2.2% Solution

The State Division of Housing and Community Renewal this week issued Policy Statement 2017-2 “Collectibility of 421-a Tax Benefit/2.2% Surcharges for Market Rate Units” which states for the first time that the 2.2% annual surcharge on 421-a units is not applicable to the affordable units, only the market rent units.
Stabilized lease riders will have to be revised by February under legislation signed by Governor Cuomo, Monday, requiring DHCR to include an explanation of what none-rent charges can be lawfully included.
Mayor de Blasio, Tuesday, increased his affordable housing goal from 200,000 to 300,000 units created or preserved, and committed an additional $1.3 billion per year through 2026. So far this week, he has announced $150 million more for non-profits to buy existing buildings and $250 million to, presumably, sweeten Mitchell Lama deals to keep units in the program…but nothing that really adds housing.
The Mayor announced Wednesday that he will seek legislation and regulatory changes to keep loft units rent stabilized, including extending tenancy rights to persons not named on the lease.
City Comptroller Scott Stringer wants timely tenant rent payments to be reported to credit agencies to help them establish better credit scores, but even tenant attorneys are skeptical and a NYCHA pilot program enrolled only one tenant.
The Department of City Planning is considering a rule that would permit Chelsea property owners to buy additional air rights directly from the City at about $500 per square foot, although the latest private sales have been at about $800.
A 10 percent increase in Airbnb listings can create an average 0.39 percent increase in rents and an average 0.64 percent increase in home prices over what would otherwise occur, according to a four-year 100-city study by researchers at UCLA.
Freddie Mac issued a report this week showing dramatic rent changes in 100,000 units it financed twice between 2010 and 2016. At first financing, 11 percent of the  rental units were deemed affordable for very low-income households. By the second financing, when the units were refinanced or sold, just 4 percent of the same units were categorized as affordable.
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