City Council Deal Saves Mayor’s Controversial Zoning Plan: Here’s What You Need to Know

by Barbara Eldridge - March 16, 2016

Mayor de Blasio has won.

He and the City Council have hammered out a compromise on the mayor’s contentious affordable housing plan — the one some Brooklyn residents feared would wreck their neighborhoods with tall buildings and out-of-control rents. Now the City Council is expected to vote yes on it next week, according to the New York Times.

The compromises won by the City Council will make the affordable units more affordable, in addition to lowering the height cap of new buildings in some areas. These and other changes were enough to satisfy the City Council that the plan will be a boon for affordable housing in the city.

The mayor has agreed to alter his zoning proposals:

• New affordable housing units will be less expensive — the mayor agreed to lower income requirements at both the top and bottom of the required range, with future residents earning between 40 percent and 115 percent of area median income rather an 60 percent to 120 percent.
• The percentage of affordable units will be smaller. Developers would be required to set aside 20 to 30 percent of developments for affordable units on sites that take advantage of a rezoning — not 25 to 30 percent, as originally proposed.
• The city will study new ways to create affordable housing units with even lower income requirements, possibly creating new additional programs to work in conjunction with developers.
• Parking lots in transit-starved neighborhoods and near senior housing will not be made available to developers.
• New buildings constructed under the regulations will have a lower height cap in some areas.

• Last year, Brooklyn’s community boards mostly rejected the plans, as did the borough president and Brooklyn Borough Board — many citing issues of affordability and fears that implementing the plans would only speed up gentrification and displacement. The City Planning Commission then approved the proposals, but it’s the City Council’s ULURP vote that makes the official decision whether to implement them.

  Mandatory Inclusionary Housing would require developers to set aside a standard percent of developments for affordable units on sites that take advantage of a rezoning.

  Zoning for Quality and Affordability would alter the zoning code, changing the bulk of buildings by increasing height limitations and easing setback restrictions, among other amendments to the current code.

  Another part of the plan is a proposed rezoning of East New York. The local community boards and Brooklyn Borough President Eric Adams rejected it. As well, the local City Council members said they opposed it. The Times story about this week’s compromise did not specify if City Council intends to approve that too as part of the deal.

Full article in Brownstoner

For Holdout Renters, Condo Conversions Can Be Messy

By C. J. HUGHES - March 13, 2015

In New York, elbowing aside others to make money in real estate is as old as the founding of the city itself.

And for every rental building that has been converted to a co-op or condominium over the years, there have been tenants who have felt the sharp jab.

This time around, with apartment sales on the upswing and the number of rent-regulated tenants on the decline, many of the buildings that developers are converting from rental to condo are large and located in areas that are pricey and desirable. And unlike the 1980s, when scores of buildings were converted to co-ops, the fabulous insider deal no longer exists. 

But some things remain constant. Those who insist on hanging on to their rental apartments can expect a noisy, dusty mess. “This is one of the hairiest times for renters that I’ve seen in my career,” said Kevin R. McConnell, a real estate lawyer who has focused on tenants’ rights since the 1980s. “There’s tremendous upheaval in the market.”

To their defenders, conversions are hardly an across-the-board bogeyman. They note that many renters move away after a few years anyway, as part of the natural ebb and flow of buildings. Still others, they say, wind up with fancy condos purchased at a discount. And the renters who remain often benefit from spiffed-up facades, upgraded swimming pools and new elevators.

Full article in The New York Times

Your rental building's going condo. Now what?

BY LEIGH KAMPING-CARDER on April 25, 2014

We don’t envy the tenants of 22 River Terrace, a 342-unit apartment tower in Battery Park City. The new owner plans to take it condo, and is relying on an unusual clause in the tenants’ leases to kick them out with a mere 90 days notice. 

Fortunately for the rest of us, such clauses are extraordinarily rare. Most of the time, when a building goes condo, renters are given the option to remain as tenants or purchase their apartment at an insider price, which is typically at least 5 to 10 percent lower than what they'd pay on the open market, says real estate attorney and buyout expert Steven Wagner of Wagner Berkow. 

Here's how the process usually plays out--and how not to get played if it happens to you.

Size up the plans

Before a developer can convert a building and start selling condos, they must get their "offering plan"—which describes the development plans in mind-numbing detail—approved by the New York Attorney General’s office. 

As a tenant, the first you'll see of this is the "red herring," a preliminary plan that earned its name because the words on the cover are bright red. (Yes, that’s what passes for a joke in bureaucratic circles.)

The attorney general's office has to wait four months before reviewing the red herring, which gives tenants time to  evaluate the specifics of the plan and negotiate a better deal. While it's legal for a developer to craft a plan that involves evicting the tenants, those kinds of projects are virtually non-existent these days, Wagner says. 

After that, the attorney general and the developer spend up to two months ironing out any issues in the red herring. Once the agency accepts it for filing—which is different from the final approval for the development—the document is called a “black book.” (And yes, it does have black letters on the cover.) At that point, the developer can start selling the condos, including to existing tenants.

Lawyer up

Typically, tenants hire an attorney to do the negotiating with the developer. They’ll also hire an engineer or architect to inspect the building and uncover any issues that aren’t disclosed in the red herring.

Full article on Brick Underground