When the $ 212 billion New York budget spreads dust, the real estate industry finds a changed landscape.
The agreement includes federal and state rent relief of more than $ 2 billion, but also tax increases in excess of $ 4.3 billion. And several provisions that the real estate industry supported were repealed.
Here are some major issues:
The budget includes federal rent relief of $ 2.3 billion and an additional $ 100 million in government funds. It exclusion of bars and increase in rent for one year if the landlords accept assistance for that tenant. This program is not mandatory, but there is some ambiguity as to whether landlords can turn to tenants in court. Preference is given to tenants who reach 50 percent of the median area or less, along with several other groups.
Transfers from commercial to residential
The budget lacks the language for fast transfers, but includes $ 100 million for the conversion of commercial real estate into permanent affordable housing. This potentially paves the way for measures introduced by Senator Michael Gianaris, who allows the state get and convert Desperate hotels and housing offices for homeless New Yorkers and those who earn up to 50 percent of the median area.
The Senate wanted $ 250 million allocated to Gianaris’ program. The governor had proposed another framework, a month after the concept was introduced by the New York Real Estate Board. That proposal was criticized affordable housing groups to prioritize market housing.
Local solutions 97
The proposal to give property owners another opportunity to offset their emissions from construction and avoid high fines he couldn’t do it into the budget. Elected officials and environmentalists felt it would circumvent the 2019 city law.
“Local law 97 was the years when it was created, the result of careful work and thorough analysis of many people, and throwing it into it and trying to rewrite it through a state process was a huge mistake,” Gianaris said in a statement.
The groups in the field of environment, work and planning have established themselves proposals facilitate law enforcement. They could still get traction.
Based on the opposition of some legislators and community groups $ 1.3 billion for the Empire Station Complex was on a budget with some key constraints: Funds cannot go to construction office towers surrounding Penn Station, although they may be used for the acquisition, demolition, construction and other costs associated with the extension of the transit hub and incurred before 1 April.
Business leaders took a subdued view of the restrictions.
“As neighborhood managers for nearly three decades, we have seen how a lack of investment and neglect can leave the community behind,” said Dan Biederman, president of 34th Street Partnership, in a statement. “Now is not the time to stop the momentum for Penn County.”
Lawmakers and the governor have agreed on a “temporary” $ 4.3 billion tax increase on the personal income of people with the highest incomes in New York and on corporate income. They expire in 2027, but could be extended because the 2009 millionaires tax was several times.
To relieve the industry, the budget does not tax mezzanine debt and preferred capital investment. Senator Julia Salazar and Assembly member Harvey Epstein have pushed for these taxes as part of separate legislation, but such bills are harder to come off the budget.
The budget also omitted the proposed increases in capital gains and property taxes. During Wednesday’s press conference, Governor Andrew Cuomo said he expected these tax increases annulment a $ 10,000 federal ceiling on state and local tax deductions, or SALT, approved in 2017. President Biden has faced increasing pressure from House Democrats and governors from the states most affected by the ceiling to repeal it.
The budget mandates wages at Union level for certain renewable energy projects. In particular, owners of projects with renewable energy loan agreements with public entities must pay the prevailing wages to construction workers in renewable energy systems of 5 megawatts or more. The state last year extended prevailing wage for projects where public funds cover at least 30 percent of construction costs and these costs exceed $ 5 million.