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Rubin Report - The Pulse of the NYC Development / Issue No. 23 - November 2024

Rubin Isak

“The Golden Age of America”

The 2024 election has ushered in a new political era with Donald J. Trump and JD Vance set to take office in January 2025, supported by Republican control of both the Senate and the House of Representatives. This gives the President an easier path to follow through on promises.

Here are 7 highlighted tax proposals that were promised during the campaign:

  1. Making Social Security Completely Exempt From Taxation
  2. Exempting Tips From Income Taxation
  3. Exempting Overtime Pay From Taxation
  4. A New Itemized Tax Deduction for Auto Loan Interest
  5. Dropping The Corporate Tax Rate from 21% to 15% for companies manufacturing in America
  6. Bringing back the deduction for state and local taxes (SALT)
  7. Extending and making permanent the expiring 2017 Tax Cuts and Jobs Act (TCJA)

“Promises made, promises kept.”

-President Donald J. Trump

City of Yes…City for All: What’s in it?

In response to Mayor Adams’ City of Yes zoning overhaul, the City Council, who is voting on the initiative in December, just introduced “City For All”

Let’s unpack it:

The “City for All” housing plan, introduced by City Council Speaker Adrienne Adams and other Council members, outlines funding and policy actions to address New York’s growing housing crisis. While the Council’s focus on affordability and infrastructure is crucial, I hope that these demands won’t detract from the momentum and desired impact of the City of Yes rezoning initiative.

Here are the core components of the City for All plan:

1. Deepen Affordability of Housing Production

a. Significantly Increase Funding in HPD Five-Year Capital Plan for Affordable Housing Programs and Deeper Affordability, including for:

  • Extremely Low and Low-Income Affordability (ELLA)
  • NYCHA Section 9 Repairs/Rehabilitation
  • Affordable Homeownership Development / Open Door
  • Senior Housing
  • Supportive Housing (including resolution of 15/15 and JISH challenges)
  • Mixed Income Development with Affordability
  • Preservation – Neighborhood Pillars, Mitchell-Lama, etc.

b. Deepen Affordability Targets:

Create deeper affordability for households below 30% of AMI in ELLA, as part of increasing the City’s unit production targets for extremely and very low income households

Add set-asides of units for voucher holders in Mixed Income Market Initiative program and high opportunity area developments, in addition to homeless setasides, to increase creation of affordable units.

c. Make Deep Affordability Option 3 of MIH Stand-Alone and consider future improvements to affordability.

d. Require Affordability in Large Transit Oriented Developments and Town Center Developments: For developments of a certain higher number of units, require that a significant percentage of units be affordable. This would mandate affordability in these zoning proposals, increasing the production of affordable rental units in larger buildings to utilize the full floor-area ratio (FAR), while maintaining smaller projects that can create affordable homeownership opportunities.

e. Strengthen Support for Faith- and Community-Based Organizations’ Affordable Housing Development: Improve targeted housing development assistance for FBOs and small non-profits to successfully pursue and advance housing projects to completion.

f. Community Land Trusts: Increase Funding and Support to Strengthen CLTs

  • Significantly increase annual CLT funding to expand capacity through the CLT Initiative and increase access to capital
  • Immediate resolution of multi-year contract payment delays to CLTs and organizations in Stabilizing NYC with sustainable long-term fixes

2. Support Affordable Homeownership

a. Double Funding for HPD HomeFirst Down Payment Assistance Program with expansion of eligibility to include more low- and middle-income households, providing greater homeownership opportunities for families to remain in NYC.

b. Expand Funding for HPD HomeFix to increase financial assistance that supports maintenance and repair needs for existing homeowners to preserve their homeownership.

c. Increase Affordable Homeownership Production: Increase proportion of homeownership projects in total affordable housing financing and increase funding for OpenDoor affordable homeownership development.

d. Increase Funding of Legal Services for Homeowners: Deepen support of preservation and estate planning efforts in at-risk neighborhoods, and aid for small landlords.

3. Invest in Infrastructure to Support Growth

a. Commit Significant Capital Funding for DEP Infrastructure, Open Space and Street Upgrades: The City should invest significant capital funding for adequate DEP infrastructure to address existing flooding and sewer issues and plan for upgrades needed to support more housing. This should include incorporation of stormwater best management practices, installation of backwater valves, and other systems to prevent flooding. Unsatisfactory conditions and a deficit of open space, parks, roadway and streetscapes are frequent concerns that must be addressed as well. Many community boards, elected officials, and members of the public expressed concerns about inadequate infrastructure in their neighborhoods to handle current and new development. There are neighborhoods that have seen underinvestment in needed infrastructure to sufficiently address these issues.

b. Make increased investments in public transit, including infrastructure, access to reduced fare programs, bus service, etc.

4. Strengthen Affordable Housing Preservation

a. Significantly Increase Capital Funding for NYCHA Section 9 Units: Support maintenance and repairs for NYCHA apartments in bad condition and expedite return of over 5,000 vacant units through deeper investments in Vacant Unit Readiness Program.

b. Increase Funding for HPD Preservation: Provide greater funding for preservation programs, like Neighborhood Pillars with newly revised term sheet by December 2024 sheet and Alternative Enforcement Program, to improve housing conditions and preserve affordable units.

c. Incentivize Return of Vacant Units: Expedite completion of vacant unit reporting and inspection system and incentivize return of units for available occupancy.

d. Significantly Increase Funding for Mitchell-Lamas Preservation: Expand preservation funds to address rising repair and improvement costs for Mitchell-Lama developments to maintain affordability for tenants. Establish City-State Mitchell-Lama Action Group to stabilize long-term affordability of homeownership and rental units.

5. Bolster Utilization of Housing Vouchers

a. Use Vouchers for New Yorkers at Greatest Risk: Apart from current litigation’s focus on legislative authority, establish access to CityFHEPS vouchers for homeless youth and people facing eviction without requiring their entrance to the adult shelter system through increased funding and creation of criteria to target households in greatest need, determined by data such as income level, rent burden, risk of eviction or displacement. The bureaucratic inefficiencies in the application process and administering of vouchers must also be a priority to fix.

b. Establish Voucher Set-Asides: Create new incentives and set-asides for new developments in high-opportunity neighborhoods to dedicate units for voucher holders, in addition to homeless set-asides, increasing normalization of voucher acceptance.

c. Significantly Increase Funding to Combat Housing Discrimination: Provide major increase in funding for CCHR to return to pre-pandemic staff levels and capacity to combat source-of-income and other forms of housing discrimination.

6. Protect Tenants

a. Significantly Enhance Right to Counsel Funding: A major increase of funding for the Right to Counsel program can help expand access to legal services that reduce housing insecurity caused by evictions, strengthening the program and its workforce to help more eligible New Yorkers. Legal representation of tenants in housing court has proven effective in protecting renters from unfair legal action and housing instability.

b. Restore & Strengthen Anti-Harassment Tenant Protection (AHTP) Program:

Restore $25.5 million removed from new three-year contracts with provider organizations in June 2024 and enhance baseline annual funding for program. The City’s AHTP program provides funding to legal services providers to help protect tenants from harassment. The Administration’s removal of $25.5 million ($8.5 million/year) from the program’s newly awarded contracts just before adoption of the Fiscal Year 2025 budget undermined critical protections for tenants. This should be restored to the current contracts, and total funding increased to support robust tenant protection efforts in areas with high displacement risks.

c. Increase Funding for Tenant Organizing: Greater funding support for non-profit tenant organizing and outreach supports tenants’ access to housing protections and anti-displacement resources.

7. Fund Housing Agency Capacity

a. Enhance HPD Development Capacity: Increased funding, expedited hiring of vacant positions, the elimination of OMB barriers to hiring and project financing approvals, and prioritizing resources at HPD can strengthen the capacity to support clearing housing development backlogs, new housing development, placement and preservation efforts.

b. Strengthen DOB & HPD Housing Inspections: Increased support and expedited hiring with the elimination of OMB barriers can ensure adequate inspections to protect tenants from building conditions that are unhealthy, unsafe and out of compliance.

c. Increase Funding for Neighborhood Plans: Support for Department of City Planning neighborhood planning capacity can support the advancement of more neighborhood plans.

While City for All seeks to address affordability comprehensively, they have to be careful to pass something that can actually hinder City of Yes's goal to build more housing.

We will be monitoring this closely and keep you updated on the City of Yes vote next month.

New Building Filings:

Manhattan:

  1. 280 East Houston Street, East Village - 12-Story, 112,965 ZFA, 158-Unit, Mixed-Use Building
  2. 34 East 35th Street, Murray Hill - 18-Story, 169,412 ZFA, 137-Unit Residential Building
  3. 171 East 86th Street, Carnegie Hill - 17-Story, 60,000 ZFA, 24-Unit Residential Building
  4. 250 East 83rd Street, Yorkville - 32-Story, 160,529 ZFA, 128-Unit Residential Building

Bronx:

  1. 750 East 141st Street, Mott Haven - 2-Story + Mezzanine, 98,393 ZFA, Commercial Building on a 45,865 SF Lot. Zoning: M1-3/IBZ.
  2. 650 Southern Blvd, Longwood - 9-Story, 47,978 ZFA Community Facility Building
  3. 3273 3rd Avenue, Claremont - 9-Story, 71,722 ZFA, 73-Unit, Mixed-use Building
  4. 130 East 177th Street, Tremont - 12-Story, 56,299 ZFA, 78-Unit Residential Building
  5. 1806 Anthony Avenue, Tremont - 9-Story, 60,430 ZFA, 111 Unit, Mixed-Use Residential + Community Facility Building
  6. 2311 Grand Avenue, University Heights - 6-Story, 15,808 ZFA, 25-Unit Residential Building
  7. 1810 Randall Avenue, Soundview - 8-Story, 95,883 ZFA, 166-Unit Mixed-use Residential + Community Facility Building
  8. 1363 White Plains Road, Parkchester - 6-Story, 7,664 ZFA, 9-Unit Apartment Building

Brooklyn:

  1. 104 Frost Street, Williamsburg - 8-Story, 14,520 ZFA, 20-Unit Apartment Building
  2. 174 Eagle Street, Greenpoint - 4-Story + Penthouse, 4,994 ZFA, 4-Unit Apartment Building
  3. 50 South 2nd Street, South Williamsburg - 7-Story, 17,985 ZFA, 12-Unit Apartment Building
  4. 151 Morgan Avenue, East Williamsburg - 1-Story, 58,880 ZFA Industrial Building - Zoning: M1-1/IBZ
  5. 31 Bartlett Street, Williamsburg - 9-Story, 21,996 ZFA, 29-Unit Apartment Building
  6. 667 Flushing Avenue, Williamsburg - 9-Story, 41,909 ZFA, 49-Unit Apartment Building
  7. 221 Middleton Street, Williamsburg - 6-Story, 14,939 ZFA, 10-Unit Apartment Building
  8. 68 South 1st Street, South Williamsburg - 4-Story, 2,968 ZFA, Single-Family Home on a 21’ x 40’ Lot! Paid $404/ZFA in 2022.
  9. 176 Frost Street, Williamsburg - 4-Story + Penthouse, 6,041 ZFA, 4-Unit Apartment Building
  10. 330 Wallabout Street, Williamsburg, - 8-Story, 132,443 ZFA, Mixed-Use Building
  11. 161 Middleton Street, Williamsburg - 4-Story, 6,131 ZFA, 3-Family Building
  12. 69 Greene Avenue, Fort Greene - 3-Story + Penthouse, 3,046 ZFA, 2-Family Home on a 21.42’ x 71.50’ Lot - Paid $458/ZFA in 2019
  13. 267 Bainbridge Street, Bedford-Stuyvesant - 4-Story + Penthouse, 4,897 ZFA, 7-Unit Apartment Building
  14. 735 Myrtle Avenue, Bedford-Stuyvesant - 8-Story, 18,338 ZFA, 10-Unit Apartment Building
  15. 222 Walworth Street, Bedford-Stuyvesant - 4-Story, 3,998 ZFA, 2 Family Home
  16. 135 Woodbine Street, Bushwick - 5-Story, 6,463 ZFA, 9-Unit Apartment Building
  17. 1385 Dekalb Avenue, Bushwick - 4-Story, 3,362 ZFA, 2 Family Home
  18. 360 Shepherd Avenue, East New York - 8-Story, 42,441 ZFA, 64-Unit Apartment Building
  19. 653 Baltic Street, Park Slope - 4-Story + Penthouse, 11,376 ZFA, 9-Unit Apartment Building
  20. 240 3rd Avenue, Gowanus - 9-Story, 149,519 ZFA, 214-Unit Apartment Building
  21. 141 2nd Street, Gowanus - 22-Story, 250,602 ZFA, 200-Unit Apartment Tower
  22. 307 Bond Street, Gowanus - 20-Stroy, 142,278 ZFA, 158-Unit Apartment Tower
  23. 37 Garnet Street, Carrol Gardens - 3-Story, 3,979 ZFA, 2-Family Home
  24. 338 43rd Street, Sunset Park - 4-Story, 4,094 ZFA, 6-Unit Apartment Building
  25. 1512 Union Street, Crown Heights - 4-Story, 15,765 ZFA Community Facility Building
  26. 368 92nd Street, Bay Ridge - 2-Story, 2,279 ZFA, 2-Family Home - Paid $526/ZFA in April 2024
  27. 1969 20th Drive, Bath Beach - 3-Story, 6,285 ZFA, 6-Family Apartment Building
  28. 144 Bay 11th Street, Bath Beach - 2-Story, 3,280 ZFA, 3-Family Building
  29. 8779 21st Avenue, Bath Beach - 2-Story, 3,484 ZFA, 3-Family Building - Paid $550/ZFA in Oct 2023
  30. 4911 19th Avenue, Borough Park - 9-Story, 24,520 ZFA, Community Facility Building
  31. 1555 51st Street, Borough Park - 4-Story, 6,604 ZFA, 4-Family Apartment Building
  32. 1221 52nd Street, Borough Park - 9-Story, 48,623 ZFA, Community Facility Building
  33. 1342 44th Street, Borough Park - 4-Story, 8,176 ZFA, 2-Family Building
  34. 2705 Harway Avenue, Gravesend - 3-Story, 3,066 ZFA, 3-Family Building
  35. 2201 Beverly Road & 2366 Bedford Avenue, Flatbush - Two (2) - 7-Story Mixed-use Buildings totaling 560,243 ZFA and 354 Apartments.
  36. 518 Thatford Avenue, Brownsville - 3-Story, 3,951 ZFA, 3-Family Home

Queens:

  1. 23-12 30th Avenue, Astoria - 7-Story, 7,534 ZFA, 7-Unit Apartment Building on a 21’ x 137’ Lot - Paid $166/ZFA
  2. 25-36 31st Street, Astoria - 6-Story, 12,740 ZFA, 14-Unit Apartment Building - Paid $235/ZFA
  3. 31-11 28th Road, Astoria - 5-Story, 5,879 ZFA, 8-Unit Apartment Building - Paid $255/ZFA
  4. 31-18 30th Street, Astoria - 5-Story, 9,780 ZFA, 14-Unit Apartment Building - Paid $269/ZFA
  5. 18-26/28 Steinway Street, Astoria - Building Two (2) - 2-Story, 2,501 ZFA, 25’ x 100’, Manufacturing Buildings - M1-1 Zoning District - Paid $300/ZFA
  6. 23-84 48th Street, Astoria - 1-Story, 2,499 ZFA, Manufacturing Building - M1-1 Zoning District
  7. 41-22 44th Street, Sunnyside - 8-Story, 19,598 ZFA, 29-Unit Apartment Building
  8. 37-60 103rd Street, Corona - 4-Story, 5,180 ZFA, 3-Family Apartment Building - Paid $251/ZFA
  9. 58-64 57th Street, Maspeth - 2-Story, 2,299 ZFA, Commercial Building in an M1-1 Zoning District
  10. 37-18 138th Street, Flushing - 9-Story, 91,568 ZFA, Commercial + Community Facility Building - Paid $409/ZFA
  11. 132-70 Pople Avenue, Flushing - 5-Story, 5,048 ZFA, 3-Unit Residential Building + Community Facility - Paid $297/ZFA
  12. 104-33 Atlantic Avenue, Richmond Hill - 4-Story, 3,975 ZFA, 2 Family Building
  13. 34-09 Bell Blvd, Bayside - 2-Story, 7,260 ZFA, Community Facility Building
  14. 148 Beach 116th Street, Rockaway Park - 8-Story, 127,571 ZFA, 188-Unit Apartment Complex with 160 Parking Spaces. Paid $113/ZFA
  15. 6014 Beach Channel Drive, Arverne - 5-Story + Penthouse, 75,224 ZFA, 110-Unit Apartment Building with 76 Parking Spaces - Paid $103/ZFA

Exclusive Development Sites For Sale:

38-01 Queens Boulevard

  • Long Island City, Queens
  • 22,500 SF M1-4 Zoning District/IBZ
  • Corner Vacant Lot

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  • Corner of Queens Blvd & 38th Street
  • ZFA: 45,000 sf | Max ZFA: 146,250 sf
  • Asking Price: $12,000,000 ($266/ZFA)

205 West 230th Street

  • Kingsbridge, Bronx
  • 99,559 ZFA Development Site
  • Existing Retail Strip Center

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  • Corner of W 230th St & Godwin Terr
  • Residential ZFA: 96,286
  • Asking Price: $12,000,000 ($125/ZFA)

2365-2367 2nd Avenue

  • East Harlem, Northern Manhattan
  • 54,755 Buildable SF Development Site

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  • Corner of 2nd Ave & E 121st St
  • ZFA: 54,755 ZFA
  • Asking Price: $7,250,000 ($132/ZFA)

14110-12 32nd Avenue

  • Flushing, Queens
  • Approved Plans - 32,871 ZFA

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  • Between 32nd Ave & Union St
  • Approved Plans ZFA: 32,871 ZFA
  • Asking Price: $6,200,000 ($188/ZFA)

2761 Homecrest Avenue

  • Brighton Beach, Brooklyn
  • Approved Plans – 18,610 ZFA

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  • Corner of Shore Pkwy & Homecrest Ave
  • Approved ZFA: 18,610 ZFA
  • Asking Price: $2,000,000 ($107/ZFA)

114 Adelphi Street

  • Fort Greene, Brooklyn
  • 25' x 100' Vacant Lot

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  • Between Myrtle Ave & Park Ave
  • Residential ZFA: 5,000 ZFA
  • Asking Price: $1,950,000 ($390/ZFA)

302 West 128th Street

  • Central Harlem, Northern Manhattan
  • 9,747 ZFA Residential Development Site

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  • Between St. Nicholas Ave & Frederick Douglass Blvd
  • ZFA: 9,747 ZFA
  • Asking Price: $1,600,000 ($164/ZFA)

28th Street

  • Astoria, Queens
  • 25’ x 100’ Vacant Lot

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  • Between Astoria Blvd & Newton Ave
  • ZFA: 5,008 ZFA
  • R6B Zoning District
  • Asking Price: $1,500,000 ($299/ZFA)

A Snapshot of Properties we have SOLD:

Borough Highlight: QUEENS

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“ROWAN II”

2101-2119 31st Street, Astoria

  • Sale Price: $21,000,000 | $321/ZFA
  • ZFA: 65,417 ZFA

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“THE NORTH FLUSHING POOL CLUB”

141-01 32nd Avenue, Flushing

  • Sale Price: $16,000,000 | $220/ZFA
  • ZFA: 72,592 ZFA

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“THE TITAN PORTFOLIO”

25-56 31st Street & 26-37 30th Street

  • Sale Price: $10,500,000 | $218/ZFA
  • ZFA: 48,250 ZFA

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“THE RED LION” - 80-Room Hotel Delivered Vacant

42-24 Crescent Street, Long Island City

  • Sale Price: $18,135,000 | $226,688/Key | $575/SF
  • Zoning: M1-5/R7-3

Financial Market Snapshot:

Over the last two months, interest rates—mortgage rates, SOFR, and Treasury yields—have steadily climbed. These increases are reshaping the financial landscape for developers as we speak.

These increases have a direct impact on Development Financing. Rising rates mean higher borrowing costs, making it more expensive to finance new projects. For developers, this change impacts project feasibility and will ultimately lead to adjustments in land value if left unchanged.

The Federal Open Market Committee lowered its benchmark overnight borrowing rate by a quarter percentage point, or 25 basis points, to a target range of 4.50%-4.75%. This comes directly after a 50 basis point reduction. The consensus is that the Fed will further cut another 25 basis points in the December 18, 2024 FOMC meeting.

Below are current rates across the board:

  • Federal Prime Rate: 7.75% down from 8%
  • Secured Overnight Financing Rate (SOFR): 4.81% slightly down from 4.83% last month.
  • United States Federal Funds Rate: 4.5% from 4.75%
  • United States Annual Inflation Rate: 2.44%, down from 2.5% last month
  • US 1-Year Treasury Rate: 4.282% up from 4.17% last month and 3.955% the month before
  • US 2-Year Treasury Rate: 4.195% up from 3.927% last month and 3.605% the month before
  • US 10-Year Treasury Rate: 4.3263% up from 4.0% last month and 3.67% the month before
  • Treasury Bill Auction Rates:
  • 4-Week Term: 4.588%. Down from 4.755% last month and 5.17% the month before
  • 8-Week Term: 4.555%. Down from 4.655% last month and 5.15% the month before
  • 52-Week Term: 4.1%. Up from 3.78% last month and lower than 4.15% the month before
  • US Bonds:
  • 20-Year Bond: 4.59% down from 4.039% last month and 4.16% the month before
  • 30-Year Bond: 4.389% down from 4.015% last month and 4.25% the month before
  • Mortgage Rates:
  • 30-Year Fixed Rate: 6.98% up from 6.64% last month and 5.95% the month before
  • 15-Year Fixed Rate: 6.45% up from 6.10% last month and 5.6% the month before
  • 5-Year ARM: 6.95% up from 6.55% last month and 6.1% the month before
  • Ground Up Construction Rates: 8%+
  • Hard Money Lending Rates: 11%+