
Jesse M. Dimitro
Senior Associate
212-390-1641 jdimitro@sh-law.comFirm Insights
Author: Jesse M. Dimitro
Date: February 12, 2025
Senior Associate
212-390-1641 jdimitro@sh-law.comIf you operate a business, you need to understand how commercial zoning rules may impact you. For instance, zoning regulations can determine how you can develop a property and what type of activities your business can conduct. To ensure that you aren’t taken by surprise, it is always a good idea to consult with experienced counsel before purchasing or leasing a commercial property.
Zoning regulations dictate how land may be used, with the goal of creating uniformity and preventing conflicts between different types of property uses. Zoning regulations are often influenced by existing conditions in a particular area, as well as future goals for development. For example, zoning requirements typically reflect the existing built context of a particular area and work to ensure that future development remains compatible. At the same, zoning is also used to foster new and changing development goals. Regulations may incorporate a specific development plan or advance broader goals, such as increased availability of transit services, climate resiliency, or greater walkability.
New York City’s Zoning Resolution divides land into districts where similar zoning regulations are in effect. The zoning rules for each district are determined by relevant land use issues, which vary significantly across the city.
New York City is divided into three basic zoning district categories. These are further divided into a range of individual zoning districts. Each district is denoted by different number and letter combinations.
When zoning officials review a zoning application, they compare the proposed project to zoning requirements before issuing a zoning permit. Each community has its own master plan, so ordinances vary. It is imperative to closely review them at the outset of the project.
The NYC Department of Buildings (DOB) holds primary responsibility for interpreting and enforcing the NYC Zoning Resolution. Most development in New York City is “as-of-right.” This means a proposed development complies with the NYC Zoning Resolution and qualifies for a building permit from the DOB. Projects requiring special review, approvals, or zoning modifications must be reviewed by the Department and the City Planning Commission.
A variance is a request by a property owner to use their land in a way that would otherwise be prohibited under existing zoning requirements. Each type of variance has strict legal requirements that must be satisfied in order to gain approval.
In New York City, applications for a variance are considered by the City’s Board of Standards & Appeals (BSA). Property owners seeking a variance must demonstrate that there are “practical difficulties or unnecessary hardships” they face in meeting the zoning regulations.
Similarly, under the New Jersey Municipal Land Use Law (MLUL), a municipal zoning board may only grant use variances and deviate from the zoning ordinance if “special reasons” exist. In general, the development must advance a purpose of the MLUL or the refusal of the variance must impose an undue hardship on the applicant. In addition, the applicant must demonstrate that the variance or other relief can be granted without substantial detriment to the public good and will not substantially impair the intent and the purpose of the zone plan and zoning ordinance.
Given the dizzying maze of procedural and substantive requirements under both state law and local ordinances, it is advisable to retain an experienced attorney to help navigate the variance process. Many applicants are denied variances simply because they fail to understand the complex legal issues involved.
Scarinci Hollenbeck can help businesses throughout New Jersey and the New York City metropolitan area navigate the wide range of zoning issues that can impact commercial operations and development. We routinely help clients conduct due diligence on commercial zoning issues, seek variances, and obtain other developmental approvals. Contact us today to find out how our commercial real estate attorneys can help you.
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