Jumaane Williams, the Chairman of the City Council’s Committee on Housing and Buildings, was generally positive about Mayor de Blasio’s affordable housing announcement yesterday. However, Williams would like to see de Blasio make repealing the Urstadt Law a top priority, and more outreach to low-income households. Passed in 1971, Urstadt put New York City rent regulation in the hands of the State, which has generally leaned towards deregulation. Williams lauded de Blasio’s 50/30/20 mixed income program (50% middle income, 30% moderate income, 20% low income), but pushed for more. “They talked about 80/20 kind of being outdated and we need a new model…I’m hoping he will research some of the other models” said Williams, “…because I think we need to dig a little deeper to get more of the lower income band.” In this vein, Williams has been a vocal advocate of regional AMIs [Area Median Income] – the current AMI used by HUD includes Putnam, Rockland, and Westchester Counties, which have higher median incomes than New York City. He also noted that some people believe the City actually needs an additional 400,000 units of affordable housing, not the touted 200,000 number. Williams has some lingering questions going forward: “I would like to see how much money the City is going to put in of the $41 billion…they’re going to be talking about [NYCHA] later on, and I’m looking forward to what [Councilman] Richie Torres has to say about that.”
Tag Archives: affordable housing
On Thursday afternoon, a City Council subcommittee voted on the proposed Domino Sugar Refinery redevelopment. 17 members voted yes, with 1, Councilwoman Inez Barron, abstaining. According to Councilmember Stephen Levin, negotiations between the City Council and the Mayor’s office went late into the night, and the vote that was supposed to take place this morning did not happen until after 2 pm in the afternoon.
City Councilmember David Greenfield explained the changes that have taken place to the Domino development between the April 1st hearing, and the subcommittee vote on Thursday.
The main changes are that we now have guaranteed levels of affordability that we did not have before, and we have guarantees from the administration that all of the affordable housing will on average be below 70% of the AMI, which is reflective of the affordability and the means of that particular community. But for that, it could have been much higher. It could have been as much as 125%. …the community [also] now has guaranteed input through the modifications that we made…those are really the two most significant changes….there will also be larger mix of larger units. There will be more two and three bedroom affordable units.”
Greenfield estimates that a 70% AMI will be roughly $60,000. Councilmember Stephen Levin who was active in the Domino negotiations and played a starring role in the April 1st hearing, sees Domino as a precedent for future major developers in the City.
“I think that one thing that the City Planning Commission and the de Blasio administration have made clear is that more is going to be expected of developers…This is in a lot of ways a groundbreaking development because of what the de Blasio administration did at the City Planning Commission… 24% of the floor area has to be affordable. Normally that’s 20%…really upping the ante in terms of affordable housing.
On Wednesday, Public Advocate Letitia James sat down with a small group of reporters to discuss her work as New York’s Public Advocate, and her goals moving forward.
She covered subjects ranging from Citi Bikes, to Affordable Housing, to her opinions on Mayor Bill de Blasio.
In terms of her own office, James hopes for a budget increase, which Mayor de Blasio has proposed. “It’s difficult to continue to operate with twenty staff members,” she said. James also emphasized that she is working closely with City Council. “I’m trying to remove the divide between City Council and the office of the Public Advocate.” James has attended several City Council meetings, and talks about being a steady presence there. “Operating in silos will no longer continue.”
James stated early on in the discussion that main priority moving forward is providing universal free lunch to New York City students. “The children who are below the poverty line often times are ashamed, often times are ridiculed, and often times hide in disgrace or go hungry…I want to remove the stigma of poverty, and I want to allow all children to eat a free nutritious lunch regardless of income in the city of New York.” James said that she needed $20 million for a free lunch program, most of which she claimed would be reimbursed by the federal government. As of today, there are just over 1,660 signatures in a petition for the program on the website Change.org. James also claimed that 46 city council members have signed a letter in support of a universal free lunch. The cost of covering this program, however, is uncertain, and will involve talks with the Federal Government. “There’s a question as to the reimbursement. Hopefully they can get beyond the challenges.”
When asked about the struggling Citi Bike program, James reminisced that she came out in favor of Citi Bikes when they made their debut, and said that she would support a co-public-private venture to try to save the program. She also expressed that she would like to see it expanded to reach more of New York. “The bike network only reaches downtown Brooklyn and then it falls off the face of the earth.” She remains open to the city using its own funds to help bail out Citi Bike. “I think what we need to do is put everything on the table, and have a robust discussion about how to save the program…I’m not saying no to that.”
On Charter Schools, James said that she is not against them per se, but outlined her problems (and lawsuit) with co-locating charter and public schools. “It’s unfortunate that we had to initiate litigation against the de Blasio administration in the absence of any standard or metrics in the instance of forced co-locations, and particularly in the absence of the blue book task force,” she said. She often referred to co-locations happening at schools that were already over capacity, and cited complaints that she’s heard of lunch being served at 9 am, and special-needs students being taught in closets because of the lack of space. “Halt the co-location in any school where children are being taught in trailers. I think that’s a reasonable request.”
On the affordable housing front, James was clear that she agreed with Manhattan Borough President Gale Brewer in supporting a moratorium on the downsizing HPD is carrying out on New York subsidized housing. This downsizing involves moving tenants from bigger apartments to smaller ones. Citing HPD Commissioner Vicki Been’s testimony at City Council last week, James doubted whether the federal sequestration (and budget shortfall that HPD suffered) was completely at fault. “It’s unfortunately that the federal government has turned its back on urban centers, but at the same time I think HPD can do a better job with carving out certain exceptions so that seniors and disabled can live in their home during the twilight of their life.” She also listed her goals for affordable housing throughout the city that included redefining AMI to be between $30,000 and $80,000 for a family of four, increasing the size of apartments for families with children, and expanding the famous 80/20 affordable housing percentage to include more than 20% affordability.
On Police Commissioner Bratton, James was positive. “So far, so good.” She called for an increase in the number of detectives assigned to cold cases, and an increase in the number of Police Service Areas specifically assigned to public housing crime. There are currently only 9 PSAs in New York City. She also called for an increase in the number of police officers as a whole, citing a growing number of officers who are retiring. “Do I think we should increase the rank and file? Yes.”
James was mostly complimentary of Mayor de Blasio, saying that they don’t talk regularly, but they do have conversations. “If I had to grade the mayor, he’d get a B+,” she said, citing his push for sick leave, stop and risk reform, and universal Pre-K. “Were there some missteps in Albany? Yeah. But Albany is a strange place, and they live by a different sent of rules. And it’s really hard to get accustomed to those rules in your first 100 days.” On Cuomo, she said simply that his poll numbers were up, and declined to comment further.
James noticeably shied away from making any comments on the Rangel Espaillat congressional race taking place in Harlem right now. “This is not a political discussion. This is a discussion on policy.”
What a difference a new administration makes. At the end of last year developer Jed Walentas had a deal in place to turn the waterfront Domino Sugar Refinery into high-end Williamsburg apartments, including 660 units of affordable housing— roughly 30 percent of the building’s capacity.
Walentas’ company, Two Trees, had already played an integral role in transforming formerly down-and-out Brooklyn neighborhoods like DUMBO into glossy, expensive new locales for the rich and hip—and the Domino project appeared set to be the next outpost in Walentas’ empire.
Then Mayor Bill de Blasio coasted into office in January touting his campaign promise to create or preserve 200,000 units of affordable housing. Rather than abiding by the deal Walentas had struck with the Bloomberg administration, de Blasio let the developer know that Two Trees’ plans for Domino were in jeopardy because its affordable housing allocation was insufficient.
In March the de Blasio administration announced that Two Trees had essentially bowed to its demands, agreeing to add 110,000 square feet of affordable housing to reach a total of 537,000 square feet. The revised Domino project is slated to create 700 affordable apartments covering a range of incomes, and there will be a significant number of two-and three-bedroom units sized for families. The affordable apartments will be integrated throughout the complex with the aim of creating a dynamic mixed-income community— and unlike in prior proposals, all of those units will remain at affordable rates in perpetuity.
In return, Two Trees was allowed to increase the height of the project to 55 stories, which, according to The New York Times is “20 stories higher than the current regulations permit.”
Despite the new agreement, at a City Council hearing on April 1 focusing on the latest version of the Domino project, some advocates and elected officials expressed concerns.
“Many times these kinds of [inclusionary zoning] deals [have been] done on negotiated understandings with developers that were not necessarily legally binding. It’s important to have it actually legally codified,” said Moses Gates of the Association for Neighborhood and Housing Development (ANHD). “To Two Trees’ credit, they were always open to that paradigm. The next step is to really write these affordability restrictions into the zoning code across the board, and not have to rely on ad hoc negotiations on affordability for each new development.”
The fungibility of affordable housing requirements was reinforced when Steve Levin, one of two Council members who represent Williamsburg, pressed Walentas about the specific number of affordable housing units the project would ultimately include. Walentas admitted that the number might actually end up being fewer than the 700 units agreed to with the de Blasio administration.
“We’ll be building a guaranteed minimum … As a developer with a billion and a half [dollar] project over many years before us, there’s a good chance that we build fewer than we build more,” Walentas said. “My best guess would be somewhere between 660 and 700 affordable units.”
The vagueness of that number highlights a deficiency in what has become one of the city’s chief tools to create new affordable housing: “inclusionary zoning”—the requirement that a developer include a certain percentage of affordable housing units in exchange for being allowed to build. The percentage of affordable housing is measured in square feet, not by the number of units, meaning that housing advocates’ push for larger apartments could wind up bringing about a diminution in the total number of units ultimately made available when the project is completed.
In his testimony before the Council, Walentas made clear his displeasure about the sudden left turn the Domino deal had taken after the de Blasio administration got involved.
“We have spent the better part of one and a half years listening to our and your community and their concerns, and until six weeks ago, we believed that we were headed down a road where on that first building there would be a significant amount of city subsidy made available, and when we got to this point in the process … there would be a three-party agreement that would lock in the amount of city subsidy, the specific AMIs [Average Median Incomes] on that project, and it would be benchmarked to certain unit size,” Walentas said. “It made economic sense to us, or at least made for a project that we know we could finance … The administration went in a different direction, so we had a whole economic framework in place for this entire project that basically went out of the window. Our internal financial assumptions have been reeling since then.”
Developers like Walentas should expect that the de Blasio administration and City Council’s increased demands for affordable housing will constitute a new normal for the industry. At the Domino hearing Councilwoman Elizabeth Crowley, addressing Walentas, seemed to sum up the general feeling among her Council colleagues.
“This is a different Council today than it was a few months back. We have much more progressive leaders that care about workers and families. And your project is going to set a precedent for the rest of the city,” said Crowley. “You’re going to receive a significant amount of funding through tax abatements and government bonds … and overall it looks like it could be a gain for our city, [but] we need to be sure. So us acting for an MOU [Memorandum of Understanding], even though it may not be binding, we’re going to trust that agreement, because you’re going to be back here asking for zoning changes in the future.”
If the affordable housing goals promised by Two Trees are met— and met in a timely fashion—the Domino project could provide a shot at redemption for de Blasio, who has endured criticism for his support as public advocate of the Atlantic Yards project, where the agreed-upon units of affordable housing have been built at a much slower pace than promised.
After talking tough about enforcing the affordable housing agreement struck between ACORN and Forest City Ratner, the developer of the project, de Blasio’s commitment to holding Forest City’s feet to the fire came into question when Bruce Ratner, the company’s CEO, co-chaired the mayor’s 50th birthday fundraiser.
When she was still the City Council member representing Atlantic Yards, Public Advocate Letitia James said of Forest City’s failure to meet the affordable housing goal on schedule, “New Yorkers and taxpayers were basically duped.”
To guard against a scenario like the one playing out at Atlantic Yards, Benjamin Dulchin, the executive director of the ANHD, suggested in his testimony before the Council that the city mandate inclusionary zoning to give it better leverage in the future.
“Domino is a good start, but just a start,” Dulchin said. “The last administration gave away the store. This administration should do better. That probably starts with a baseline of a strong and mandatory inclusionary zoning policy so the city starts from a strong position in every negotiation like Domino.”
This Thursday, the ANHD’s 4th Annual Community Development Conference was held at the Grand Hyatt Hotel in Manhattan. They keynote speaker was Vicki Been, Mayor de Blasio’s pick to run the Department of Housing Preservation and Development, commonly known as HPD.
Mrs. Been emphasized several times in her remarks that she could not provide many specifics about Mayor de Blasio’s housing plans – yet. “I’m not withholding details. But they’re really honestly in progress,” she said, referring to the Mayor’s planned May 1st affordable housing announcement.
She did, however mention broad ideas that echoed throughout the all-day conference, such as allowing higher density building, preserving current affordable housing, and taking a more holistic approach to neighborhoods. This includes aspects of community life like employment, healthcare, and literacy, rather than just aiming for that famous 200,000 number that Mayor de Blasio has touted.
Mandatory inclusionary zoning, a de Blasio idea , merited its own panel. Mandatory inclusion would require developers to include affordable housing units rather than continue to offer them incentives that currently exist. Josiah Madar of the Furman Center talked about the bureaucratic problems that developers currently face. “The administrative burden frightens or at least turns off some possible participants. Developers always complain about the city dragging its feet…we’ve heard that HPD’s approval can delay projects. Paying more attention to admin is a way to grease the rails.” Another panelist, Seth Ullman, spoke about the trouble measuring the impact of voluntary inclusionary zoning that is already in place. “Trying to evaluate how the programs work has been a challenge because it’s not administered in a way that ‘s entirely transparent. We can’t see where every unit that’s been built on either side – affordable or for profit – has gone.”
Frank Lang, the Housing Director at St. Nicks Alliance, spoke about land prices. “The price of land is going to be a real determinate. There’s a lot of people who own land, and have owned it for many generations, and they have an expectation of what the price is. During the real estate bubble bursting, we saw those people were willing to wait out the four years until they could get the price of land per square foot that they expected in 2007.” Josiah Madar elaborated on land use problems for affordable housing by taking aim at New York City’s low property taxes. “Things are just strange here, where the city can’t or won’t raise more money through the property tax where it could. Where people have extremely low effective tax rates. “
Later on, at a Future of Affordable Housing Development in NYC panel, the tone was celebratory, but remained vague.
City Councilman Jumaane Williams emphasized points that had been made throughout the conference. “We need to go further to preserve even more units… The unions have come to the table and are speaking with the housing advocacy world…Looking at AMI (area median income) is also important to me….inclusionary mandatory zoning is important but only if you put it in context with everything else that is going on. “ He added later “I don’t mind developers making money, I just don’t want them making all the money.”
The new head of the New York City Housing Authority, Shola Olatoye, was clear that she sees a new day for her organization. “The Mayor has really brought NYCHA into the conversation, and removed us from that island status.“
When asked about the role that intermediaries had to play to ensure that neighborhoods, not deals, were the focus of housing policy, Denise Scott of LISC NYC strongly endorsed third party mediators. “I call for a third of it (the capital budget) to be set aside for not-for-profit development.” The audience applauded. “Your work is grounded in a mission that goes beyond the house, it is focused on the whole family.”
Scott, however, also offered a kind of concession to the long-haul fight for affordable housing in New York City. “At the end of the day, we are willing to say that we’re willing to take fewer units for long term affordability. I think that needs to be part of the reality.”