Archive for Inside Edge
Inside Edge: the future of J-51
The New York State law that authorizes the J-51 tax incentive program expired on December 31, 2011. This ended the authority of New York City’s Department of Housing Preservation and Development (HPD) to issue new benefits, and it has thus taken no J-51 applications since then.
In the past renewal of J-51 has been virtually automatic. However the current attempt at renewal has been delayed due to questions relating to the cost of the program, outdated benefit schedules, concerns about processing inefficiency and rent stabilization issues.
As of last week HPD has put forward a proposal to address the renewal …Read more
J-51 and Gentrification
The J‑51 tax incentive program, the most successful housing rehabilitation program in New York City history, expired on December 31, 2011 (The “J‑51” program is §11‑243 of the NYC Administrative Code, which is authorized by §489 of the New York State Real Property Law).
It will be up to the New York State legislature to decide to renew the program and under what terms. However one likely argument that will be made, that J‑51 somehow contributes to gentrification of neighborhoods, seems to have been already addressed by the Court of Appeals.
In the 1950’s New York City still had …
New CHPC Publication: Out of Sight, Out of Control
A brand new CHPC Inside Edge publication (pdf) takes a detailed look at the housing policy circumstances around a deadly fire at 2321 Prospect Avenue; a three family house, in the Belmont neighborhood of the Bronx.
On April 23, 2011, three people including a child, died in a fire in this building whose recent history highlights the dangerous impacts of the problems plaguing the rental housing market in recent years.
Since the publication of Debt Threat in August 2009, and our symposium One Size Fits Some in September 2009, CHPC has raised concerns and offered recommendations to address the problems …Read more
Federal Housing Budget 2012
As the Obama Administration’s 2012 budget proposal shows, we have entered a new period of budget restraint which will impact heavily on federal housing programs. There seems to be general agreement that housing programs will be contained, controlled, and cut back. In fact the Administration’s proposal looks like the best possible outcome in the current budget atmosphere, certainly when compared to the cuts passed last week by the House for the 2011 budget. These will have important impacts around the country, but New York City, with the most aggressive housing program …Read more
Inside Edge: Fallout from Roberts vs. Tishman
As predicted, the Court of Appeals decision in Roberts vs. Tishman, which found that buildings with J-51 tax benefits could not utilize luxury decontrol of rent stabilized apartments, is beginning to generate litigation on related and not-so-related issues.
One of the more surprising decisions is by Housing Court Judge Bruce E. Scheckowitz in the case of W Associates vs. Maverick Scott (Housing Court, New York County, Index No. 73831/2009, December 23, 2009).
The case involves a building (37 Wall St.) in the Financial District which received a tax abatement pursuant to §421-g of the New York State Real Property Tax …Read more
Inside Edge: Riverton Sold at Auction
As CHPC predicted in Debt Threat, the unwinding of 100,000 units of over mortgaged housing has begun with the auction sale today of Riverton Apartments. In the first completed foreclosure of that process in New York City, Riverton Apartments has been taken over by CW Capital the Special Servicer of the Commercial Mortgage Backed Securities Trust that held its mortgage.
With about 100 onlookers, the auction pitted the Trust against one cash bidder, David Bistricer who is familiar to those who have followed the Starrett City sale and refinancing. Despite a recent appraisal of $108 million, the bidding rose to …Read more