| | | | |  | | By Janaki Chadha | | | | | 
April 5, 2022 - Albany, NY - Governor Kathy Hochul delivers remarks at the Court of Appeals in Albany. (Mike Groll/Office of Governor Kathy Hochul) | Mike Groll/Office of Governor Kathy Hochul | A lawsuit filed nearly seven years ago to force change to the city’s lopsided property tax system is getting its final shot before the state’s highest court. The Court of Appeals will hear oral arguments on Tuesday in the case filed against the city and state by Tax Equity Now New York — a coalition of real estate developers, civil rights groups and homeowners alleging the tax system unlawfully discriminates against New Yorkers of color while favoring wealthy, white residents. A state appeals court previously dismissed the case in February 2020, writing that the various flaws don’t violate equal protections under the Constitution. Despite broad agreement the city’s property tax regime is inequitable, attempts at reform have languished for decades as politicians have declined to take on the thorny issue, which requires action in Albany. The current system benefits wealthy homeowners at the expense of their more modest counterparts, and benefits all homeowners over the owners of rental buildings and commercial properties. But fixing the inequities, while not disrupting the city’s largest source of tax revenue, would inevitably mean raising taxes on some in order to lower the burden on others — a political hot potato and key reason backers of the lawsuit are pushing for judicial action. “You could say maybe you don’t need the court” if politicians had made any progress over the last several decades, noted Martha Stark, policy director for the TENNY coalition “But the truth is nothing has been done despite huge, huge disparities and problems documented in the city’s property tax system,” she said. Former Mayor Bill de Blasio, who fought TENNY’s lawsuit, vowed to reform the system during his 2013 campaign, but made little headway during his two terms — finally releasing a report with proposed changes just days before he left office. The law department under Mayor Eric Adams hasn’t changed its tune: spokesperson Nicholas Paolucci said in a statement Friday, “The dismissal of plaintiff’s case by the Appellate Division, First Department was firmly grounded in New York State law and we believe that the Court's decision will stand.” Welcome to POLITICO New York Real Estate and Infrastructure. Please send tips, ideas, releases and corrections to jchadha@politico.com.
| | |  New York Gov. Kathy Hochul, left, greets Senate Majority Leader, Andrea Stewart-Cousins, D-Yonkers, before delivering her executive state budget in the Red Room at the state Capitol Wednesday, Feb. 1, 2023, in Albany, N.Y. | Hans Pennink/AP Photo | LAWMAKERS HOPEFUL ON HOUSING DEAL — POLITICO’s Nick Reisman: Top elected officials insist they agree the cost of housing is a pivotal problem facing New York. They just haven't agreed on how to solve it. As state lawmakers convened their six-month legislative session on Wednesday, leaders in the Assembly and Senate signaled their intention to address housing costs. The pledges come a year after Gov. Kathy Hochul proposed a sweeping package of measures that included a controversial proposal to have requirements for new home building at the municipal level. The package failed amid an outcry from suburban officials in both parties. And optimism that a broad-based housing package can be achieved this year has flagged as Hochul has indicated she will continue to pursue policies she can enact through executive action without the Legislature. UFT SUES TO BLOCK CONGESTION PRICING — New York Post’s Nolan Hicks: “Claims, trains and automobiles! New York City’s most powerful teachers’ union has teamed up with Staten Island’s Republican borough president to sue to stop the MTA’s controversial congestion pricing plan. “The lawsuit, filed Thursday by the United Federation of Teachers (UFT), argues that teachers, firefighters, EMS workers and other essential public servants would be ‘forced to shoulder the burden of the MTA’s latest fundraising gambit.’ The suit asks the court to halt the implementation of the soon-to-be-launched plan, which would charge drivers $15 per day to use city streets and avenues south of 60th Street in Manhattan.” LANDLORDS COULD FACE FINES FOR LATE REGISTRATIONS — Gothamist’s David Brand: “Landlords late to register tens of thousands of rent-stabilized apartments with New York state’s affordable housing agency could soon face a $500 fine for each month they’re tardy under a new law signed by Gov. Kathy Hochul. The law could apply to owners of at least 46,000 apartments who failed to register their units by the end of the state’s most recent registration year, according to a report issued Tuesday by the state Division of Homes and Community Renewal’s Office of Rent Administration.” TIP ME: You can always send tips, ideas, releases, promotions, criticisms and corrections to jchadha@politico.com. SHARE ME: Like this newsletter? Please tell a friend to sign up. Just give them this link.
| | |  NEW YORK, NEW YORK - OCTOBER 24: New York Attorney General Letitia James arrives at former President Donald Trump's civil fraud trial at New York State Supreme Court on October 24, 2023 in New York City. Trump may be forced to sell off his properties after Justice Arthur Engoron canceled his business certificates and ruled that he committed fraud for years while building his real estate empire after being sued by Attorney General Letitia James, seeking $250 million in damages. The trial will determine how much he and his companies will be penalized for the fraud. (Photo by Spencer Platt/Getty Images) | Spencer Platt/Getty Images | AG LOOKS TO TACK ON EXTRA FINES — POLITICO’s Erica Orden: When Donald Trump’s civil fraud trial began in October, he was facing potential penalties of up to $250 million. Now, with the trial about to wrap up, New York’s attorney general wants to tack on an extra $120 million. Attorney General Tish James’ office on Friday asked the judge overseeing the case to fine Trump and his business empire $370 million plus interest, saying the evidence introduced during the two-and-a-half month trial justifies increasing the penalties that James initially sought. PLANS TO RAZE UWS CHURCH ON HOLD — New York Times’ Mihir Zaveri: “An Upper West Side congregation that sought to tear down its church building, a Manhattan landmark, and sell the property to a developer — to the consternation of some neighbors, including a growing list of celebrities — has put the plans on hold. “The congregation, members of West Park Presbyterian Church, had said for decades that it did not have the money to fix up the crumbling 19th-century Romanesque Revival building. Instead, its members hoped the sale of the property, to a developer who planned to turn it into a high-end apartment building, would help to sustain the broader work of the church, including serving people in need.” UNION SQUARE ATTRACTS OFFICE TENANTS — THE CITY’s Greg David: “The possible future of the Union Square neighborhood — and, perhaps, other business districts in Manhattan — is on display on 14th Street and Irving Place. “…A little over a year ago, the New New York panel convened by Gov. Kathy Hochul and Mayor Eric Adams called for reimagining business districts for the post-COVID lockdown world, emphasizing the need to combine commercial and residential uses. Neighborhoods in Brooklyn are well on their way to achieving that, but in Manhattan only Union Square has taken steps to achieve that vision.”
| | — The National Transportation Safety Board is investigating the city’s subway system following the train crash last week. — The original Barneys department store in Chelsea is set to turn into luxury condos. — Luxury retailer Prada Group has acquired two Midtown high-rises for $822 million.
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