Developer’s Digest?: This Weeks Top Development News
NYC Proposes New High-Density Zoning Districts if State Lifts Floor-To-Area Ratio Cap
March 28, 2024
Mayor Eric Adams is pushing to lift NYC's 1961 floor-to-area ratio (FAR) cap, allowing for larger residential buildings and more affordable housing. Adams proposes two new zoning districts to permit buildings up to 15 and 18 times their lot size, contingent on state approval and City Council endorsement. Emphasizing the urgency of addressing the housing crisis, Adams seeks swift action from all levels of government. Opponents fear overdevelopment and loss of historic neighborhood character. The proposal is undergoing review and expected to be voted on by year-end. Adams also advocates for other measures, including new tax incentives and basement apartment legalization, to facilitate affordable housing development.
Source: 6sqft
Mayor Adams Unveils Proposed Zoning Changes To Increase Affordable Housing In New York City
March 24, 2024
Mayor Eric Adams has introduced a zoning proposal aimed at facilitating the construction of affordable housing by faith-based organizations and nonprofits in New York City. This initiative, part of the "City of Yes for Housing Opportunity" plan, aims to address the city's housing crisis by removing outdated zoning laws, allowing organizations to convert unused properties into affordable housing units. The proposal aligns with efforts to tackle New York's housing challenges and is expected to undergo public review before a vote by the City Council later this year. State Senator Andrew Gounardes has praised the initiative, highlighting its potential to benefit vulnerable communities while ensuring financial stability for religious institutions.
Source: New York YIMBY
City Hall Digs in Against Rental Voucher Expansion
March 27, 2024
Mayor Eric Adams' administration is defending its refusal to implement laws expanding access to city-funded rental vouchers, arguing that the Department of Social Services (DSS) has the authority to administer the program as an "arm of the state." The dispute arose from a lawsuit filed in February by the Legal Aid Society on behalf of New Yorkers facing eviction or homelessness. While the city argues that DSS has the power to set eligibility criteria for social services housing supplements like City Family Homelessness and Eviction Prevention Supplement (CityFHEPS), the City Council and Legal Aid contest this interpretation. The lawsuit alleges that the Adams administration's failure to implement laws expanding the CityFHEPS program has denied eligible individuals access to vital housing assistance. Both parties await a resolution as the case continues.
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Source: City Limits
Hell’s Kitchen Affordable Housing Complex Secures $119M in Financing
March 29, 2024
Construction is set to begin on The Lirio, an affordable housing project in Hell's Kitchen, after securing $119 million in financing. Developed by Hudson Cos. and Housing Works, the project will feature 112 below-market-rate apartments, 30,000 square feet of office space for the Metropolitan Transportation Authority, and 7,300 square feet of retail space. The development aims to address the housing needs of the community, with 67 units designated for formerly homeless individuals, including those with HIV/AIDS, and 44 units for families earning between 30% and 120% of the area median income. Despite initial opposition from the local Community Board 4, the project received final approval in 2022. Funding comes from various sources, including a construction loan, tax credits, subsidies, and contributions from local officials. The project is expected to be completed by 2026.
Source: Crain's New York Business
Value-Add Investors Compete for “Old 421a” Buildings
March 29, 2024
Witnick Real Estate Partners recently purchased two Clinton Hill apartment buildings for about $27.5 million, reflecting a price of approximately $456 per square foot. The seller, Madison Realty Capital, acquired the properties after foreclosing on Chaim Miller, who originally paid $26 million for the pair in 2013. The buildings had enjoyed a 15-year tax exemption, resulting in minimal property taxes for a decade. However, the exemption is now phasing out, leading to a significant increase in taxes. Despite this, the buildings present an opportunity for Witnick to convert the 62 rent-stabilized units into free-market apartments once the tax break expires. This transition could potentially provide an immediate revenue boost for Witnick, especially if accompanied by renovation efforts. The financing for the project includes various sources, such as a construction loan, tax credits, and subsidies. The completion of the project is expected by 2026.
Source: The Real Deal