From the Real Deal:
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.