City plans to legalize basement apartments

UNDER THE RADAR — “De Blasio’s tiny houses plan for apartments in basements, garages and backyards,” by THE CITY’s Trone Dowd, Reuven Blau and Christine Chung: “The de Blasio administration wants to make it easier for homeowners to legally add apartments in basements, atop garages — and even in backyard tiny houses — to boost affordable housing. The plans, shared Wednesday with THE CITY, entail easing parking requirements as well as supplying low-interest loans to finance construction that would bring the new digs up to code. ‘The key to unlocking more housing for New Yorkers is just below our feet,’ Mayor Bill de Blasio said in a statement. ‘Legalizing basement apartments will give homeowners a new way to make ends meet and give thousands of New Yorkers an affordable place to live.’ He’s expected to formally announce the effort Thursday during his State of the City address at the American Museum of Natural History.”

TAX TALKS — “Progressives Push Taxes Targeting Wealthy to Plug New York’s Budget Deficit,” by The Wall Street Journal’s Jimmy Vielkind: “A surcharge on stock buybacks. A special assessment on pieds-à-terre. New charges on luxury yachts and private jets. Unions and progressive organizations are offering ways to raise more money for the state budget that involve taxing high-income New Yorkers, who already account for more than half of the state’s revenue. While the groups are also pushing for a broad-based income tax increase, they say targeted surcharges that apply to the wealthiest in the state may have a better chance of becoming law, especially as the state faces a deficit and lawmakers stand for re-election this year. State Sen. Brad Hoylman, a Democrat representing a swath of Manhattan’s West Side, is sponsoring bills to roll back sales tax exemptions approved in 2015 for yachts and private jets, which cost the state $14 million a year. He also is supporting legislation to impose an annual levy on pieds-à-terre, which he defines as non-primary residences with a market value of at least $5 million.”

RENT REGS — De Blasio to phase out security deposits for city-financed apartments, by POLITICO’s Janaki Chadha: Renters in thousands of city-financed apartments will be given the option of not paying full security deposits up front, Mayor Bill de Blasio said today. “There’s so many New Yorkers who just can’t get an apartment because they can’t put together the money for the deposit,” de Blasio said during his State of the City address. “Imagine if you only paid a little bit each month for all the time you were a tenant so you never had to shell out a big chunk of money.” The initiative will start with up to 60,000 city-financed apartments, and allow tenants in those homes to sign up for renter security insurance involving smaller monthly payments, in lieu of paying the traditional full month deposit. De Blasio said he will also push for city and state legislation to expand these options. “There’s a legal way to do this,” he said. The announcement comes on the heels of Department of State guidance this week on the state’s new rent law that said landlords, rather than tenants, must pay broker fees for real estate agents.

BROKER WOES — “NYC real estate industry reeling after surprise broker fees ruling,” by New York Times’ Jennifer Goul Keil, Carl Campanile and Tamar Lapin: “New York’s real estate industry was reeling Thursday after a surprise ruling from state regulators that renters cannot be charged broker’s fees. The Department of State blindsided the business and even lawmakers on Tuesday when it issued a clarification to rent legislation passed last year, saying landlords must now pay broker’s fees — not tenants. ‘It’s a war on real estate,’ the head of one rental brokerage told The Post on, Thursday, speaking on the condition of anonymity. ‘What the [DOS] did was unconscionable … They didn’t reach out to anyone to say this bombshell of their interpretation of the law would be dropped they didn’t give anyone the opportunity to understand it and the nuances.’”

LABOR PERKS — “Developer Bid to Woo Hard Hats Includes Free Haircuts, Massages,” by Bloomberg’s Natalie Wong: “For one New York developer, the road to construction workers’ happiness is paved with free massages. They’re part of a slate of wellness amenities that Tishman Speyer, the firm that helped build Yankee Stadium and owns properties across the world, is offering at a project that’s under construction in Manhattan’s Hudson Yards area. With the labor market tight in New York as new office projects flood the city, Tishman Speyer is giving construction workers some of the same perks it provides tenants through an online platform dubbed Zo, including haircuts and fitness classes. ‘The construction workers who make our projects come alive are very important stakeholders to us,’ Chief Executive Officer Rob Speyer said in an interview. ‘If we can help make the work site healthier and happier and more productive, it’s good for them and it’s good for us.’”

MAKING MOVES — “Macy’s moving headquarters to LIC,” by Crain’s Daniel Geiger: “Macy’s will relocate its corporate headquarters to Long Island City as part of its decision to cut stores, lay off workers and resuscitate its ailing sales. The company, which has for years had its headquarters at 11 Penn Plaza, next to its Herald Square flagship, leased over 850,000 square feet last year at 28-07 Jackson Avenue for corporate staff for both Macy’s and its sister department store brand Bloomingdale’s. ‘Macy’s will move its corporate team to Long Island City,’ a spokeswoman said, confirming the headquarters move. The spokeswoman said it would maintain a smaller Midtown office within its sprawling department store on West 34th Street next to Herald Square.

BIG DEAL — “Student housing property near NYU trades for $104M,” by The Real Deal’s Mary Diduch: “Pebb Capital and TriArch Real Estate Group sold their gut-renovated student-housing complex in Greenwich Village for $104 million. The buyer of The Alabama was an entity linked to the Simons Foundation, property records show. A message sent to the foundation went unreturned on Thursday. Pebb and TriArch acquired 15 East 11th Street in 2016 for $58 million, converting the former apartment building over a period of nine months into a 175-unit complex for students of New York University, The New School and the Cardozo School of Law. The Alabama marked Pebb’s and TriArch’s first project together in New York, and Pebb’s first project in the Big Apple.”

Source: https://politi.co/38gaJON