Co-op owners get a quick fix on registration program aimed at rent-regulated apartments

A bill was introduced to exclude Housing Development Fund Corporations from new law

New York /
Oct.October 30, 2019 05:25 PM
Councilman Mark Levine (Credit: Getty Images)

Councilman Mark Levine (Credit: Getty Images)

After facing backlash from co-op owners, the City Council is moving to amend a law that requires landlords to register their rent-regulated apartments with the city.

Council member Mark Levine introduced a bill that will change the definition of “affordable units” that must be registered with the Department of Housing Preservation and Development’s online affordable housing portal. Local Law 64, which went into effect last year, included Housing Development Fund Corporations, co-ops that were taken over and repaired by the city in the 1970s and then sold to private owners. Though there are income restrictions on some units, the co-ops are not subject to rent regulation. Still, Local Law 64 exposes owners to fines ranging from $100 to $2,000 per month for failing to register with HPD starting in 2020. Levine’s bill would specifically exempt HDFCs from the new requirements.

“Local Law 64 was always intended to target deep-pocketed developers who were trying to avoid appropriately filling rent-regulated units in their buildings,” Levine said in an statement. “This new legislation will once and for all address the concerns of HDFC shareholders who have been desperately trying to fix the problem before they are unfairly fined.”

Earlier this month, a group of HDFC owners told the New York Daily News that the law was “insane” for making co-op owners register their units. At the time, the Daily News reported that Levine and the original bill’s sponsor, Council member Ben Kallos, couldn’t agree on how to amend the law. Kallos is listed among the bill’s sponsors.

“From the beginning, fixing this problem has always been more important than the politics of how we did it,” Kallos said in a statement. “Now that we have found a path forward together to definitively exclude HDFCs from Local Law 64, we can focus on bringing tens of thousands of units of affordable housing back online and putting them in an easy-to-access portal so New Yorkers can actually find the apartments their tax dollars are subsidizing.”

The law still applies to projects receiving tax breaks, including Affordable New York (formerly known as 421a), and those receiving zoning bonuses for including affordable apartments through inclusionary or mandatory inclusionary housing programs.


Related Articles

arrow_forward_ios
Gotham Organization Chairman Joel Picket with the proposed development at 130 Felix Street. (Getty, 130 Felix)
These projects just beat the rezoning deadline
These projects just beat the rezoning deadline
Marisa Lago, Jumaane Williams, Rafael Salamanca Jr. and Louise Carroll (Getty, NYC Planning, NYC HPD)
Rezonings will require racial equity report next year
Rezonings will require racial equity report next year
Council member Rafael Salamanca Jr and Public Advocate Jumaane Williams (Getty, Facebook via Salamanca Jr.)
City Council to require racial equity reports for rezonings
City Council to require racial equity reports for rezonings
Speaker Corey Johnson and Mayor de Blasio. (Getty, The New York City Council)
City Council quietly cut homeless voucher eligibility ahead of vote
City Council quietly cut homeless voucher eligibility ahead of vote
Mayor Bill de Blasio (Getty, NY City Council)
All eyes on de Blasio after City Council approves housing voucher increase
All eyes on de Blasio after City Council approves housing voucher increase
Governors Island (Getty)
City Council greenlights Governors Island rezoning
City Council greenlights Governors Island rezoning
City Council Speaker Corey Johnson and Mayor Bill de Blasio (Getty, iStock)
De Blasio balks as CoJo schedules vote on rental vouchers
De Blasio balks as CoJo schedules vote on rental vouchers
(Getty)
Where the lawsuits challenging NY’s 2019 rent law stand
Where the lawsuits challenging NY’s 2019 rent law stand
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...