| Which Buildings Qualify |
Building must have been built on or before December 31, 1990
Building located in Special Mixed- Use districts built on or before December 10th, 1997
Located where residential use is permitted
City wide eligibility |
Buildings that do not qualify for as-of-right conversion
Buildings must have been built after December 31, 1990
Building located where residential use is not permitted as-of-right zoning districts
Properties located in special districts where additional approvals are required |
| Approvals Required |
Department of Building permits and plan approval
Must be in compliance with the NYC Building Code, fire code, and Multiple Dwelling LAw
ULURP, City Planning Commission, or City Council approval is not required
Landmark Preservation Commission approval if the property is labeled a landmark or in a historical district |
Department of Buildings permits and plan approval
Must be in compliance with the NYC Buildings Code, Fire Code, and Multiple Dwelling Law
Special permit approval form the department of City Planning and City planning Commission required
ULURP review and City Council approval depending on the relief sought
Environmental review may be required as part of the land use approval process
Landmark Preservation Commission approval if the property is labeled a landmark or in a historical district |
| Timeline |
Generally 6- 18 months
Timeline driven by design, permitting, financing, and construction |
Generally 18-36+ months
Timeline driven by special permit application, environmental review, public hearings, and discretionary approvals |
| Cost Implications |
Lower entitlement and pre- development costs
No ULURP, CPC, or City Council review expenses
Lower carrying costs due to shooter approval time
Primarily architectural, engineering, permittings, financing, and construction costs |
Higher entitlement and pre- development costs
Additional expenses for land use counsel, zoning consultants, and environmental review
Possible public outreach and community engagement costs
Higher carrying costs due to longer approval time
Construction costs still apply in addition to discretionary approval costs |
| Certainty |
High level of approval if zoning and code requirements are met
Approval process is more administrative than discretionary
Not subject to political or community approval
Timeline and risks are more
Investors view the approval path as lower risk |
Lower level of approval due to discretionary review
City Planning Commission review and possible City Council action may be subject
Political and community opposition may affect certainty
Investors view the approval path as higher risk |
| What should an owner determine first before pursuing either path |
Does the building meet the age requirement?
Does the zoning district permit residential use?
Can the building be physically suitable for residential conversion? |
Why can’t the property fail to qualify as-of-right
What zoning relief is required?
Is the additional value worth the approval risk and timeline?
Can the project remain financial sense if approvals are delayed or modified |
