Government briefs

Pres. Barack Obama
Pres. Barack Obama

Obama supports plan to “wind down” Fannie and Freddie

President Barack Obama last month endorsed a plan to shrink the government’s role in the housing market by “winding down” the mortgage-finance companies Fannie Mae and Freddie Mac, the New York Times reported. Fannie and Freddie, which have long benefited from an implicit federal guarantee, were taken over by the government when they failed nearly five years ago. Obama said he supports bipartisan legislation from the Senate banking committee that would “end Fannie and Freddie as we know them,” shifting more risk to private investors. “Private lending should be the backbone of the housing market,” Obama said. Despite the presidential push, Congress is unlikely to approve a bill before 2015, the Times said.

Prevailing Wage Law struck down after Bloomberg’s lawsuit

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A law that required landlords receiving at least $1 million in city aid to pay workers a prevailing wage was struck down last month by New York Supreme Court Justice Geoffrey Wright, Bloomberg News reported. The Prevailing Wage Law was adopted by the city council in May 2012 and took effect in November despite a lawsuit from Mayor Michael Bloomberg, who cited increased costs for employers and threats to job-creating projects. The judge ruled in Bloomberg’s favor, saying the law is preempted by the state’s minimum wage law. The council said it disagrees with Wright’s decision and will seek to overturn the ruling.

Midtown East rezoning brings over 100 speakers to hearing

Some 113 speakers crowded the podium last month at a packed public hearing on Mayor Michael Bloomberg’s proposed Midtown East rezoning, Curbed reported. The plan, which is supported by Manhattan Borough President Scott Stringer and is now before the City Planning Commission, would allow developers to build larger office and residential towers in the area. Speakers at the hearing included Deputy Mayor for Economic Development Robert Steel, CBRE power-broker Mary Ann Tighe and Peter Ward, the president of the New York Hotel Trades Council. Proponents of the rezoning said it would revitalize outdated commercial buildings and create new construction jobs, while opponents raised concerns about subway overcrowding and landmarks preservation. The planning commission will finalize its vote by this month and the proposal will likely be decided by the city council by the end of 2013.