Affordable Housing Gets BSA Fast Track

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Hello, let’s get into today’s news at the intersection of policy and real estate:

The Board of Standards and Appeals has new rules for fast-tracking zoning waivers for select affordable housing developments — sidestepping ULURP.
A new bill would pay municipalities for every new housing unit they produce.
The Champlain Hudson Power Express is up and running, with implications for building owners who must comply with Local Law 97.

In this edition we mention: State Sen. Erik Bottcher, Board of Standards and Appeals Chair Shampa Chandra, HPD Commissioner Dina Levy, Hydro-Québec’s senior director of stakeholder relations Peter Rose and others.

We Heard

Fast track: The New York City Board of Standards and Appeals on Monday adopted rules that give the agency new authority to greenlight project-specific zoning waivers for certain affordable housing developments — allowing them to bypass the city’s lengthy ULURP process. The move is part of a broader effort tied to one of four ballot measures approved by voters in November aimed at speeding up the approval timeline for income-restricted housing. Under the streamlined framework, developers building HPD-supported and regulated affordable housing on residentially zoned sites can seek relief directly from the BSA for zoning tweaks tied to use, bulk or parking requirements. To qualify, projects must clear two key hurdles: a letter from the Department of Housing Preservation and Development’s Commissioner Dina Levy confirming that the proposal aligns with agency design and development standards, and a certified statement from a licensed design professional attesting that the requested modification is necessary. BSA chair Shampa Chandra said the rules “frontload checks and balances,” aiming to reduce midstream changes that could require an amendment to BSA-approved plans. Before the board makes a final determination, proposals will still go through a 60-day review window with the local community board and borough president, followed by a public hearing and vote by the BSA.

More carrots?: State Sen. Erik Bottcher wants to pay municipalities for every new unit of housing they build. His new bill would create a $250 million Pro-Housing Communities Incentive Fund that rewards local governments for every eligible net new housing unit they add. The proposal builds on a similar program Gov. Kathy Hochul launched in 2023: the Pro-Housing Community Supply Funds Program. Under that initiative, the state’s Homes and Community Renewal agency certifies municipalities as pro-housing communities — New York City holds the designation — and gives certified localities exclusive access to roughly $750 million in discretionary state funding for infrastructure that supports new housing. So far, the results have had limited success with transforming suburban development patterns, with many municipalities still resisting new apartment construction. Bottcher’s bill seeks to build on the program with a more targeted approach, tying payouts directly to new apartments. Under the proposal, the New York State Housing Trust Fund Corporation would oversee the fund and distribute $10,000 for each new market-rate apartment, $15,000 for affordable units serving households earning up to 80 percent of the area median income and $20,000 for deeply affordable, supportive, public or formerly homeless housing units. Municipalities could also collect $5,000 for each new accessory dwelling unit. The state would finance the program through its general fund. To qualify, municipalities would submit annual housing production certifications, which the state would verify through certificates of occupancy, building permits and local assessment rolls, according to the bill text. The legislation would also award state-designated pro-housing communities a 25 percent bonus on all incentive payments. Notably, Bottcher’s bill would give municipalities broad discretion over how they spend the money, allowing local governments to direct funds not only toward housing development but also toward staffing, community facilities, emergency services and other local priorities. The newly introduced bill lacks an Assembly companion, making near-term movement unlikely, but it represents lawmakers’ latest attempt to crack the code on persuading local governments to embrace denser housing development.
Energy demand: The Champlain Hudson Power Express project is officially online, bringing a new 339-mile transmission line of Canadian hydroelectricity straight into New York City — just in time for this week’s unseasonable heat and the city’s earliest heat advisory in roughly three decades. From Tuesday into Wednesday, temperatures are expected to climb as high as 96 degrees across the city. “The good news is that because we finished testing early, we are able to participate in the May energy market,” said Peter Rose, senior director of stakeholder relations at Hydro-Québec. “That’s great for New York City because if there is a heat wave, CHPE can help meet demand.” Hydro-Québec and Transmission Developers, backed by private equity firm Blackstone, anticipated the project would be operational in early June, but it wrapped up testing ahead of schedule and quietly entered operation last week. The project’s owners have a contract with the New York State Energy Research and Development Authority that begins on June 1. In the meantime, Hydro-Québec can pump energy into the grid when demand and prices peak. The project’s completion also has implications for building owners working to comply with greenhouse gas emissions reductions required under Local Law 97. Building owners have the option to reduce their emission caps by purchasing renewable energy credits (through a process administered by the state) from certain energy infrastructure projects that flow directly into New York City. CHPE is one such project. We’ll keep you posted as that process becomes clearer.

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Bill Tracker

Bill Number	Lead Sponsor(s)	Summary	Committee	Last Action Date / Status
S10503	State Sen. Erik Bottcher	Establishes the pro-housing communities incentive fund	Referring to finance committee	May 15

The Catch-Up

State lawmakers’ planned pied-à-terre and cash-buyer taxes have created uncertainty in the real estate industry. Wealthy buyers may rent instead of owning to avoid the high annual surcharge or avoid the tax by using “ghost tenants,” writes The Real Deal columnist Erik Engquist.

The head of the mayor’s tenant office, Cea Weaver, spelled out what she defines as a “low-road landlord” versus a “high-road landlord” during a recent New York Law School panel discussion, writes amNewYork.

Senate Minority Leader Chuck Schumer signaled he would back the House’s contested housing affordability package if it becomes Congress’ best shot at getting a deal across the finish line, reports Politico.

The Kicker

“We can’t pretend that low-income renters can spend more and more in order to keep up with escalating costs, but we also can’t pretend that the buildings they live in are going to remain in good condition if we don’t find ways to support the ongoing costs of maintaining those buildings,” said Howard Slatkin, executive director of the Citizens Housing and Planning Council on distressed properties.