DHCR issued a FAQ yesterday, attempting to explain how owners should respond to its January letter warning them to register apartments in buildings that receive or received J-51 tax benefits as rent stabilized. The only sure thing stated in the guidance is that “The law in this area is continuing to evolve. ” CHIP will be sending an analysis of the document to members separately.
Owners who failed to offer apartments built under the similar 421a tax program as stabilized have paid fines totaling almost $10 million, which the City and State yesterday announced would go towards financing about 600 units of supportive and affordable housing.
Unhappy with inaction in Congress, State Legislators are trying to eliminate carried interest provisions. While aimed at hedge fund managers, the tax change would impact many real estate promoters.
The Furman Center released two research reports on housing this week. A national multifamily market analysis was noteworthy for finding that the metro NY vacancy rate had fallen from 6% to 5% (Remember that rent regulation is legislatively justified by fewer than 5% vacancies, but that is just in the City, not the metro area). And a study of landmark areas in New York City confirmed that historic districts are whiter and wealthier.
The Public Advocate settled a lawsuit against the City on behalf of family members of DRIE and SCRIE tenants who did not file to continue benefits fast enough after the original qualifying tenant died. The situation resulted, in part, from the Department of Finance cutting the time allowed for successors to apply on their own to 60 days, but legislation approved in Albany in December already had extended that to six months…incidentally causing problems for building owners who now have longer to wonder who, if anyone, is paying the rent.
While the Mayor negotiates his mandatory inclusionary housing proposals with the City Council, a developer’s plan to comply with the proposed zoning and create affordable housing in Inwood is being opposed by residents who say building on the site of a U-Haul Rental Center and parking garage will displace them.
The Daily News reported this morning on a State audit of Mitchell Lama housing finding 230 tenants earning over $250,000 a year in the subsidized units, including several millionaires whose income was underreported because the computer program used could not record more than six digits.
And Bloomberg reported this morning that luxury rental building owners are getting real competition from new condo buildings where 37% of the units are being rented by investors.
Exhibitors and potential exhibitors at BuildingsNY can learn how to maximize attendance at their booths and follow up with visitors using online tools at a special seminar at 11 a.m. March 24th in the Marriott Marquis. Contact rpalermo@reedexpo.com for details and reservations.
This week’s BuildingsNY exhibitor focus is on Appliances Connection. Meet them at the Javits Center May 24-25th.