We built this city!
Albany’s grand plan to massively increase housing supply in the Big Apple is now taking shape, with lawmakers and Governor Hochul expected to sign the landmark proposal later this week.
The multifaceted plan includes a series of measures to encourage developers to build thousands of new homes, while reducing rents and protecting millions of tenants from unscrupulous landlords.
Drastic measures include:
New York City’s “Just Cause Eviction” Tenant Protections
- If a tenant increases the rent by more than 10% or 5% plus inflation, whichever is lower, they can take the landlord to court.
- Tenants can still be evicted for “gross negligence.” Rent arrears. Refusing to let the landlord make repairs. and rent arrears. Landlords are not required to renew their leases.
The bill includes significant provisions regarding the circumstances in which good cause tenant protections do not apply, including:
- When a tenant leaves the apartment
- New construction and buildings constructed after 2009 are exempt for 30 years
- Units with rents at or above 245% of fair market, a standard set by the federal department. housing and urban development. Currently, the fair market value for a one-bedroom apartment is approximately $6,000. That is not the case for most luxury apartments.
- Number of units owned by landlords with a portfolio of 10 units or less
- Co-ops, seasonal housing, and retirement communities
Towns, villages, and cities outside of the five boroughs may agree to legitimate purpose guidelines that apply to them.
squatter
The plan clarifies the difference between tenants and squatters, emphasizes that squatters do not share the same rights as tenants, and addresses legal gray areas that have allowed evictions to drag on through the courts. This will eliminate the problem.
Affordable housing tax incentives for developers
The agreement introduces a new version of the existing 421-a property tax exemption for developments that include a certain percentage of affordable units.
The new incentive, called “Affordable Neighborhoods for New Yorkers” (ANNY), includes requirements for how many units in a particular building must be affordable and where their rents must be set. Contains requirements.
Most small developments with less than 100 apartments are required to keep one-fifth of them affordable.
This is set using HUD measurements of what 80% of people with area median incomes can afford to pay, which will be about $2,100 per month for a one-bedroom in 2023. Developments with more than 100 units must retain 25% of apartments in the same price range.
Larger buildings of more than 150 units south of 96th Street in Manhattan, Cobble Hill and Williamsburg in Brooklyn, and Long Island City and Astoria in Queens have different requirements.
These buildings would need to make 25% of the units affordable, or about $1,600 for a one-bedroom, or 60% of the average median income.
Developers also receive various exemptions depending on the number of units in the building.
Under the plan, smaller buildings with 10 or fewer units would be exempt for 10 years during and after construction, while larger buildings with 100 or more units would be exempt for 35 years.
The agreement extends the existing 421-a program through 2031 for ongoing projects.
The plan also establishes minimum wage standards for unionized construction workers at such development sites.
An agreement brokered between the New York Real Estate Board and the building industry sets base wages at $35.00 and $72.45 for projects with more than 100 units.
Citywide base rates are scheduled to start at $35 per hour in 2023 and increase to $45 per hour in 2033.
Higher base rates apply in areas of Manhattan south of 96th Street, Cobble Hill, Williamsburg, Long Island City, and Astoria.
Conversion of office buildings to housing
The bill also creates a new program to encourage developers to convert abandoned office space into housing, including affordable units.
Projects approved by June 30, 2026 will receive a 90% discount on their effective resident tax rate for 35 years. The period will be reduced to 30 years for projects approved by 2028 and 25 years for projects approved by 2031.
Developers will pay a quarter of a unit at 80% AMI, or about $2,100 for a one-bedroom, in 2023, and 5% of a unit at 40% AMI, or one-bedroom, in 2023. You will need to set aside approximately $1,100.
Other initiatives:
- Owners of rent-stabilized apartments can receive larger rent increases after making improvements to their apartments. Currently, landlords are allowed to increase rent by a portion of the amount spent on improvements, up to $15,000. Under the agreement, the cap would increase to $30,000 and potentially $50,000.
- A decades-old restriction banning residential buildings from building more than 12 times the lot area in New York City would be lifted. Most Manhattan City Council members expressed support for adjusting the upper limit of that limit earlier this year.
- Allows the city to implement a pilot program to legalize basement apartments in parts of Manhattan, the Bronx and Brooklyn.
