The controversy over tax incentives for affordable housing began with a bang this week when the Independent Budget Office issued a report concluding that paying prevailing union wages adds 13% to the cost of construction. It ended with a whimper today as it appeared the 421a tax incentive will expire. The State Legislature had punted the issue of how to pay prevailing wages and still afford to build under the program to REBNY and the Building Trades–who couldn’t figure it out either.

The City and State are still willing to throw public money at the housing shortage. On Monday, the Mayor touted City financing for the construction or preservation of 40,000 units since he took office, including 21,000 in 2015. Two thirds of those units are so-called preservation units such as the thousands “preserved” at Stuyvesant Town that were already subject to rent regulation.

Wednesday, Governor Cuomo proposed spending $10 billion to build or preserve 100,000 units of affordable housing by 2020. It was part of his State of the State and Budget Message that included about $100 billion in capital spending proposals but was vague on funding sources.

Following last week’s Appellate Division decision affirming an $876,619 overcharge award, including treble damages, State Legislators are proposing to up the ante with a bill to provide for quintuple damages.

CHIP and ABO are sponsoring a new Registered in Apartment Management class beginning Tuesday. Contact brent@registeredmanager.com for details.

Governor Cuomo, Wednesday, claimed that almost 2,000 buildings with 50,000 apartments have failed to register as rent stabilized despite receiving J-51 benefits. Letters are being sent to the owners. If you receive such a letter and your building is properly registered or you don’t have a J-51, please let us know. Owners who are in violation and receive the letter can avoid treble damages by registering immediately.

Coincidentally, this morning, the New York Post reported an $876,619.10 overcharge award to a Central Park West tenant, including treble damages, in a case where the owner deregulated a unit in a building receiving J-51 tax incentives.

The City Council Housing Committee will hold a hearing next Thursday, January 14th, on raising the minimum required daytime temperature from 68 to 72 degrees and the nighttime minimum from 55 to 65. The requirements would apply regardless of outside temperature. We oppose the measure noting that achieving a minimum of 72 degrees in every apartment will result in gross overheating of many units and increases in greenhouse gases. The committee will also consider a bill requiring all single occupancy toilets to be unisex.

Public advocate Letitia James had two housing-related bills introduced in the City Council this week. The first would prohibit the issuance of building permits to buildings with large numbers of violations, although it is not clear how owners are supposed to improve buildings without permits. The second would add the Public Advocate to a long list of public officials who can already ask the City Corporation Counsel to sue building owners for nuisance.

The Buildings Department, meanwhile, is trying to make it easier for owners to get sign-offs on work done with a new online “Inspection Ready” request system.

Longtime NY State Senate Housing Committee Chair Catherine Young is taking over the Senate Finance Committee and the new Housing Chair will be Sen. Betty Little of Queensbury. Little has not served on the Housing Committee before.

CHIP and ABO are sponsoring a new Registered in Apartment Management class beginning January 19th. Contact brent@registeredmanager.com for details.

The latest exhibitor to sign up for our BuildingsNY trade show May 24-25th is Con Edison.

DHCR yesterday published a revised Notice of Apartment Deregulation Pursuant to High Rent Vacancy  and Rent Control and Stabilization Fact Sheet #1 indicating that while the  Deregulation Rent Threshold remains $2700 in New  York City for 2016 due to the 0% one year renewal guideline, the threshold increased in the ETPA counties. Significantly, the  Deregulation Notice still implies that a unit is deregulated if the vacancy rent that could be collected exceeds the threshold, despite the Altman decision and some interpretations of the 2015 Rent Law changes implying that the last tenant must have paid the threshold amount.

Mayor de Blasio trumpeted a water-bill break for low-income homeowners in time for Christmas, but neglected to mention that by targeting a reduction to one group of ratepayers he denied a cut to everyone else, including rental building owners.

We previously reported that Pan Am Equities was suing the City over fines levied on the building owner when a tenant illegally rented their apartment on Airbnb. Last week another building owner reacted to similar fines by suing the tenant for $300,000.

Pro Publica reported yesterday that landlords with 421a tax incentives on buildings with 50 units or more are widely ignoring prevailing wage requirements for building service workers and Comptroller Scott Stringer promised a crackdown.

More than 60,000 people applied to rent 14 below-market micro-units, ranging from 265 to 360 square feet, that were approved under former Mayor Bloomberg as an experiment. Mayor de Blasio’s proposed zoning changes for Housing Quality and Affordability would eliminate the current 400 square foot minimum.

Extell’s $6.5 million in damages for the crane that collapsed over 57th Street during Hurricane Sandy were not covered by its builder’s risk insurance, according to a decision by the Appellate Division in Lend Lease Construction vs. Zurich American. The court said the crane was a “contractor’s tool, machinery, plant, or equipment” not specifically endorsed in the builder’s policy.

The City Human Rights Commission has issued a detailed guidance on transgender discrimination issues. Owners may not, of course, discriminate against renters based on gender, but the guidance also says it is a violation to refer to someone as Miss or Mister if they express a preference for the other, and also allows individuals to self-identify for purposes of using public restrooms or locker areas.

CHIP and ABO are sponsoring a new Registered in Apartment Management class beginning January 19th. Contact brent@registeredmanager.com for details.

The latest exhibitor to sign up for our BuildingsNY trade show May 24-25th is Flir Instruments thermal imaging equipment.

ATTENTION READERS: As you know, the weekly ABO News Update email was combined into a new NYHJ Weekend Update when CHIP and ABO merged management several months ago. Beginning in January, only dues paying members of CHIP or ABO will receive the Update. If you are receiving a copy of the Update with a red background, you will continue to receive it. If not, and you believe you are a member, please contact Andrew Pap at 212 838-7442 to check your status. In some cases, another person in your company may be receiving the member Update and we would be happy to add you to the list. If you want to join or renew your ABO Membership, please contact us as well. Thank you.

And then there were none. Staten Island this week became the last borough to oppose Mayor de Blasio’s affordable housing zoning proposals. New Yorkers really don’t want new construction in their neighborhoods.

Construction and construction accidents continue, however, so labor unions rallied yesterday in favor of three City Council bills to study accident prevention and raise fines for violating stop work orders or working without a permit. The administration opposed the increased fines at a hearing, arguing it would just drive more work underground. Contact Martin Law Offices if you have been injured at work and you need help filing a claim.

Another Council bill introduced this week, intended to help freelance workers, could have broad implications for owners and managers using day labor or casual help. It would require a written contract with anyone you pay $200 or more.

The Grand Prize Winner in this year’s Big Apps NYC competition is once again a tenant tool. JustFix.nyc is an online and smartphone app to help tenants inspect their apartments, document defects, complain to landlords, and develop court cases.

The number of families living in rental housing nationally increased by nine million since 2005, the largest 10-year gain ever, according to the 2015 Report on America’s Rental Housing from Harvard. The national rental vacancy rate averaged 7.1 percent in the first three quarters of 2015, its lowest point in 30 years. Moody’s Commercial Property Price Index for apartments indicates apartment prices are a third higher than their pre-crisis peak. Cap rates for investment grade properties declined to just under 5 percent in mid-2015, a level not seen since the peak of the housing bubble.

Join us  at 8:30 a.m. December 15^th for CHIP’s Annual panel “Build Buy Sell Hold”: Strategies and Expectations for the NYC Real Estate Market —What are the expectations for 2016 and beyond? Who is selling and who is buying, and why?  Are we witnessing the creation of the next bubble? What are the alternative investments to NYC residential real estate?  The event will be moderated by Greg David of Crains New York Business, at the New York City Bar Association, 42 West 44^th St. Free for CHIP members. $50 for non-members.  RSVP:  Call (212) 838-7442 and ask for John or email rsvp@chipnyc.org

The latest exhibitor to sign up for our BuildingsNY trade show May 24-25th is BGS Controls.

The Governor, Attorney General and Mayor yesterday announced settlements to “re-regulate” 1800 apartments whose owners had accepted 421a tax benefits but not offered stabilized leases to tenants, and listed 52 owners allegedly still not in compliance.

City Comptroller Scott Stringer wants the Human Rights Commission to crack down on property owners who are advertising “no vouchers,” or “no Section 8” on Craigslist, in apparent violation of City laws against discriminating by source of income.

Stringer also attacked the Mayor’s proposed affordable housing plan for East New York yesterday, arguing somehow that adding about 6300 units would lead to displacement of 50,000 unregulated low income tenants in the neighborhood. The Manhattan and Brooklyn borough boards piled on this week, voting to join the Bronx and Queens in opposing the Mayor’s citywide rezoning plan for  affordable housing.

Former Assembly Speaker Sheldon Silver will be appealing his conviction this week of Honest Services Law  violations and Hobbs Act fraud. The Supreme Court has taken a dim view of Honest Services law convictions without a specific quid pro quo. Interestingly, the Hobbs Act seems to allow convictions for politicians who promise a quid pro quo and then don’t deliver.

Forest City Ratner has notified the State Labor Department of possible layoffs at its Brooklyn modular housing plant.

Mayor de Blasio this week announced a plan for NYCHA to coordinate with the police department to evict dangerous tenants from public housing. Apparently he wants to create a public list of unwelcome people — but no word yet on whether the Council will introduce legislation to bar private landlords from using it.

The Council, meanwhile, is asking the administration to consider waiving all property taxes on 1271 limited income co-ops.  This is evidently the politicians’ solution to the problem  that taxes are too high for low income homeowners who were given their apartments when taxes were too high for the prior private building owners.

Join us  at 8:30 a.m. December 15^th for CHIP’s Annual panel “Build Buy Sell Hold”: Strategies and Expectations for the NYC Real Estate Market —What are the expectations for 2016 and beyond? Who is selling and who is buying, and why?  Are we witnessing the creation of the next bubble? What are the alternative investments to NYC residential real estate?  The event will be moderated by Greg David, of Crains New York Business, at the New York City Bar Association, 42 West 44^th St. Free for CHIP members. $50 for non-members.  RSVP:  Call (212) 838-7442 and ask for John or email rsvp@chipnyc.org

Does high rent deregulation apply to a rent controlled apartment in a building that once received J-51 benefits? Most analysts would have said yes, when the benefits expire, just as in rent stabilization. DHCR says no, and RFR Holding is suing over another example of impenetrable rent laws.

The latest Airbnb controversy involves tenants in affordable housing listing their units, prompting City Councilman Jimmy Van Bramer to suggest he will introduce legislation penalizing tenants rather than building owners. Meanwhile, Airbnb reached out to owners at a meeting of the National Multi Housing Council, saying that short term stays would promote their brands, that owners could get a cut of tenant revenues, and that Airbnb was piloting a program in San Francisco to notify owners of Airbnb guests in their buildings…still not necessarily legal though, but if you’re still interested in buying a home, there are even some great Indianapolis homes for sale perfect for the people looking.

The jury in the Sheldon Silver trial took the long weekend off without a verdict, but not before admitting some confusion, according to reports.

We are sorry to report the passing of Clint Taylor, longtime regional manager for In-Sink-Erator and ABO board member. Clint battled for years to get garbage disposals legalized in New York City, achieving victory in 1997. He remained a constant supporter of the real estate industry. If you need property consultants, you can rely on Dynamic Residential property managers abbotsford to get the most out of your investment.

Join us  at 8:30 a.m. December 15^th for CHIP’s Annual panel “Build Buy Sell Hold”: Strategies and Expectations for the NYC Real Estate Market —What are the expectations for 2016 and beyond? Who is selling and who is buying, and why?  Are we witnessing the creation of the next bubble? What are the alternative investments to NYC residential real estate?  The event will be moderated by Greg David, of Crains New York Business, at the New York City Bar Association, 42 West 44^th St. Free for CHIP members. $50 for non-members.  RSVP:  Call (212) 838-7442 and ask for John or email rsvp@chipnyc.org

The Bronx and Queens borough boards voted against Mayor de Blasio’s affordable housing rezoning plans this week, over fears of gentrification in the Bronx and higher density in Queens. The Boards’ votes are advisory, but the Boards include all the City Council members from each borough who will eventually have to approve any plan. The other boroughs have yet to vote, but opposition by local community boards – also represented on the Borough Boards – is widespread.

In other anti-development developments, the Landmarks Commission is taking up creation of a Bedford Historic District next month. Bedford Stuyvesant was the most active neighborhood in the city for new residential construction permits in the first quarter and many in the neighborhood oppose change. And the City Councilman representing the Cobble Hill, Brooklyn neighborhood where the former Long Island College Hospital is located, announced opposition to a rezoning for mixed use development of the site supported by the Mayor.

An engineer who signed off on a façade inspection allegedly without visiting the building has been charged with a felony this week and is facing up to four years in prison — after a 2-year-old girl was killed by a falling brick.

Two court decisions reported this week show the lower courts dancing around the Appellate Division’s decision in Altman, which found that, even before the legislative changes last June, apartments could not be deregulated for high rents unless the vacating tenant paid the higher figure before vacancy allowances or individual apartment improvements. In Dixon vs. 105 West 75th St., the Supreme Court simply quoted the Rent Stabilization Code correctly (unlike Altman). In Aimco 322 E 61st St. vs. Brosius, the Appellate term somewhat coyly cited Altman, mentioning that it only referred to one way of deregulating a unit.

The Mayor is forging ahead alone to develop 15,000 units of supportive housing for the homeless over the next 15 years, at a cost of $2.6 billion. Past supportive housing programs have involved state support with construction and operating costs (estimated at $30,000 per unit per year), but negotiations with the state for cost sharing going forward apparently haven’t gone well.

The idea of giving houses to the needy is a very important issue, a comfortable and safe home is what we all need, how to achieve it? easy, Metal Roofing is a trend in the field of construction in recent years, ensuring a safe and durable roof.

Join us  at 8:30 a.m. December 15^th for CHIP’s Annual panel “Build Buy Sell Hold”: Strategies and Expectations for the NYC Real Estate Market —What are the expectations for 2016 and beyond? Who is selling and who is buying, and why?  Are we witnessing the creation of the next bubble? What are the alternative investments to NYC residential real estate?  The event will be moderated by Greg David, of Crains New York Business, at the New York City Bar Association, 42 West 44^th St. Free for CHIP members. $50 for non-members.  RSVP:  Call (212) 838-7442 and ask for John or email rsvp@chipnyc.org

Mayor de Blasio has increase funding for attorneys to fight evictions and signed legislation to bar criminal background checks for building employees, but this week he recognized that public housing tenants who commit crimes should be kicked out.

Never mind criminal histories, building owners would not even be able to screen prospective tenants by their FICO credit scores under legislation introduced in the City Council this week. Owners would not be allowed “To use or consider any credit score, consumer debt judgment, collection account or medical debt of a tenant or prospective tenant in the rental or lease of a housing accommodation.”

In other Council news, the Housing Committee held a hearing yesterday on legislation requiring at least one smoke detector in every apartment to be “photoelectric” by April 1st, presumably replacing the new ionization type installed as a result of legislation in 2013.

The State Division of Homes and Community Renewal has proposed a 9.6% Maximum Base Rent factor for 2016-17, reporting that operating expenses went up 7.81% and property taxes went up 10.37, offset by a 7.96% increase in commercial income (although 80 percent of buildings don’t have any). A hearing is scheduled next Thursday and copies of the full proposal can be requested from CHIP.

Although there is still no determination if the 421a program will exist after December 31st, the Furman Center has issued a report indicating that the legislative scheme worked out last Spring could provide deeper incentives and more housing than the old program…if labor costs aren’t increased. Unfortunately, if labor unions don’t agree, the Legislation sunsets altogether.

Tuesday’s elections brought little change, with Democrats and Republicans each holding on to contested State Assembly and Senate seats, though the opening of former Assembly Speaker Sheldon Silver’s corruption trial, Monday, cast more light on Albany.

Mayor de Blasio, Tuesday, announced the latest plan to save manufacturing in New York City by barring hotels and self-storage facilities in manufacturing zones, apparently believing that efforts to bar other uses can save industries the way it did in, oh, SoHo maybe?

Almost one third of tenants who moved into affordable housing at rents up to 30 percent of income between 2001 and 2011 are paying more than 30 percent now, according to a report by a group called Real Affordability For All, which also attacked NYSAFAH members for greed and alleged wage theft. In some cases, rents went up faster than income and, in others, income went down. Permanent affordability may be a myth. Surprise.

Glug. The State Department of Environmental Conservation is taking comments until December 28th on a proposed Sea Rise Rule that anticipates sea levels around New York City will be 8 to 30 inches higher by 2050.

The State Division of Housing and Community Renewal has announced a hearing on the proposed 2016-17 MBR factor from 10 to 12:30 and 3 to 4:30 November 19th at Spector Hall, 22 Reade Street — but as of this morning hadn’t actually proposed a factor.

Join us Thursday, November 12th, from 9 to 11 a.m. at the CUNY Graduate Center, 365 Fifth Avenue, for a seminar on the “Ins and Outs of Construction Issues at Adjoining Properties.” This seminar will address the various issues arising from construction activity occurring in adjoining properties from the perspective of both the owner performing construction and the owner of the adjoining property. Topics will include negotiating license agreements, seeking enforcement of agreements, code compliance, and insurance. Free for members. $50 for non-members. RSVP: Call the CHIP® office and ask for John or email rsvp@chipnyc.org

If you aren’t a member of Associated Builders and Owners, or your dues aren’t current, now is the best time to join. Get full membership in ABO, CHIP, the National Association of Homebuilders and the New York State Homebuilders Association thru 2016 and a free ticket to the CHIP annual cocktail party on November 19th(a $225 value). And keep getting the NYHJ Weekend Update! Click to request details.

Airbnb expects to host 17,000 visitors for the NYC Marathon this weekend, so after you set your clocks back Sunday morning go see if you recognize the folks jogging out of your buildings.

The City Housing Authority has another way to see if extra people are living in their apartments. They estimate that there are 100,000 more people than are officially supposed to be there, based on weighing the garbage. Maybe watching bag counts could tell you the same thing.

The New York Building Congress estimates that 36,850 units of new housing will be produced in 2015, an increase of 16,400 units from 2014. The forecasted number of newly constructed units in 2015 would top the previous peak of 33,150 units produced in 2008. The forecast calls for 30,000 new units and $11.5 billion of residential spending in 2016, and 27,000 units and $10.5 billion in spending in 2017 as the bubble created by this year’s 421a deadline works through.

Councilman Donovan Richards introduced  legislation yesterday to ban smoking in public housing and  city financed affordable apartments, including any property getting a tax abatement or exemption.

The newly released term sheet for the Stuyvesant Town sale announced last week shows that the $144 million city “loan” to Blackstone will be at 0 percent interest and forgiven over 20 years.

Join us Thursday, November 12th, from 9 to 11 a.m. at the CUNY Graduate Center, 365 Fifth Avenue, for a seminar on the “Ins and Outs of Construction Issues at Adjoining Properties.” This seminar will address the various issues arising from construction activity occurring in adjoining properties from the perspective of both the owner performing construction and the owner of the adjoining property. Topics will include negotiating license agreements, seeking enforcement of agreements, code compliance, and insurance. Free for members. $50 for non-members. RSVP: Call the CHIP® office and ask for John or email rsvp@chipnyc.org

Attendees at NAHB’s International Builders Show in Las Vegas in January can enter a lottery for tickets to a Presidential Candidates Forum on housing issues, set for the evening of January 20th.