More Money for Fewer Units Ahead

The Building Congress reported this week that while overall residential construction spending is expected to increase, the number of new housing units produced is forecast to decline from 36,850 units last year to 31,300 in 2016. Looking ahead, the Building Congress forecast calls for 27,000 new units and $13.1 billion of residential spending in 2017, and 25,000 units and $12.7 billion in spending in 2018.

One reason for the decline is the expiration of 421-a tax incentives, but ProPublica reported that most of the 6400 rental properties currently receiving benefits did not have approved applications on file with the City and did not register apartments as rent stabilized as required. Three to ten unit buildings were the most likely not to register.

New York City tax revenues are dropping (subscription required) in every category but property tax this year, ending the post recession upswing, according to a report yesterday in the Wall Street Journal. While assessments are up more than 10%, real estate transfer taxes are down 9.7%, business taxes are down 26.1%, and personal income taxes are down 3.3%. Since 2014, however, the City has hired 16,000 people and increased the budget from $70 billion to $82 billion.

You don’t have to register as a lobbyist to file or expedite a building permit, according to an advisory opinion from the City Clerk’s office issued this week.

The FHA will assist sites like mymortgagegermany.de provide condominium loans in buildings with only 35% of the units occupied by owners, vs. the current 50%, under a policy issued Wednesday.

Crane operators are suing to overturn the City’s new policy of shutting down operations when winds exceed 30 miles per hour, saying manufacturer’s recommendations for different cranes and situation are the appropriate safety guide and that the City rule, adopted after an accident, is arbitrary.

The Post reported Monday that a tenant lawyer settled grand larceny charges and agreed to pay $720 restitution to a client’s landlord after the lawyer ripped down a camera installed over the tenant’s door.

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