The REST Act has not been put to rest.
The acronyms that plague the real estate industry are having a moment.
Last week, the City Council decided against overriding former Mayor Eric Adams’ veto of the Community Opportunity to Purchase Act, or COPA. The bill’s sponsor, the mayor and Council leadership, however, made clear that they are committed to reintroducing the bill.
As that drama unfolded last week, state lawmakers and tenant advocates recommitted to a measure that would make it easier for localities outside New York City to adopt rent regulation, dubbed the Rent Emergency Stabilization for Tenants, or REST, Act.
Towns and cities in the state can opt into rent stabilization if they find that a housing emergency exists, which is defined as having a housing vacancy rate of 5 percent or less.
The REST Act created another avenue for localities to declare a housing emergency. In addition to basing the emergency on vacancy rates, they can declare an emergency after considering publicly available data, such as local rent burdens and availability of affordable housing, and hold public hearings.
Sen. Brian Kavanagh, the bill’s sponsor and chair of his chamber’s Committee on Housing, Construction and Community Development, called the measure “a critical priority” during a press conference hosted by lawmakers and Housing Justice for All, adding that he hopes it is approved this year. Assembly member Linda Rosenthal said there is no reason why other parts of the state “should not have the same rights and protections that we in New York City have.”
Homeowners for an Affordable New York, a coalition of landlord groups, disagree.
“Expanding these policies to municipalities statewide will only deepen the affordable housing shortage, raise costs for residents and hurt the people who need housing the most,” the coalition said in a statement.
Gov. Kathy Hochul did not include the measure in her executive budget, nor another priority for the tenant advocates: an increase in funding for the state’s housing voucher program. Hochul’s budget calls for $50 million for the Housing Voucher Access Program, the same amount as last year and well short of the $250 million sought by lawmakers and advocates.
What we’re thinking about: What changes will the City Council make to COPA before reintroducing the bill? Send a note to kathryn@therealdeal.com.
A thing we’ve learned: Vornado Realty Trust is listed as part of one of the teams vying to take over the Penn Station overhaul. New York Focus reports that the real estate investment trust appeared on an Amtrak memo describing the members of each team that was selected as a finalist in the competition to become the station’s master developer. Vornado was listed among several firms that make up the team led by Halmar.
Elsewhere in New York…
— On Saturday, Mayor Zohran Mamdani tapped Dr. Alister Martin as the commissioner of the city’s Department of Health and Mental Hygiene. The mayor also named Stanley Richards as commissioner of the city’s Department of Correction and Yesenia Mata as commissioner of the Department of Veterans’ Services.
— Con Edison says salt mixed with melted ice and snow that has seeped to underground powerlines is to blame for outages in Brooklyn, Gothamist reports. As of Monday, 2,000 customers in the borough were without power, according to Con Ed.
— As of Friday, the city’s snow-melting machines, spread out across eight sites, had liquified 23 million pounds of snow, according to the mayor.
Closing Time
Residential: The top residential deal recorded Monday was $29.5 million for a condominium unit at 53 West 53rd Street. The condo is new construction and 6,500 square feet. Douglas Elliman’s Renee Micheli, Jade Chan, Frances Katzen and Michelle Griffith had the listing.
Commercial: The top commercial deal recorded was $12.5 million for 639 Grand Street. The Williamsburg retail building is 9,500 square feet.
New to the Market: The highest price for a residential property hitting the market was $57.5 million for 8 East 62nd Street. The Lenox Hill home is nearly 15,000 square feet. It last sold on the market in 2022 for $48 million. The Modlin Group has the listing.
Breaking Ground: The largest new building permit filed was for a proposed 42,075-square-foot, nine-story, 78-unit residential building at 622 Ocean Avenue in Flatbush. Leandro Dickson of LND Architect is the applicant of record.
— Joseph Jungermann