New Rochelle housing surge proves predictable zoning's impact

"New Rochelle pursued the downtown overlay because its traditional zoning produced fragmented, underused parcels and left the city's core underperforming. We knew we had underutilized our downtown, Salgado said. City leaders saw stalled projects, aging buildings and surface parking lots where walkable, mixed-use buildings could go instead. They wanted a predictable framework that could attract serious capital while still meeting community goals on design and affordability."

"Officials also faced pressure to expand the tax base without overburdening homeowners. Concentrating taller buildings and higher density downtown offered a way to add jobs, retail and housing on infrastructure that already existed. The overlay encouraged mixed-income projects near transit, which helped justify public investments and gave the city leverage to negotiate benefits. One of the benefits of all this development is that we've gotten some infrastructure funds, Salgado said."

"The way we've structured a lot of the entitlements has given us resources to respond to some of the infrastructure upgrades, and sewers is one of them. The overlay flipped that script by publishing clear rules and timelines for compliant projects. Developers who followed the form-based code saw quicker approvals and fewer surprises, which made lenders more comfortable. Residents, in turn, could see what was allowed on each block and push for good design rather than fight every project."

"Salgado said the city has authorized 11,047 units across 34 projects since 2015. Eight buildings are now open. Another 25 projects, totaling about 5,100 units, are completed and in leasing. Roughly 91% of those homes are occupied, and about 1,100 qualify as affordable, he said, meaning just over 20% of the new units meet affordability standards. We have one project under construction currently that's basically affordable condominium projects, Salgado said."

New Rochelle pursued a downtown overlay to address fragmented, underused parcels and underperforming core areas created by traditional zoning. City leaders targeted stalled projects, aging buildings, and surface parking lots by offering a predictable framework that could attract investment while meeting design and affordability goals. The overlay concentrated taller buildings and higher density downtown to expand the tax base without overburdening homeowners, adding jobs, retail, and housing on existing infrastructure. It encouraged mixed-income projects near transit, supporting public investment and strengthening the city’s leverage to negotiate benefits. Clear rules and timelines improved lender confidence through quicker approvals and fewer surprises. Since 2015, the city authorized 11,047 units across 34 projects, with multiple buildings open and many units completed, leasing, and largely occupied, including about 1,100 affordable units.

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