What's happening
This bill creates vested property rights for residential development projects, protecting approved plans from later zoning changes or delays.
Why it matters
Increases certainty and stability for developers and landowners. by guaranteeing that once a residential project receives all required state and municipal approvals (except a building permit), local governments cannot later change the zoning or land use rules in ways that would hinder or halt the approved project, unless specific exceptions apply.
Limits municipal authority to retroactively alter development plans. by allowing new regulations to be imposed only for urgent public health and safety reasons, or if previously unknown hazards are discovered, or if the affected landowner is fully compensated for incurred costs—thereby shifting the balance of power toward property owners once approvals are granted.
Defines clear procedures for vesting and documenting property rights. , including requirements for a formal notice of vested rights to be filed and publicized, and specifies a five-year window (with possible extensions) during which these rights are protected, impacting how long developers can rely on initial approvals.
Applies protections even if jurisdiction changes. for example, if a property is annexed or a different local government takes control, the previously vested rights remain in force, reducing risks posed by shifts in local political or regulatory control.
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Who cares
Residential developers and landowners
The bill would establish vested development rights after required approvals other than a building permit and a notice filing, with rights expiring if substantial construction does not begin within five years unless a longer period is authorized.
Municipal governments and planning boards
The bill would restrict later zoning changes and development moratoriums affecting vested projects, subject to exceptions including newly discovered hazards and compensation for specified landowner costs.
Municipal clerks
Landowners would file notices of vested property rights with their offices, identifying the property, approvals and development plan.
Residents challenging residential development approvals
The bill would start referendum and judicial review deadlines upon newspaper publication of notice of the plan’s approval and creation of vested rights.
Headline styles
Protect Housing Development Rights
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to local government
- Referred to local government
Full text
5 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2495
2019-2020 Regular Sessions
IN SENATE
January 25, 2019
Introduced by Sen. JORDAN -- read twice and ordered printed, and when printed to be committed to the Committee on Local Government
AN ACT to amend the general municipal law, in relation to providing for vesting of development rights for residential properties
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The general municipal law is amended by adding a new article 7-B to read as follows:
ARTICLE 7-B
VESTED RIGHTS RELATING TO RESIDENTIAL PROPERTY DEVELOPMENT Section 150. Legislative findings and intent.
151. Definitions.
152. Governing regulations.
153. Establishment of vested property right.
154. Notice of vested property rights.
155. Duration and termination of vested property right.
156. Subsequent regulation prohibited; exceptions.
157. Application.
§ 150. Legislative findings and intent. 1. There is a continuing need for the development of housing in New York state. Landowners make significant investments to acquire real property and to obtain the required state and municipal permits and approvals to construct residential housing. To obtain financing for residential housing projects, it is necessary to have certainty regarding development rights. Vested property rights ensure reasonable certainty, stability and fairness in the land use planning process.
2. It is necessary and desirable, as a matter of public policy, to provide for the establishment of vested property rights in order to ensure reasonable certainty, stability, and fairness in the land use planning process and in order to stimulate economic growth, secure the reasonable investment-backed expectations of landowners, and foster
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08862-01-9
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cooperation between the public and private sectors in the area of land use planning.
3. The ability of a landowner to obtain a vested property right after municipal government approval of a site specific development plan will preserve the prerogatives and authority of municipal government with respect to land use matters, while promoting those areas of statewide concern described in subdivision two of this section.
4. The establishment of vested property rights will promote the goals specified in this section and protect property, and is therefore declared to be a matter of statewide concern.
§ 151. Definitions. As used in this article, unless context requires otherwise:
1. "Landowner" means the owner of a legal or equitable interest in real property, including a developer, and the heirs, successors, and assigns of such ownership interests.
2. "Municipality" or "municipal government" means any county, city and county, city, town or village, acting through its governing body, or any board, commission or agency thereof having final approval authority over a site specific development plan, including without limitation any legally empowered urban renewal authority.
3. "Notice of vested property right" means a written document filed by the landowner in the office of the clerk of the municipality in accordance with the provisions of section one hundred fifty-four of this article.
4. "Overlay zoning" means a set of land use and development requirements designed to be applied over, or in addition to, the requirements of the underlying zone for a specific purpose without removing or modifying the underlying zone.
5. "Property" means all real property subject to land use regulation by a municipality and zoned and used for residential development or mixed use development that includes residential use.
6. "Residential development" means construction or redevelopment of one-, two- or three-family housing, including single family homes and duplexes, and townhomes, condominiums, multiple dwelling units, assisted living facilities, manufactured or modular homes and mixed use residential units.
7. (a) "Site specific development plan" means a plan that has been submitted to a municipality by a landowner or such landowner's representative describing with reasonable certainty the type and intensity of use for a specific parcel or parcels of property. Such plan may be in the form of, but need not be limited to, any of the following plans or approvals: a planned unit development plan, a subdivision plat, a specially planned area, a planned building group, a general submission plan, a general development plan, a conditional or special use plan, a development agreement, or any other land use approval designation as may be utilized by a municipality. What constitutes a site specific development plan under this article that would trigger a vested property right shall be finally determined by the municipality either pursuant to ordinance or regulation or upon an agreement entered into by the municipality and the landowner, and the document that triggers such vesting shall be so identified at the time of its approval.
(b) "Site specific development plan" shall not include a variance, a preliminary plan, a sketch plan, a final architectural plan, public utility filings or final construction drawings and/or related documents specifying materials and methods for construction of improvements.
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8. "Vested property right" means the right to undertake and complete the development and use of property under the terms and conditions of a site specific development plan.
§ 152. Governing regulations. 1. Except as otherwise provided in subdivision two of this section, development of a property in accordance with a site specific development plan shall be governed only by the duly adopted laws and regulations in effect at the time the landowner's property right vests as provided in section one hundred fifty-three of this article. For purposes of this section, "laws and regulations" includes any zoning law of general applicability adopted by a municipality as well as any zoning or development regulations that have previously been adopted for the particular parcel described in the plan and that remain in effect at the time of vesting of the landowner's property right.
2. Notwithstanding the limitations contained in subdivision one of this section, a municipality may adopt a new or amended law or regulation when necessary for the immediate preservation of public health and safety and may enforce such law or regulation in relation to properties for which a building permit has not been issued at the time such law or regulation is adopted.
§ 153. Establishment of vested property right. 1. A vested property right shall be deemed established with respect to a property upon:
(a) the issuance of all required state and municipal permits and approvals for residential development of the property, with the exception of a building permit, following or contemporaneously with the approval, or conditional approval, of a site specific development plan relating to the property; and
(b) the filing by the landowner with the clerk of the municipality of a notice of vested property rights in a form as prescribed in section one hundred fifty-four of this article.
2. A vested property right shall attach to and run with the applicable property and shall confer upon the landowner the right to undertake and complete the development and use of said property under the terms and conditions of the site specific development plan including any amendments thereto. A municipality may approve a site specific development plan upon such terms and conditions as may reasonably be necessary to protect the public health, safety, and welfare. Such conditional approval shall result in a vested property right, although failure to abide by such terms and conditions will result in a forfeiture of vested property rights. A site specific development plan shall be deemed approved upon the effective date of the municipality's legal action, resolution, or ordinance relating thereto and issuance of all permits and approvals relating thereto, with the exception of a building permit. Such approval shall be subject to all rights of referendum and judicial review; except that the period of time permitted by law for the exercise of such rights shall not begin to run until the date of publication, in a newspaper of general circulation within the jurisdiction of the municipality granting the approval, of a notice advising the general public of the site specific development plan approval and creation of a vested property right pursuant to this article. Such publication shall occur no later than fourteen days following approval.
3. Zoning that is not part of a site specific development plan shall not result in the creation of vested property rights.
§ 154. Notice of vested property rights. 1. Upon issuance of all required permits and approvals as specified in paragraph (a) of subdivision one of section one hundred fifty-three of this article, a landowner
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shall file a written notice of vested property rights in the office of the clerk of the municipality stating:
(a) the identity and address of the landowner claiming the vested right or rights;
(b) the full address of the property as to which the vested right is claimed or sufficient information to reasonably identify the parcel of land as to which the vested right is claimed;
(c) a listing of and the identifying numbers of all permits and approvals issued relating to the property;
(d) information sufficient to identify the site specific development plan;
(e) a statement of the landowner's declaration of vested rights in the property; and
(f) the date upon which the landowner's rights in the property vested as provided in this article.
2. A municipality, through a law or resolution passed by its governing body, may adopt a standard form for a notice of vested property rights, provided that such standard form shall include all of the information set forth in subdivision one of this section; provided, however, that a landowner's failure to utilize such standard form shall not be deemed fatal to the vesting of the landowner's property right if the landowner has filed a notice in accordance with subdivision one of this section.
§ 155. Duration and termination of vested property right. 1. A property right which has been vested as provided for in this article shall remain vested for a period of five years. If substantial construction is not commenced on the property or, in the case of a multi-unit parcel, on each parcel, within such five year period, the vested property right shall expire. This vesting period shall not be extended by any amendments to a site specific development plan unless expressly authorized by the municipality.
2. Notwithstanding the provisions of subdivision one of this section, municipalities are hereby authorized to enter into development agreements with landowners providing that property rights shall be vested for a period exceeding five years where warranted in light of all relevant circumstances, including, but not limited to, the size and phasing of a development, economic cycles, and market conditions. Such development agreements shall be adopted as legislative acts of the governing body of the municipality subject to referendum.
3. Nothing in this article shall exempt a site specific development plan from subsequent reviews and approvals by the municipality to ensure compliance with the terms and conditions of the original approval, provided such reviews and approvals are not inconsistent with said original approval.
§ 156. Subsequent regulation prohibited; exceptions. 1. A vested property right, once established as provided in this article, precludes any zoning or land use action by a municipality or pursuant to an initiated measure which would alter, impair, prevent, diminish, impose a moratorium on development, or otherwise delay the development or use of the property as set forth in a site specific development plan, except:
(a) with the consent of the affected landowner;
(b) upon the discovery of natural or man-made hazards on or in the immediate vicinity of the subject property, which hazards could not reasonably have been discovered at the time of or before the vesting of the property right as provided in subdivision one of section one hundred fifty-three of this article, and which hazards, if uncorrected, would pose a serious threat to the public health, safety, and welfare; or
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(c) to the extent that the affected landowner receives just compensation for all costs, expenses, and liabilities incurred by the landowner after approval by the municipality, including, but not limited to, costs incurred in preparing the site for development consistent with the site specific development plan, all fees paid in consideration of financing, and all architectural, planning, marketing, legal, and other consultants' fees, together with interest thereon at the legal rate until paid. Just compensation shall not include any diminution in the value of the property which is caused by such action.
2. The establishment of a vested property right shall not preclude:
(a) the application of ordinances or regulations which are general in nature and are applicable to all property subject to land use regulation by a municipality, including, but not limited to, building, fire, plumbing, electrical and mechanical codes; or
(b) the application to the property of overlay zoning which does not impact the allowable type or integrity of the use.
§ 157. Application. 1. The provisions of this article shall apply to development rights for residential developments only.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the general municipal law, in relation to providing for vesting of development rights for residential proper- ties
Summary of provisions
Section 1 creates Article 7-B of the General Municipal Law, which provides for the establishment of vested property rights in relation to the land use planning process. Under Article 7-B, Section 150 sets forth the legislative intent of establishing vested property rights as a matter of public policy, and Section 151 sets forth definitions.
Article 7-B Section 152 provides that development of site-specific development plans are to be governed (with exception for emergency need to preserve public health and safety) in accord with the laws and regu- lations in force at the time when the property owner's rights vested set forth in this bill. That language (Section 153) provides that the vested property right is established upon the issuance of all required state and municipal permits and approvals and upon filing by the landowner with the municipal clerk, a notice of vested property rights.
Vested property rights under Section 153 of the newly added article provide that landowners have the right to undertake and complete the development and use of the property under the terms of the site-specific development plan, as approved by a municipality, including any amend- ments that may be added. The vested property right precludes any zoning or land use action by a municipality that would alter, impair, prevent, diminish, or otherwise delay the development of the property, with the exception of the consent of the landowner, upon the discovery of hazards, or in exchange for just compensation. Failure to adhere to the terms of municipal approval of a plan would result in a forfeiture of vested development rights.
Property rights that are vested, remain vested for five years; failure to construct on the property within five years will lead to expiry of the vested property right.
Section 2 sets forth the effective date.
Justification
Planning and beginning a development program is a significant investment of not only money, but also time, significant surveying, consulting with engineers and lawyers, and ensuring compliance. Despite this invest- ment, a lack of certainty and reliability exists in New York's residen- tial development climate because municipalities can change zoning regu- lations, laws, codes, and regulations at any time, creating significant upheaval in a project and creating major(and unnecessary) costs.
In order to promote economic activity and growth, it should be the public policy of the State of New York to create certainty regarding development rights; in so doing, the State can also work to ensure reasonable certainty, stability, and fairness in land use. Creating vested property rights for development would achieve these public policy aims, and would further encourage investment in residential housing. These vested property rights, will ensure that the laws, regulations, and zoning conditions in place at the time of the issuance of all required state and municipal permits and approvals (except for a build- ing permit) of a residential project, remain in place for five years, which will provide vital, cost-saving stability and reliability for developers and builders stability that will help grow our State's econo- my and help ensure a strong residential market.
Legislative history
S.8806 of 2018
Fiscal implications
None to the state.
Effective date
On the first of January next succeeding the date it shall have become a law, applying to applications for residential development filed with municipalities after said date.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.