Developer’s Digest?: This Weeks Top Development News
How Much Housing Will Hochul’s New Deal Build?
April 23, 2024
The housing proposals approved in the state budget are being hailed as a game-changer by Governor Kathy Hochul and Mayor Eric Adams, aiming to create 500,000 new homes over the next decade. The package includes provisions such as tax breaks for developments with affordable units, expediting office-to-residential conversions, and increasing the number of units per building. However, experts express uncertainty about their effectiveness due to various restrictions. The centerpiece, a new tax credit called 485-x replacing 421-a, requires builders to allocate affordable units and adhere to wage requirements. While these measures are expected to boost housing supply, concerns linger about their impact, especially on large-scale projects in Manhattan and Brooklyn. The success of projects like Innovation QNS in Astoria may serve as indicators of the new policies' effectiveness.
Source: The City
Adams Releases $111.6B Budget That Avoids Major Cuts
April 24, 2024
Mayor Eric Adams has unveiled a $111.6 billion executive budget proposal for fiscal year 2025, prioritizing housing initiatives to address homelessness and eviction prevention. The budget includes $615 million to combat family homelessness and support eviction prevention programs like City Family Homelessness and Eviction Prevention Supplement (CityFHEPS). Adams also highlights plans to finance nearly 28,000 new affordable units in the coming year, marking the city's highest-ever affordable housing production. Additionally, proposed state funding aims to support the construction of 500,000 affordable homes by 2033, although specific budget allocations for these initiatives are yet to be disclosed.
Source: Commercial Observer
Mayor Adams Announces Progress For ’24 In 24′ Affordable Housing Initiative
April 19, 2024
Mayor Eric Adams has announced progress in New York City's "24 in 24" plan, aimed at advancing 24 affordable housing projects on public sites in 2024. Surpassing the halfway mark ahead of schedule, 13 developments are already underway, including the latest project at the Grand Concourse branch of the New York Public Library in The Bronx. This initiative, a key promise from Mayor Adams' State of the City address, involves creating affordable housing and a modern library facility within the existing property. New York Public Library President Anthony W. Marx expressed enthusiasm for the project, highlighting the opportunity to address the city's housing crisis while enhancing library services. The collaborative effort involves multiple city agencies, including the New York City Housing Authority and the New York City Economic Development Corporation, along with community input to transform the 65-year-old Grand Concourse library branch into a vibrant, affordable housing and library space.
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Source: New York YIMBY
'We're Ready To Go': Stalled Projects Get New Life With 421-a Extension
April 25, 2024
Following the extension of the 421-a tax abatement program in the state budget, New York City developers are ready to restart stalled projects. With the deadline for vested projects extended to 2031, developers are moving quickly to resume construction on projects previously put on hold due to uncertainty. This extension is expected to lead to the construction of approximately 33,000 housing units already in the pipeline. The budget's passage has injected optimism into the industry, providing clarity on future projects under the new 485-x program. Overall, the measures are seen as a positive step towards addressing New York City's housing crisis and revitalizing the development pipeline.
Source: Bisnow
South Bronx to Get 120-Unit Residential Project
April 22, 2024
Dunn Development is bringing a rare residential project to the South Bronx with over 100 units. Located at 1848 Vyse Ave., the 11-story building will house 120 residential units, with a portion designated as low-income housing. Plans also include a first-floor parking garage. Led by president Martin Dunn, the company has a history of affordable housing projects, including the nearby Via Vyse development. Dunn Development acquired both 1812 and 1848 Vyse Ave. in 2016 for approximately $7.1 million. While large residential projects have been uncommon lately, recent state budget measures may provide a boost to such developments, including new tax breaks and incentive programs.
Source: Crain's New York Business