Landmark Speed?

The Landmarks Preservation Commission will only have one year to make up its mind on whether to designate newly proposed landmark buildings or historic districts under a bill approved by the City Council, Wednesday, and awaiting the Mayor’s signature. The Commission, historically, has kept some proposals in limbo for 20 years or more.

The first Rent Guidelines Board hearing on new stabilized lease renewal guidelines last night didn’t make the News, Post, or Times, although ABC had a squib. Things will undoubtedly be more heated at the Manhattan hearing on June 20th, but the next opportunity to testify is Monday in Brooklyn. Get out there.

The City Council is taking up a variety of energy issues at a public hearing June 22nd. Most likely to eventually be approved by the full council are an update of the City Energy Code and a plan to require benchmarking for smaller buildings–over 25,000 square feet instead of the current 50,000. Also on the agenda are proposals for existing buildings to submeter electricity as well as install LED lighting and recessed lights by 2025 with the help of an Electrician in Rockwall or Electrician in North Bergen

The City will have to justify its plan to give single family homeowners a one time credit on water bills at the expense of multifamily and other ratepayers at a court hearing June 20th in Prometheus Realty Corp. et al v. The New York City Water Board.

The State Legislature is set to adjourn for the summer next Thursday and there don’t seem to be any hot button housing issues, even 421a, on their radar. But anything can happen late at night in Albany.

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“Normal” Taxes

Three Manhattan apartment buildings  paying property taxes of $29,914 to $38,889 per apartment per year are…average. The tax bills work out to just over 30% of rents, which is normal for New York City and about six times other major cities.

The Mayor got approval for his Mandatory Inclusionary Zoning plan for East New York in March, but May wasn’t a good month for the next two neighborhood plans he proposed. Flushing West was killed altogether because of concerns about increased building height near LaGuardia Airport and area sewage capacity (neither of which has changed recently!). And, plans for the Jerome Avenue Corridor in the Bronx were delayed because strong local opposition is requiring a review.

The City is trying to move ahead with development at Hunters Point, however. HPD issued an RFP yesterday for a mixed use development with retail, a school, and 750 apartments, including roughly 450 affordable units. The first phase of development at Hunters Point is completed, but the second phase is being delayed by unanticipated infrastructure work.

The Department of Buildings is now requiring anyone seeking a permit for a shed or scaffold to show proof of insurance for $1 million in liability coverage to the Licensing Unit.

A widely reported holdover case against a tenant who rented to hundreds of Airbnb guests since 2010, resulting in a “final order of possession” in 2015, is back. The Appellate Term,  first department, has given the tenant in 335-7 LLC vs. Steele until July 12 to perfect a reinstated appeal.

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City to Withhold Rent

Mayor de Blasio, yesterday, invoked the Spiegel Law to warn eight owners of 12 apartment buildings that the City would not be paying June rent for tenants on public assistance unless 2075 violations were corrected.

The Rent Guidelines Board, yesterday, issued a report finding a net loss of just 8,009 stabilized units in 2015, only 109 of them from High Income/High Rent decontrol. Since 1994, a grand total of 6,093 apartments were decontrolled because of High Income tenants, and the number has been declining.

In a second report, the RGB found that the number of new housing units completed in 2015 increased 21.0% over the prior year, to 14,357.  Permits for 56,528 new dwelling units were issued in New York City in 2015, a 176.0% increase over the prior year…most of them in the second quarter when developers tried to beat the 421a expiration deadline, or the fourth quarter after 421a was extended only to January 2016.

Crain’s New York is taking on cranes in New York, mounting a campaign for what it believes to be a smaller, safer, cheaper, and more effective crane that the Department of Buildings is blocking for political reasons.

Construction on Long Island can be even more convoluted and protracted than in the City, because almost no multifamily can be built as of right, according to a report by the Long Island Index. Typical projects take 2-12 years from land acquisition.

HPD has issued an RFP for a mixed use development with about 400 affordable apartments on nearly a full city block at Park Avenue and 111th Street. It is the first HPD RFP requiring passive energy design, and the project would reportedly be the largest passive house in the country.

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4 Minutes

Did you know that BuildingsNY at the Javits Center is NOW ONLY 4 MINUTES FROM TIMES SQUARE on the 7 train? Discuss your cases with representatives from  DOB, HPD, DOF, DEP, DOS and Con Ed at CHIP’s City Hall at BuildingsNY sessions, Tuesday, and come early for the keynote by Planning Commissioner Carl Weisbrod at 8:45 a.m.  Advance registration is free.

Tenant advocates have launched a concerted attack on vacancy allowances in advance of the Rent Guidelines Board hearings and the end of the Legislative session in Albany. Tuesday, the Community Service Society blamed what they call the “eviction bonus” for almost 50% of the increase in stabilized rents above inflation. The statistics in the report are based on some questionable assumptions, however, and, strikingly, make no attempt to show any relationship between evictions and rising rent levels.

Yesterday, StabilizingNYC, a two year old coalition of other tenant groups, and several state and local politicians, called out ten real estate companies for allegedly harassing tenants to vacate.

In a strange political twist, this week, the two tenant members of the Westchester Rent Guidelines Board resigned in protest over the selection of a public member by DHCR. The State appoints board members in ETPA counties after nominations from the County Legislatures. The new public member the tenants objected to for his presumed landlord bias is attorney Michael Rosenblatt, currently of counsel to Rosenberg & Estis. Rosenblatt was formerly Deputy Counsel to DHCR and Bureau Chief of the Rent Control Bureau at the agency.

The U.S. Department of Labor, Tuesday, announced that it was doubling the overtime salary limit to $47,476, effective December 1st. ABO’s parent, NAHB, and other national property owner groups are supporting legislation to overturn the rule, which is expected to make flexible scheduling more difficult and costly.

If you built a particularly energy efficient apartment building this year you have until May 31st to enter the Department of Energy’s Housing Innovation Awards competition.

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Prevailing Problem

State Assembly Speaker Carl Heastie, yesterday, echoed Governor Cuomo’s commitment not to pass an extension of the 421a tax incentive program without a prevailing wage requirement, probably dooming it for the current legislative session.

Mayor de Blasio signed several bills into law this week extending J-51 until 2019; giving additional protections to building workers when property is sold; formalizing violation policies after natural disasters such as Hurricane Sandy; and reducing building permit fees for single family homeowners and potentially raising them for commercial properties.

How complex is it to build on or near the waterfront? You can find out by plugging in your address at the Economic Development Corporation’s new Waterfront Navigator website and see all the permits and approvals required by city, state and federal agencies.  Turns out “waterfront” goes farther inland than you would think.

A Furman Center study of gentrification released this week defined 15 gentrified neighborhoods that were among the lowest income areas in 1990 and had  higher than median income rent growth through 2014. In many ways, the report shows that gentrifying areas are the ones where there were holes to fill…the neighborhoods identified lost 26% of their population from 1970-1980 and as of 2010 were still down almost 16% from 1970 levels.

The de Blasio administration is still working on its plans for rezoning midtown East for higher density and modern offices, so the Landmarks Preservation Commission is looking at blocking redevelopment of 12 more properties, bringing the total to 50.

This week’s BuildingsNY exhibitor focus is on Thermaxx. Meet them at the Javits Center May 24-25th.

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RGB Deja Vu?

The 0-2% one year and .5-3.5% two year stabilized renewal guidelines proposed by the five ‘public’ members of the Rent Guidelines Board this week (all de Blasio appointees) are the same as last year’s proposals that led to a zero one year increase this year.

The Board has announced hearings on the guidelines June 9th in Queens, June 13th in Brooklyn, June 16th in the Bronx, June 20th in midtown Manhattan and the 21st in Harlem. The final vote will be June 27th.

A California jury, yesterday, decided that Carson City rent regulations were an unconstitutional taking because, in part, the increases did not cover the owner’s cost of debt service. Neither does the New York City Price Index of Operating Costs.

Developers wanting to market condos in New Jersey and Florida, among other states, to New Yorkers, will no longer have to duplicate expensive and time consuming engineering reports or escrow deposits in New York. The New York State Attorney General’s office, yesterday, adopted a new policy of accepting reports from States with comparable consumer protections when sales plans are registered.

Where have prices for single family homes risen fastest in the nation since 2004? Bedford Stuyvesant, according to the Washington Post. The median home price in zip code 11216 has risen 194% to more than $1 million, but median income in the neighborhood is only about $44,000, the Post reported.

ABO members have until May 20th to submit rebate forms for their January thru March purchases of eligible products from Delta, Lutron, Carrier, Boise Cascade and dozens of other manufacturers.

This week’s BuildingsNY exhibitor focus is on Ashokan Water Services. Meet them at the Javits Center May 24-25th.

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Market Down, Taxes Up Again

The Mayor submitted his fiscal 2017 Executive Budget proposal, Tuesday, anticipating a 5.1 percent increase in property taxes, despite noting that the “commercial real estate market is expected to decline in 2016 from its record year in 2015.”

One-to-three family homeowners will get a one time $183 credit on their water bills under the plan, regardless of need, thanks to the Mayor deciding not to collect a ‘rental payment’  from the Water Board budget that was historically paid to the City general fund…essentially a hidden tax in the water rate. The Mayor is offering a similar $250 per unit credit to apartment owners, but, unfortunately, it can only be collected if the owner signs a fifteen year agreement to keep the apartments affordable.

The Mayor could have just let the benefit of the reduced rental payment flow across the board to all water ratepayers, but chose not to. For those who want to be able to afford rent, they can try increasing their income by playing games like 겜블시티 라이브카지노.

Late last week, the Mayor updated his OneNewYork environmental plan with new proposals for offices and apartment buildings. He would extend benchmarking to buildings over 25,000 square feet (from the current 50,000) and create new maintenance requirements for steam systems. Changes to the Energy Code would also be implemented. Industry groups have already questioned the affordability of the requirements.

A pro bono consultant to the Bar Association Legal Services Committee issued a report yesterday saying that the Independent Budget Office study last year finding that increased legal services funding for tenants was not a cost effective  way to reduce the expense of homeless services is wrong. The consultants estimated that the City could save $259 million on building affordable housing because stopping evictions would “preserve” 3,414 units of affordable stabilized units. The consultants apparently didn’t know that rent is required to preserve housing.

ABO members have until May 20th to submit rebate forms for their January thru March purchases of eligible products from Delta, Lutron, Carrier, Boise Cascade and dozens of other manufacturers.

This week’s BuildingsNY exhibitor focus is on BGS Control. Meet them at the Javits Center May 24-25th.

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Senate Status Quo, For Now

The reported Democratic win in Senator Skelos’ old district in Tuesday’s election technically gives the Democrats a majority in the State Senate, but another Democrat who votes with the Republicans and the existence of the Independent Democratic Conference will likely mean no formal changes in the current legislative session. After November, look out.

Governor Cuomo, Tuesday, ruled out a new 421-a tax incentive program that wasn’t “accepted as a fair deal by organized labor and the building trades … period.”

The City Council, Wednesday, approved the Mayor’s East New York rezoning plan after the local City Councilman was satisfied by a lowering of income limits for the affordable housing requirements and $257 million in extra city spending. Some questioned whether the price for approval was a floor or a ceiling for Council members in other districts where rezoning is proposed.

The Rent Guidelines Board yesterday revised its Price Index Projection for next year from 4.5 to 5.5%. Originally, the staff projected a 2.6% increase in property taxes, but upon review of the data they discovered that they left out Brooklyn, where assessments are rising rapidly. Now taxes are expected to rise 6.1%. Despite the increase, the commensurate rent adjustments calculated for one year leases are still negative.

The Division of Homes and Community Renewal this week issued an RFP for $70 million in funding under its “Highly Ready Project Initiative,” including new construction and multifamily preservation programs. Additional funds are available for Mitchell Lama, Homes For Working Families, and State Low Income Tax Credit programs, among others.

Mayor de Blasio, yesterday, signed into law a partial amnesty program for ECB fines beginning in the new fiscal year July 1st. The Department of Finance will be authorized to waive interest and default penalties on default judgments for 90 days. On other judgments, settlements of 75% of the judgment and interest waivers are possible.

Hearing are scheduled Wednesday by the City Council Housing and Buildings Committee on bills that would require owners to notify HPD whenever they serve a notice of petition on a tenant who was 62 or older or disabled so that HPD can send the tenants information on responding.

This week’s BuildingsNY exhibitor focus is on SiteCompli. Meet them at the Javits Center May 24-25th.

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That’s Low!

Operating Costs for stabilized apartments fell 1.2% in 2015 due to lower fuel prices and a warm winter, according to the Price Index report issued by the Rent Guidelines Board yesterday. The record low Price Index could justify a commensurate rent adjustment of as low as  -1.9% for one year lease renewals and 0% for two year renewals, or a ‘high’ of -.7% for one year and +.8% for two years (yes, those negatives and decimals are correct) according to the RGB staff analysis.

The RGB also issued its annual mortgage study, reporting that average interest rates on new mortgages dropped to a record 3.97%, and that vacancy and collection losses on buildings seeking mortgages dropped to a record low 3.14%, now people have a higher chance to refinance mortgage.

Water costs will be going up 2.1% in July if a proposed rate hike is approved. Hearings are in May.

The Department of Buildings will be adding 22 plumbing inspectors to check every gas job before service can be turned on. The Buildings Commissioner  reported that hundreds of additional inspections had already been done in response to utility reports of  suspect connections. But, the Commissioner did testify this week against a City Council  bill to require gas alarms in apartments, saying the technology was not fully proven yet.

The New York City Housing Authority’s infamous maintenance problems weren’t helped this week by a court ruling that NYCHA can’t require its union staff to respond to problems on nights or weekends.

The Division of Homes and Community Renewal is moving it’s Registration Unit from Albany to Jamaica. The web page reporting the move also noted that DHCR issued 63 rent overcharge orders and 113 MCI orders in March.

This week’s BuildingsNY exhibitor focus is on Abilene. Meet them at the Javits Center May 24-25th.

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Evictions Down, Homelessness UP

Non-payment filings dropped 2.4% in 2015 while actual evictions dropped 18.1% according to a report released yesterday by the Rent Guidelines Board. The Income and Affordability Study noted that non-payment filings dropped for the fourth year in a row while the number of homeless rose for the seventh year.

Meanwhile, overall rent collections rose 4.8% and expenses rose 5.6% according to the RGB’s analysis of Income and Expense Reports. Taxes remain the largest single expense, averaging $256 per apartment per month in the stabilized universe and $306 per month in post-46 construction. The RGB set May 3rd for its vote on a preliminary guideline, but hasn’t set dates for public hearings or a final vote yet.

The Court of Appeals, Tuesday, found in Yaniveth R. v. LTD Realty Co. that the owner of a building where a child was watched everyday by his grandmother did not have the same duty under the lead paint law as the building where the child resided with his parents. The decision hinged on defining the word “resides.”

The Appellate Division, Second Department, agreed that risking a building collapse by replacing an apartment window with a doorway and ramp for a handicapped tenant was structurally infeasible and overturned a fine and penalty against a building owner in Marine Holdings LLC vs. NYC Commission on Human Rights.

A new law creating a private right of action against building owners or agents who lie about whether housing is available for sale or rent for discriminatory purposes was signed by the Mayor, Wednesday.

HUD this week adjusted its definitions of low income for Section 8 and other programs. A single New Yorker earning less than $50,750 is now considered Low Income. A couple earning under $24,500 is Extremely Low Income.

This week’s BuildingsNY exhibitor focus is on Direct Energy. Meet them at the Javits Center May 24-25th.

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