The state budget is late again.
The spending plan’s due date falls on April Fools’ Day, but this year, it was pretty clear that any news declaring a deal was fake.
On Tuesday, lawmakers approved an extender bill to keep government employees paid for one week. And the way things are going, we’ll probably see more extensions.
This year isn’t as packed with real estate-related items as we’ve seen in previous years, but there are a few items that the industry is watching, including potential reforms to the State Environmental Quality Review Act, or SEQRA. The governor’s proposal would exempt certain NYC housing projects of up to 500 units (depending on location) from the review process. The Senate proposed a version that would exempt projects with up to 1,000 units, so long as those projects are affordable (as defined by the state’s housing regulator). The “we don’t think policy should be in the budget” Assembly floated its own version after approving its one-house budget resolution. That version would only exempt projects that are 50 percent affordable and pay union-level wages. Real Estate Board of New York President Jim Whelan told me inclusion of labor standards is “a poison pill.”
“You might as well not do SEQRA,” he said.
If I had to guess, the reforms will land somewhere closer to the Senate proposal, but don’t hold me to that (unless I end up being correct — then please give me credit).
There’s also the potential replacement of the J-51 property tax program. Both the governor and the Senate included versions in their budget proposals that would give the break a 10-year runway, rather than expiring after four years and would increase the value of the incentive. The Senate’s version would make more rent-stabilized buildings eligible for the abatement. That measure has been progressing as a standalone bill in the Senate, and Assembly member Ed Braunstein has introduced an identical bill.
And, of course, there’s the question as to whether the final budget will include tax hikes on corporations and the state’s highest earners. The Senate and Assembly included some proposals in their budget resolutions, but the governor doesn’t seem to have budged on the issue.
I’m also watching where the reforms on the state’s climate law and funding for the state’s housing voucher program land, as well as if funding is included for the Brooklyn megadevelopment Pacific Park.
What we’re thinking about: Hearing about any other real estate policies that might sneak into the budget? Send a note to kathryn@therealdeal.com.
A thing we’ve learned: The 1986 slasher film “April Fool’s Day” turned 40 this week.
Elsewhere in New York…
— Police found 13 decomposing bodies at Camelot Funeral Home in Mount Vernon, run by a funeral director whose license was revoked in 2019, Gothamist reports. The state Attorney General’s Office accused Michael Naughton of tricking dozens of New Yorkers into thinking he was a licensed funeral director and stealing thousands of dollars from grieving families.
— The state Public Campaign Finance Board denied Republican Bruce Blakeman, who is running for governor, public matching funds, Politico New York reports. The board cited a rule that Blakeman needed to apply jointly with his running mate to access the public financing system. He was eligible for up to $7 million in public money.
— Business groups are urging state lawmakers against passing union-backed legislation that would require the MTA to staff most trains with two people, a conductor and operator, the New York Daily News reports. The groups argue that two staffers aren’t needed given upgraded signal technology.
Closing Time
Residential: The largest residential sale Wednesday was $21 million for a penthouse at 118 West 13th Street. The West Village condo at The Katharine is 4,000 square feet. Compass’ Leonard Steinberg Team has the listing.
Commercial: The largest commercial sale was $11.3 million for 74 Franklin Street. The Tribeca apartment building has four units, is five stories and is 9,800 square feet.
New to the Market: The highest price for a residential property hitting the market was $26 million for 127 West 11th Street. The West Village townhouse is 6,600 square feet and is listed by Douglas Elliman’s Christopher Riccio and Elana Zinoman.
— Joseph Jungermann