In this report you will find a copy of Governor Hochul’s recent 2024 State of the State Book. In it, she states she will propose legislation to incentivize new construction, encourage affordable housing in office conversions, allow for more flexibility in residential density, and legalize existing basement and cellar apartments.

MIMI: Mayor Adams and HPD announced a new affordable housing program dubbed the Mixed Income Market Initiative “MIMI”, which I provided you a cheat sheet with below. With a deadline next month and 70% affordability; I would not count on this creating much affordable housing.

Fun Fact: The NYC Zoning Code Resolution was passed in 1961. Other events in 1961…John F. Kennedy was sworn in as the 35th President of the United States; NHL great, Wayne Gretzky was born; The Beatles made their debut in Liverpool; The City University of New York (CUNY) was established; NYC Mayor Robert F. Wagner, Jr. won a re-election for a third term in office…Time for change: The 1961 resolution replaced the 1916 resolution; that took 45 years.

We are overdue at 63 years. It’s 2024, I think it’s time for an updated forward looking NYC zoning code, don’t you?! The City of Yes zoning initiatives will address many archaic zoning regulations. You can read more about these initiatives here.

Mixed Income Market Initiative (MIMI) - Cheat Sheet

Program Overview:

• Introduced: December 26th, 2023
• Target: Mixed-income projects in affluent neighborhoods.
• Response: To the absence of 421-a and lapsed property tax exemption.

Key Features:

• Approval: City Council & regulatory agreement.
• Term: 30-40 years Tax Exemption aligned with regulatory agreement.
• Eligibility: No commercial spaces; parking and community facilities in Article XI.

Affordability Requirements:

• Affordable Units: 70% at up to 120% AMI. (but must be 20% below market rate rents)
• 25% for extremely low and very-low income households (up to 50% AMI).
• Homeless Units: 15% must be set-aside.

Applicant Requirements:

• Qualification:
• HDFC or partnerships; proven track record and financial stability.

Underwriting Considerations:

• Social Services: Mandatory for homeless units.
• Developer's Fees: $12,500 - $35,000 for affordable units.

Important Dates:

• Jan 18, 2024: Pre-Submission Conference for public feedback.
• Feb 15, 2024: Application submission deadline.

Design Considerations:

• Approval: HPD for unit distribution and mix.
• Minimum Sizes: Studio 350sf; 1BR 500sf; 2BR 650sf; 3BR 850sf; 4BR 950sf.
• Guidelines: Adherence to HPD New Construction Design.

Additional Requirements:

• Certification: Green Communities.
• Reviews: Sponsor, EEO compliance, environmental, and building review.
• Participation: Hire local NYC workers, & M/WBE.

29 Recent New Building Filings:

These 29 recent filings account for 2,320,599 ZFA & 3,067 Apartments

1. 88 White Street, Chinatown, Manhattan - Plans filed to build a 41,563 ZFA, 13-Story, 32 Unit Apartment Building
2. 1763 Amsterdam Avenue, Harlem, Manhattan - Plans filed to build a 49,727 ZFA, 8-Story, 200-Unit Community Facility Building
3. 132 West 134th Street, Harlem, Manhattan - Plans filed to build a 10,854 ZFA, 7-Story, 15-Unit Apartment Building
4. 4650 Broadway, Washington Heights, Manhattan - Plans filed to build a 274,264 ZFA, 20-Story, 222-Unit Mixed-Use Building
5. 656 St Ann’s Ave, Woodstock, Bronx- Plans filed to build a 7-Story, 7,304 ZFA, 11-Unit Apartment Building
6. 130 E 165th Street, Concourse, Bronx - Plans filed to build a 8-Story, 40,342 ZFA, 75-Unit Apartment Building
7. 256 Mt. Hope Place, Mount Hope, Bronx- Plans filed to build a 8-Story, 23,873 ZFA, 42-Unit Apartment Building
8. 3118 Webster Avenue, Norwood, Bronx- Plans filed to build a 11-Story, 76,101 ZFA, 109-Unit Apartment Building
9. 722 St Lawrence Avenue, Clason Point, Bronx - Plans filed to build a 4-Story, 10,450 ZFA, 16-Unit Apartment Building
10. 188 Ainslie Street, Williamsburg, Brooklyn - Plans filed to build a 4-Story, 4,894 ZFA, 10-Unit, Apartment Building
11. 190 Ainslie Street, Williamsburg, Brooklyn - Plans filed to build a 4-Story, 5,176 ZFA, 7-Unit, Apartment Building
12. 334 Bedford Avenue, Williamsburg, Brooklyn - Plans filed to build a 5-Story, 7,279 ZFA, 8-Unit, Mixed-use Building
13. 259 Halsey Street, Bedford-Stuyvesant, Brooklyn - Plans filed to build a 5-Story, 6,953 ZFA, 8-Unit Apartment Building
14. 481 Dekalb Avenue, Bedford-Stuyvesant, Brooklyn - Plans filed to build a 8-Story, 16,201 ZFA, 15-Unit Apartment Building
15. 621 Madison Street, Bedford-Stuyvesant, Brooklyn - Plans filed to build a 4-Story, 7,164 ZFA, 9-Unit Apartment Building
16. 352 Shepherd Avenue, East New York, Brooklyn - Plans filed to build a 7-Story, 35,976 ZFA, 53-Unit Apartment Building
17. 890 Erskine Street, East New York, Brooklyn - Plans filed to build a 8-Story, 129,392 ZFA, 184-Unit Apartment Building
18. 395 Carroll Street, Gowanus, Brooklyn - Plans filed to build a 23-Story, 462,577 ZFA, 604-Unit Mixed-use Building
19. 705 Franklin Avenue, Crown Heights, Brooklyn - Plans filed to build a 8-Story, 47,141 ZFA, 60-Unit Apartment Building
20. 975 Nostrand Avenue, Crown Heights, Brooklyn - Plans filed to build a 2-Tower, 9-Story, 249,250 ZFA, 328-Unit Mixed-Use Building
21. 1722 84th Street, Bensonhurst, Brooklyn - Plans filed to build a 4-Story,14,134 ZFA, 11-Unit Apartment Building
22. 866 51st Street, Sunset Park, Brooklyn - Plans filed to build a 5-Story, 16,786 ZFA, 15-Unit Apartment Building
23. 2605 Snyder Avenue, Flatbush, Brooklyn - Plans filed to build a 7-Story, 43,286 ZFA, 63-Unit Mixed-use Building
24. 23-81 31st Street, Astoria, Queens - Plans filed to build a 12-Story, 79,706 ZFA, 80-Unit, Mixed-use Building
25. 31-01 37th Avenue, Long Island City, Queens - Plans filed to build a 4-Story, 9,253 ZFA, 10-Unit Apartment Building
26. 45-28 21st Street, Long Island City, Queens - Plans filed to build a 6-Story, 53,827 ZFA, 64-Unit Apartment Building
27. 75-43 113th Street, Forest Hills, Queens - Plans filed to build a 4-Story, 8,821 ZFA, 10-Unit Apartment Building
28. 147-35 95th Avenue, Jamaica, Queens - Plans filed to build a 24-Story, 537,992 ZFA, 759-Unit Apartment Building
29. 148-35 Jamaica Avenue, Jamaica, Queens - Plans filed to build a 7-Story, 50,313 ZFA, 47-Unit Mixed-use Building

Financial Market Snapshot:

Federal Prime Rate: 8.5%

Secured Overnight Financing Rate (SOFR): 5.31%

United States Federal Funds Rate: 5.5%

United States Annual Inflation Rate: 3.35% (up from 3.14%)

US 1-Year Treasury Rate: 4.68%

US 10-Year Treasury Rate: 3.94%

Treasury Bill Auction Rates:

• 4-Week Term: 5.28%
• 26-Week Term: 5.03%
• 52-Week Term: 4.595%

Mortgage Rates:

• 30-Year Fixed Rate: 6.69%
• 15-Year Fixed Rate: 5.95%
• 5-Year Commercial Rate: 6.92%