Negotiators in New York are close to finalizing a landmark housing package aimed at increasing the number of homes and apartments in the city. The package includes key components of the progressive “Good Cause Eviction” bill, which would prevent landlords from raising rents above a certain level and make it easier for tenants to challenge evictions in court. While some lawmakers support this bill, others, including stakeholders in opposition to it, are raising concerns about its potential negative impact on the housing market.
Activists from Housing Justice for All are calling on legislators to reject the compromise, referring to it as a disaster and an embarrassment. The package also aims to boost housing construction in New York City by reviving subsidies for affordable housing, lifting regulations on density, and speeding the conversion of empty office towers into housing. These changes would be paired with an overhaul and expansion of how rents are set in the city, with the current proposal capping rent increases at 5% plus the Consumer Price Index, allowing tenants to challenge hikes in court.
New construction may be exempt from these rent regulations, and landlords may be able to pass on more costs for building upgrades to tenants under rent stabilization laws. Additional provisions in the package could include a pathway to upgrade and legalize basement apartments in New York, potentially increasing housing production from 200,000 units per decade to 250,000 units. City Hall is also proposing legislation to loosen local zoning requirements, which could generate an additional 60,000-70,000 units of housing per decade. These changes are seen as crucial to addressing a significant housing shortage in the city.
A study by the Rand Corporation has shown that New York needed to build roughly 350,000 units of housing over the last decade to meet demand but fell short by an estimated 150,000 units. If the proposed changes are enacted, this gap could be reduced significantly. The housing deal being negotiated in New York is a complex and multifaceted plan that includes input from various stakeholders, lawmakers, and activists. While there are differing opinions on the proposed legislation, it is clear that a comprehensive strategy is needed to address the housing crisis in the city and ensure that all residents have access to affordable and quality housing options.
The housing package under consideration in New York includes a mixture of supply-increasing measures and rent regulations aimed at addressing the needs of both tenants and landlords. The proposal reflects a compromise between various interest groups and seeks to strike a balance between providing protections for tenants and incentivizing new construction in the city. As negotiations continue, it remains to be seen how the final package will be structured and implemented, and whether it will be able to effectively address the housing challenges facing New York City.
