February 10, 2020
Industry News – Week of 2/7/20

Updates provided by Austin Manna, Law Clerk

Long-Awaited Report Seeks To Remedy NYC’s Unequal Property Tax BurdenGothamist, 1/31/2020

  • One proposal to tax most residential properties at their full market value (instead of purchase price), so homeowners in more affluent neighborhoods can’t pay disproportionately low property taxes anymore
    • The cap placed on rising property values would be scrapped
  • One proposal would create a “circuit breaker” that would ensure that individuals pay no more than a certain % of their income.
  • One proposal seeks to do away with a 40-year practice of valuing co-ops and condos as if they were rental propertiesindustry news week of 2.7.20
  • Seeking a 2021 implementation goal (if passed)


Buyers Return After Rent-Control Slams New York Apartment Values Wall Street Journal, 2/4/2020

  • Big RE companies are buying rent-regulated apartment buildings
  • NYC landlords thought the new state law (which makes it much harder for landlords to upgrade and convert rent-stabilized units to more profitable market-rate apartments) would reduce interest in these properties – values fell by 25%
    • Now cheap buildings are luring investors who want to profit with cheap mortgages and stable cash flow


New York City Wants More Basement Apartments to Tackle Housing Crunch Wall Street Journal, 2/6/2020

  • NYC to change zoning rules to ease the process of converting basements, garages and backyard sheds into apartments, creates more affordable housing
  • Announced an initiative to legalize basement apartments, pledging $150MM in loans to help homeowners bring units up to code
    • Expects ≥ 10k affordable units in next decade under changes
  • Project expected to take 2 years

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