Section 81-D. Incentive zoning; definitions, purposes, conditions, procedures

1. Definitions. As used in this section:
    (a) "Incentives or bonuses" shall mean adjustments to the  permissible
  population  density,  area, height, open space, use, or other provisions
  of a zoning ordinance, local law, or regulation for a  specific  purpose
  authorized by the legislative body of a city.
    (b)  "Community  benefits or amenities" shall mean open space, housing
  for persons of low or moderate income, parks, elder care, day  care,  or
  other  specific physical, social, or cultural amenities, or cash in lieu
  thereof, of benefit to the residents of the community authorized by  the
  legislative body of a city.
    (c)  "Incentive  zoning"  shall  mean  the  system  by  which specific
  incentives  or  bonuses  are  granted,  pursuant  to  this  section,  on
  condition  that  specific  physical,  social,  or  cultural  benefits or
  amenities would inure to the community.
    2.  Authority  and  purposes.  In  addition  to  existing  powers  and
  authorities  to  regulate by planning or zoning, including authorization
  to provide for the granting of incentives, or bonuses pursuant to  other
  enabling  law, a legislative body of a city is hereby empowered, as part
  of a zoning ordinance, local law or regulation, to provide for a  system
  of  zoning  incentives,  or  bonuses,  as  the  legislative  body  deems
  necessary and appropriate, consistent with the purposes  and  conditions
  set  forth  in  this  section. The purpose of the system of incentive or
  bonus zoning shall be to advance the city's specific physical,  cultural
  and social policies in accordance with the city's comprehensive plan and
  in  coordination  with  other  community planning mechanisms or land use
  techniques.  The system of zoning incentives  or  bonuses  shall  be  in
  accordance with a locally-adopted comprehensive plan.
    3.  Implementation.  A  system  of zoning incentives or bonuses may be
  provided subject to  the  conditions  hereinafter  set  forth.  (a)  The
  legislative  body  of  a  city  shall  provide  for the system of zoning
  incentives or bonuses pursuant to this section as  part  of  the  zoning
  ordinance,  local law, or regulations. In providing for such system, the
  legislative body shall follow the procedure for  adopting  and  amending
  its   zoning   ordinance,  local  law,  or  regulations,  including  all
  provisions for notice and  public  hearing  applicable  for  changes  or
  amendments to such ordinances, laws, or regulations.
    (b) Each zoning district in which incentives or bonuses may be awarded
  under  this  section  shall  be designated in the city zoning ordinance,
  local law or regulations, or amendment thereto.
    (c) Each zoning  district  in  which  incentives  or  bonuses  may  be
  authorized  shall  have  been  found  by the legislative body of a city,
  after evaluating the effects  of  any  potential  incentives  which  are
  possible  by  virtue of the provision of community amenities, to contain
  adequate  resources,  environmental  quality  and   public   facilities,
  including adequate transportation, water supply, waste disposal and fire
  protection.   Further,   the  legislative  body  of  a  city  shall,  in
  designating such districts, determine that there will be no  significant
  environmentally  damaging  consequences  and  that  such  incentives  or
  bonuses are compatible with the development otherwise permitted.
    (d)  A  generic  environmental  impact  statement  pursuant   to   the
  provisions  of  6 NYCRR 617.15 shall be prepared by the legislative body
  of a city for any zoning district in which the granting of incentives or
  bonuses have a significant effect on the  environment  before  any  such
  district  is  designated,  and such statement shall be supplemented from
  time to time by the legislative body of a city  if  there  are  material
  changes in circumstances that may result in significant adverse impacts.
  Any  zoning ordinance, local law, or regulation enacted pursuant to this

  section shall provide that any applicant for incentives or bonuses shall
  pay a proportionate share of the cost of  preparing  such  environmental
  impact   statement,   and  that  such  charge  shall  be  added  to  any
  site-specific  charge  made pursuant to the provisions of section 8-0109
  of the environmental conservation law.
    (e) The legislative body of a city shall set forth  the  procedure  by
  which incentives may be provided to specific lands. Such procedure shall
  describe:
    (i)  the  incentives,  or bonuses, which may be granted by the city to
  the applicant;
    (ii) the community benefits or amenities which may  be  accepted  from
  the applicant by the city;
    (iii)   criteria   for   approval,   including  methods  required  for
  determining the adequacy of community amenities to be accepted from  the
  applicant  in  exchange  for  the  particular  bonus  or incentive to be
  granted to the applicant by the city;
    (iv) the procedure for obtaining bonuses, including  applications  and
  the  review process, and the imposition of terms and conditions attached
  to any approval; and
    (v) provision for a public hearing, if such public hearing is required
  as part of a zoning ordinance, local law, or regulation adopted pursuant
  to this section, and give public notice thereof by  the  publication  in
  the  official  newspaper of such hearing at least five days prior to the
  date thereof.
    (f) All other requirements  of  article  eight  of  the  environmental
  conservation  law shall be complied with by project sponsors for actions
  in areas for which a generic environmental  impact  statement  has  been
  prepared,  including preparation of an environmental assessment form and
  a supplemental environmental impact statement, if necessary.
    (g) Prior to the adoption or amendment of the zoning ordinance,  local
  law,  or  regulation,  pursuant to this section to establish a system of
  zoning incentives or bonuses, the  legislative  body  of  a  city  shall
  evaluate the impact of the provision of such system of zoning incentives
  or  bonuses  upon the potential development of affordable housing gained
  by the provision of any such incentive or bonus afforded to an applicant
  or lost in the provision by an applicant of any community amenity to the
  city. Further, the legislative body of a city shall determine that there
  is approximate equivalence between potential affordable housing lost  or
  gained or that the city has or will take reasonable action to compensate
  for  any  negative impact upon the availability or potential development
  of affordable housing caused by the provisions of this section.
    (h) If the legislative body of  a  city  determines  that  a  suitable
  community  benefit  or amenity is not immediately feasible, or otherwise
  not practical, the legislative body may  require,  in  lieu  thereof,  a
  payment to the city of a sum determined by the legislative body. If cash
  is  accepted  in  lieu  of other community benefit or amenity, provision
  shall be made for such sum to be deposited in a trust fund to be used by
  the legislative body of the  city  exclusively  for  specific  community
  benefits authorized by such legislative body.
    4.  Invalidations.  Nothing  in  this  section  shall  be construed to
  invalidate any provision for incentives or bonuses heretofore adopted by
  any city legislative body.