| | | | |  | | By Janaki Chadha | Editor’s note: Readers, we wanted to let you know that we will publish the last edition of Weekly Real Estate on Feb. 26. As we seek to expand and enhance our coverage of the critical issues facing New York, we will be writing even more about housing and real estate policy debates in the state capital and how those policies play out in the nation’s largest city. Please continue following Janaki Chadha’s reporting on these matters — and thank you for reading.
| | |  New York Mayor Eric Adams makes a housing-related announcement at City Hall on Jan. 18, 2024. | Michael Appleton/Mayoral Photography Office | The bipartisan tax package that passed the House last week could be a boon for New York’s affordable housing goals. Included in the bill were two key changes to a program essential for financing income-restricted housing across the country — the Low-Income Housing Tax Credit. City officials anticipate those reforms – if approved by the Senate – could help yield an additional 4,400 affordable homes in the five boroughs. Essentially, the changes would increase the amount of tax credits available for subsidized housing and allow a certain type of bond financing used for this type of development to stretch further than it would otherwise. “We’re grateful that our congressional leaders have fought to include both of these important provisions in this tax package, and now it’s time to get it across the finish line,” Adolfo Carrión Jr., commissioner of the Department of Housing Preservation and Development, and Eric Enderlin, president of the Housing Development Corporation, wrote in an op-ed last week. The package, they wrote, “could unlock nearly $1.4 billion in additional LIHTC equity in New York City and billions more nationwide.” The $78 billion package, which passed the House with a wide margin, faces an uncertain future in the Senate. Getting the LIHTC changes done would be “a huge win for New York,” said Rachel Fee, executive director of the New York Housing Conference. They would allow New York to move forward on housing that would otherwise “face multi-year financing delays.” Fee added, “That’s going to mean the city and state have to add new capital to their budgets so we can take advantage of these federal resources.” Welcome to POLITICO New York Real Estate and Infrastructure. Please send tips, ideas, releases and corrections to jchadha@politico.com.
| | |  A new New York City Metropolitan Transportation Authority subway train called R211, is boarded for a test run revealing open gangway between train cars on Friday Feb. 3, 2023, in New York. | Bebeto Matthews/AP Photo | STEEP PRICE TAG FOR TRANSIT REPAIRS — Bloomberg’s Michelle Kaske: New York City’s public transportation system will need an estimated $43 billion for capital repairs during the next five years, according to a new analysis by the state’s comptroller. “Thomas DiNapoli’s projection comes as the Metropolitan Transportation Authority, which operates the city’s subways, buses and commuter rail lines, is putting together its multi-year capital budget for 2025 through 2029 that is set to be released in September. The MTA’s current $51.5 billion capital budget — its largest ever — directs 80%, or about $41 billion, to state-of-good-repair work.” GOOD NEWS FOR THE OFFICE MARKET — New York Post’s Steve Cuozzo: “Manhattan’s pandemic-pummeled office market is headed for a spectacular rebound — and not only landlords, but business advocates and eatery owners are thrilled. “Although the Manhattan office market hit bottom in 2023 with more than 20% vacancy rate, the short-term future looks rosier, according to a new report from national real estate technology platform VTS. Its latest quarterly Office Demand Index (VODI) found that demand for space in the Big Apple rose nearly 40% in 2023 over the previous year — lifting demand to 75% of pre-pandemic times.” NY REPUBLICANS SCRAMBLE TO FIX TAX LAW — POLITICO’s Nick Reisman: A largely blue-state tax issue will play an instrumental role in deciding the fate of House Republicans’ razor-thin majority this November. And they know it. Republicans from swing House districts in high-tax areas of the country will spend the coming days lobbying their red-state colleagues to make changes to the $10,000 cap on state and local tax deductions that particularly hits suburban districts. 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.
| | |  Construction on housing in Atlantic Yards. | AP Photo/Mark Lennihan | ATLANTIC YARDS UP FOR GRABS — The City’s Gabriel Poblete: “Two decades since New York State launched the 22-acre Atlantic Yards project, the rights to develop its six high-rise sites near Barclays Center in Brooklyn will be up for grabs if a lending group’s auction goes through as scheduled later this month. “Local leaders are pressing state officials for a game plan but getting few answers so far about what will happen to the state-owned sites, most of which require building platforms above a Long Island Rail Road yard — or the hundreds of affordable apartments pledged in a community pact after a years-long battle with local residents.” COUNCIL POISED TO SHOOT DOWN REZONING — POLITICO’s Janaki Chadha: The City Council is poised to shoot down a modest housing proposal in Brooklyn, due to concerns it’s coming ahead of a planned neighborhood rezoning. The proposal from HSN Realty would yield 150 homes on a site in Crown Heights, with about one-third of them reserved for what qualifies as affordable housing. But Council Member Crystal Hudson, who represents the area, wants the developer to pull the application and wait for an area-wide rezoning in the works along Atlantic Avenue, covering the site in question at 962 Pacific St. COMPTROLLER SUES DEVELOPER OVER UNPAID WAGES — The Real Deal’s Ted Glanzer: “The New York City comptroller has sued a residential developer for allegedly owing more than $40 million in back wages and penalties owed under a now-defunct property tax incentive for new housing construction. “The Bureau of Labor Law filed its suit in the New York City Office of Administrative Trials and Hearings against BLDG 44 Developers,claiming the builder violated labor regulations tied to New York State’s 421a program, which requires construction workers to be paid a minimum average hourly wage, according to a press release from the comptroller’s office.” CITY CRACKING DOWN ON FAULTY APARTMENT DOORS — Gothamist’s David Brand: “City housing inspectors are issuing more violations than ever for faulty apartment doors that are supposed to automatically shut to prevent fires from spreading, but thousands still remain unresolved, newly released city data shows….The spike in self-closing door violations issued to building owners comes two years after a deadly fire in the Bronx killed 17 people, including eight children.”
| | — The Durst Organization is exploring the sale of a luxury rental building in Long Island City. (Crain’s) — The MTA rolled out a new European-style train with open gangways. (New York Post) — A $10 billion transformation of the Port Authority Bus Terminal may move forward in the coming months. (New York Times)
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