State lawmakers want to make it easier for localities outside of NYC to adopt rent stabilization.
As the law stands, towns and cities elsewhere in the state can opt into rent stabilization if they find that a housing emergency exists. Such an emergency can be declared if the locality has a housing vacancy rate of 5 percent or less.
On Tuesday, Sen. Brian Kavanagh and Assembly member Sarahana Shrestha plan to announce a new bill that would give localities outside New York City another option. If approved, localities could also declare a housing emergency “after considering publicly available data and holding public hearings.” That data includes overall housing supply, the availability of affordable housing, the regional homelessness rate and the vacancy rate.
The bill would allow these localities to apply rent stabilization to a broader set of buildings: Those with fewer than six units and those constructed or substantially rehabbed 15 or more years ago.
The measure also allows localities to impose penalties of up to $500 on landlords who do not provide information as part of a vacancy survey. It also specifies that if an owner does not provide information on an apartment, a locality will assume the unit is vacant.
The bill has the backing of tenant groups, including Housing Justice for All and For the Many, which have worked with localities to help them adopt rent stabilization. Kingston became the first upstate city to do so, and is still at the center of a legal fight because of it. In November, the Hudson Valley Property Owners filed an appeal seeking to have the state’s highest court annul the city’s housing emergency declaration, arguing that it was based on a bogus vacancy survey.
The group successfully blocked rent stabilization in Newburgh and Poughkeepsie, citing faulty vacancy studies.
The fact that the bill creates an alternative for localities to declare a housing emergency may make it harder for landlords to challenge stabilization in the future, if it ultimately passes.
What we’re thinking about: On Monday, Elon Musk posted on X that FEMA gave NYC $59 million last week to house migrants in luxury hotels. City Hall says it does not pay luxury rates, and that the funds were part of $237 million that Congress has already appropriated to aid the city in its efforts to house migrants. Of the $59 million recently received by the city, $19 million has gone to hotel costs. Will the Trump administration attempt to force the city to return the $119 million it has received so far? Send a note to kathryn@therealdeal.com.
A thing we’ve learned: The FBI has an informal working group that studies “unidentified anomalous phenomena,” or UFOs, according to Politico
Elsewhere in New York…
— President Donald Trump and Gov. Kathy Hochul are discussing the fate of the city’s congestion pricing program, Politico New York reports. One source told the news site that Trump offered Hochul “an out,” by pitching federal investment in city infrastructure if she rolls back the toll program.
— Speaking of congestion pricing negotiations, Gothamist reports that Gov. Kathy Hochul has urged lawmakers to hold off on a bill that would allow her to align special elections with the general election in November. Delaying the bill would allow the governor to use the measure as leverage in her talks with the president about congestion pricing. The law currently requires the governor to schedule a special election within 90 days of a seat being vacated. The ability to delay a special election to fill Rep. Elise Stefanik’s seat could leave her seat empty for months, narrowing Republicans’ 218-215 majority in the House.
— ICYMI, as part of her executive budget, the governor included $400 million for a “City of Albany Rescue Plan,” the New York Times reports. More than a third of that money would go toward revamping the New York State Museum, and $200 million would be dedicated to economic development projects.
Closing Time
Residential: The priciest residential sale Monday was $27.5 million for a co-op unit at 820 Fifth Avenue. The Lenox Hill unit is 7,000 square feet and was listed by Brown Harris Stevens’ John Burger.
Commercial: The most expensive commercial closing of the day was $41.6 million for a development site at 242 East 71st Street and 1341-1347 Second Avenue. Avdoo & Partners Development acquired the nearly 10,000-square-foot lot.
New to the Market: The highest price for a residential property hitting the market was $24.5 million for a condo unit at 212 Fifth Avenue. The Nomad condo unit is 4,200 square feet and last sold in 2017 for $15.6 million. Sotheby’s International Realty has the listing. — Joseph Jungermann