New York City could be in for a wave of out-of-state condo projects from developers in places like sunny Miami.
The number of out-of-state condo projects approved to be marketed in New York has nearly quadrupled since Attorney General Eric Schneiderman relaxed regulations last spring, Crain’s reported.
Out-of-state condo developers have traditionally shied away from marketing their projects in the Empire State, due to onerous rules put in place with the goal of protecting buyers. But even when other states started implementing similar rules, New York still required sellers to file disclosures with Schneiderman’s office and the project’s local regulator.
“It almost seemed like some of the regulations weren’t necessarily geared toward consumer protection, but toward keeping people outside New York from marketing there,” Louis Birdman, a Miami developer who recently got the green light to begin marketing a Zaha Hadid -designed tower in Miami to New York-based buyers, told Crain’s.
In May 2016, though, Schneiderman changed the rules, making it easier for developers who had their projects approved by states with similar regulations to cut through the red tape.
A total of 41 out-of-state condo projects were approved for marketing between May and the end of the year. Before that change, there were an average of 11 out-of-state projects approved each year between 2010 and 2015. [Crain’s] – Rich Bockmann