With one week to go, the City Council is considering a number of bills feared by multifamily owners and developers.
As of this writing, a newly amended version of the Community Opportunity to Purchase Act is expected to drop Wednesday. Keep an eye out for our coverage on what that entails.
A version of the measure released last week gave nonprofits or private firms that team up with nonprofits first dibs on buying distressed multifamily properties with four or more units. Those changes did not win over the bill’s critics.
Wednesday was the last day for bills to be finalized (the bills need to age before coming to a vote at the final City Council meeting of the year, Dec. 18).
Housing groups have warned against four bills that would add new restrictions to city-funded housing, including setting a minimum for the percentage of two- to three- units built in these projects, capping the percentage of studio apartments in senior projects and requiring deeper affordability.
I asked Mayor-elect Zohran Mamdani about these bills during a press conference on Tuesday, but he didn’t take a position. But the New York State Tenant Bloc, headed by Cea Weaver, who has advised Mamdani on housing policy, has come out against the bills.
“It’s critical that the incoming administration has the capacity to write a housing plan that can deliver on the affordability agenda that the Mayor-Elect ran on,” said Ritti Singh, spokesperson for the Tenant Bloc. “While these Council term-sheet bills are well-intentioned, they will limit Mamdani’s ability to deliver on the agenda tenants across the city overwhelmingly voted for. In particular, they will slow down the development pipeline significantly and create new delays and new costs to produce the affordable housing New Yorkers desperately need.”
Another measure would create a $40 per hour minimum wage and benefit rate for construction workers on projects that receive $1 million or more in city financing. The latest version of the bill excluded projects where 90 percent or more of the units are affordable to those earning at or below 60 percent of the area media income. The laborers’ union, which has been pushing for the bill’s passage, was not happy about the exclusions. I was told just before 5 p.m. that a new version will be released later Wednesday.
Landlords have also been watching a bill that would require landlords to maintain a maximum indoor temperature in their buildings, either by providing central air or individual air conditioning units.
We’ll keep you posted on where everything lands!
What we’re thinking about: What issues would you like to see TRD cover in the new year? Send a note to kathryn@therealdeal.com.
A thing we’ve learned: A new report by HR&A found that eliminating New York’s Scaffold Law (which holds property owners liable when construction workers are injured in height-related falls) could result in savings that would support 8 to 10 percent more affordable housing units per project in NYC. The report was commissioned by the Building Trades Employers’ Association, which has long been critical of the law. The report found that insurance costs in New York are two to five times higher than in other states.
Elsewhere in New York…
— Comptroller Brad Lander on Wednesday launched his campaign for New York’s 10th Congressional District seat, the New York Times reports. Lander is challenging incumbent Rep. Dan Goldman, with the support of Mayor-elect Zohran Mamdani. Council member Alexa Avilés, who was considering a run and secured the backing of the Democratic Socialists of America, also announced Wednesday that she will not throw her hat in the ring. She said she didn’t want to split voters in challenging Goldman.
— The New School is trying to close a $48 million budget gap by making steep staffing, faculty and program cuts, Gothamist reports. The university has offered 40 percent, or 169, full-time faculty members voluntary separation or early retirement packages. Some view the cuts as an attack on the school’s liberal arts divisions. “It does seem to be designed to minimize the power of the divisions that have historically been more politically motivated,” Rachel Sherman, sociology professor at the New School’s Eugene Lang College of Liberal Arts, told the publication.
— ICYMI, Kathryn Garcia is taking over for Rick Cotton at the Port Authority of New York and New Jersey, Politico New York reports. Garcia most recently served as Gov. Kathy Hochul’s director of state operations.
Closing Time
Residential: The top residential deal recorded Wednesday was $22.7 million for a 3,409-square-foot, sponsor-sale condominium unit at Extell’s 50 West 66th Street in Lincoln Square. Janice Chang and Timothy Hsu with Douglas Elliman had the listing.
Commercial: The top commercial deal recorded was $273 million for a 629,323-square-foot office building at 147 East 44th Street in Grand Central. Rockwood Capital sold the 43-story property to Sovereign Partners.
New to the Market: The highest price for a residential property hitting the market was $5.5 million for a 3,920-square-foot multi-family at 120 East 10th Street in the East Village. Yoav Blat with Compass has the listing. The property last sold for $5 million in 2018.
Breaking Ground: The largest new building permit filed was for a proposed 152,860-square-foot, eight-story school at 4261 Broadway in Hudson Heights. Matthew McChesney filed the permit on behalf of Lloyd Goldman of BLDG Management.
— Matthew Elo