Cuomo’s plan on housing bonds is a “poison pill”: Been

Governor's office said the proposal -- which would add two new layers of regulation to process -- may be altered

TRD New York /
Mar.March 04, 2016 08:00 AM

New York Housing Commissioner Vicki Been blasted a proposal floated in January by Gov. Andrew Cuomo to change the way the state allocates federal tax-exempt bonds for projects in the city.

Been defended the existing system and called the proposal – which would add two new layers to the bond allocation approval process — a “poison pill.”

A spokesperson for Cuomo suggested in response that the state may alter its plan, Politico reported.

Cuomo’s plan would require all projects funded through the bonds – known as “volume cap” or “bond cap” – to be approved by the Public Authorities Control Board, a state body. It would also grant veto power over a large number of projects to the state-controlled Empire State Development Corporation.

The bonds pay for a large chunk of the city’s affordable development. They contributed to about 17,000 of the 40,000 affordable units built by the city over the last two years.

“We could be two years into working through a project,” Been said, “and at the last minute the Public Authorities Control Board, one member, could say, ‘I don’t approve that project.’”

Dani Lever, speaking for Cuomo, held out the possibility of a compromise.

“Talks with the Legislature regarding this proposal are ongoing,” Lever said in a statement, according to Politico. “Everything is still on the table and the state is discussing several options, including certain exemptions or thresholds for size of projects, issuing agencies or specific regions.”

The fight is just part of the larger battle between the de Blasio and Cuomo administrations. Cuomo’s plan, Politico reported, citing sources familiar with administration’s thinking, represents an attempt to punish de Blasio perceived past slights.

Been also said the Cuomo’s office is holding up projects that would create 1,200 new affordable units in the city, including at the Crossings in Jamaica, where the city is building 480 units. [Politico]Ariel Stulberg


Related Articles

arrow_forward_ios

All Falls Down: Kanye West’s “Star Wars”-themed affordable housing plan hits snag

Inwood has stayed affordable for a remarkably long time. That could soon change. (Credit: Wikipedia)

Inwood braces for gentrification

The purge continues: WeWork’s head of real estate is leaving

Governor Andrew Cuomo and Senator James Skoufis (Credit: Getty Images, NY Senate)

Owners of some residential properties can’t hide behind
LLCs anymore

Rent reform is propelling a new wave of New York and California investors to Miami (Credit: iStock)

Rent reform in New York, California propels new wave of multifamily investors to Miami

Developer seeks $40M for Opportunity Zone site in downtown Newark

Margaret Streicker Porres and 101 West 78th Street (Credit: Linkedin, Corcoran, iStock)

Newcastle Realty was repeatedly accused of violating New York’s old rent laws. Now it says it’s leaving New York because of the new rent law.

The lights of The Hard Rock Cafes marquee are out during Midtown’s Saturday blackout (Credit: Getty Images)

Broadway shows, restaurants see major losses from Midtown’s Saturday blackout

arrow_forward_ios