The Cuomo bond-cap plan that drew strong rebuke from city leaders has been ditched — for now

New law would have added two layers of approvals for financing city’s affordable projects

TRD New York /
Mar.March 31, 2016 09:33 AM

Gov. Andrew Cuomo’s contentious plan to give two state entities veto power over the allocation of federal tax-exempt bonds — used mostly by the city to fund affordable housing — was reportedly scrapped during budget discussions in Albany.

The Public Authorities Control Board and the Empire State Development Corporation would have been tasked to oversee the bonds, which finance a good portion of the city’s affordable housing. Over the past two years, about 17,000 of the 40,000 units were built through the bonds.

A scathing City Council report released earlier this month took aim at Cuomo’s plan, saying “it amounts to little more than an exercise of raw political power over the city.”

Cuomo said the Public Authorities Control Board oversight — controlled by him, the Assembly Speaker and the Senate majority leader — was to increase transparency, according to Crain’s.

While the proposal has been tabled for now, the governor could still push for the additional approvals when the law regulating how the bonds are doled out is up for renewal in July, Crain’s reported.

Last year, New York state denied extending privileges to the city to issue about $150 million in federal tax-exempt bonds. Affordable housing advocates pointed to Cuomo’s contentious relationship with Mayor Bill de Blasio as the reason. [Crain’s]Dusica Sue Malesevic

Related Articles


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

When Bill de Blasio announced the end of his campaign, the industry reacted largely with relief but not surprise (Credit: Getty Images and Pixabay)

De Blasio’s campaign is dead, and real estate is happy

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

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

Gary Barnett says luxury market is crowded, WeWork IPO woes continue: Daily Digest

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

The blackout impacted a 42-block stretch of Manhattan between the Hudson River and Fifth Avenue (Credit: Getty Images)

Con Ed still searching for answers in Manhattan blackout

Governor Andrew Cuomo and 538 Johnson Avenue in Brooklyn (Credit: Google Maps and Getty Images)

Landlords take another hit: Cuomo signs expanded Loft Law