Francis Greenburger of Time Equities (Greenburger via Michael McWeeney; iStock)
Changes to New York’s rent laws dealt a severe blow to the business of condo conversions, according to a new study.
In the year following the June 2019 passage of the Housing Stability and Tenant Protection Act, just five condo conversion plans were submitted to the Attorney General’s office, the lowest level since the 1960s. In the previous five years, an average of nearly 24 conversion plans were filed each year, according to a recent report prepared by the Steven L. Newman Real Estate Institute at Baruch College.
The report attributes the steep drop-off to the new law, which stipulates that 51 percent of tenants in a rental building must agree to buy their unit for a conversion to take place. Before June 2019, the required threshold was just 15 percent of tenants, or so-called “insiders.”
ITHACA, NY Rent reform is a rightfully hot topic in Ithaca and around the country. As the COVID-19 pandemic fuels job loss and people struggle to make ends meet, keeping a roof overhead becomes a significant hurdle. This is particularly problematic in Ithaca, where over 70% of the community is composed of renters and the affordable housing crisis looms like a dark cloud.Â
Rent has been continually rising in Ithaca for the past decade, but the pandemic has brought the issue to the forefront. The creation of movements like the Ithaca Tenants Union (ITU) and the Solidarity Slate in 2020 and 2021 are just a few examples of how the increased push for rent reform has been forged in the fire of these intense circumstances.
With tailwinds such as lower vacancy rates, fewer rental concessions, better collections and significantly higher price discovery, it’s increasingly safe to say that New York City is coming back.
Key Points
The Housing Preservation Opportunities Program (the Program) offers attractive real property tax exemptions for multi-family projects located in New York City, including those that may be experiencing economic difficulty or that have existing real property tax benefits soon expiring (such as existing 421(a) or J51 tax benefits).
The Program offers a 40-year real property tax exemption that sets real property taxes on residential portions of multifamily properties at a percentage of gross potential residential and commercial income.
The amount of benefits available to a project is bifurcated by New York City Housing Preservation and Development (HPD) into two broad affordability groups, each having different levels of real property tax benefits. The Program requires that all residential units be subject to rent stabilization for the term of the Program, whether through currently rent stabilized units or registering units that are not currently rent stabilized, as a condi
Event Description
With the state budget behind us, lawmakers are set to act on their remaining priorities for the legislative session. These regional forums offer a chance to hear from legislators on their top policy priorities. We’ll touch on topics such as the ongoing response to COVID-19, curbing high prescription drug costs, retirement security, long term care reform, ways to make housing more affordable for an older population, and other pressing topics. Speakers
Assembly Member, District 75, Chair, Assembly Committee on Health
Richard N. Gottfried represents the 75th Assembly District, covering Chelsea, Hell’s Kitchen, Murray Hill, Midtown and part of the Lincoln Center area of Manhattan. He is a leading state health policymaker, not only in New York but also nationally.