districts.

The vote followed release of the Department of Housing Preservation and Development's annual report showing a 9 percent rise in market-rate rents across Manhattan between 2024 and 2025. Council members cited the need to expand the city's stock of income-restricted housing before the next round of zoning map changes scheduled for 2027.

Daily Effects for Upper West Side Residents

Residents looking for apartments near Broadway and 86th Street will encounter the new set-aside rules once permits are filed after January 2027. A two-bedroom unit priced at 60 percent of median income would rent for approximately $1,850 monthly based on current income limits published by the department. Local service workers employed at nearby hospitals and schools could qualify for those units instead of commuting from Brooklyn or the Bronx.

The legislation states that developers may meet the requirement either on site or through a payment into the city's affordable housing fund. Payments collected on the Upper West Side must be spent within the same community district under the text of the bill.

Comparison to Other Cities and Timeline

Policy analysts say New York now matches Chicago's 15 percent requirement but remains below Boston's 20 percent threshold for projects receiving city subsidies. The government says the policy will generate 2,800 new income-restricted units citywide over the first three years after implementation. The mayor has 30 days to sign or veto the measure before the Department of City Planning begins drafting the accompanying zoning text changes.