Albany has recently finalized a comprehensive plan to increase housing supply in New York City, with Governor Hochul and lawmakers expected to approve the proposal. The plan aims to encourage developers to build thousands of new housing units while also protecting tenants from unfair practices by landlords. One key aspect of the plan is the implementation of “Good Cause Eviction” tenant protections in New York City, which allows tenants to challenge rent increases exceeding a certain limit and provides exceptions in certain situations. Additionally, the plan clarifies the distinction between tenants and squatters, ensuring that squatters do not have the same rights as tenants.
Another key component of the plan is the introduction of affordable housing tax incentives for developers through the Affordable Neighborhoods for New Yorkers (ANNY) program. This program offers tax exemptions for developments that include a percentage of affordable units, with specific requirements for the number of affordable units and rent price points based on income levels. The plan also extends the existing 421-a property tax exemption program through 2031 for ongoing projects and sets minimum wage standards for unionized construction workers on certain developments.
Furthermore, the plan includes provisions to incentivize developers to convert abandoned office spaces into housing, including affordable units. Projects approved by certain deadlines would receive tax breaks based on the number of affordable units included in the development. Additionally, the plan allows owners of rent-stabilized apartments to increase rents by a larger amount after making improvements to their properties, raising the cap on permissible rent increases. The plan also removes restrictions on the size of residential buildings in New York City and allows for a pilot program to legalize basement apartments in certain areas.
Overall, the plan represents a significant effort to address the housing crisis in New York City by increasing housing supply, protecting tenants from unfair practices, and promoting the development of affordable housing units. By implementing a range of measures such as tenant protections, tax incentives, minimum wage standards, and incentives for office space conversion, the plan aims to create a more equitable and affordable housing market in the city. Through collaboration between state and local government, developers, and community stakeholders, the plan strives to improve housing conditions and support economic growth in New York City.
