The lottery for a newly constructed 19-story building at 339 West 38th Street is open until August 19, 2024. The Department of Housing Preservation and Development states that the apartments in this building have washers and dryers. There is also a lounge, outdoor terrace, fitness center, ping pong center, bike storage, tenant storage, and conference center in the building. The building will also have a 24-hour lobby attendant and two package rooms. Tenants will pay for electricity including electric cooking and heating, the rent includes hot water. The eligible household income range is $31,612 to $218,010. More information can be found at the HPD website at Lottery Details -Housing Connect (nyc.gov)
Real Estate Agents Rally to Stop Intro 360 at New York City Hall
By Manhattan Real Estate Tracker, June 12, 2024
Real estate agents and brokers came out this morning to City Hall in Downtown Manhattan today to rally against Intro 360 which would require only those who hire a real estate agent to the broker fee. While all commissions are negotiable, typically the broker fee for leasing an apartment is 15 percent of the first year’s rent. New York City is unlike any city in the country, Manhattan Real Estate Tracker strongly opposes Intro 360.
According to the co-sponsor of the measure, City Council member Chi Ossé, renters deposit $10,000 on average for a new home. One major expense he wants to eliminate is the mandatory broker fee. However, landlords will simply raise the rent and in the long run, the renter would have paid more in rent than if they paid a broker fee and received a lower starting rent.
Tenants claim that they had to pay the broker fee even though “they didn’t hire a broker.” When an agent markets an apartment for rent and a potential tenant inquires about it, it was the agent’s experience and knowledge of real estate and marketing that not only secured the exclusive listing but also generated the call. This work has value and in certain cases, the agent should be compensated by the renter.
Links to local online articles regarding today’s rally and Intro 360 from local New York television stations can be found below.
Manhattan Real Estate Tracker will be attending the rally at City Hall on Wednesday, June 12, 2024 to oppose Int. 360. This bill would stop real estate brokers and agents of a landlord from collecting a broker’s fee from a renter. All agents and brokers can attend to support the opposition of this bill.
The City Council states, “This bill would require an individual who is a representative or an agent of a property owner or a prospective tenant in a residential rental real estate transaction to collect fees charged in the transaction from the party employing the individual. The provisions of this bill would not impact the collection of fees by a landlord or property owner.”
One of the first buildings protected by New York City as a landmark could be in danger of being destroyed. The team at the Merchant’s House said they believe construction that has been approved next door could cause irreversible damage.
Take away the modern plumbing and electrical upgrades, Merchant’s House is a 19th century single-family home preserved inside and out, according to Pi Gardiner, the museum’s executive director.
What You Need To Know
Merchant’s House is a 19th century home that has been preserved inside and outside
It is a landmark at the local, state and federal level
Engineers and attorneys representing the home believe construction next door could damage, even destroy, the landmark
The Landmarks Preservation Commission said they believe a stricter standard of precautions were approved for the project to move forward
“This is one of a kind,” she said. “There’s nothing like it.”
Nearly 60 years ago, the Landmarks Preservation Commission was empowered to protect historic sites around the five boroughs. Gardiner said Merchant’s House was the first approved by the commission in Manhattan.
Yet now, she and others are afraid it could be in danger.
“This is the most dangerous project I’ve seen approved in the 30 years I’ve been doing this work,” said Michael Hiller, a lawyer who is representing Merchant’s House.
He has been fighting against the proposed development of a garage next door.
In 2018, NY1 covered the effort by a developer to build a hotel. It was a project the LPC approved in 2014. Hiller had concern about the construction next door damaging Merchant’s House.
Ultimately, the City Council rejected it.
However, this past December, the LPC approved a new project to turn that garage into a commercial office building.
An LPC spokeswoman said the passage came with contingencies to protect Merchant’s House. There were 10 listed, including more testing for soil conditions, requiring excavation of the building to be further from Merchant’s House and enhanced vibration monitoring from construction.
It also requires real-time notification to Merchant’s House of construction updates and data.
The spokeswoman called it “stricter than what is normally required under current building code.”
Hiller said, though, he’s not convinced and doesn’t even believe the LPC reviewed the documents Merchant’s House engineers submitted. He pointed out the following exchange in the December meeting.
“Has the Merchant’s House reviewed this plan? And have they any comments on it,” said one of the commissioners to the developer’s engineer.
“Yes. Yes they have,” responded the engineer.
“Do they have a consulting engineer or somebody who is advising them on this,” asked that same commissioner.
The commissioner was seemingly unaware Merchant’s House in fact has a consulting engineer, who submitted a report to the commission chair four days before the meeting. The report claims the developers’ engineers may have incorrectly calculated the weight of the building and that foundation shifting could be three times the allowable limit.
While the developer’s engineers pledged to stop construction at a threshold below the foundational shifting limit, Hiller did not believe the project would truly stop. He said, furthermore, the problem is that no one seemed aware of the potential issue.
“The fact is none of them spoke up because none of them had read the materials,” said Hiller.
Hiller said he was further convinced when the commission asked for a new study on the potential impact construction could have on Merchant’s House’s plaster, which is from the 19th century.
Hiller said engineers for Merchant’s House did a plaster study 10 years ago, raising questions and concerns about the impact from next door construction.
While the commissioners said they received more than 600 emails in opposition to the project, it was approved in December.
“Keeping our city’s landmark buildings safe and secure is a top priority, and when considering proposals for work adjacent to designated properties, the agency coordinates closely with DOB and requires building owners to use enhanced safeguards to protect these landmark buildings when appropriate,” said an LPC spokeswoman in an emailed statement to NY1. “Regarding Merchant’s House Museum, the Commission required that proposed work on the adjacent property at 27 E. 4th Street include stringent measures to ensure the integrity of Merchant’s House. The plan approved by the Commission includes stabilization and protective methods that are stricter than what is normally required under current building code, and includes enhanced monitoring and real-time notifications.”
In a city always changing and growing, Merchant’s House has stood the test of time. Its leadership said the question now is whether it will continue to.
Permits have been filed for an 11-story mixed-use building at 489 Ninth Avenue in Manhattan’s Midtown West. Located between West 37th and West 38th Streets, the lot is four blocks from 34th Street-Penn Station subway station, serviced by the A, C, and E trains. Susan Wu of ZD Jasper Realty is listed as the owner behind the applications.
The proposed 120-foot-tall development will yield 63,264 square feet, with 57,250 square feet designated for residential space and 6,013 square feet for commercial space. The building will have 59 residences, most likely condos based on the average unit scope of 970 square feet. The concrete-based structure will also have a cellar and a 30-foot-long rear yard.
Governor Kathy Hochul today announced a $2.2 million expansion of New York’s Fair Housing Testing Program designed to root out discrimination in home rental and sale transactions. New York State partnered with six nonprofit organizations across the state to deploy undercover testers to act as potential renters and home seekers. The expansion will increase proactive investigations of suspected housing discrimination and enhance education and outreach efforts on fair housing rights, including for individuals with a history of criminal system involvement.
“As we expand access to housing across New York State, I am using all of the resources at my disposal to combat housing discrimination and ensure that all New Yorkers are treated with dignity, fairness, and respect when seeking the housing of their choice,” Governor Hochul said. “Our investment in this crucial program sends a clear message: housing discrimination will not be tolerated here in New York.”
The Fair Housing Testing Program is administered by New York State Homes and Community Renewal’s Fair and Equitable Housing Office and expands the pilot testing program established by the office in 2021. The program also provides continuity to the Eliminating Barriers to Housing New York testing and outreach program launched by the New York Office of the Attorney General in partnership with Enterprise Community Partners.
HCR has finalized contracts with six organizations to conduct testing in 48 counties including Nassau and Suffolk, Westchester, Albany and Schenectady counties, as well as the five boroughs of New York City. The fair housing testing and outreach partners are: CNY Fair Housing, the Fair Housing Justice Center, Housing Opportunities Made Equal, Legal Assistance of Western New York, Long Island Housing Services, and Westchester Residential Opportunities. These nonprofit housing agencies will dispatch trained fair housing “testers” to act as potential renters or home seekers to uncover unlawful discriminatory treatment by sellers, brokers, and landlords.
The program’s outreach and training will focus on fair housing protections including for those with arrest and conviction histories. The outreach includes advertisements and social media messaging, training events, and professional education classes.
New York State Homes and Community Renewal Commissioner RuthAnne Visnauskas said, “Housing is an essential human right and we must continue to use every tool at our disposal to ensure that all New Yorkers have a fair and equal opportunity to live in the communities of their choice. Our Fair Housing Testing program complements Governor Hochul’s New York Housing Compact, which will proactively address disparities in housing access, exclusionary zoning, and other barriers that impede fair housing goals, and help us build a better and more equitable New York for all.”
More information on Fair Housing can be found on HCR’s website: hcr.ny.gov/feho.
Marlene Zarfes, Executive Director of Westchester Residential Opportunities, said, “This work is critical to ensuring a housing market in the Lower Hudson Valley in which every household has an equal opportunity to participate, regardless of skin color, ethnicity, source of income, disability or any other protected class.”
Elizabeth Grossman, Executive Director of the Fair Housing Justice Center, said, “The Fair Housing Justice Center is immensely grateful for this support from HCR and we are eager to get to work on new testing and outreach activities. Testing remains a critical tool for fair housing organizations to use in the fight against discrimination, and we look forward to conducting robust investigations throughout the New York City region. The outreach funding will provide an enhanced opportunity for us to increase awareness of fair housing rights and responsibilities, especially the strong protections that New York State has put in place to counter source-of-income discrimination, and to provide training to tenants, home seekers, and housing providers. Thanks to the support of HCR, people throughout our service area will know that they can come to us for help, and that our programs will get them the help they need.”
Ian Wilder, Executive Director of Long Island Housing Services, said, “Long Island Housing Services is grateful to New York State for supporting much needed fair housing work. This funding allows us to assist in enforcing the very necessary protections afforded under New York State law. Even more so, it enables Long Islanders move toward a home that we all strive for where our neighbors can choose to live wherever they want free of discrimination. Only by overcoming housing discrimination can we free Long Islanders to live their best lives.”
DeAnna Eason, Executive Director of Housing Opportunities Made Equal, said, “Education and outreach are imperative to the eradication of discrimination in housing and the furtherance of fair housing. HOME appreciates the support of NYSHCR in combating bias in housing, and the promotion of diversity and equality in our communities.”
Sally Santangelo, Executive Director of CNY Fair Housing, said, “CNY Fair Housing has a long history of fighting barriers to housing in the Syracuse region. With this funding, we will be able to conduct more fair housing testing and outreach to our region and beyond. We look forward to continuing partnership with New York State Homes and Community Renewal to eliminate discrimination in housing.”
Programs for regulating rent, known as rent control and rent stabilization, are in place in several communities around New York State. Rent regulation has two purposes: first, to shield tenants in privately held buildings from unlawful rent hikes; second, to enable building owners to maintain their properties while making a fair profit. Of the two rent regulation schemes, rent control is the more established one. It was first implemented in response to the housing scarcity that followed World War II and is typically applicable to structures built before 1947. In general, rent stabilization applies to apartments that were freed from rent control and buildings constructed after 1947 but before 1974. It also includes buildings that are eligible for tax incentives under J-51, 421-a, and 421-g. The apartments that are eligible for these tax benefit programs are determined by their own set of regulations.
Rent stabilization outside of New York City is also referred to as ETPA, or the Emergency Tenant Protection Act, and it’s legal in a few counties and places (see Fact Sheet #8). Rent stabilization can also apply to housing accommodations whose rentals are set by public benefit corporations, DHCR, and other government bodies, as outlined in the rent regulations.
Rent Stabilization In addition to limiting the amount of rent increases, rent stabilization offers tenants protections. Tenants are entitled to the provision of necessary services, the renewal of their leases, and are not subject to eviction unless there are legally permissible reasons. Tenants have the option to extend their leases for one or two more years. Tenants can use a number of forms developed by the Division of Housing and Community Renewal (DHCR) to make pertinent complaints. After serving the owner with the complaint and gathering evidence, DHCR must issue a formal order that is appealable.
DHCR has the authority to lower rent and impose civil penalties on the owner in cases when a tenant’s rights are infringed. Should you fail to maintain services, your rent may be lowered. If there is an overcharge, the DHCR may impose interest penalties or triple damages that must be paid by the tenant.
Rent Control Rent control restricts the amount of rent an apartment owner can charge as well as the owner’s ability to evict residents. Additionally, tenants are entitled to certain necessities. Since tenants are regarded as “statutory” tenants, owners are not obligated to provide renewal leases. Tenants can use a number of forms developed by DHCR to file pertinent concerns. After serving the owner with the complaint and gathering proof, DHCR is authorized to issue a written order that is appealable. Rents may be lowered and civil penalties may be imposed by DHCR on the owner in the event that a tenant’s rights are infringed. Reduced rent is a possibility if services are not kept up. When there is an overcharge, the DHCR may determine the legally collectible rent.
Please refer to an attorney for legal advice regarding your specific situation. Additional information can be found at the Department of Homes and Community Renewal.
More than a year after Gov. Kathy Hochul announced ambitious plans for a new housing deal, state lawmakers have reached an agreement on one. The governor’s proposal, announced Monday after months of negotiation, includes provisions to revive the 421a property tax break for rental projects in New York City and implement a version of “good cause eviction” aimed at protecting tenants from dramatic rent increases. In typical fashion, no one is happy with the outcome. Tenant advocates have expressed dissatisfaction, arguing that the bill’s version of good cause eviction didn’t go far enough. Under the terms of the deal, tenants facing rent increases over 10 percent — or the consumer price index plus 5 percentage points, whichever is lower — will have the right to challenge evictions.
Tenant advocates contend that these thresholds are too high and may still leave vulnerable tenants at risk of displacement. On the other hand, landlord groups like CHIP and RSA lambasted the deal, saying it accomplished “nothing” and “didn’t do enough.” They raised concerns about the modest rent increases, which could make it difficult to fund apartment renovations and repairs. As for 421a, negotiations are still underway to determine how much affordable housing will be required. Of course, this doesn’t quite mark the end for the dealmaking process. Hochul described the deal as “parameters of a conceptual agreement,” meaning the legislature still needs to pass a final version.
Fewer condos sold in Manhattan last month than in February, despite an uptick in the luxury market, while buyers in Brooklyn signed contracts for five more units than last month.
“With [March] demand closely resembling that of the pre-pandemic period, we may see some normalization of the market as mortgage rates stabilize,” said Marketproof CEO Kael Goodman.
Citywide, deal volume rose by 7% month-over-month, continuing an upward trajectory for the fourth month
Total dollar volume rose 18% to $796M, the best month since June of 2023The luxury market saw a 26% increase in deal volume from last month and a 7% increase in dollar volume
While the March numbers are upbeat, they fall short of the March average during the pandemic recovery (2021-2023) and align more closely with pre-pandemic (2015-2019) numbers
The upward momentum continues for the fourth month, though at a more subdued pace. Deal volume rose 7% from 262 in February to 281 in March. Deal count in Manhattan and Brooklyn was essentially unchanged, but Queens saw an uptick of 57%. The surge in Queens is attributed to a batch of 23 contracts reported at 134-16 35th Avenue. Total dollar volume increased by 18% to $769M from $676M. The median price per square foot (PPSF) dipped slightly from $1,635 to $1,587, and the median price decreased by 7% from $1.62M to $1.5M. The drop in unit price and PPSF reflects a more significant share of the deal volume originating in Queens, a borough with more modestly priced units.
While March’s performance improved month over month, the deal volume represents a 56% decrease compared to the average of 439 deals per month during the pandemic recovery period from 2021 to 2023. The demand in March 2024 aligns more closely with the 289 average during the pre-pandemic period from 2015 to 2019.
Of the 281 deals citywide, 133 (-1%) were in Manhattan, 107 (+5%) were in Brooklyn, and 41 (+57%) were signed in Queens.
LUXURY
The luxury segment saw deal volume jump by 26% month over month, reaching a nine-month peak of 43 contracts. The total dollar volume grew by 42% from $300M to $427M. The median price rose 7% from $5.9M to $6.4M, and the median PPSF was unchanged at $2,631.
One High Line led in deal volume with six contracts over $4M. The West Chelsea complex found buyers for 95 of 235 residences since sales launched a little over a year ago. Corcoran Sunshine Marketing Group handles sales and marketing.
125 Perry Street led in dollar volume with three contracts totaling $112M, or 26% of the luxury market. The West Village boutique has sold 3 of the 7 residences. Compass handles sales and marketing.
Of the 43 luxury deals this month, 40 were in Manhattan, and three were signed in Brooklyn.
Brooklyn’s tallest building is struggling to pay its skyscraping loans.
Michael Stern, the developer of 9 DeKalb Avenue’s 93-story The Brooklyn Tower, has defaulted on a $240 million mezzanine loan and now faces foreclosure, the Real Deal has reported.
A UCC foreclosure auction has been scheduled for Jun. 10 by Silverstein Capital Partners, which issued the loan in 2019, according to marketing materials from real estate company JLL.
The Brooklyn Tower, a 93-story structure located at 9 DeKalb Avenue, is the tallest building in the borough.
“9 DeKalb’s junior mezzanine, senior mezzanine and mortgage loans are in maturity default, and the junior mezzanine lender is enforcing its junior mezzanine loan remedies through a Uniform Commercial Code (UCC) sale process,” a Silverstein spokesperson confirmed to The Post.
“The junior mezzanine lender has engaged JLL to market the equity interests securing the junior mezzanine loan, and they will conduct a public auction after a marketing period.”
Stern’s JDS Development Group did not immediately return The Post’s request for comment.
It’s unclear what will become of the tower, which only opened to tenants last year.
The news comes just days after a 440-square-foot studio in the skyscraper sold for $905,000, making it the most expensive studio in borough history, 6sqft reported.
A video producer who lives across the street previously told The Post that the building looks like “the headquarters of an evil corporation in a superhero movie.”
The apartment, unit 72A, is more than 720 feet from the street below and features floor-to-ceiling windows, and in-unit Miele washer-dryer and European white oak flooring.
“This is an incredible milestone for Downtown Brooklyn. Our newest residents will be living at the highest elevations ever available in the borough,” said Stern, who attempted to sell part of the 1,000-foot-tall Downtown Brooklyn behemoth’s rental portion in early 2023.
At the time, he put its 398 rental apartments as well as the building’s amenities — including a pool, 50,000 square feet of retail and 77,000 square feet of workout facilities provided by the upscale chain LifeTime Fitness — on the market for an ambitious $500 million.
It’s unclear what will become of the tower, which only opened to tenants last year.
But a deal was never struck for the listing, which notably did not include the 93-story skyscraper’s 143 individual residential condominiums, and now the building’s fate is up in the air.
In addition to now having a reputation for financial trouble, the looming metallic supertall has also become known for its “evil vibes.”
A video producer who lives across the street previously told The Post that the building looks like “the headquarters of an evil corporation in a superhero movie.”
