An agreement on a key component to the renewal of the 421a program was reached yesterday between the Real Estate Board of New York (REBNY) and The Building and Construction Trades Council of Greater New York (BCTC). The program expired last January, after REBNY and BCTC failed to reach an agreement on minimum wages for construction work on projects benefiting from the program.
The agreement calls for eligible buildings in Manhattan to pay on average an hourly wage of $60 (includes wages and benefits), with eligible buildings in Brooklyn and Queens paying an hourly wage of $45. The minimum wage obligation would apply to buildings with 300 rental units or more in Manhattan south of 96th Street and in Brooklyn and certain part of Queens Community Boards 1 and 2, nearer the waterfront. The new deal would extend the length of the tax exemption to 35 years. In return, affordable apartments must stay affordable for 40 years, up from 35 years.
Reinstating the 421a program would require legislation be passed in Albany. Governor Cuomo has released a statement endorsing the deal reached between REBNY and BCTC and has called upon the Legislature to return to Albany to “pass desperately needed affordable housing.”
We are following these ongoing developments very closely and will keep you updated.
On the morning of November 1st, at the Sheraton Times Square, Mayor Bill de Blasio spoke to a diverse business crowd about the ever growing population of our City – trumpeting the fact that at 8.55 million, NYC has never been bigger. The Mayor discussed “diversifying the economy,” including using City resources to incentivize a “five-borough economy” with involvement of the City in encouraging “advanced manufacturing,” real estate development and upcoming rezoning initiatives. The Mayor also spoke about the need to build trust in neighborhoods and stressed efforts being made to inform communities that development isn’t happening to them, “but by them and for them.” He added that many of those who live in these developing neighborhoods look at development “through the prism of past (and not good) experiences” but by building trust through “guaranteeing that developers do what they promised,” their attitudes would be able to change as well.
In the Zone: Biggest Changes coming to New York
Mitch Korbey will speak on a panel that will consider zoning changes made under the Bloomberg and de Blasio administrations, which are enhancing real estate development opportunities in the Midtown East area of Manhattan and New York City’s outer boroughs. For more information, click here.
November 1, 2016
- Bennet Dunkley (Principal, Vice President, Helpern Archtects)
- Robin A. Kramer (Duval Stachenfeld)
- William Silverman (Managing Director / Group Head of Investment Sales, Hodges Ward Elliott)
- Mitch Korbey (Partner and Chair, Land Use & Zoning Group, Herrick, Feinstein LLP)
On Thursday October 27th Mitch Korbey, Chair of Herrick’s Land Use & Zoning Practice, lead a conversation with Shibber Khan (Criterion Group), Seth Pinsky (RXR), Rachel Loeb (World Wide Group), Steve Klein (Brickman) and Elizabeth Lusskin (President, LIC Partnership) on The Stabilization of a “New” Community for Bisnow.
On location in LIC, the panel covered the progress and the challenges of the development of the three distinct sections of the neighborhood. Development of true mixed-use buildings, street art, safety and the walk-ability of the neighborhood were all covered by the excellent speakers. It clear to see that development continues in this ever growing “new” neighborhood. Click here for Bisnow’s full coverage of the event.
L-R: Seth Pinsky, Rachel Loeb, Steve Klein, Elizabeth Lusskin, Shibber Khan and Mitch Korbey
On Thursday morning October 27th, Mitch Korbey will be moderating a panel on the State of the Market in LIC at Bisnow’s fall event. Speakers include Shibber Khan (Criterion), Seth Pinsky (RXR), Rachel Loeb (World Wide) and Steve Klein (Brickman).
“It’s a solid, growing residential community and it can field a team with the Mets players living there, but it needs to mature as a live/work community, and I’m not sure it’s there yet,” he tells Bisnow.
This summer, City Planning is in the midst of a zoning change that will reduce the parking requirements for new buildings in Downtown Brooklyn. The text amendment is part of the city’s larger reevaluation of the Zoning Resolution’s parking requirements, as I’ve discussed previously (DCP released a study last year examining Manhattan’s parking situation, but hasn’t yet introduced any text amendment for that area). To recap the requirements – with the exception of Manhattan below 110th Street, all new buildings in NYC must provide some amount of on-site parking spaces. This requirement can be as high as one space for 100% of all new residential units in lower density areas, and can be onerous for affordable housing and small buildings – or anywhere there isn’t a market for on-site parking spaces. The zoning provides few exceptions to the parking requirements – the requirements for affordable housing are less than those for market rate residential buildings, and developments that are small enough can waive their requirement, but in most other cases, the only way that the parking requirement can be reduced is through a variance.
Downtown Brooklyn’s text amendment, which reduces residential requirements from 40 to 20 percent, is currently winding its way through the public review process. The reduction has been welcomed by many in the development community – the area continues to see a number of high-density residential development projects, and since it has some of the best transit access in the country, there simply isn’t a market for the required number of on-site parking spaces. Continue reading
Earlier today, the Municipal Arts Society, as part of their Summit for New York City, held a conference on Sustainable Housing.
The panelists each had a few minutes to share their experiences. Continue reading
ZONE is in the nation’s capital for the Fall Urban Land Institute Conference. Here’s an initial report: Continue reading