Discussing NYC Transit Needs And Building Near A Subway Station At Bisnow's July 22 Conference

In 2021, the New York City Council approved Elevate Transit: Zoning for Accessibility, an initiative to increase accessibility for riders within its transit system and help better align the system with the city's current needs.

Developers are now required in certain cases — and encouraged in others — to collaborate with New York’s Metropolitan Transportation Authority to incorporate space for accessibility improvements, such as elevators and improved stairs and passageways, into their buildings that are near transit stations. 

ZFA is enacted in two parts. First, developers with a lot area of 5K SF or larger and within 50 feet of a mass transit station must consult with the MTA before applying for a new building permit. If the MTA identifies a need, the developer will be required to reserve an easement volume for future station accessibility improvements.   

Second, for qualifying sites, developers may receive a bonus of up to 20% or 200K SF, whichever is less, in exchange for constructing significant transit improvements on behalf of the MTA.

As a principal at Stantec, a global leader in sustainable design and engineering, Daniel Cohen has been working to help developers navigate transit-focused projects in New York City. 

“Developers have a lot to juggle when bringing a project to market,” he said. “We help clients in both camps: those who need to navigate MTA requirements that they may not have known about but need to address, and those who have the opportunity to deliver a great improvement to public infrastructure while increasing the value of their development.”

On July 22, Cohen will discuss the connection between ZFA and affordable housing during a panel on How To Leverage State And City Developer Incentives To Increase Development at Bisnow’s New York Affordable Housing Conference. 

Click here to register and purchase tickets.

In a conversation with Bisnow, Cohen dove into all things related to ZFA and what the city’s developers — especially in the affordable housing sector — need to know.

Bisnow: How does the MTA determine which projects are obligatory and which are voluntary?

Cohen: It's incredibly expensive and disruptive to do subway work in the city. If you're digging a hole in a city street anywhere in the five boroughs, you're likely to hit all kinds of utilities and other hidden structures while impacting the surrounding vehicular and pedestrian traffic.  

Transit easements have always been part of our transit system’s history, but ZFA, particularly, is important to the MTA because it provides a space on private properties for accessibility projects. This avoids some of the most problematic physical constraints within the public right-of-way and makes it physically and/or financially feasible for the MTA to move its projects forward.

Transit-related obligations are triggered by zoning. ZFA may require the developer to provide a volume of space for the MTA’s future use, which could be tomorrow or it could be 20 years from now. While ZFA does not require the developer to construct any transit improvements for the MTA, other existing zoning rules, such as the Off-Street Relocation or Renovation of a Subway Stair provision, do require the development project to perform transit work.

Voluntary projects are zoning incentives that are available to some sites but are not something builders must take part in. However, those with knowledge of the program have been trying to make sure developers understand the enormous benefit of doing so. Transit bonuses have been an option since the '80s, but they were only available to the largest development types because they were very time- and capital-intensive. With ZFA, smaller development sites can go for a bonus as the process has become more streamlined.

Bisnow: How does Stantec work with developers to navigate Zoning for Accessibility?

Cohen: We bring the experience and the multidisciplinary design experts required to liaise between the public and the private sectors.  

I lead our transit-oriented development group, and Stantec is the leading consultant in New York City for this type of developer-funded transit work covering both obligatory requirements and voluntary bonuses. We understand that these projects need to pencil out for our clients so they can in turn deliver these great transit improvements we take such pride in.

We sometimes come in before a property is acquired and help a developer understand how being near a transit station could impact their program, or whether a transit improvement bonus could improve their return on investment. We can also help those who weren’t aware of these requirements and are suddenly in a race to navigate them because they need to file permits.

Because subway station improvements require coordination across architecture, structural, civil, mechanical, electrical and vertical transportation disciplines — along with third-party stakeholders such as utilities and adjacent property owners — our one-team approach helps developers move faster and manage risk.

Bisnow: How does this initiative impact bringing forth affordable housing?

Cohen: Bringing forth more affordable housing is at the top of everyone’s list. A deeper understanding of ZFA’s requirements or even opportunities, combined with the right expertise, could yield more of this asset class.  

If an affordable housing project has an important retail component, for example, an easement has the potential to negatively impact the value of that space. The easement may require the developer to reconsider the building structure or cellar programming, perhaps late in the design process or even after signing a letter of intent with a retailer. Getting through this process with the MTA and the city quickly while also minimizing the impact to their project is paramount to developers getting their product to market.

While ZFA mostly provides an incentive for developers to fund and construct transit improvements, the transit bonus floor area — which is not subject to Mandatory Inclusionary Housing requirements — can help defray the costs of the MIH units and therefore get these types of projects off the ground where there may have otherwise been some financial constraints. Under the same City Planning Commission authorization process that greenlights these bonuses, developers can also apply for zoning waivers — such as height and setback relief — that makes the additional bulk useful towards the design of a more practical and attractive building.

Bisnow: What do you hope people will take away from your panel?

Cohen: The No. 1 thing that I hear in my conversations with developers is concern about dealing with a large public agency like the MTA. If you have the right connections and you have the right experience, there are many transit-adjacent sites that could be great opportunities. If you find yourself in a situation where you may trigger one of these obligatory requirements, as long as you're on top of it from the beginning and appropriately plan and budget for it, it doesn't have to be scary.

If developers can figure out how to navigate the MTA regulations, they can take a second look at that property that's in front of the subway station, versus overlooking it as too much of a risk.

Click here to learn more about Bisnow's New York Affordable Housing Conference.

This article was produced in collaboration between Studio B and Stantec. Bisnow news staff was not involved in the production of this content.

Studio B is Bisnow’s in-house content and design studio. To learn more about how Studio B can help your team, reach out to studio@bisnow.com.