Albany has approved a comprehensive plan to increase housing supply in New York City, which includes measures to lower rental costs and protect tenants from unfair practices by landlords. The plan includes “Good Cause Eviction” protections, which allow tenants to take their landlord to court if rent is increased more than 10% or 5% plus inflation. There are exceptions to these protections for certain situations, such as when a tenant vacates an apartment or for luxury apartments above a certain rent threshold. Towns outside the city can choose to opt into these guidelines as well. The plan also clarifies the rights of squatters and incentivizes developers to include affordable housing units in their developments.
The plan includes affordable housing tax incentives for developers, which requires a certain percentage of units in a building to be priced at affordable levels based on area median income. Smaller developments must keep one-fifth of their units affordable, while larger buildings have different requirements. Developers also receive exemptions depending on the number of units in the building. The plan also extends the existing 421-a property tax exemption program through 2031 for ongoing projects and sets minimum wage standards for construction workers on these developments.
Another aspect of the plan is the conversion of abandoned office buildings into housing, with developers receiving tax incentives for such projects. Projects approved by a certain date would receive a discount on their residential tax rate for a certain number of years, with requirements to set aside a percentage of units at affordable levels based on area median income. The plan also allows owners of rent-stabilized apartments to institute larger rent increases after making improvements to their units and removes restrictions on building size in New York City.
The plan also includes provisions for a pilot program to legalize basement apartments in certain parts of Manhattan, the Bronx, and Brooklyn. This program aims to increase affordable housing options in these areas. Overall, the plan seeks to address the housing crisis in New York City by increasing supply, protecting tenants, incentivizing affordable housing development, and repurposing vacant office space for residential use. The measures in the plan are aimed at creating a more equitable and sustainable housing market in the city.
