New Assembly Housing Chair

Assemblyman Steven Cymbrowitz, D-Sheepshead Bay, was named new chair of the Assembly Housing Committee yesterday. A former Assistant Commissioner of the Division of Housing Production and Finance for HPD and Deputy Commissioner of Development at HPD, Cymbrowitz is the first Assembly Housing Chair in memory with any housing experience. No word yet on if the State Senate will make any committee changes.

Housing will continue in short supply if the construction pipeline doesn’t reverse course. NY Yimby’s 2016 New Construction Report, released this morning, shows drastic declines in building permits vs. 2015 in all boroughs and a 70% decline in Brooklyn since the 2014 peak.

The City Planning Commission this week formally began the review process for rezoning Midtown East to encourage larger and more modern office buildings, an idea launched in the Bloomberg administration that was stalled by landmarks issues, among others. After filing the new plan, Planning Commissioner Carl Weisbrod announced that he was retiring and Marisa Lago was appointed as his replacement.

The NY Police Department monitor charged by the courts with overseeing department responses to lawsuits on Stop and Frisk and the Trespass Affidavit Program (also known as the Clean Halls program) has approved a training video that expressly says that, with an apartment building owner’s permission, patrolling officers can arrest people who have no reason for being in a building and don’t leave when requested.

Commercial carting companies this week staffed a new lobbying effort to fight Mayor de Blasio’s plan for zoned garbage pickup, restricting carters to franchise areas.

The California Apartment Association has filed constitutional challenges to rent control ordinances recently adopted by referendum in Mountain View and Richmond, CA, highlighting a new right to sublease as improperly taking the owner’s control of the property.

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Year Ends With Fake Housing News

It is probably fitting that the last major housing story of 2016 falls under the heading of fake news. Pro Publica published an exposé this week of  Governor Cuomo’s failure to get more than about half the 50,000 deregulated J51 units back into stabilization…but they apparently failed to understand that rent registration totals include additions and deletions for other reasons.

DNA Info reports that the City is near settlement with almost 12,000 SCRIE tenants that sought to roll back their rent contribution after failing to certify and then requalifying at a higher base rent. Their argument was that the failure to recertify was a result of disability and the City is trying to figure out how to make adjustments.

The new year is bringing a higher minimum wage beginning at midnight tomorrow. Companies in New York City with 11 or more employees will have to pay at least $11 an hour, $10.50 for smaller companies, and  lesser amounts in various other counties, also take in mind that you will need many safety products and from this supplier you can get them all.

And, by Sunday, signage on single occupant bathrooms in public areas will have to be gender neutral. No more men’s or ladies rooms if there is just one stall.

Happy New Year.

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Affordable, and Enviromentally Friendly and more

HPD has issued a request for proposals for 200 affordable apartments on one of the largest City owned sites left in East New York. The Mayor would also like to see the inclusion of “quality commercial and community use” as well as “open space and environmentally friendly features,” along with local hiring for construction jobs.

Complying with existing and proposed laws that require ignoring criminal histories in employment may be less hazardous, financially, thanks to a new State insurance regulation requiring insurers to provide liability coverage for actions by ex-cons, effective next July.

A proposed bill in the City Council aimed at giving tenants evidence for heat complaints may give owners a financial incentive–$50 for each living room sensor–to install building management systems.

Building owners are responsible to eliminate bedbugs, but the Civil Court in Westchester decided that they are not required to use a more expensive extermination method favored by a tenant.

As of this minute, no special legislative session has been scheduled in Albany to deal with 421a, affordable housing spending, ethics, ride-sharing upstate, or a legislative pay raise, but Governor Cuomo is saying none of these issues are complicated so anything can happen.

It didn’t just happen this week, but it has been an interesting year for  housing data analysis in New York City. Various studies have calculated that the length of the commute is worth $56 a minute in rent; that Uber may be changing that calculus for neighborhoods without mass transit; and that taxi pickup and drop off times and location can predict gentrification–watch out Ocean Hill, Brooklyn.

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We Have a Winner, But…

Democrat John Brooks was officially declared the winner of the 8th State Senate District race yesterday, confirming that Republicans only hold the “majority” in the State Senate with the support of Brooklyn Democrat Simcha Felder and/or the seven member Independent Democratic Conference.

The City Council, yesterday, approved a $100 million air rights deal to allow five mixed use towers on the St. John’s Terminal site and restore Pier 40 as a park. In a pre-condition for the deal, the Landmarks Commission, Tuesday, approved the Sullivan-Thompson Historic District sought by the local councilman, Corey Johnson, to stop other development in the neighborhood.

The City Planning Commission, meanwhile, is trying to expand development with a new study of the Southern Boulevard corridor in the Bronx…the next target of Mayor de Blasio’s plan to raise development densities.

The City Economic Development Corporations this week posted a Request for Proposals for mixed use development of a 42,500 sq. ft. site in Far Rockaway and a Request for Expressions of Interest in an 80 acre former hospital site on Staten Island.

Whatever land uses are approved, it will be easier to map them and overlay demographic and housing subsidy data with Coredata, a new online research tool from NYU’s Furman Center.

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Gas Inspections

As expected, Mayor de Blasio last week signed bills requiring gas pipe inspections every five years, lease notices to tenants regarding gas hazards, beginning in six months, and eventual installation of gas detectors.

The Mayor also  announced warning notices to the owners of 3,103 properties that are receiving 421a tax benefits but have never filed for a final certificate of eligibility.

A deputy commissioner at the Department of Finance is in hot water for telling the truth to a City Council committee–the value of a proposed tax incentive will go up when assessments or rates go up. His bosses immediately reiterated de Blasio’s pledge not to raise taxes, but failed to account for the steady increase in assessments and actual tax bills.

City Council members  announced plans to introduce legislation to require sidewalk sheds be removed in no more than six months and to allow the use of temperature sensors provided by Heatseek to be used for enforcement by HPD.

As if affordability requirements didn’t dampen housing construction enough, the administration is now considering requiring manufacturing uses in mixed use developments. To handle this, it’s important to ensure plumbing meets both residential and manufacturing needs. Plumbers in honolulu can help with this.

Airbnb withdrew its suit against the City’s enforcement of legislation to bar advertising illegal short term apartment rentals. The City agreed, as the State did a couple of weeks ago, that enforcement would be against the advertisers and not the medium…something the new law said all along.

It looks like Congress will not extend several tax benefits for energy efficiency as part of stopgap spending bills expected to pass this month, but it looks like the EB-5 program will survive.

At least one of the property owners on the Public Advocate’s Worst Landlord’s list has announced plans to sue, noting that several of his buildings cited are vacant awaiting development and that city records on others were outdated…it’s not the first time errors have occurred in the list, but it seems like the first lawsuit.

Ben Carson finally decided to accept President-elect Trump’s appointment as Secretary of HUD, but it is not clear what that means for housing generally or New York in particular.

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Sensing a Problem

Legal Aid is suing a Brooklyn owner on behalf of tenants who used  temperature sensors provided by non-profit Heetseek to make a case that the building has inadequate heat. A building worker told reporters that several apartments had radiators turned off and HPD records show no open heat violations.

Mayor de Blasio and Public Advocate Letitia James invoked the Spiegel Law, yesterday, announcing that the City would not pay rent for tenants on public assistance in two buildings until violations were corrected.

The City Council, Tuesday, passed legislation clarifying that property owners had to clear snow from the area around fire hydrants at the same time they have to clear sidewalks, but removed criminal penalties for failure to do so.

Gas test and gas finish self certifications will no longer be accepted in Manhattan, according to the Department of Buildings. DOB inspections will be required for regular and emergency work.

December 12th is the last day to apply for the City’s amnesty program to resolve outstanding judgments for violations without interest.

The State is looking for expressions of interest and is doing a site tour December 14th for 13 acres in the Bronx on the Harlem River north of the Willis Avenue Bridge. There is the matter of dealing with decking the rail yard, however. Do you have a new deck which needs to be preserved or is your existing deck looking neglected and requires a new facelift? Maybe a deck refreshment is all your deck needs to get it looking amazing and ensure that is can withstand the harsh outdoor climate Sunshine Coast Based Deck Restorations Company is the best option to the construction.

The City is offering a 30-hour “NY Building Operator Training Program” for workers in 5-50 units buildings to learn energy saving techniques. The classes are free, but space is limited and preference will be given to building employees whose employers promise to reward them with extra compensation, according to the Mayor.

The new federal overtime rule did not go into effect yesterday as planned, thanks to an injunction by a federal judge in a challenge brought by NAHB and other business groups.

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Tax Cut Cut

The City and State sent 421-a revocation notices to 178 buildings, Monday, claiming that they had received tax benefits without registering rental apartments as stabilized, as required. Thirty five other buildings had their benefits revoked in September and one of the owners is suing for reinstatement, arguing that she tried to register but got conflicting advice from DHCR and city agencies about how and what to file.

In anticipation of Midtown East being rezoned for modern development, the Landmarks Preservation Commission prophylactically designated eleven buildings as landmarks yesterday.

Airbnb has dropped New York State from its suit against State legislation making it illegal to advertise illegal occupancies, but is continuing its litigation and negotiations with City enforcers.

Ben Carson has reportedly been offered the job of Secretary of HUD, but it is not clear yet if he will accept.

NYU students may be claiming succession rights to apartments in larger numbers thanks to a university program to house them with neighborhood seniors. The idea is to save students money and provide seniors with companionship.

The CHIP and ABO offices will be closed tomorrow and Friday. Happy Thanksgiving.

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Small Victory

New York City has dodged a bullet on proposed Small Area Fair Market Rents, for now, under a final rule issued by HUD this week. The use of average rents by zip code to set Fair Market Rents, instead of metro area averages, would have drastically reduced Section 8 rents in poor neighborhoods, but arguments by CHIP, ABO and many other owner and tenant organizations prevailed. The rule will not apply to areas with less than a 4% vacancy rate.

The City Council, Wednesday, passed a package of bills aimed at potential gas leaks. The measures, which now go to the Mayor for signature, will require new lease notices to tenants on what to do if they suspect a gas leak beginning six months after enactment. There will also be a requirement for gas detectors to be installed in apartments per rules to be determined by the Department of Buildings. Beginning in 2019, there will be a requirement for inspection of visible gas lines and testing with a portable gas combustion detector every five years. And, there will be new requirements developed for people who do “gas work.”

It turns out the punishment for a tenant harassing a landlord is a court order not to do it again. The New York Post reported this week that a State Supreme Court judge barred a tenant at the Whitehouse Hotel from commencing any more pro se actions against the building owner after 23 unsuccessful actions in seven years.

Mayor de Blasio, Wednesday, signed an executive order assigning enforcement of the Airbnb bill to the Mayor’s Office of Special Enforcement.

In this week’s episode of as the 421-a turns, it appears that the deal between the Governor, REBNY, and the Building Trades provides for a 35 year tax abatement for 300 plus unit projects subject to wage minimums, but only 25 years for smaller developments. There is still no actual bill language to review and action before the next legislative session beginning in January seems unlikely.

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More 421a Details, and, oh, an election

More details of a proposed 421a deal between the Real Estate Board and Building Contractors Association were announced yesterday by Governor Cuomo, who called for a special legislative session before January to approve the measure along with a Memorandum of Understanding on how to spend $2 billion in state affordable housing assistance. The new 421a deal includes minimum wages on projects with more than 300 units in Manhattan and the Brooklyn/Queens waterfront, a 35 year 100% tax abatement, and 40 year affordability commitment on terms similar to those specified in prior legislation that died when REBNY and the Contractors couldn’t agree on wage and project size details.

Meanwhile, the Governor this week signed legislation creating a housing development tax abatement program with no wage or affordability requirements that seems targeted narrowly at specific sites in Corning, NY.

Pamela Patenaude, president of the Terwilliger Foundation For Housing America’s Families, and former New York Rep. Rick Lazio are being mentioned as possible picks for HUD Secretary in the new Trump cabinet. If you want a job in Washington, apply here.

Trump may be planning to cut back on regulations, but in the meantime, the Justice Department has weighed in against the Sand Castle, a Mitchell-Lama rental project in Far Rockaway, for allegedly violating Fair Housing laws when it advertised for tenants with no criminal history. The DOJ argues that rejecting applicants with a criminal background wholesale, without examining the details of the crime and circumstances, has a disparate impact on minorities.

In other election news, rent control referendums passed in three San Francisco area suburbs, while failing in two. And voters in a number of cities and states ranging from San Diego to North Carolina approved affordable housing development bonds.

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Albany Status Quo

Republicans appear to have kept their majority coalition in the State Senate and two close races on Long Island could give them a clear majority without help from the Independent Democratic Caucus. This may help achieve a workable renewal of development incentives such as 421a in 2017, but is unlikely to lead to major changes in housing policy. Another legislative election, in 2018, will occur before Rent Regulations are up for renewal or amendment again in 2019.

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