It was a bad week for real estate investors in the Southern Tier of New York, with a State fracking ban and a decision to allow three new casinos in Schenectady, Tyre (between Syracuse and Rochester) and Thompson in Sullivan County (near the old Concord hotel)…but, of course, those casinos, with their free spins slots lv and poker games, are supposed to be development opportunities in those other upstate areas.
Back in the City, the City Council this week was investigating two new ways to discourage real estate investment. A bill sought by hotel unions would bar hotel conversions to condominiums, solely to protect hotel jobs at the expense of permanent housing. And the Council received an analysis from the Independent Budget Office estimating a net cost to the City of $100 to $200 million for providing free legal aid to tenants facing eviction. The IBO noted that 10 percent of cases against tenants represented by lawyers resulted in eviction vs. 44 percent of cases against unrepresented tenants. The IBO calculated savings on homeless services, but ignored the cost to owners who can’t collect the rent and the ensuing loss of property taxes, among other negatives.
The Council was surprised by one cost of housing: plumbing. They took the Housing Authority to task for paying five plumbers salaries and overtime totaling over $210,000 each. Comptroller Scott Stringer also scolded the Authority this week for blowing about $700 million in federal aid.
Even the Mayor, as property manager, got into hot water this week when he ordered a privacy fence built around Gracie Mansion without bothering to get any permits — site design, landmarks, nada. If it were only that easy.
The State Court of Appeals balked at one City request this week. In Trump Village Section 3 vs. New York City it ruled that terminating participation in the Mitchell Lama program did not amount to a sale subject to transfer taxes.
There will be no news update next Friday, so have a very happy holiday season and healthy new year. See you in January.