Gov. Kathy Hochul and top state lawmakers agreed to a housing deal Friday, clearing a major hurdle in state budget negotiations that have dragged on nearly two weeks past the deadline, sources said.
The preliminary agreement would allow tenants of many market-rate units in New York City to challenge lease increases of more than 10% in housing court, officials said.
It also aims to increase production of desperately needed new affordable housing in the city, including repealing a decades-old state law that capped building density in Manhattan.
A Post investigation revealed how the 1961 law known as the 12 FAR cap backfired badly. It would ban buildings like those lining Central Park, but allow controversial skyscrapers to be built.
Hochul, Assembly Speaker Carl Heastie (D-Bronx) and state Senate Majority Leader Andrea Stewart-Cousins (D-Westchester) reached a tentative agreement Friday afternoon.
Mr Heastie and Stewart-Cousins then presented their plans at a meeting.
Details of the plan have not yet been disclosed, but officials said the package includes:
- Tenants in market-rate apartments who are facing eviction will be allowed to challenge rent increases that exceed the rate of inflation by 5% or 10% overall. This is a major victory that left-wing politicians and tenant activists have been chasing for years.
- Reserving 20-25% of the apartments in new buildings for middle-class families earning 80% of the city’s average salary (approximately $90,000 per year for a family of two and $113,000 for a family of four) , giving tax breaks to developers. According to federal guidelines, the rental rates for these apartments would be $2,119 for a one-bedroom and $2,937 for a three-bedroom.
- Accelerating the conversion of vacant office towers into housing could give a boost to both Midtown and the Financial District, which have struggled to regain their footing after the pandemic and the shift to working from home.
The bill, hailed as “just cause” by supporters, would also require landlords to provide automatic lease renewals to tenants who remain on their leases, and would require landlords to provide automatic lease renewals to tenants who report issues within their units. Helps prevent retaliation.
This was a key demand from lawmakers aligned with the Democratic Socialists of America and other left-leaning groups.
Developers were fighting to exempt new construction from the proposal, while small landowners wanted exemptions for smaller buildings.
Landlords won a small victory by getting lawmakers to agree to increase the amount they can spend to renovate and transfer units to tenants from $15,000 to $30,000.
Property owners were demanding much higher limits.
Some tenant activists were furious after hearing the terms of the agreement. Among them is Everyone’s Housing Justice Director Shea Weaver, who was arrested in Albany earlier this week for blocking access to the governor’s office to protest potential landlord concessions.
The developers also indicated that they were not too thrilled with the results.
“In recent years, we have pushed to address New York City’s supply-driven housing crisis through policies that build more housing for New Yorkers and keep existing housing in good condition.” said Jim Whelan, Albany Real Estate’s top strategist. board.
“We will consider the details of a potential housing package.”
The preliminary agreement on housing clears a major hurdle for the remaining state budget, which was due April 1, something some Albany politicians thought would be impossible a week ago. .
