Transitional increases in property taxes and modest rising values are projected to add $2.3 billion in New York City Real Property taxes between the fiscal year ending last month and FY 2016 according to the City financial plan. And, an analysis by the State Comptroller this week predicted that another $950 million was possible if interest rates remain low (see page 17 of the Comptroller’s report).

Demand could push prices up nationally and locally due to scarce new product. Nationally, there were 145,000 new homes available in May…the lowest number in fifty years. As we reported last week, new residential permits in New York City are running at less than 10 percent of  pre-recession peaks.

Well this is different. Rents in trendy parts of Brooklyn topping formerly trendy Manhattan, according to the Wall Street Journal.

One poor refugee from Williamsburg commented that her new Upper East side digs “has the charm that you would want in Brooklyn that is quickly disappearing.”

Save the Date: ABO Luncheon Seminar September 12th. ABO will present a free seminar on “The Future of Management” at The New York Association of Realty Managers annual Building Management Expo, September 12^th in the Hotel Pennsylvania. A complimentary buffet lunch, courtesy of NYARM, will be available at noon and the seminar begins at 12:30 p.m.  Details TBA.

The City Council is gearing up to pass costly new wage reporting requirements next week for all contactors and subcontractors building subsidized housing. Mayor Bloomberg has threatened to veto the bill but, in a harbinger of post-Bloomberg administrations, an override is expected. The bill requires publication of wages and pay rates for every employee, including personal deduction information.

National and local building permit statistics issued this week contain good news and bad news. The National Association of Home Builders reported that new housing permits in June were running at 760,000 a year, the best level since 2008 and the builder confidence index jumped from 29 to 35. Locally, in the first quarter, developers filed for permits for 629 units, up from a measly 158 in 2011. Back in 2005, however, the national number was around 2 million a year and the local number was about 7,000 per quarter. And the builder confidence index of 35 is 35 on a scale of 100. More than half are still pessimistic.

NAHB reported good news for ABO member Jeffrey Levine. His Edge development in Williamsburg was named a finalist for Best High Rise Condominium Community and Best Mixed-Use Community Site Plan in the annual Pillars of the Industry Awards.  Winners will be announced in October.

The National Realty Club has invited ABO members to join them for a  free hour of rum tasting and a cash bar for the rest of the evening at a reception beginning Tuesday, July 24th,  at 5 p.m. at the Hudson Terrace, 621 West 46th Street. Click here to register.

We are sorry to report that Roberta Bernstein, founding president of Small Property Owners of New York and a mainstay in the local battle for property rights for thirty years, passed away last week. She will be missed.

The biggest short term news is about something smaller and the biggest long term news is about something bigger–300 sq. ft. apartments and midtown office towers.

Currently, the smallest legal size for an apartment is 400 sq. ft.. The City Planning Commission has issued an RFP for design and construction of an apartment building at 335 East 27th St. where at least three quarters of the units would be only 275-300 sq. ft. The idea is that singles and couples could find smaller spaces more affordable and that advances in ventilation and design will make small new units safer and more attractive than old SROs.

The Planning Department also this week presented a proposal to Community Board 5 to allow taller office buildings around Grand Central and in midtown East. Part of the Mayor’s plan to keep New York competitive into the future, the changes are unlikely to be adopted before his term ends, but could reshape the skyline with modern buildings. Floor Area Limits between Madison and Lexington and 39th and 49th Streets would increase to 24, allowing 900 foot towers, and increased height in much of the rest of midtown east. For comparison, the roof lines (not counting antennas) of the Empire State Building, Chrysler Building, MetLife Building, and Sony Tower are 1250, 925, 808, and 647 feet, respectively.

And who is going to build those new buildings? Or repair the old ones? check in this website if you are looking for materials https://bellroofcompany.com/roofing-colton/ or  roofers, and If you need trained construction workers, certified renovators, or simply skilled handymen from local neighborhoods around town contact Pam Himeles at pam@buildingskillsny.com. She is coordinating Construction Workforce Development  with Builders, the New York City Housing  Authority, and the New York College of Technology. There are hundreds of graduates of a ten week full time  NY Tech program with OSHA and Scaffolding certifications, lead paint training, so just click to read more and to find the best help for your project, and more, waiting for you to call.

The City Economic Development Corporation and two Queens local development corporations this week admitted illegally lobbying the City Council to win approval of the Willets Point redevelopment plan.  In a settlement with the State Attorney General the local groups promised never to do it again and the EDC said it would restructure itself so future lobbying could be done legally. Hmmm, the idea is for the these corporations to promote development, but not to talk to politicians about it?

Lobbying does bring some successes. If you wondered about why we pay dues to NAHB, the Supreme Court’s approval of the Affordable Healthcare Act provided a useful reminder. Back in 2010, Congress wanted to require every employer of 50 or more people to provide health insurance — except for construction companies that employed just five or more. NAHB led the successful effort to amend the law so construction companies were treated the same as everyone else.

Anyone on a co-op board can be sued individually for alleged torts, as opposed to breaches of contract, according to an Appellate Division decision in Fletcher v. Dakota Inc.

The court did not rule on the alleged bias in a co-op board rejection of an apartment purchase, just the plaintiff’s ability to sue board members as individuals.

You might want to give your expeditors — I mean filing representatives — a heads up that the Department of Buildings is drafting new rules to create two classes of representatives: one that just delivers paper, and a second that can appear at plan examinations, along with a 36 hour training course and minimum education requirements. A proposed rule is expected this summer.

The top ten metro New York residential builders in 2011 as reported in the June 2012 issue of Builder Magazine were:

Local Leaders Rank 3New York/Northern New Jersey/Long Island, N.Y./N.J./Pa., Total Permits: 10,391

One of the best are the Boutique Home Builders, they will take all the process fast and easy. The Department of Buildings will be continuing its efforts to make construction faster this summer by expanding e-filing to Alt 2 and Alt 3 permits. If you are considering split level house plans Australia you can get the best options to build.

Currently, e-filed Alt 1 permits are processed 2.5 times faster than regular filings. DOB has also opened online registration for Special Inspection Agencies (formerly controlled inspections). After November 13th, only registered agencies will be able to get new jobs permitted.

Under the heading of the City giveth, and the City taketh away: the Court of Appeals this week in Zheng v. NYC decided that the City could stop funding Advantage Program rental assistance for the homeless despite guaranteeing five years of aid. The program description of five years guaranteed aid was not a contract with landlords, according to the court. The City abandoned the program when State aid for it was eliminated in 2011.  About 15,000 tenants, and their landlords, were cut off.

Finally, Eugene Giscombe, speaking at the ABO/NRC lunch this week, said the latest Harlem renaissance is being driven by the middle class actually moving uptown – something that was predicted but not realized in the other boomlets of recent decades.

$445 million in tax breaks for co-ops and condos will expire June 30th because the State Legislature adjourned for the summer last night without extending them — but no one will pay the bill for now. The Department of Finance sent out July tax bills assuming the credits would be extended. Negotiations in Albany broke down over City efforts to limit the breaks to subsidized housing, with State Legislators facing re-election reluctant to effectively raise taxes on the unsubsidized middle class. Instead, everyone seems to be sticking their heads in the sand until November.  Of course, if the City tries to collect the tax, thousands of mortgages will go into default and nearly every co-op will face emergency assessments.

The Legislature also failed to renew J51 tax benefits that expired last year, threatening the financing of millions of dollars of ongoing renovations that anticipated assistance. Again, the issue is whether the breaks should be limited  to subsidized housing. The head in the sand approach prevailed again.

Back in the City last night, the Rent Guidelines Board managed to approve new rent guidelines of 2 percent (or at least $20) and 4 percent (or at least $40) for one and two year stabilized leases, effective October 1st.  The minimums will affect all leases under $1,000. The official order will be posted here.

Development may be becoming less affordable, but the City is taking steps to make it faster. Effective July 2nd, City Planning is rolling out the BluePRint process to expedite precertification of projects that require discretionary action by the Planning Department and City Council.

And this week the Buildings Department began using new Plan Examination Guidelines to vet requests for plan examination meetings in Queens. The idea is to make sure everything is ready for the meeting ahead of time. The approach is expected to go citywide in August.

The Department of Buildings is implementing new regulations under which some former  Electrical Violations will become Notices of Objection. Starting July 1st, the department will issue Notices of Violation for egregious hazards. Three open houses describing how objections and violations will be handled under the new rules will be held from 4:30 – 6:30 p.m. June 12th, 14th, and 21st in Manhattan, Queens and Brooklyn respectively. Click here for details and reservations. Electricians, contactors, developers and owners are welcome.

Residential building permits were issued for 32.8 percent more units in 2011 than 2010, but completed units fell 41.8 percent from year to year, according to the Rent Guidelines Board annual Housing Supply Report issued yesterday. The number of in rem housing units taken by the city climbed to 845 units, the first increase in the in rem stock since  the City’s efforts to get out of the housing business in 1989. Changes in the regulated stock are also detailed.

The Department of Housing Preservation and Development has issued an RFP for development of 50 units of affordable housing along with various potential ground floor uses at 337 Berry St. in Brooklyn – a former Landmarks Preservation Commission warehouse with, apparently, no significance of its own worth preserving.

Effective June 15th, lenders have to notify HPD within 15 days of when they commence a mortgage foreclosure action against any residential property in New York City; discontinue a mortgage foreclosure action; receive a judgment in a foreclosure action against residential property; or sell a foreclosed property.

Two big stories on the union front this week. Michael Fishman, head of building workers Local 32BJ is moving up in the SEIU national leadership and Hector Figueroa seems to be unopposed to replace him. Meanwhile, threatened with non union contractors getting work on the Tappan Zee bridge, the Ironworkers Local 46 agreed to cut wages and modify work rules to become more competitive.

With less than a month left in the State legislative session, the co-op and condo tax abatement that expires June 30th has yet to be extended. Failure to act could result in the 17.5 or 25 percent abatements being tacked back on to July tax bills — forcing assessments and delinquencies from unprepared buildings. A straight four year extender is on the Assembly calendar, but there are reports that the City wants modifications in the language and no agreement  yet with the Senate.

The City is also looking to eliminate J51 benefits for unsubsidized co-ops and condos. The whole program expired December 31st. Albany is looking at a retroactive extension that also allows owners with current benefits to buy-out and avoid deregulation of stabilized units under the Roberts decision. Again, there is no agreement between the Senate, Assembly, Governor or  City on the details and session is set to end June 20th. Cross your fingers, and contact  your legislators on both issues.

Don’t plan on renting that doctors office in the ground floor apartment to another sole practitioner, according to Marisa Manley of Healthcare Realty Advisors. Speaking at the ABO luncheon this week she said that more than 50 percent of new doctors are taking salaried jobs with hospitals and medical groups. The old apartment offices are too small. If you are planning for new medical tenants you want to start at about 8,000 square feet. On the other hand, she said, some of those vacant big box stores around the country are ideal for new urgent care facilities.

Meanwhile, one employee of the NYS Homes and Community Renewal Department managed to steal $944,000 in section 8 checks intended to reimburse the state Housing Trust Fund over the course of  seven years. She just crossed off HTFC on the individual money orders and wrote her name in above it….year after year. She pled guilty  in federal court this week.

Money orders? Really?

The City Water Board finalized a 7 percent rate increase, effective July 1st. Any buildings still on frontage will automatically go into the Multifamily Conservation Program with a flat $894.15 per unit per year charge.

If you want to know who to call to complain, or to get any other information from the City, the first digital Green Book has been issued with up to date contact info for all city agencies. Strange that the City’s first web directory still lists phone numbers but not emails.

The New York City Economic Development Corporation has issued an RFP for development of a parking garage on 125th Street in Harlem as a possible arts center. The zoning allows 302,000 sq. ft. of retail and commercial uses with a another 61,000 sq. ft. bonus for art space.

The Centers for Disease Control lowered the level of blood lead levels that should be reported by clinicians from 10 to 5 micrograms per deciliter, almost doubling the number of children who might be considered to have elevated levels. There are no symptoms or treatments at those levels, which were pretty much average in the ’50s and 60’s. The change should have no immediate impact in New York City, where the law requires testing apartments of children with blood lead levels of 15 or higher. ..although nothing prevents the Department of Health from inspecting other units except, perhaps, resources and priorities. Meanwhile, the CDC website yesterday still had an explanation of why its decision to lowering the level from 10 made no sense (before politics came into play):

No effective clinical interventions are known to lower the blood lead levels for children with levels less than 10 µg/dL or to reduce the risk for adverse developmental effects.

Children cannot be accurately classified as having blood lead levels above or below a value less than 10 µg/dL because of the inaccuracy inherent in laboratory testing.

Finally, there is no evidence of a threshold below which adverse effects are not experienced. Thus, any decision to establish a new level of concern would be arbitrary and provide uncertain benefits.

Congratulations to Gail Badger, a Dean in our Registered in Apartment Management program, who received a doctorate in ministry from the New York Theological Seminary this week after presenting her dissertation on Faith-Based Property Management.

The speaker for our May 22nd luncheon has been changed. We will hear from  Marisa Manley, president of Health Care Real Estate Advisors, an expert in the burgeoning area of medical space leases. Call the ABO office for more details or reservations.

If you are building outside the City you have to comply with the State Energy Code and NYSBA is offering its last class on 2010 amendments to the code on Thursday, May 24th, on Staten Island. Developers, architects, and subcontractors are welcome and a variety of continuing education credits are available.

If you are building inside or outside the City you might want to know the “Top 12 Must Haves in Your 2012 Apartment Project.” NAHB is hosting a webinar on that topic at 2 p.m. May 23rd. A leading multifamily architect will discuss products, technology and unit/amenity layouts that are being used in today’s smaller units. Then a developer will discuss the financial implications of these new design elements and their impact on leasing.

You many have seen the story in the Times a few weeks ago about out-of-town lawyers bringing nuisance suits against New York owners and businesses under the Americans with Disabilities Act., in order to squeeze out small settlements. In Florida, they call these drive-by lawsuits. One local owner who settled a suit against a restaurant in his building for $20,000 is now advising all his retail tenants to invest a few hundred dollars in a doorbell and portable ramp. A handicapped sign by the bell could  prevent a suit in the first place, he suggested, as these lawyers are literally driving by and filing.