Developer Promises 100% Affordable Housing in NYC, But Tenants Question the Math
New Owner of Upper East Side Apartment Building Offers Tax Abatement in Exchange for Affordable Housing Pledge
In exchange for a lucrative 40-year tax abatement, the new owners of an Upper East Side apartment building are promising to make the property 100% affordable. However, some long-time tenants are questioning the developer’s math, pointing out that many apartments on the property were already subject to New York’s Rent Stabilization program before the new owner took over.
Tax Abatement and Affordable Housing Pledge
The new owner, Douglaston Development, has promised to place income restrictions on all 50 units in the building. The company’s project manager, Daniel Russo, stated, "We’re going to commit to providing permanently affordable housing for 100% of the units within this building." However, some tenants are skeptical about the developer’s plans, citing that many apartments were already protected by Rent Stabilization.
Existing Rent Stabilization Units
According to the NYC Department of Finance, the property had between 38 and 41 apartments protected under New York’s Rent Stabilization program. Oksana Mironova, a policy analyst at Community Service Society, a nonprofit that advocates for affordable housing, said a property with lots of existing rent protections may not justify a tax break that could be worth tens of millions of dollars over four decades.
Tenant Concerns
Long-time tenant Luigi Racanelli questioned the developer’s math, stating, "In totality, they’re not really adding many units." Another tenant, Greg Harden, expressed concerns that the market-rate tenants may re-sign their leases, preserving the high rents and delaying the implementation of new income restrictions.
Tax Break and Rent Stabilization
Douglaston Development has requested an Article 11 abatement, which can exempt a landlord from up to 100% of their city property tax bill for four decades. This would amount to more than $26 million over 40 years. However, some tenants and experts question whether this tax break is justified, considering the property already has many rent-stabilized units.
Conclusion
The proposed deal has sparked controversy, with some tenants and experts questioning the developer’s math and the justification for the tax break. The New York City Department of Housing Preservation and Development is currently evaluating the project, and the City Council will need to approve the tax break if it is to be implemented. The fate of the project remains uncertain, leaving many wondering if the promised 100% affordable housing will become a reality.
FAQs
Q: What is the proposed tax abatement?
A: The proposed tax abatement is an Article 11 abatement, which would exempt the landlord from up to 100% of their city property tax bill for four decades.
Q: How many units in the building are currently protected by Rent Stabilization?
A: According to the NYC Department of Finance, the property had between 38 and 41 apartments protected under New York’s Rent Stabilization program.
Q: How many new income restrictions will be implemented?
A: Douglaston Development has promised to place income restrictions on all 50 units in the building, including market-rate apartments.
Q: What is the total value of the proposed tax break?
A: The proposed tax break would amount to more than $26 million over 40 years.
Q: Who is evaluating the project?
A: The New York City Department of Housing Preservation and Development is currently evaluating the project, and the City Council will need to approve the tax break if it is to be implemented.
