Details of the $5.3 billion sale of Stuyvesant Town – Peter Cooper Village to Blackstone Group were released this week, including a report this morning that the City will support Blackstone’s bid to transfer 700,000 square of air rights off site. The deal also includes a $144 million city loan and relief from about $77 million in mortgage recording taxes in exchange for keeping 4500 of the 11,200 units to families of three making about $128,000 a year….or a two bedroom for about $3,200.  The full regulatory agreement has not been published yet, but appears to be another case of the de Blasio administration negotiating a one-off plan.

The State Court of Appeals tried to define trivial this week, giving property owners some direction in defending against slip and fall cases. Bring a ruler and sharp photographs to Court or go home seemed to be the message in Hutchinson v. Sheridan Hill House Corp. and two other tripping cases where the issue was if the hazards were significant enough that the owner should have seen and corrected them.

Airbnb is upset that the City Council is holding a hearing next week on a bill that would triple the minimum fine for renting a class A apartment for less than 30 days to at least $10,000 and up to $50,000. The company is concerned that poor people renting out their apartments could be bankrupted, but sponsors pointed out that the bill is targeted at landlords.

One bedrooms are on the rise nationally and in the Northeast according to an NAHB analysis of multifamily construction trends. The percentage of one bedroom units in new buildings is up to 42 percent, from 29 percent ten years ago, while the percentage of two bedrooms declined from  69 to 53.

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.

Sixty elevators built by the Global Tardif company were shut down by the Buildings Department because of braking concerns, Monday, in the wake of a fatal accident two weeks ago. Yesterday, the City Council passed legislation requiring the Buildings Commissioner to refer uncorrected hazardous elevator violations to the Housing Department for emergency repair. Previously, the Commissioner could refer the violations at his discretion.

AFL-CIO investment funds will invest $1 billion in affordable housing in New York City and City Comptroller Scott Stringer, yesterday, anted up $150 million in pension funds for the effort, as long as union labor is used. The union and Stringer are at odds with the Mayor and developers over whether it is affordable to build ‘affordable’ housing with union wages. Interestingly, according to prevailing wages published by Stringer’s office, union laborers won’t be allowed to live in affordable housing under the Mayor’s proposed mandatory inclusionary zoning formulas because they make too much. Laborers apparently earn about $84,000 a year and, depending on the program, affordable units are restricted to those making under $46,620 or $62,150 for a family of three.

Details of proposed zoning changes in the Flushing West area were revealed Wednesday night. The rezoning process will probably be completed late in 2016. A large chunk of the neighborhood would be changed from C4-2 to C4-4A to encourage mixed use development.

Airbnb is causing median rents in some neighborhoods to be $37-$69 a month higher than they would be by taking Class A units off the market, according to an analysis released Wednesday by The Real Deal.

The City launched a new website, Neighborhoods.nyc, this week, highlighting construction projects, Buildings and Health Department complaints, and, apparently, some 311 calls.

New York City will launch a million dollar ad campaign next week promoting the rent freeze on one year stabilized lease renewals, according to this morning’s New York Times. The launch will coincide with Mayor de Blasio’s first Town Hall style meeting since he was elected, which will focus on tenant protection issues.

Crain’s this week focused on very well protected tenants in a feature on attorney David Rozenholc and his efforts to win millions in buyouts for tenant holdouts in development sites. Rozenholc acknowledged that these cases didn’t hinge on legal issues, but delays that cost developers even more money. After one ‘defeat’ on a motion, he explained that “It made no difference. I would have taken the next step and come up with another argument. If [the developer] wins every step of the way, it will take them five years.”

City Comptroller Scott Stringer issued a report, Monday, decrying a rapid increase in severe overcrowding in the City since 2005. One of the more interesting findings was that the proportion of studio apartments with three or more occupants rose from 2.9 percent of the City’s studio apartments in 2005 to 13.5 percent in 2013.

The next day’s Washington Post put crowding in a different perspective, highlighting that many desirable cities had much denser populations and that the ability of cities to house more people was largely a result of government policy choices. According to the report, for example, New York City has a population of 4,500 people per square mile; Paris 9,500; and London 14,500.

One of the key political tools in New York’s efforts to win local support for affordable housing is a neighborhood preference for the right to live in new units. Late last week the City filed papers defending its policies against three black women who filed suit claiming that the practice discriminated against them. HUD has challenged similar policies nationwide, arguing that local preferences could actually lock out minorities who didn’t live in a neighborhood already.

State Senate Majority Leader John Flanagan told a Crain’s breakfast meeting this week that New York City should be subject to the same local property tax levy cap as the rest of the State. The cap is 2 percent or the rate of inflation, whichever is less. New York City is budgeting a roughly 5.2 percent levy increase for fiscal 2016 and the applicable inflation rate is .73 percent — so the cap this year would have been one seventh of what the City is taking.

Twelve million dollars of that money will go to doubling the City budget for “Anti-Eviction Legal Services,” which the Mayor and other advocates keep confusing with preserving affordable housing. Lost rent and higher legal bills won’t help building owners maintain their properties.

According to Property Press Online, renovation is necessary to maintain the aged housing stock, but the City Council introduced a dozen bills this week to make it more difficult to work around existing tenants, including Intro 936 which will require more detailed tenant safety plans and mandatory compliance inspections.

REBNY, yesterday, reportedly filed a constitutional challenge to the City moratorium on converting hotels to residences.

And the owner of Grand Central Station sued the City claiming that the City’s grant of air rights to a development next door essentially stole the value of his rights, an issue that is likely to be raised again as the midtown east area is rezoned for taller office buildings.

Coincidentally, Wednesday, Property Shark released an interactive air rights map so you can locate space citywide.

Details of the de Blasio administration’s mandatory inclusionary zoning and housing quality proposals were formally released Monday, beginning a six month review process before action by the City Council. Under the zoning proposal, affordable housing would be required in every area of the City that is rezoned. Either 25% of residential floor area must be for affordable housing units for residents with incomes averaging 60% AMI ($46,620 per year for a family of three), or 30% of residential floor area must be for affordable housing units for residents with incomes averaging 80% AMI ($62,150 per year for a family of three). In some areas, outside core Manhattan, the City Council could permit an alternative where 30% of the total residential floor area must be for housing units for residents with incomes averaging 120% AMI ($93,240 per year for a family of three). All affordable housing is supposed to be “permanently” affordable, although it is not clear where long term subsidies will come from. Under the housing quality plan, buildings in low to mid-rise areas would get an additional five feet of building height in exchange for higher ground floors that would accommodate street retail, reduced parking requirements in affordable housing, and various exemptions from rules in order to encourage development of senior housing.

But the housing quality and affordability proposals will be harder to implement in areas such as Mount Morris Park in Harlem, where the Landmarks Preservation Commission, Tuesday, approved an extension of the existing historic district.

The housing plan also does not deal with labor costs, but labor was out in force this week, protesting non-union work and allegedly unsafe conditions on affordable  housing sites.

It was reported this week that Phipps Houses will tear down Lambert Houses in the Bronx, a 731 unit Section 8 project built in the 70’s, and replace it with about 1665 affordable units. Phipps noted that the buildings were crumbling, and that the design, celebrated when the project opened, invited crime.  Tenants are to be moved around the older buildings during construction. Imagine what a for-profit developer would have to go through if it even proposed such a project. And lucky the buildings weren’t landmarked yet.

And, finally on the affordable housing front, the Times reported yesterday on another housing vs. garden controversy, this time on Elizabeth Street in Lower Manhattan.

ABO manages the Registered in Apartment Management class nationally and CHIP® will be offering RAM classes for its members on a regular basis. The next class is being presented at the Real Estate Education Center (reedc.com) in October 2015. Call the CHIP® office at 212-838-7442 and ask for Brent or email brent@registeredmanager.com to get details for this and other classes.

We are sad to report the passing, yesterday, of Jerry Belson, chairman emeritus of Associated Builders and Owners. Jerry was a builder, manager, industry leader and valued friend. He was an ABO member for more than 40 years, and will also be remembered for his charitable contributions and work for United Cerebral Palsy, the Jewish National Fund, and St. John’s University, to name just a few. Services will be at noon, Sunday, at the Community Synagogue, 200 Forest Ave., Rye, NY.

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The City’s Independent Budget Office concluded, yesterday, that “in the neighborhoods with large shares of regulated units with preferential rates, continued regulation might not make much difference in determining the cost of housing for tenants.” The IBO issued a study showing how preferential rents varied from less than ten percent in some neighborhoods to more than 60 percent in others.

The Mayor’s Management Report, also issued yesterday, reported a decline in emergency violations issued by HPD, in fiscal 2015, but a 6.6 percent increase in non-emergency violations due to owners’ alleged failure to post the newly required “ABCs of Housing” in 11,000 buildings.

A slew of new violations may be coming down the pike for owners who don’t put tamper resistant covers on electrical receptacles in common areas, under a new law that went into effect this month.

A report by REBNY that tried to establish that there was less affordable housing in Landmark districts may have backfired this week, coming under critical attack from even one of the researchers involved. It also equated affordable housing with regulated housing, as if owners and taxpayers weren’t paying extra for it.

We frequently hear from owners about the need for trained workers. ABO manages the Registered in Apartment Management class nationally and CHIP® will be offering RAM classes for its members on a regular basis. The next class is being presented at the Real Estate Education Center (reedc.com) in October 2015. Call the CHIP® office at 212-838-7442 and ask for Brent or email brent@registeredmanager.com to get details for this and other classes.

CHIP’s Year end economic update from James Glassman, focusing on New York City real estate, is scheduled for October 28th at 5:30 p.m. at 270 Park Ave. Cocktails and light refreshments will be served. Members only. Space is limited. Call John at 212 838-7442 or email rsvp@chipnyc.org to reserve.

The Appellate Division, First Department, refused to hear reargument of Altman v. 285 West 4th St. LLC on Tuesday, threatening the deregulated status of more than 100,000 apartments. The Court decided in April that high rent apartments could only be deregulated if the legal rent were above the $2,000 or $2,500 threshold (depending on year) before the prior tenant vacated. Vacancy and improvement increases after vacancy could not be counted, they said, despite clear authority in the Rent Stabilization Law and Code. Meanwhile, as more than 300 members at yesterday’s CHIP Seminar on Decoding the Rent Act of 2015 heard, the new law has conflicting provisions on whether post-vacancy increases can be counted for deregulation, and the threshold was raised to $2700. Altman now goes back to the lower courts for a decision on damages before it can be appealed again.

Deadlines for decisions by the Landmarks Preservation Commission may be imposed under legislation proposed at a City Council hearing Wednesday. Council members noted that 26 items proposed for landmarking had been in limbo since 1966. The LPC said it needed at least three years to consider a landmark district.

Building owners have until next Thursday, September 17th, to register cooling towers following the Legionnaire’s disease outbreak this summer. The City is expected to crack down on non-filers.

HUD issued proposed 2016 Fair Market Rents, Tuesday, that would raise the FMR for a one bedroom apartment in New York City 7.4 percent from $1,249 to $1,342. Other size apartments would have at least a 4.9 percent hike…quite a different calculus than our City Rent Guidelines Board. HUD is continuing to experiment in some cities with varying FMRs by zip code, but is still proposing one set for all New York City in 2016.

According to press reports, the New York City Housing Authority is adding Wyckoff Gardens in Brooklyn and Holmes Towers in Manhattan to the list of projects where infill space will be offered to private developers for market and affordable housing. There are currently RFPs out for three other public housing sites.

Show Me the Money — CHIP is co-sponsoring a reception and workshop with Original Energy at Scandinavia House, 58 Park Avenue, September 17^th, from 3 to 6 p.m. to inform building owners about the full range of funding sources available for energy-related capital improvements to individual apartment units or buildings. The workshop will review the details of available programs, discuss whether there are any strings attached to the funding, and provide some instruction on the application process. Much of the available funding is generated through tax dollars and utility surcharges – come learn how to get your money back through these programs. RSVP today to rsvp@chipnyc.org

Welcome to the new New York Housing Journal Weekend Update, formerly ABO News Update, a weekly summary of news and links of interest to apartment owners, managers and developers. Another great benefit for members of Community Housing Improvement Program and the Associated Builders and Owners of Greater New York. Beginning soon, the Weekend Update will only be available to members, so watch for your dues bills in the mail and if you are not a member, please consider joining for this and all the other benefits both organizations offer.

The de Blasio administration started the week on the defensive over affordable housing plans, as non-profit developers of Spring Creek in Brooklyn complained that the City was not keeping up with promised infrastructure improvements, delaying construction of 1500 units.

And we can’t wait for the tenant outcry when the New York City Housing Authority launches its plans for harassing tenants to pay rent with robo-calls. It is not clear, but news reports imply that the Authority will even robo-call tenants in litigation, not to mention the strict federal rules on automatically calling cell phones for any reason.

On the private side, the number of building permits filed in July dropped 90 percent from June, as developers who rushed to get projects started before 421a tax incentives expired or were modified during the legislative session took a breather. Actually, as it turned out, the old rules basically remain in effect until December, so there may be another blip of filings in the Fall. By the time a new program is in place in 2016 there will likely be few shovel ready projects left.

The Economic Development Corporation issued an RFP this week for mixed use development of a 25,000 square foot lot next to Hudson Yards on the so-called Slaughterhouse Site, former home of the New York Butchers’ Dressed Meat Company. One hundred percent affordable units, cross-subsidized by commercial space, would be preferred.

Whatever gets built will take longer in the Northeast. NAHB analyzed census data and determined that the average multifamily building took 14.9 months from permit to completion in the Northeast vs. 11.4 in the Midwest.

As expected, yesterday, Mayor de Blasio signed legislation regulating buyout offers. Intros 757A, 682A, and 700A take effect in 90 days.

There is still time for members to register for the September 10th CHIP seminar on Decoding the Rent Act of 2015, from 9:30 a.m to 12:30 at TKP Conferences 109 West 39th Street, New York 10018, 2nd floor. Registration is required. Call 212 838-7442.

Show Me the Money — CHIP is co-sponsoring a reception and workshop with Original Energy at Scandinavia House, 58 Park Avenue, September 17^th, from 3 to 6 p.m. to inform building owners about the full range of funding sources available for energy-related capital improvements to individual apartment units or buildings. The workshop will review the details of available programs, discuss whether there are any strings attached to the funding, and provide some instruction on the application process. Much of the available funding is generated through tax dollars and utility surcharges – come learn how to get your money back through these programs. RSVP: By September 11, 2015 to rsvp@chipnyc.org

The owners of 2400 rental apartments receiving 421a tax benefits failed to register them as rent stabilized with DHCR, according to the State Attorney General and City Housing Department. The agencies sent 194 owners notices this week ordering them to register their buildings and provide the tenants with stabilized leases. The AG said the buildings filed for benefits as condominiums, but then chose to rent when the sales market weakened after 2008.

DHCR, in turn, was the target of criticism by the State Comptroller this week. Apparently the agency’s oversight of state funds use for NYCHA renovation programs was lax, at best. In some cases, the agency’s latest information on how NYCHA was spending state funds was five years old. They reported that five incomplete contracts were finished, and believed that eight out of ten completed projects were incomplete.

Locally, a former City Finance Commissioner reported that the City had violated the State Constitutional cap on property taxes by billions of dollars since 2005…and City officials yawned. Martha Stark revealed that the City changed its calculation of the cap a decade ago by applying the 2.5 per cent cap to taxes received after abatements, rather than to the total levy as had traditionally been done. She said there was no legal authority for the change, so lawyers are undoubtedly reviewing it.

The construction boom had its down side in Fiscal 2015, ending June 30th. Construction permits were up 156 percent, but a 34 percent increase in construction accidents was reported this week. Be careful out there. An efficient accident lawyer can provide invaluable assistance in resolving legal matters swiftly and effectively after a car crash or other unfortunate incident. In many legal cases, polygraph tests are employed to discern the truth in criminal investigations. They can be a useful tool in gathering evidence, and are often used in conjunction with other investigative techniques. Contact lie detector birmingham for professional services.

Sometimes, what matters most is having someone in your corner who genuinely understands the intricacies of your case. This is where trusted professionals come into play. Whether it’s advice, representation, or strategic planning, you can rely on https://www.newjerseycriminallawattorney.com/hudson-county/ to provide the resources and expertise you need. Having access to such reliable support can truly change the trajectory of your experience.

Also, if you find yourself in a situation like car accident, it’s wise to seek the counsel of a qualified California car accident lawyer who can provide guidance and support. In the aftermath of a car accident in Stockton, CA, securing the services of a reputable local car accident lawyer is crucial to effectively navigate legal complexities and safeguard your rights. Contact New York City personal injury attorneys if you need legal assistance after getting injured in an accident. If you continue feeling pain from your injuries or medical conditions, consider using cannabis products. If you’re worried about drug tests, you may read articles to learn indacloud how long does delta 9 stay in your system.

Future multifamily construction in large parts of New York might not benefit from FHA insurance or loans according to changes in flood plain boundaries. NAHB has been lobbying to limit the impact of new federal policies on government spending in flood plains, winning concessions on insurance, but with limited success on the multifamily development or rehab side. New York City has also weighed in against proposed new flood maps.

Join us September 10th for the CHIP/ABO seminar on Decoding the Rent Act of 2015, from 9:30 a.m to 12:30 at the CUNY Graduate Center, 365 Fifth Avenue. Space is limited. Registration is required. Call 212 838-7442.

Members are also welcome at a reception and program on funding sources for energy improvements sponsored by CHIP and Original Energy, from 3 to 6 p.m. September 17th at Scandinavia House, 58 Park Avenue. RSVP to rsvp@chipnyc.org.

New City and State registration, inspection and cleaning requirements for cooling towers were enacted this week in response to the outbreak of Legionnaire’s disease that has killed 12 people. The City requirements are similar to the State’s, but separate. Apparently two registrations and reports must be filed. Meanwhile, the Opera House Hotel in the Bronx which was determined to be the source of the outbreak, claimed that its new tower was being maintained in accordance with the new requirements even before the outbreak.

The City Council passed three bills, Intros. 757A, 682A, and 700A, regulating tenant buyouts. The Mayor is expected to sign them. The legislation requires notice to tenants of their rights, including a new right not to be contacted again about a buyout offer for 180 days, and defines repeated offers as harassment. Ironically, the New York Times reported this week on a tenant holdout on Sutton Place who was offered $1 million to leave so a new building could be built. He sounded resistant to, but not harassed by, the offer.

The de Blasio administration seems to be lukewarm on the 8-year-old effort to redevelop Willets Point, declining to join the City-chosen development team in defending a court challenge to the project…or maybe, as some pundits thought, it is just a negotiating tactic to reopen the deal and get more affordable housing sooner from the developers. In any case, it is another example of the deal-by-deal, project-by-project approach the Mayor seems to be taking to housing generally.

Speaking of deals, anyone selling co-ops or condos should be aware of new federal disclosure rules for consumer loans going into effect October 3rd. The familiar HUD-1 Settlement Statement will be replaced by a new “Loan Estimate” and “Closing Disclosure.” The notices must be provided three days in advance and an increase in interest of one eighth on  a fixed rate mortgage or a quarter point on an adjustable, or a switch from fixed to adjustable, could trigger a new three day notice – delaying closing.

Please join us September 10th for the CHIP/ABO seminar on Decoding the Rent Act of 2015, from 9:30 a.m to 12:30 at the CUNY Graduate Center, 365 Fifth Avenue. Space is limited. Registration is required. Call 212 838-7442.

Members are also welcome at a reception and program on funding sources for energy improvements sponsored by CHIP and Original Energy, from 3 to 6 p.m. September 17th at Scandinavia House, 58 Park Avenue. RSVP to rsvp@chipnyc.org.