Showing posts with label rentals. Show all posts
Showing posts with label rentals. Show all posts

May 9, 2015

NYC Mayor de Blasio's Proposed "Mansion Tax"

Gracie Mansion - NYC mayor Bill de Blasio's affordable mansion

This week NYC mayor Bill de Blasio proposed a new "mansion tax" imposed on home buyers for home sales over $1.75 million and 1.5 percent tax to home sales over $5 million. This new proposed tax burden is in addition to the "mansion tax" burden already imposed by New York State for all property sales over $1 million.

The mayor from Brooklyn owns a townhouse at 442 11th Street in Park Slope. October 2014 it was valued around $1.5 million, $250,000 shy of de Blasio's definition of "mansion." 

The Brooklyn mayor has moved to Gracie Mansion in Manhattan. The mayor is currently renting his Park Slope home for market rate $4975/month ($60,000 annually.)

In addition to the mayor's proposed tax burden on home buyers he also plans to reform the 421a tax abatement program. Under his plan condos will no longer be eligible for the tax incentives. Rental building developers will required to set aside 25 to 30 percent of the units as affordable.

The mayor claims the new tax will create 60,000 affordable units over the next decade. 

Affordable for whom?

Bloomberg project 432 middle income units in Hell's Kitchen

Former mayor Bloomberg's plan focused on creating more housing for moderate and middle income families, something few programs address. This category includes people living on $58,000 a year as individuals up to $145,000 a year for a family of four. 

The Bloomberg administration's housing plan originally projected that 32 percent of the 165,000 units would be set aside for middle class New Yorkers. 
Mayor de Blasio's plan reduces the percent of units set aside for middle class New Yorkers by 10%
Under his plan 78% is for extremely low, very low and low incomes. 22% of units for middle and moderate incomes.)

Only 13,200 units out of 60,000 will be for middle class New Yorkers and the elimination of tax incentives for condos will create even less home ownership opportunities for middle class New Yorkers. The firefighters, the teachers, the nurses, small business owners and many other people who might not be at the lowest income levels but are still priced out of the market.

A 2009 study by the Center for an Urban Future looked at the strain that housing costs were putting on middle class New Yorkers and argued that it was imperative for New York City to maintain a strong middle class.

Surprisingly the real estate board of New York (REBNY) supports the mayor's mansion tax and 421a proposal. The mayor's proposals will require approval by the State Legislature.

Feb 27, 2010

Chairman Appointed to NYC Rent Guidelines Board

Mayor Bloomberg announced the appointment of Jonathan Kimmel as Chairman of the New York City Rent Guidelines Board. The Board is mandated to establish rent adjustments for the nearly one million dwelling units subject to the Rent Stabilization Law in New York City.

The Rent Guidelines Board consists of nine members appointed by the Mayor. Two members are appointed to represent tenant interests, two members are appointed to represent owner interests, and five members – including the chairperson – are appointed to represent the general public.

Kimmel has served as a member of the board representing the general public interest since 2006.

Mar 25, 2009

NYC Rent Regulation Laws Extended for 3 years

New York City rent stabilization laws will be extended for another three years. The rent regulation laws were set to expire April 1st.

In order for the city council to extend the rent laws the council also had to pass a resolution declaring that the city is in a housing emergency, with vacancy rates below five percent.

Currently lawmakers in Albany control rent and eviction laws in NYC. The City Council has been pushing for Albany to give the city back control of its rent and eviction laws.
Members of the city council also want state lawmakers to repeal vacancy decontrol, which allows landlords to return stabilized apartments to market rate once tenants move out.

Mar 27, 2007

Judge helps renters paying market rates.

In Manhattan renters are either rent controlled, rent stabalized or market rate. Rent controlled and rent stabilized tenants have rights and have protections. People who pay market rates do not. When buildings convert to condos or coops rent controlled and stabalized tenants can not be evicted. In fact rent stabilized tenants who live in coops and condos often have more rights than the owners who bought their apartments.

Market rate tenants have never had any protections. Landlords could raise their rent what ever they want and can decide not to renew leases and evict. I'm currently working with a couple with a new baby that are looking to buy an apartment because they are being evicted from their $3800 a month 1 Bedroom apartment the end of May.

22 market rate renters stayed in their apartments at The Sheffield on West 57th Street during construction and renovations to turn the rental building into a luxury condo. Most of the other tenants left.

A Manhattan housing court judge, David B. Cohen, dismissed eviction proceedings against all 22 renters and challenged the prevailing interpretation of state law. Judge Cohen ruled that the tenants have the right to keep their apartments and eventually to get new leases.

The decision could give new rights to many market-rate tenants who are being evicted at other buildings undergoing conversion.

In the 80's when many building converted they offered the renters insider prices. Developers today evict all market renters up until the conversion is declared effective by the Attorney General.

Frankly, I think when a rental building converts market rate renters should be given the opportunity to buy their apartments. Most likely tenants paying market rents can afford market prices.

the complete story is in the New York Times

This blog site is designed and published as a consumer service by local real estate broker to help Manhattan, New York City buyers, sellers and renters make informed real estate decisions. This site and its feeds are owned and operated by Mitchell J Hall, a NY State licensed real estate associate broker associated with The Corcoran Group and member of the Real Estate Board of New York.

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