The ‘Housing New York’ podcast is back and I am your new host, Kenny Burgos, CEO of the New York Apartment Association. Let's get to it.

[THEME]

“We need 800,000 units to meet the demand today… What we have right now in the United States and what we have right now in New York City is almost a crisis of absurdity… We have to figure out a way to get these vacant units back online in a reasonable way that sets a rent that's affordable for most people… We will end America's housing shortage by building 3 million new homes and rentals…”

[INTRO]

It is Monday, October 7th. We have some big news to tell you about. Last month, the New York Apartment Association was officially formed as a merger between the Community Housing Improvement Program and the Rent Stabilization Association.

As I mentioned, I'm Kenny Burgos. I am the CEO of the new organization, NYAA, which is committed to advocating for better housing policies that benefit apartment building owners and their renters. As part of that effort, we are bringing back the podcast as a weekly recap of what's happening to make sure everyone who cares about better housing is informed. 

Before we get into the news, a little bit about me. I'm a former state lawmaker, a native New Yorker, and I live in the Bronx right now with my wife, my two dogs, and my newborn son, Rio.  In my political career, it was clear that housing was a top issue for my constituents. We've been in a housing emergency for my entire life, and we have to fix that. 

That's what I hope to do here at NYAA, with all of your help. If you've listened to the podcast before, you will know that we recap the top stories and explain why they matter to you. We are going to continue to do that and sprinkle in some additional content. Like longer discussions on key topics for now, though, let's get to the news. 

[THE NEWS]

Housing Vouchers

We're kicking off this week talking about vouchers, which is a top issue for NYAA. The fight between the mayor and the City Council over expansion of the CityFHEPS voucher program continued last week, as the council appealed a court decision that said the mayor didn't have to implement the change. 

The proposal was passed by the council and vetoed by the mayor before the council overrode the veto. In court, the Adams administration has said expanding the program would cost too much and funding wasn't included in the budget. NYAA's position has always been and will continue to be that we have to expand voucher access and the government should be funding these vouchers for people that are in need.

No matter what happens in this legal fight, NYAA will continue to push for voucher expansion so renters in need have support. Legal battles are usually not a good way to get to a better system. Lobbying and building consensus is much better. 

A new ‘J-51’ tax break?

Members of the City Council have started to build support for a passage of a new J-51 tax break in accordance with a state law passed earlier this year.

It's very important that people understand that this new version is in no way like previous iterations of J-51. For those unfamiliar, J 51 is a concept that buildings in need of upgrades get a tax break in exchange for keeping rents low. The program also applies to co-ops and condos.  Our position on this bill has been clear.

It doesn't help struggling rent stabilized buildings. Our analysis is that almost all older rent stabilized buildings are ineligible for this program because in order to qualify, the rents for more than half of the units in a building would have to be below roughly 800. The idea of a tax break for rent stabilized buildings that are in good condition and are investing in improvements is still a good concept, and we want to work with elected officials to figure out something that works for our members. 

A new Third Party Transfer (TPT) program?

The third party transfer program, which was discontinued back in 2021, is back in the news this week because the City Council held a hearing to discuss an amended version of this program. Basically, the program identifies rental buildings with property tax liens or water and sewer liens that also have a high violation count. 

They then transfer ownership of the property to a non-profit that hires a sponsor, which is a contractor who invests money into the building and removes violations and then assumes ownership. While we understand that this program doesn't impact the majority of our members, we did take issue with several of the provisions in this bill.

We testified at the hearing to raise those points. Specifically, the bill changed the definition of distress to be too broad and gives very little leeway for an owner caught in the program to get out. This is because it sets up a virtually impossible timeline for correcting violations.  We think this bill is going to get amended.

The sponsor, Housing Chair Pierina Sanchez, was open to changes. It's important to note that the City Department of Housing, Preservation, and Development, or HPD, spoke out against the bill in its current form. This is something NYAA will monitor and report back to you as it moves.  

G-MAX Management v. New York

Last week, the U. S. Supreme Court held a conference on a case challenging the rent stabilization law.

The case is G-MAX Management v. New York. The case makes many of the same arguments the previous challenges made. As a reminder, the Supreme Court refused to hear any of those cases last year, with Justice Thomas issuing a dissenting opinion. that the issues of regulatory taking should be addressed by the court.

The first challenge to the rent stabilization law was brought by the predecessor organizations of NYAA, CHIP, and RSA. We have stated our concerns that portions of the current law are unconstitutional and we still believe the right case would be successful at forcing changes to the law.  As we move forward, it is possible that the Supreme Court will take the case, or deny the case with a dissenting opinion again.

But ultimately, the best way to get relief to apartment building owners in New York will be through lobbying efforts to reduce cost of operations.The courts can be helpful in enacting change, but ultimately, we need lawmakers to put in place housing policies designed to end our decades long emergency and help preserve older, rent stabilized buildings. 

[FINAL THOUGHTS]

We're going to end this podcast with a quick comment on the current political situation. As everyone knows, Mayor Eric Adams was indicted. He pledges to stay in office and has asked for a speedy trial. This hasn't stopped many people from positioning for a potential special election or ramping up their campaigns for next year's June primary.

I want members of the New York Apartment Association to know we are monitoring all this very closely and making sure we continue to advocate for you.  I know there are a lot of dedicated government employees who care deeply about keeping the city running. So on the agency level, staffers are responsive to concerns we have and are focused on doing their work.

As for the political outlook, we have not yet endorsed any candidates for mayor. We do hope to drive the conversation in the mayor's race around the need for better housing policy, holding all the candidates accountable for their positions on issues that matter to us, like property tax reform, skyrocketing insurance, and a fair rent guidelines board.

What we're about to see in the next few weeks and months, politically speaking, is going to change. completely uncharted waters, believe it or not, this is still the very beginning of what is a 2025 mayoral election, whether it be a June primary or a special election. So NYAA is speaking to potential candidates and seeing where their housing policies stand.

But the reality is we can really only make a determination on what the path is going forward as this shapes out, right? So that will be whether or not Mayor Adams decides to resign, whether or not he decides to stick it out and let us go into a June primary. I do anticipate we're going to have even more candidates.

I do anticipate there will be more surprises, if you will, as the weeks progress, but be confident that NYAA is making sure that driving these campaigns at its core is the number one issue in New York City and that's housing policy. That is built around decreasing the cost of operating multifamily rent stabilized housing here in New York City. 

[OUTRO]

And that's it for this week's episode. Stay tuned every week where we'll be updating you on some of the main issues in the City Council, the State Legislature, our political takes, and so on. Be sure to follow us on all our social media handles, at HousingNY. That's for Instagram, for Facebook. X. We're producing tons of content, videos, uh, formulating conversations.

The Housing New York podcast is a proud product of the New York Apartment Association. We appreciate your feedback and you can leave us a comment on Substack or wherever you're listening to this podcast.  You've been listening to Housing in New York with Kenny Burgos and I will see you all next week.