Three years ago, the City Council approved the rezoning of Soho and Noho.
At the time, the administration promised to prioritize building affordable housing on two city-owned sites nearby but outside the rezoning area: 388 Hudson Street and 324 East Fifth Street.
The Department of Housing Preservation and Development on Wednesday announced that it was beginning the community engagement process for the East Fifth Street site, which is currently being used as a parking lot by the New York City Police Department. The city has already gone through this “community visioning” phase with the Hudson Street property, and according to HPD’s website, is expected to release the request for proposals for that site soon.
The East Fifth Street site is the latest project to progress as part of the administration’s “24 in 24” pledge to advance 24 affordable housing projects on public land in 2024. I asked City Hall for a list of the projects that have been advanced so far, but they do not have one at the ready (by my count there are 18, but some projects have been “advanced” in one way or another more than once this year, so I’m not sure if those count toward the total).
As the city works to build housing on public land, it remains to be seen how much the recent passage of City of Yes for Housing Opportunity will motivate private developers to build housing.
Piper Sandler released a report on Wednesday that cast doubt on City of Yes alone spurring ground-up residential development. The report said office-to-residential conversions (also made easier through City of Yes) would be the more appetizing option because they come with fewer affordability and construction wage requirements.
The 485x property tax break, used for new multifamily construction, requires at least 20 percent of the apartments to be below market rate. Construction wage requirements kick in for projects with 100 or more units.
“Couple with the cost of land, materials, and carry, plus finding a bank to provide construction financing, and it’s tough to see apartment developers rushing out to pull fresh permits,” the report states.
What we’re thinking about: The Alexander brothers were arrested on Wednesday on sex trafficking charges. Share your reactions with my colleagues at sheridan.wall@therealdeal.com, ellen.cranley@therealdeal.com and kk@therealdeal.com.
Officials are asking that anyone with information about the Alexanders’ alleged behavior should call 1-800-CALL-FBI, or email alexander-case@fbi.gov.
A thing we’ve learned: Potential changes to the rules for challenging assessments could soon make it harder to fix clerical errors on property tax bills. The city’s Department of Finance is proposing a rule change that would limit the way taxpayers can challenge their annual assessments. A spokesperson for the department said the changes will clarify the appeals process by establishing clear guidelines. But tax certiorari lawyers say they will make it harder to fix mistakes, such as incorrect square footage or zoning errors.
“It’s already incredibly difficult, and under these proposed rules, it would be even more difficult and painful,” said Benjamin Williams, a tax attorney with Rosenberg & Estis. “Do we want to live in a city where the government realizes they made a mistake, and they’re willing to give us our tax money back?” — Elizabeth Cryan can be reached at elizabeth.cryan@therealdeal.com if you have thoughts on the rule change / know of any properties potentially affected.
Elsewhere in New York…
— The Adams administration is pushing back against a City Council bill that would require electric bikes and scooters to be licensed and registered with the city, Gothamist reports.
During a hearing on Wednesday, Transportation Commissioner Ydanis Rodriguez warned that delivery workers would disproportionately be the targets of enforcement, and that the measure would overburden his agency. “Opponents of this bill have tried to make this about everything but traffic safety,” said Council member Bob Holden, the measure’s sponsor. “They deflected, exaggerated and even stirred racial unrest, claiming this bill will lead to unwarranted police stops, as if breaking traffic laws and endangering lives should somehow be excused or ignored.”
— Since Mayor Eric Adams took office, the city’s Department of Sanitation and the NYPD have removed 73,000 “ghost cars” and illegal motorized vehicles from city streets, Spectrum News reports. That includes 20,000 ghost cars, which are vehicles that use forged or altered license plates. The Adams administration announced the enforcement numbers as part of “Public Safety Week.”
— Anthony Weiner, the former Congressman who resigned in 2011 after it was revealed that he sent lewd photos to several women using the alias “Carlos Danger,” has filed paperwork with the city’s Campaign Finance Board to potentially run for City Council, the Associated Press reports. He pleaded guilty in 2017 to having illicit online contact with a 15-year-old and was ordered to register as a sex offender for a minimum of 20 years.
Closing Time
Residential: The priciest residential sale Wednesday was $6.2 million for a 2,475-square-foot condominium unit at 108 Leonard Street in Tribeca. Elena Sarkissian of Douglas Elliman had the listing.
Commercial: The largest commercial sale of the day was $34 milllion for a 6,620-square-foot retail property at 690 Madison Avenue in Lenox Hill. Jeff Sutton’s Wharton Properties purchased the property from SL Green.
New to the Market: The highest price for a residential property hitting the market was $6.2 million for a 11,340-square-foot house in Todt Hill on Staten Island. Marisa Ardizzone of Joanne Costa Realty has the listing.
Breaking Ground The largest new building application filed was for a 288,320-square-foot, 22-story, proposed 400-unit project at 163-25 Archer Avenue in Jamaica. Rachel Birnboim of Perkins Eastman filed the permit on behalf of BRP Companies. — Matthew Elo