The U.S. Court of Appeals for the Second Circuit this week accepted the NY State Court of Appeals opinion that a rent stabilized lease is a public assistance benefit, ruling that therefore the lease could not be sold as part of a bankruptcy estate. The decision simply referenced the NY opinion without further analysis. While unfortunate for property owners whose tenants declare bankruptcy, the decision leaves open the possibility of a new constitutional challenge to rent controls based on who should pay for public benefits.
A Presidential Executive Order on flood risk management standards could be read to block FHA and HUD housing programs in the 500 year flood plain, covering much of the Brooklyn, Queens, and Staten Island shorelines and miles inland, according to an analysis by NAHB. The administration says the intent is only to block direct federal expenditures in the zone, but NAHB is working to get that in writing.
Owe taxes? The City Department of Finance has issued a new lien list for a sale May 15th. Based on past errors, it pays to check if your properties are included.
Why does it cost so much to build in New York? Maybe it is the cost of lobbying to get anything approved by government. The City Clerk’s latest annual lobbying report shows that three of the top four lobbying clients in New York City in 2014 –spending a combined total of about $3 million — were developers. As Crains noted, land use attorneys are considered a lobbying expense under the law.
We are pleased to announce that Purnima Kapur, Executive Director of the City Planning Commission, will deliver the second day keynote at BuildingsNY, April 29th, on “The Mayor’s Housing Plan: What, Where, and When” Register to attend now.