The Real Deal New York

City plans 600 affordable housing units with $10M settlement from unscrupulous landlords

Money came from joint investigation with AG into tenants’ rights laws violation
March 11, 2016 02:50PM


From left: Bill de Blasio and Eric Schneiderman

Mayor Bill de Blasio announced the construction of nearly 600 affordable housing units, using almost $10 million in settlement money from shady landlords.

For two years, the city and Attorney General’s office investigated landlords and property owners for tenants’ rights laws violation, including failing to provide rent-regulated leases.

The cases were settled for a total of $9.8 million — money that could be used for more than a 1,000 affordable units, Crain’s reported.

The mayor, with Attorney General Eric Schneiderman and Public Advocate Letitia James, made the announcement at an empty Brooklyn lot where some of the new units will rise, Crain’s reported.

Currently, de Blasio’s Mandatory Inclusionary Housing is before the City Council, which is expected to vote on it at the end of the month. The proposal mandates developers put aside 25 to 30 percent of their project for affordable units when looking for a residential rezoning.

There has been pushback against the plan, with some saying not enough units have been set aside and that income tiers need to be changed to include more lower-income families. [Crain’s]Dusica Sue Malesevic