Manhattan BP thinks "ground is really shifting" on housing

Dec 11, 2023

Beat Memo

Councilman Mark Levine, center.

Mark Levine works to make the case that embracing development is good politics. | William Alatriste for the New York City Council

A Manhattan Democrat with a rising profile is trying to change the script on politics and housing — and doing it from a borough notorious for “Not in my Backyard” opposition to development.

Take the outcome of a tight City Council race in the Bronx last month. Council Member Majorie Velázquez’s loss brought up a concerning question in housing circles: If her approval of a controversial rezoning cost her the seat, will lawmakers be less inclined to approve new residential construction in the future?

Manhattan Borough President Mark Levine thinks that’s the wrong take.

Levine, who’s been increasingly vocal about the need to boost housing production, offered a high-profile counterexample — Council Member Kristin Richardson Jordan, who killed a contentious rezoning in her Harlem district and ultimately dropped her bid for reelection.

“There was a real political backlash against [killing the project] in the district, and I presume that played a big role in her decision not to run for reelection,” Levine said in an interview. “The people who were running to succeed her, all had said they would support that project. It’s proof of just how quickly in the span of 18 months that issue has moved in one district.”

He pointed to other examples, like Council Member Julie Won in Queens, who approved the hotly-contested Innovation QNS project in her district and comfortably won reelection.

His own primary in 2021 tested his belief, he said. Levine supported the controversial Soho rezoning while state Sen. Brad Hoylman-Sigal and former Council Member Ben Kallos criticized the proposal.

As Levine works to make the case that embracing development is good politics, his office recently put out a “Petition for More Housing” — urging New Yorkers to “join our call to ensure that NYC continues producing enough housing to keep pace with needs.” Average rents in Manhattan, the petition noted, have soared above $5,000 a month amidst the supply crunch.

“We're going to keep finding a way for regular New Yorkers to get on the record in support of this agenda,” he said. “And hopefully, when other electeds see this, they'll realize that the ground is really shifting on housing policy.”

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Driving the Week

Janno Lieber speaks as Kathy Hochul listens during a news conference in the new annex of Grand Central Station in New York.

Janno Lieber, CEO of the MTA, speaks, as New York Gov. Kathy Hochul listens, during a news conference in the new annex of Grand Central Station in New York, on Jan. 25, 2023. | Seth Wenig/AP Photo

CONGESTION PRICING MOVES AHEAD — POLITICO’s Ry Rivard: The New York Metropolitan Transportation Authority's board voted 9-1 on Wednesday to put out for public comment a plan to increase tolls for drivers heading into parts of Manhattan….

The vote moves the landmark congestion pricing plan closer to reality after decades of debate about how to curb traffic in New York City, but there are still changes that could be made to the plan, which creates new tolls of $15 or more for most drivers coming into Manhattan south of 60th street. New York City Mayor Eric Adams has asked for further exemptions for taxis, which are already set to get a discount. He’s but one player asking for a carve out to the plan the MTA voted to advance.

NEW HOUSING CZAR AT CITY HALL — POLITICO’s Janaki Chadha: Mayor Eric Adams on Wednesday named Leila Bozorg, a planning commissioner and former city housing official, as the city’s new executive director of housing. The appointment comes as New York grapples with a housing shortage and deteriorating public housing stock….

Bozorg will report to Deputy Mayor Maria Torres-Springer, whose economic development portfolio was expanded to include housing after former Chief Housing Officer Jessica Katz left the administration over the summer.

PUSH TO NIX PROPERTY TAX BREAKS — New York Times’ Matthew Haag and Meredith Kolodner: “State lawmakers will unveil legislation on Tuesday that would eliminate enormous property tax breaks for Columbia University and New York University, which have expanded to become among New York City’s top 10 largest private property owners….

“The bills would require the private universities to start paying their full annual property taxes and for that money to be redistributed to the City University of New York, the largest urban public university system in the country. Columbia and N.Y.U. collectively saved $327 million on property taxes this year. The amount the schools save annually has soared in recent decades as the two have bought more properties, and the value of their properties has also increased.”

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Odds and Ends

The skyline of midtown Manhattan is visible from a room at the Millennium Hilton New York Hotel in New York City.

The skyline of midtown Manhattan is visible from a room at the Millennium Hilton New York Hotel in New York City on Sept. 22, 2023. | Ted Shaffrey/AP

SL GREEN PURSUES OFFICE CONVERSION — Crain’s Aaron Elstein: “SL Green plans to convert the office tower at 750 Third Ave. into apartments, a move that would transform a building that’s 81% vacant into a thriving community of 543 units, 20% of them affordable. ‘We are preparing the building to be the shining example for office-to-residential conversions,’ Robert Schiffer, executive vice president for development, said at an investor meeting this week….

“But in order for the project to make sense economically, New York’s largest commercial landlord says the building needs a ‘full’ property-tax abatement. It currently pays about $10 million a year, according to city records.”

MTA NEEDS EXTRA $1B FOR SECOND AVE EXPANSION — New York Post’s Nolan Hicks and Chris Nesi: “The MTA plans to build its new Second Avenue subway stations twice as large as needed — bloating construction costs as the transit agency calls on drivers to help finance the project through the controversial new congestion pricing scheme, according to experts and data obtained by The Post.”

CREEDMOOR PLAN ANGERS LOCALS — THE CITY’s Haidee Chu: “New York State finally has a plan to turn the Creedmoor Psychiatric Center into thousands of units of housing. It will also have full power to approve the plan — angering neighbors who feel they’ll be sidestepped on a project that could transform the low-density neighborhood in eastern Queens with “tall monstrosities” up to eight stories high. Gov. Kathy Hochul unveiled details this week of her plans to redevelop 58 acres of the state-owned Creedmoor site, a sprawling project that will likely span into the next decade.”

COUNCIL PASSES VACANT APARTMENTS BILL — The Real Deal’s Suzannah Cavanaugh: “City Council members passed a bill Wednesday to give themselves a window into New York’s vacant apartment problem. The measure triggers an inspection if a tenant complains about an empty unit, provides a way to track vacancies and ensures ‘that landlords are keeping unoccupied units in good repair,’ bill sponsor Carolina Rivera tweeted.”

Quick Links

— A new bill introduced by Democrats in Congress would ban hedge funds from buying and owning single-family homes.

— State lawmakers say housing reform is a top priority next session.

— Small businesses near the Kingsbridge Armory in the Bronx are fighting for leases amid plans to sell the property.

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