Property tax cap becomes a reality
Cuomo signs the property tax cap billGovernor Andrew Cuomo has signed into law the first property tax cap in state history. The product of years of discussion in Albany, the cap limits property tax increases to 2 percent or the rate of inflation, whichever is less. Municipalities can only overturn the rule with 60 percent voter support. According to Cuomo, who campaigned on a promise of enacting the tax cap, the legislation’s ultimate goal is to keep families and businesses in New York. Currently, the state has the highest property taxes in the country, with a median annual property tax bill of $3,755, which is 96 percent higher than the national average of $1,917.
Harlem affordable housing gets a makeover
Some 447 rental units in 14 Harlem residential buildings will stay affordable for the next 30 years and receive a much-needed renovation, Crain’s reported. In a $75 million deal, L+M Development Partners and Harlem Congregations for Community Improvement will recapitalize the properties, located between West 145th and West 153rd streets, using low-income housing tax credits, bonds and subsidies from the city Department of Housing Preservation and Development, the city Housing Development Corp. and the New York State Homes and Community Renewal. Goldman Sachs Urban Investment Group is also an investor in the deal. L+M will manage the buildings and handle the renovations, which will include energy efficiency upgrades. “HCCI had foresight and knew that they needed help making the buildings — which had started to suffer — better,” said Ron Moelis, cofounder and CEO of L+M. “We stepped in to help.”
President Obama postpones foreclosures for the unemployed
President ObamaThe Obama administration announced last month that unemployed homeowners with mortgages backed by the Federal Housing Administration will now have up to a year of forbearance on their mortgage payments, according to Reuters. The plan is intended to give borrowers more time to find a job without having to leave their houses, and could benefit tens of thousands of homeowners, according to Shaun Donovan, secretary for the Department of Housing and Urban Development. The administration hopes the decision will encourage other loan services, including Fannie Mae and Freddie Mac, to extend the period that unemployed borrowers can delay foreclosure, he said.
United Nations gets OK to build office tower
Robert Moses playgroundThe New York State Legislature gave the United Nations the green light to build an office tower on a playground near its headquarters, Crain’s reported. The bill, which the governor is expected to sign, gives city and state officials until Oct. 10 to work out a memorandum of understanding for construction to proceed. The tower will be built on top of the present Robert Moses playground on 42nd Street and First Avenue and will house U.N. staff from two city-owned buildings and from the U. N. complex, which is currently undergoing renovations, according to the Wall Street Journal. The new building would be built on the 29,000-square-foot playground at the First Avenue end of the park, but basketball courts and a dog run would not be affected, officials said. Although the plan has been approved, obstacles remain. The deal would require finding substitute Manhattan parkland to make up for the lost playground space.
Compiled by Russell Steinberg