What are air rights in New York City?
We’ll cover this topic in the following video.
I’m Nick at Hauseit.
Visit our website www.hauseit.com to learn about ways to save money when buying or selling
real estate here in New York City.
So, let’s get started!
Air rights in NYC refer to the empty space above a building or simply an undeveloped
lot which may be used for additional development.
The owner of a lot with air rights, also known as unused development rights, could potentially
add additional stories to an existing structure or sell her or his unused airspace to an adjacent
building which would then be allowed to construct a taller structure by combining the development
rights from both lots.
Air rights can be bought and sold through a Zoning Lot Merger of Contiguous Tax Lots,
through a Special Zoning District Transfers, and through a Landmark Transfer.
The amount of unused development rights equals the maximum amount of floor area permitted
in a zoning lot minus the amount of floor area utilized by the existing structure(s).
The maximum amount of floor area relative to lot size is called the Floor-to-Area Ratio.
For example, if a lot is 5,000 SqFt and the Floor-to-Area Ratio is 5, the maximum buildable
square footage is 5,000 SqFt x 5, or 25,000 SqFt.
If the current structure is 10,000 square feet, this means that there are unused development
rights of 25,000 SqFt minus 10,000 SqFt, or 15,000 SqFt.
Air rights are determined by applying the Zoning Resolution to a zoning lot.
A zoning lot is comprised of a single tax lot or two or more tax lots contiguous for
at least 10 linear feet.
The Zoning Resolution and amendments are adopted by the City Council and City Planning Commission
in conjunction with other governmental agencies.
New York City is divided into three zoning districts: residential (R), manufacturing
(M) and commercial (C).
Each district is further subdivided into low, medium and high density residential, manufacturing
and commercial districts.
Zoning districts can be further overlaid by ‘Special Purpose Zoning Districts’ such
as the Special Little Italy District in Lower Manhattan.
Another type of zoning district overlay is a ‘Commercial Overlay.’
This is commonly seen in residential zoning districts and it provides for the accommodation
of neighborhood retail stores within the zoning district.
Another type of zoning district overlay is a ‘Limited Height District.’
Such an overlay imposes height limits on new buildings in certain historic districts which
are designated as such by the Landmarks Preservation Commission.
Zoning districts, commercial overlays and special purpose districts may be viewed by
accessing New York City’s Zoning & Land Use Map online.
You can check this out by clicking the link below in description or by copying the following
URL.
So, how are air rights bought and sold?
The most common and easiest way to buy and sell air rights is to transact with an adjacent
property that is contiguous for at least 10 linear feet.
This is called a Zoning Lot Merger of Contiguous Tax Lots.
Through this method, the owner of the property with unused development rights sells her or
his air rights to a neighboring lot which is contiguous for a minimum of 10 linear feet,
located with the same block.
The effect of the zoning lot merger is that the unused development rights may be used
in development or enlargement on any portion of the newly merged zoning lot.
A zoning lot merger does not require special approval from the city.
It’s also possible to transfer development rights between non-contiguous properties on
the same block by through-lot transfers which merge lots for the purpose of allocating Available
Development Rights from formerly non-contiguous zoning lots.
There are two other more complicated ways to buy and sell air rights:
Special Zoning District Transfers
Landmark Transfers
We’ll talk about each of these options now.
Special Zoning District Transfers
The sale and transfer of development rights in Special Zoning Districts is permitted between
lots which aren’t contiguous.
Examples of special zoning district transfers include:
Transfer of development rights from listed theaters in the Theater Subdistrict of Special
Midtown District, subject to CPC certification, authorization or special permit
Transfer of development rights from landmark sites in Grand Central Subdistrict of Special
Midtown District, by special permit or certification
Special West Chelsea District (High Line Corridor), pursuant to as-of-right procedure at DOB with
required notice to and review by Department of City Planning
South Street Subdistrict of Special Lower Manhattan District, subject to certification
from City Planning Commission
Transfer of development rights from certain granting sites in Special Hudson Yards District
Landmark Transfers
Under a Landmark Transfer, a Landmarks Preservation Commission designated site may sell development
rights to another property, and there is no requirement for both sites to be contiguous.
For example, a landmarked building may sell its development rights to a building across
the street or down the block.
Landmark transfers provide owners of landmarked buildings with a way to generate revenue to
help pay for building upkeep and other projects.
A Transfer of Development Rights, also known as a TDR, from a Landmark site to adjacent
lots or lots across the street requires a Special Permit from the City Planning Commission.
The special permit application is subject to the Uniform Land Use Review Procedure (ULURP)
provisions of City Charter and environmental review pursuant to the State Environmental
Quality Review Act (SEQRA).
It also requires certain findings to be made by the City Planning Commission.
How Much Do Air Rights Cost in NYC?
Air rights in NYC range from $200 to $400 per square foot, but this is negotiable and
pricing varies by location and project.
Air rights in prime Manhattan neighborhoods with a scarcity of unused development rights
can be $400 per square foot or more.
Air rights are sold and transferred through a Purchase and Sale Agreement, similar to
what is used when selling a condo, co-op or house.
The contract may also contain a light and air easement provision which, for example,
may prevent the seller from blocking the views from the upper floors of the developer’s
building.
Other documents required to effectuate a transfer of unused development rights include:
Declaration of Zoning Lot Restrictions
Zoning Lot and Development Agreement (ZLDA)
Title Company Certification
Zoning Lot Description and Ownership Statement by Building Department Applicant
Department of Buildings – Plan/Work Approval Application
So there you have it!
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