New York state leaders have reached a deal on a legislative package to address the housing crisis in the state, negotiated by Gov. Kathy Hochul and Legislature leaders. The agreement includes tax breaks for developers, protections for tenants, and higher wages for construction workers. Measures include allowing landlords to increase rents for renovations, lifting size limits on new apartment buildings, and incentives to build more affordable homes. The goal is to make it easier to build while ensuring new safeguards for tenants, with a focus on addressing the affordability problem in New York City and across the state.
Despite the agreement, some left-leaning lawmakers are critical of the deal, particularly regarding tenant protections which are not as comprehensive as hoped. Tenant advocates protested at the Capitol, demanding lawmakers reject the deal. Last year, a similar construction plan proposed by Hochul failed due to conflicting interests among key players. However, the worsening situation in New York City, with stalled development, increasing evictions, and soaring rents, has pushed all sides to reach a compromise to address the crisis.
The deal includes a new developer tax break called 485x, in exchange for expanded tenant protections known as “good cause eviction.” These protections restrict landlords from evicting market-rate tenants, justifying rent increases, and remove tenants after lease expiration, except for high-earning units and certain exemptions. The package also lifts restrictions on large apartment buildings, offers incentives to convert office buildings to housing, and provides tax breaks statewide to encourage more development. The hope is to make housing more abundant and affordable, preventing the exodus of families and low-income individuals.
However, there are mixed reactions to the deal from various stakeholders. Real Estate Board of New York views the package positively but raises concerns about housing needs not being fully addressed and the risks faced by owners, developers, and funders due to the “good cause eviction” component. Housing Justice for All, a tenant advocacy group, criticizes the deal as a “sham” and accuses Hochul of pushing through a deal favoring the real estate industry. Tenant Dorca Reynoso, representing Metropolitan Council on Housing, called the deal a crime against tenants, showing the tension over the compromise reached by state leaders.
Despite the criticisms, Mayor Eric Adams praised the deal as a way to build the city out of the housing crisis, leading to a better future for New Yorkers. The agreement represents a landmark effort to tackle the housing shortage in New York by balancing the interests of developers, tenants, and labor unions. While not everyone is satisfied, the deal aims to make housing more accessible, affordable, and secure in the state, ushering in a new era of development and stability for residents facing housing challenges. This compromise is seen as a critical step towards addressing the pressing housing crisis in New York City and across the state.
