485-x is the replacement for 421-a

After the 421-a program expired in June 2022, there has been a long gap during which no plan has emerged to replace it, despite Governor Kathy Hochul’s attempts with substitutions such as 485-w. But under the new budget, 485-x is the newest ten-year tax incentive to create housing in New York City with affordable housing and homeownership opportunities. The new program extends the completion deadline for projects from the expired 421-a through 2031, so those who might miss the 2026 cut-off have time for completion. There will be tax benefits for housing construction where smaller buildings will need to have 20% of the units listed with below market rents for people making no more than the area median income (AMI), which is limited at 80%. Larger buildings will need to set aside 25%. 

There is also a minimum construction wage requirement ($35/hour); however, the minimum is higher for new builds under 96th Street in Manhattan and on the waterfront in Brooklyn or Queens, the areas that will most likely generate higher rents ($72.45/hour or 65% current rate, whichever is less).

Hochul is hopeful for the new plan’s success, as 421-a produced an estimated “two-thirds of all newly constructed multifamily housing in the City in the last decade.”  The ultimate goal is for 485-x to help increase the housing supply.

What is Good Cause Eviction? More Tenant Protections

Good cause eviction was enacted immediately (in NYC) after the budget was passed in April 2024 and will be active until 2034. The proposal’s inclusion with the new budget will limit landlords’ potential evictions of tenants. ‘Good Cause’ means that a landlord must have a good reason to evict a tenant, such as illegal behavior, non-payment of rent, or if the building will be demolished or converted (from residential to commercial). States such as California have enacted good cause rules, and Connecticut may soon follow suit and pass legislation to give extra tenant protection. 

There are some exemptions to the Good Cause legislation, such as units with a monthly rent that is greater than 245% of the fair market rent, above (above $5,846 for a studio; $6,005 for a one bedroom; $6,742 for a two-bedroom; and $8,413 for a three-bedroom). This is far above the current average rent in NYC. Other exemptions include small buildings with ten units or less, units already subject to rent regulation, and condos or coops, among a few exceptions.

Protections to help tenants avoid price gouging were also implemented, limiting annual rent increases to no more than 10% or 5% plus the Consumer Price Index (whatever is lower). Additionally, squatters, another controversial topic that has frequently been making the news, are reinforced as not being tenants and, therefore, not having the same rights and protections.

What Else Was Passed With The Housing Proposals Of The 2025 Budget?

Notably, the new budget looks to tackle the the lack of rental inventory on the market and bring back vacant units that are off the market due to being inhabitable or outdated. These are situations where the landlord may have to spend more than they would make in rent to renovate the apartment due to rent control or stabilization. Owners will be able to recoup a portion of the renovation costs over a 15-year period, and there will be $40 million set aside to help bring apartments out of NYC back on the market to contribute to the supply.

The budget also includes a pilot program to legalize basement and cellar apartments in certain areas of the city. Illegal basement apartments have received negative press in recent years due to fatalities from extreme weather that led to perilous flooding. 

In terms of housing discrimination, the Division of Human Rights will strengthen enforcement of Section 8 Housing Choice Voucher discrimination by housing providers or real estate professionals. It will also prohibit insurance companies from refusing to cover affordable housing. 

Stronger enforcement and preventative measures to protect homeowners against deed theft by predatory investors to acquire interests in inherited properties and pressure homeowners to sell their homes. A Transfer on Death Deed has been introduced so homeownership will be protected in the event there is no formal will at the time of an owner’s passing.

Over $600 million in capital funding is allocated to support various housing-related initiatives across New York State, including significant investments in public housing authorities and initiatives like the New York Housing for the Future program, which aims to promote cooperative rental and homeownership in fully affordable housing projects​.

What Is The Community’s Response To The Housing Proposals Such As Good Cause Eviction and 485-x?

While Albany is heralding the housing provisions as a victory, not all feel the same.

Democratic Socialist Association (DSA) claims the bill missed the mark by a lot when it comes to Good Cause Eviction.  

“Governor Hochul’s version is “Good Cause Eviction” in name only—with major carve-outs to make it more palatable to the Real Estate Board of New York (REBNY) and greedy landlords, leaving at least three million tenants unprotected,” said the DSA.

REBNY President Jim Whelan also expressed his reservations about 485-x’s success, stating in a statement that the program will “produce less housing than its predecessor.” He also felt that landlords’ stabilized rent increases would “fail to reverse the declining quality of that housing stock.” 

“We are confident that this package falls far short of addressing the city’s housing needs and must be reassessed in the coming years to put the rental housing market on a solid footing.”

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On Dec.19, Governor Kathy Hochul announced construction on a huge affordable housing development in East New York.

The first phase of the $1.2 billion housing project, Alafia, will include close to 600 affordable apartments, 7,000 square feet of retail space, and an outpatient medical clinic. 

In total, the mixed-use development will include 2,400 apartments across 11 residential buildings, a daycare, a trade school, and a grocery store. The 27-acre development is being built on the former Brooklyn Developmental Center property, which would otherwise go unused.

In a statement to the public, Hochul expressed her enthusiasm for the large-scale development, which forms a part of a greater statewide initiative to address housing and health disparities in Brooklyn. 

“This truly transformative investment will put us on the path toward mending the societal cracks in the system, to ensure all New Yorkers have a chance to prosper,” said Hochul.

The Push to Become ‘All-Affordable’ & What that Actually Means

The plan for Alafia originally proposed rentals for New York residents making up to 120% of the region’s median income, or a household income of $160,000. 

But, after fierce negotiations with Councilmember Charles Barron’s office, the developer brought income limits down to a maximum of 80%, meaning that only households making up to $106,000 would qualify for residence.

According to data released by the Furman Center, around 61% of the area’s household incomes would qualify for housing at Alafia. No market rate apartments are included in the project, making it ‘all-affordable.’

The Power of the Council

Alafia developers certainly had their work cut out for them with Councilmember Barron to get through. As a former Black Panther, avowed socialist, and frequent opponent of rezonings, it was clear he wasn’t going to let the project pass without substantial benefits to the community. 

Barron reminded council members of their leverage in a statement to The City, “I keep telling them, ‘Go for 100% affordability, affordable to the income level of the income band in your community. We have all these projects that people say, ‘Oh, I got 30% affordable or 25%.’ That means you have 70% of the market. In this one here [Alafia], there’s no market rate.”

The power of the council lies in New York City’s long standing, yet controversial practice of member deference. This is when the majority of the Council follows the lead of the member representing the district in which a given project is being built. 

If a district’s councilmember doesn’t approve of a particular rezoning, it’s highly unlikely the other council members will vote in favor of it. “The City Council has the power,” says Barron, “No matter what the mayor wants to do…the mayor can’t do no rezoning.” 

Long-Term Impact of the Alafia Redevelopment

As part of the state’s Vital Brooklyn Initiative, Alafia’s redevelopment has set high expectations for local leadership and residents of the community. The initiative focuses on Central Brooklyn, one of New York’s most vulnerable areas. 

Vital Brooklyn intends to address social, economic, and health inequalities through a holistic approach. The initiative integrates eight areas of development—five of which Alafia is targeting; affordable housing, open space and recreation, community-based healthcare, healthy food, and education. When finished, the development is set to house 2,400 affordable homes, an urban farm, an outpatient medical facility, a grocery store and a trade school.

One Brooklyn Health will be in charge of the outpatient medical facility serving both residents of the property as well as those in the surrounding neighborhood. 

CEO of RiseBoro Community Partnership, Scott Short, told the Brooklyn Paper that Alafia “is a once-in-a-generation opportunity to invest in an underserved community on a scale that’s pretty unprecedented in New York City community development work. This development really understands that health and housing outcomes are inextricably linked…”

Alafia’s First Residents

Given the size of the Alafia project, it won’t be completed for another 10 years. However, its first residents will be able to move in two years from now, after the first phase is complete. 

Phase 1 of Alafia costs $373 Million and will create 576 affordable homes across two buildings. The first is a six-story building with 124 apartments and the second is a 15-story building with 452 apartments. 

The larger structure will house a 15,000-square-foot medical clinic and 7,000 square feet of retail space. Both buildings will include geothermal heat pump systems and rooftop solar panels. A total of 136 units will be dedicated to people with mental health conditions and developmental disabilities. 

Other Housing Initiatives in NYC

While Alafia is currently the largest of its kind in New York’s history, Governor Hochul made it clear in her statement that there’s still a lot of work to be done in regards to the housing crisis.

The Governor mentioned an “ambitious goal” to introduce more than “800,000 new [affordable housing] units over the next decade,” a massive undertaking that would require collaboration from Mayor Adams, the legislature, and city council.

Hochul has already introduced a $25 billion comprehensive housing plan in the FY 2023 State Budget. The project is intended to create and/or preserve 100,000 affordable units across the state over the next five years. 

10,000 of those units will include support services for vulnerable populations and an additional 50,000 homes will be serviced for electricity. 

Logan Fountain Development

Just a few days before her appearance on Dec. 19 at Alafia’s inauguration, Governor Hochul and Mayor Eric Adams announced the construction for Logan Fountain, another mixed-use development smaller in size that will transform a defunct gas station into transitional housing for homeless families, 174 affordable units, and new retail space. 

Located on 265 Logan Street, the 13-story development will include approximately 7,677 square feet of ground-floor retail space as well as a variety of amenities to its residents. 

On the affordable housing side amenities will include multiple terraces with a garden area, a landscaped courtyard, and a children’s play area. On the transitional housing side families will have access to both in and outdoor childcare space, bicycle storage, and a laundry room. 

Vital Brookdale Development

In November, Governor Hochul attended the ribbon-cutting of yet another affordable housing development, Vital Brookdale. The 160-unit property was the first of ten projects brought into fruition through the Vital Brooklyn Initiative mentioned earlier in this article.

The majority of the 124 affordable units at Brookdale will be reserved for households earning at or below 60% area median income. A portion is set aside for residents at 80% AMI. 

The remaining 36 units are reserved for individuals with intellectual and developmental disabilities and youth aging out of foster care. Apartments range from studios to three-bedrooms

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Amenities at 2850 Webster Avenue

The building has a number of benefits for residents. Building and unit amenities include:

• On-site laundry facility 
• 24-hour superintendent 
• Part-time security on-site
• Social services 
• Accessible entrance
• Elevator
• Smoke-free
• Reserved units for select disabilities 
• Access to D, B, 4 trains and 26, 34, 41, 1 buses

More on the Webster Avenue Units 

Webster Avenue units are exclusive to applicants who meet age requirements (62 years or older) and must qualify for section 8. There are only studio and one-bedroom units available at this time – a total of 105 studio units and 25 one-bedroom units. 

A set number of units are reserved for those with select disabilities. 5% are reserved for those with mobility impairments, while 2% of units are reserved for those with vision and hearing impairments. 

Webster Avenue Units Eligibility 

Units are available based on a number of factors, including AMI and income, plus household size.

50% AMI – Studios 

• 1 Person – household income $0 – $46,700
• 2 Person – household income $0 – $53,400

50% AMI – 1 Bedroom 

• 1 Person – household income $0 – $46,700
• 2 Person – household income $0 – $53,400
• 3 Person – household income $0 – $60,050

About the Area 

The Bronx offers a unique blend of culture and history, making it a highly desirable destination for New Yorkers. This location of Webster Avenue is conveniently located near everything you’ll need. Within walking distance are parks, schools, the New York Botanical Garden, Cherry Valley Marketplace, Fordham University, and so much more. Nearby stations include Fordham and Norwood-205 Street. 

How to Apply for NYC Housing Lottery

Before applying, be sure that you meet the guidelines outlined by the New York Housing Connect, including age and section 8 restrictions. Applicants may submit their information online or request an application to be delivered via mail. 

Those opting for mail must send a self-addressed envelope with their request to the Fordham Bedford Housing Corporation. There are no deposit or application fees. 

Only submit one application per lottery and no duplicate application, including a virtual and a paper application simultaneously. Doing so may risk disqualification. The Webster Avenue Senior Residences lottery runs until January 3, 2023. 

For information on the Webster Apartments, visit here. You can read more about how to apply for an affordable housing lottery or other buildings available on Housing Connect on CitySignal.

What to Expect After Submitting an Application 

After submitting your lottery application, your information will be reviewed once the lottery has closed. If your application shows you are eligible, you will be contacted to set up a screening interview. During this interview, you can expect to verify the information supplied on your application to ensure eligibility, including household size and income. 

The post 2850 Webster Avenue Senior Apartments Housing Lottery Currently Open appeared first on CitySignal.

Amenities at 269 Wallabout Street

Inside units and the building, there are a host of amenities. Top to bottom, this is what the 269 Wallabout has to offer its residents.

Building amenities include:

• Garages
• Bike storage lockers
• Elevator
• On-site laundry room
• Security cameras
• Convenient location
• Accessible entrance
• Smoke-free
• Easy access to M, J, and G

Unit Amenities include:

• Dishwashers
• Intercoms
• Energy-efficient appliances
• Patios and balconies
• High-end and energy-efficient appliances, countertops, and finishes

More on the Wallabout Units

Unit eligibility is limited on a layout basis. For example, a one-bedroom requires an AMI of 40%, which translates to eligibility as $29,760 for one person household, $29,760 for a two-person household, and $29,760 for a three-person household. This ranges all the way up to a four-bedroom unit, which has an AMI of 115%. Eligibility for this unit ranges from 4-9 people, and an income qualification ranges between $11,429 and $202,515.

Unit availability is based on what percentage of AMI (area median income) a household has. Availability is as follows:

40% AMI

• One Bedroom – 12 units
• Two Bedroom – 12 units
• Three Bedroom – 7 units
• Four Bedroom – 7 units

60% AMI

• One Bedroom – 9 units
• Two Bedroom – 6 units
• Three Bedroom – 5 units
• Four Bedroom – 2 units

115% AMI

• One Bedroom – 6 units
• Two Bedroom – 4 units
• Three Bedroom – 3 units
• Four Bedroom – 2 units

Some units at the Wallabout Apartments will be set aside for certain disabilities. As of now, 5% of units are set aside for mobility and 2% for vision/hearing impairments. Similarly, preference for a percentage of units goes to 50% community board residents and 5% NYC employees. Occupants will be responsible for paying electricity, including stove use, but rent includes gas, hot water, and heat.

About the Area

East Williamsburg, Brooklyn, is a highly desirable neighborhood. With something for everyone, people of all ages are attracted to the dynamic location. It is conveniently located near Greenpoint, Bed-Stuy, Bushwick, and Ridgewood, allowing for easy access in any direction. If up for walking, residents can enjoy a short walk to Manhattan and Broadway or McCarren and even shorter commutes using the trains. No need to travel – there is plenty to do right in the neighborhood. From restaurants repping every country in the world to the best drinks you’ll ever have, East Williamsburg is a hot destination.

How to Apply

Before applying, be sure that you meet the guidelines outlined by the New York Housing Connect. Applicants may submit their information online or request an application to be delivered via mail. Those opting for mail must send a self-addressed envelope with their request. There are no deposit or application fees. Housing Connect also states that there is one application permitted per lottery and no duplicate applications. Additionally, do not submit both a virtual and a paper application or risk disqualification. The lottery runs until January 9th, 2023.

For information on Wallabout, visit here. You can read more about how to apply for an affordable housing lottery or other buildings available on Housing Connect on CitySignal.

The post The Affordable Housing Lottery is Now Open for 269 Wallabout Street Apartments appeared first on CitySignal.

Mayor Eric Adams made addressing homelessness and affordable housing a central part of his campaign and early mayoral tenure. For Adams, building more supportive and affordable housing units was and continues to be a top priority. In an interview with radio host Brian Lehrer, Adams spoke about why it is so important to provide housing for New Yorkers living on the street.

“When I looked at some of those encampment sites — some of them I visited at one, two, three in the morning — looked inside, talked to people who are homeless, I saw people living in human waste. Drug paraphernalia, no showers, no clean clothing, living like that. That is not dignified, it is not acceptable”, Adams said.

Despite efforts to construct and build comfortable, affordable housing units, many occupants experience poor living conditions once they move in. This year, RentHop found that as rental prices decrease, heating violations increase, meaning those in lower-priced units are more likely to experience extreme cold.

Building affordable and supportive housing is the main solution to ending chronic street homelessness, but new city data indicates 2,585 vacant supportive housing units in NYC. Reportedly, the number of vacant supportive apartments has doubled since July, when about 1,100 supportive housing units sat vacantly.

Filling supportive housing units is just as big a challenge as building them in the first place. In January 2022, 3,400 people lived on the streets and subway stations of NYC. If all of the vacant supportive units were filled, 75% of those individuals would be in housing.

So why are there so many vacant supportive housing units in The Big Apple? Bureaucracy and red tape may be the most significant factor.

Getting access to affordable housing is difficult

The application process to acquire an affordable housing unit can be difficult. There is extensive paperwork, a lengthy approval process, interviews, multiple rounds of mental health evaluations, and a waitlist. Even after families and individuals receive approval for supportive housing, most do not actually receive housing. According to the New York Times, between July 2021 and 2022, 7,400 individuals or families were approved for supportive housing, but only 16% of them received an apartment. Some of the 16% didn’t even move in.

The most startling statistic? Only 16 people in that time frame moved into supportive housing from the street and subway stations. The application process for housing isn’t accessible for the most vulnerable New Yorkers living outside. Mayor Eric Adams previously promised to cut the red tape and make the application process more accessible and streamlined, but it hasn’t worked so far.

Efforts to build more affordable housing units continue to stall, decreasing the inventory for newer, up-to-date units that could comfortably house more potential renters. Combine a lengthy application process with lower-quality apartments where renters complain about heat, condition, and accessibility, and the city enters the current situation where too many units sit vacantly.

“How do you have a vacant apartment, when you need people to be in the apartment, and you have so much paperwork that they can’t get in the apartment?” Adams said. “That is not how I’m going to run this city.”

The post Why 2,600 Supportive Housing Units Sit Vacant in NYC appeared first on CitySignal.

NYC and the greater metro area have a massive housing shortage of affordable and market-rate apartments. NYC alone needs to build 560,000 housing units between 2022 and 2030 to keep up with demand, and in 2019, the NYC metro area had an estimated housing shortage of 340,000 homes.

NYC rents exploded recently due to a lack of adequate housing inventory. For example, the median rental price of apartments in Manhattan and Brooklyn increased around 22% annually between September 2021 and 2022. As of September 2022, apartment vacancy is just north of 2.0% in Manhattan, making the hunt for an apartment extremely competitive.

Because of high rents and low vacancy, Mayor Eric Adams prioritized building more market-rate and affordable housing. The Mayor recently, for the first time, officially endorsed a development in Throggs Neck, a largely suburban, low-density area of The Bronx. The development, which needed a rezoning to achieve approval, plans to add four buildings with 54,000 square feet of retail space below 348 apartments, of which nearly half could be permanently affordable.

Council Member Marjorie Velazquez recently approved an upzoning of an area of the neighborhood to allow for the development, despite strong local opposition. The main opposition to the development is the scale of the project, which would add buildings of up to eight stories to a neighborhood that mostly consists of one and two-story homes and commercial properties. To influence Velazquez’s decision, Mayor Adams officially endorsed the development, the first time he had thrown his mayoral support behind a project.

“This project will bring nearly 350 much needed homes — including affordable housing for seniors and veterans — to a neighborhood that has only added 58 affordable units in the last decade,” Adams said in an official statement. “Just as importantly, it is a sign that our city is once again embracing our identity as a ‘City of Yes.’ The housing crisis impacts all of us, and every community has a responsibility to be part of the solution.”

This isn’t a problem that is specific to NYC. Nationally, some reports estimate that the U.S. has a housing shortage of more than 6 million housing units. As a result, more governors and mayors are taking action to endorse specific development projects and policies that promote more housing production.

For example, California Governor Gavin Newson passed several laws over the last couple of years to address his state’s severe housing crisis. Some of the most ambitious policies include outlawing single-family zoning and forcing each California city to add a specified number of new housing units. As a result, Southern California counties will collectively have to build three times as many housing units over the next decade compared to the previous one. If municipalities don’t change their zoning to accommodate new housing production, they will lose control over their permitting process.

Mayors in California have also endorsed specific development projects and initiatives to help ease their city’s housing shortage and affordability crisis. San Francisco Mayor London Breed recently spoke at the groundbreaking of a 100% affordable and supportive housing project. Meanwhile, Los Angeles Mayor Eric Garcetti spoke in favor of a recently-passed law that will ban parking minimums near California transit stations, allowing for more housing near transit.

With housing becoming increasingly unaffordable nationwide, mayors and governors across the country will likely prioritize supporting controversial new housing developments and policies during their campaign and tenure. In NYC, Mayor Eric Adams wants to transform the city into a “City of Yes,” where every neighborhood does its part to address the housing crisis.

The post Mayor Adams Hopes to Transform NYC into a “City of Yes” appeared first on CitySignal.

Around the time that the Park Savoy Hotel reopened as a shelter, NYC unveiled an ambitious program to convert hotels into affordable housing and supportive units for the homeless. In August 2021, former NY Governor Andrew Cuomo signed a bill that provided funding for hotel conversion into housing.

Mayor Eric Adams supported Cuomo’s initiative and campaigned to convert 25,000 city hotel rooms into permanently affordable apartments and supportive housing. It was a unique opportunity, as hotels were cheap and occupancy was low in the wake of the pandemic.

The city committed $200 million to the effort, but New York hasn’t used the money after a year and hasn’t generated one affordable or supportive unit through the program. Unfortunately, it seems the city lost out on an opportunity to buy hotels when they were cheap and when vacancy rates were high. Hotel occupancy in NYC was 39.1% in September 2020, increased to 64.5% in September 2021, and was 81.2% this past September. Because of this, the program will likely not gain much momentum, if any, in the future.

Why Didn’t the Program Succeed?

Andrew Cuomo initially funded the hotel-to-housing program with $100 million, but the state legislature later added an extra $100 million in available funding to make conversions financially feasible. Unfortunately, the program never used the money, netting no new affordable or supportive housing units. There are a couple of main reasons for this.

First, the strong influence and power of the hotel trade’s council union proved a major roadblock. As part of the bill, hotel owners with union staff had to get approval from the hotel workers union, which meant converting union hotels was very unlikely. The hotel union remains largely opposed to converting hotels to housing since it jeopardizes hotel workers’ jobs.

Second, the hotel-to-housing push didn’t resonate with developers. Hotel conversions in NYC are difficult and expensive, and developers didn’t believe they could break even. As of September, five New York developers submitted proposals to purchase and convert hotels, four of them within NYC. Those five proposals are still in the early stages of approval, and some may never come to fruition.

Right now, the city is leasing space from hotel owners for temporary supportive housing units for the homeless. Purchasing these properties would allow the city to convert the units into affordable and supportive housing permanently. While hotels are more expensive now than they were during the height of the pandemic, Eric Rosenbaum, president and CEO of the homeless services provider Project Renewal, thinks that the city should still consider buying specific distressed hotel properties.

“As expensive as they might look today, the alternative will be increasingly expensive,” he told Politico. “Even if these hotel deals got more expensive, they would still be better deals than ground-up development.”

How Do NYC’s Affordable Housing Efforts Compare to California’s?

Other places have successfully implemented similar programs. In California, state and local governments provided temporary shelter to 48,000 people through “Project Roomkey,” which focused on temporarily leasing hotel rooms for unhoused residents. “Project Homekey,” a similar initiative, was successful. The program focuses on purchasing cheap properties and converting them into permanent supportive and affordable housing.

Between July and December 2020, the city purchased 94 properties, primarily hotels, through “Project Homekey”, creating over 6,000 permanent and interim supportive housing units. The cost was a major selling point — the average cost per unit was only about $148,000. In comparison, California pays an average of nearly $500,000 per unit to develop new affordable housing. By August 2022, the program had successfully created 12,500 permanent and interim supportive housing units for individuals experiencing homelessness.

The post Why NYC’s Pandemic Plans to Convert Hotels Into Affordable Housing Failed appeared first on CitySignal.

Located along Jamaica Bay, Rockaway Beach offers a convenient escape from the suffocating summers in the city. As the only true beach community in NYC, its expansive, high-tide oceanfront has attracted a number of amateur and semi-professional surfers from all parts of New York. 

Surf-related commerce such as the Rockaway Beach Surf Club and the Rockaway Brewing Company has started to pop up, accommodating the rise in surf culture. Despite new business ventures being introduced into the community, the Rockaways is still among the city’s poorest, with an 18% poverty rate. 

In Far Rockaway, the percentage of people living in poverty reaches 25%, and in Edgemere, 34%. Four-star hotels, chic bars, and luxury apartments are starting to line the streets of Beach 69th Street and Rockaway Beach Blvd., further encouraging enchanted newcomers to plant their roots. 

However, as with any simultaneous surge in development and migration, the question remains whether these seemingly positive changes will improve the existing community or eventually push it out. 

Climate Gentrification and Hurricane Sandy Redevelopment

In 2012, Hurricane Sandy quite literally took the East Coast by storm, resulting in the deadliest and most destructive natural disaster in the Atlantic that year. Although located much farther north than the southern states, New York was hit hard, sustaining an estimated $19 billion in damages. 

With the support of FEMA, city and state governments implemented retreat programs that relocated coastal residents living in low-lying areas where they would remain susceptible to rising sea levels. The city spent approximately $350 million on home buy-outs across 800 homes designated as high-level risk and damage.

Demographic information on the Hurricane Sandy buyouts is scarce, but studies suggest that retreat programs often worsen existing inequalities within a given community. 

Rice University published a study in 2020 examining 40,000+ FEMA-funded buyouts. Researchers discovered that over time, federal buyout assistance has become increasingly focused on white neighborhoods. Secondly, residents of color within those communities receiving buyout assistance were much more likely to accept buyouts than their white counterparts. 

As the effects of climate change spread beyond the equator and into the northern parts of the world, it’s worth noting that climate-related studies continue to suggest white residents receive more government assistance in the rebuilding and recovery of natural disasters than non-white residents. 

As a result, racial and ethnic minorities are being pushed out of the places they once, and perhaps for a long-time, called home. Activists in the Rockaways have started to monitor and advocate for the regulation of climate gentrification in their neighborhoods to avoid further displacement. 

Controversy Around the Resilient Edgemere Community Plan

Four years after the initial buyouts, the city announced a new initiative to purchase damaged homes near the coast. The Resilient Edgemere Community Plan was intended to relocate residents to newly built homes on higher ground and convert bought land into marshland as a way to mitigate future storm damage. 

Once this new plan was introduced, many homes in Edgemere as well as other parts of the Rockaways, were no longer eligible for repair assistance from the Build it Back program, NYC’s signature Hurricane Sandy relief program. As a result, many Rockaway residents felt like a buyout was their only option, prompting the sale of their homes and relocation to other parts of the city. 

Community leaders, such as Dr. Edward Williams, president of Regional Ready Rockaway, have expressed their disapproval in regards to the lack of support for residents who would rather remain in their native communities. As director of the disaster preparedness organization, his professional assessment is that the Resilient Edgemere Community Plan is contributing to further gentrification in Far Rockaway. 

“How can you embrace rebuilding, when you have a part of your community that is still impacted economically, physically and socially as a result of Hurricane Sandy?” said Williams to the Guardian. “You have this infusion of development taking place, but who’s going to benefit?”

President of the Edgemere Community Civic Association, Sonia Moise, agrees with Williams in that she believes the community plan’s emphasis on buyouts strengthens historic inequalities between rich and poor in the Rockaways. “I feel that they are trying to push out many of the residents [of Edgemere],” she told the Guardian. 

Edgemere is a majority Black coastal community where 34% of residents live below the poverty line. Just a 20-minute drive west lies Breezy Point, a gated community where the average annual household income is $152,227.

Do recent developments prompt growth or risk gentrification?

Arverne by the Sea

Arverne by the Sea is one of the largest and sturdiest developments in the Rockaways. The 120-acre master-planned, mixed-use community was designed to withstand water, wind, and fire damage. After Hurricane Sandy devastated the Rockaways in 2012, Arverne by the Sea remained largely intact, prompting inlanders to relocate to the beachfront community in droves.  

The large-scale waterfront development includes a Super Stop and Shop, a YMCA, and a variety of restaurants and retail stores. Its commercial entities accommodate surf culture and support those looking to escape the hustle and bustle of Manhattan. 

Although many have found ease and convenience in the Rockaways, the migration of surfers into the beachtown has placed a strain on the community’s long-standing local businesses. 

When asked about the retail developments at Arverne by the Sea, Far Rockaway resident Walther Guerrier tells Tia Tijhani in a Medium Article, “It has introduced these ‘trendy’ hipster-type stores that take away from the preexisting deli and bodega types in the community.” 

Arverne residents enjoy all the amenities a beachfront community provides, without having to sacrifice proximity to Manhattan. Newcomers get the best of both worlds. 

The Tides

Within Arverne by the Sea, you’ll find the Tides, an eight-building luxury apartment spread located above cafes and shops. Its owners advertise the new residential development as “spacious, modern, amenity-rich apartments offer[ing] beachfront living with all the convenience of the city.” Apartments range from $3,000 for a 940 sq. ft. 2-bed, 2-bath, to $3,750 for a 1,186 sq. ft. 3-bed, 2 bath.

According to Zumper, the average rent for a 2-bedroom apartment in Rockaway Beach is $2,425. Objectively speaking, rents at the Tides aren’t that much more expensive than the citywide average. 

However, the number of developments and the rate at which they have been sprouting up could be contributing to the high-rental rate of $2,425. Just two years ago at the beginning of 2020, the average rent for a 2-bed in the Rockaways was $1850. 

Rockaway Hotel and Spa

Having opened just two years ago in September of 2020, the Rockaway Hotel and Spa host 53 guest rooms and 8-long stay residences. Although it’s not a huge development, it’s certainly a popular one, allowing for the 4-star hotel to charge its guests upwards of $300/night. 

According to LinkedIn, the luxury hotel and spa employs somewhere between 51 and 200 employees, but there’s no way to tell if these employees are originally from the Rockaway community or if they’re recruited from other cities. 

The NYC Ferry

The NYC Ferry released the Rockaway Rocket, a new summer pilot for reserved, direct service between Wall Street/Pier 11 and Rockaway on weekends and select holidays. City dwellers who prefer an ample beachfront with fewer people than Coney Island can now head to the Rockaways for just $8.00 a ticket. 

Facilitating the entry of newcomers to the Rockaways could certainly bring new business opportunities and strengthen the tourism sector, but with the Rockaways’ charming appeal, more and more tourists are interested in permanently relocating. Migration to new neighborhoods can be a benefit, but in the case of ferry routes expanding to the Bronx, concerns over gentrification also arose.

How this influx of new residents will shape the future of the Rockaways is up for discussion, given that some parts of the Rockaways, such as Arverne and Rockaway Park, are witnessing notable development, while others, such as Edgemere and Far Rockaway, are experiencing significant erosion. 

Programs such as the one implemented by Citizens Bank in partnership with Rockaway Development & Revitalization Corporation make sure Rockaway residents aren’t left behind in the midst of ambitious development. Still, it’s hard to determine whether targeted workforce development programs (as deliberate and clever as they may be) are enough to compensate for the negative impacts of gentrification—both man-made and climate-related. 

Decentralization of New York City and the Future of Rockaway Real Estate 

As the Rockaways become an increasingly popular place of residence for surfers, retirees, and city-dwellers looking for a laid-back vibe, community leaders must cautiously mitigate the effects of gentrification. Real estate in the Rockaways has nearly doubled in the last decade.

With Hurricane Sandy having left many homes in disrepair and its owners forced to agree to government buyouts, long-time Rockaway residents are being placed between a rock and a hard place.

The recent, yet widely accepted work-from-home employment model will likely contribute to further interest in living in the Rockaways. New York City hasn’t lost its charm, but it has undoubtedly experienced significant decentralization, encouraging local residents to move further east and experiment with surfing and coastal living. 

The post Are the Rockaways Experiencing Surfer’s Gentrification or Restorative Development? appeared first on CitySignal.

The project has been in the works for nine years and took a long time to garner Cabán support. Many local residents and activists are not in favor of the project over the size and design of the project. The towers will be between 23 and 34 stories, which is much taller than the typical building in a low-rise neighborhood like Astoria. Others were concerned that building luxury, market-rate towers in the neighborhood would affect affordability, and potentially push long-time renters out of the area. 

Despite these concerns, Cabán officially announced her support for the project during an event outside the property on Tuesday, September 13. She mentioned that she could throw her support behind the project because the developer promised to include more affordable units as a condition of approval. The developer pledged to include 268 units that will rent for below 50 percent of the area median income (AMI). 100 of those units will be set at 30 percent of AMI, which for a family of four would be around $40,000 yearly income. 

Halletts North also has support from the Queen’s borough president Donovan Richards, although the support from Richards and Cabán seems to be lukewarm at best. Ultimately, Cabán’s decision to support the project is a result of disliking the alternatives, as opposed to supporting the project itself. 

“The best we can hope for without rezoning is a “last mile” facility where some massive corporation like Amazon would pay our neighbors garbage wages for nonstop, back-breaking work,” Cabán wrote in a Twitter thread. “A No vote would have been a vote for that. I cannot and will not in good conscience vote for that.”

However, Cabán also noted the positive effects of the development, such as a public esplanade and increased public safety. Regarding the current land usage, she wrote on Twitter that Halletts North currently “sends the message to residents of Astoria Houses the next block over that they are unworthy of a safe, comfortable neighborhood” as the space is filled with vacant lots and prevents those residents from easily accessing the waterfront.

She also mentioned that the increase in residential units “holds down the housing supply amid a brutal housing shortage.” 

First, let’s talk about today’s vote on the Halletts North development.

At present, Halletts North is a sacrifice zone of shuttered industry and vacant lots. It contributes nothing to the community. It prohibits our neighbors from accessing the waterfront.

— Council Member Tiffany Cabán (D22) (@CabanD22) September 13, 2022

 With skyrocketing rents and cratering vacancy rates, affordability in the city is at a low point. As Cabán noted, NYC does have a brutal housing shortage, and it could get even worse if government officials and private developers don’t work together to address the issue. A January 2022 report found that NYC would have to build 560,000 housing units by 2030 to keep up with future population and employment growth. It also concluded that the city is not on track to meet that threshold. 

Developments like Hallet North can help NYC close its housing shortage. However, large-scale developments also spark a lot of debate and public controversy because of concerns over affordability and neighborhood character. Ultimately, developers in NYC will likely have to provide concessions like increased numbers of affordable housing units or extra public amenities and investment if they want to garner support and approval for their projects. 

The post Council Member Cabán Approves 1,400 Unit Development in Queens appeared first on CitySignal.

About The Lirio

Named for the oldest living thing in New York City, the liriodendron tree, the Lirio will feature 112 affordable homes, 59 of which offer support services for long-term survivors of HIV/AIDS or those with mental illness or substance abuse disorder. It will also include 44 permanently affordable homes for families and eight for formerly homeless people. The affordable homes are intended for families with household incomes from 40-80 percent of the area median income (AMI).  Designed by the award-winning architecture firm, CetraRuddy, the Lirio is aimed at Passive House standards for energy efficiency.

Developed by the real estate firm Hudson Companies, Inc. and Housing Works, a non-profit organization that fights AIDS and homelessness, the project will be located at 806 Ninth Avenue at 54th Street, at the site of a current MTA parking lot.

Maria Torres-Springer, Deputy Mayor for Economic and Workforce Development stated that “The Lirio is a critical project to help address affordable housing needs in Hell’s Kitchen and support long-term survivors of HIV/AIDS—and a great example of how we make New York a ‘City of Yes’ for everyone.” The housing aims to meet the needs of the community by providing much-needed services.

Amenities at The Lirio

In addition to important services for those who need them, The Lirio will have approximately 30,000 square feet of office space for the MTA and around 9,000 square feet of retail space. It will also include sustainable features such as solar power, green roofs, high-performance building envelope, and VRF HVAC.

Pushback from the Surrounding Community

Those in the support of the project, such as HIV/AIDS advocates and survivors, say that such a facility is needed in the area and would greatly benefit those in the community who have suffered. Supportive housing like this is necessary to help individuals with HIV/AIDS to maintain their medical needs.

But not everyone is in agreement that this is a good move for the area. Some residents are pushing back against it and say the units are too affordable and want to maintain the neighborhood’s character. Members of Community Board 4 voted against the project in March, claiming it should be reserved for middle-income families. This is an unusual move for Community Board 4, which normally votes to support the construction of new housing units.

Those against the project have been vocal for the need for more middle-class housing. Real estate rents have gone up more than 30 percent from the year prior, according to data provided by RentHop. Currently, the median 1 bedroom rent in Hell’s Kitchen sits at about $4,295.

Richard Marans, a founder of the West 47/48th Block Association, stated during a March 2 meeting that “We don’t want a neighborhood that is all poor and all rich.” With rising rents, it has been difficult for middle-class families to be able to afford to live in this neighborhood.

The community board wrote a letter to city officials giving several options for approval, including changing the building’s façade to match those along Ninth Avenue as well as increasing the affordability bracket so the building has up to 25 percent of the units at 80 percent of the AMI and the rest between 80 and 165 percent.

Using information from the city for other affordable housing residences, one-bedroom units would then rent for $2,002 at 80 percent of the AMI. At 165 percent of the AMI, one-bedrooms could go for $4,129 per month.

In Hell’s Kitchen, the median household income is $90,422, according to data from the census. That means the maximum rent a household should pay is $2,250, about half of the 165 percent AMI percentage that some of the Community Board 4 members want.

Project Supporters Push Back

While these concerns are not unfounded, and the area does also need more middle-income housing, supporters feel that it should not be at the cost of providing supportive housing for those with HIV/AIDS. Residents can support the project and still campaign for more affordable housing for the middle class, supporters argue, particularly because this neighborhood could benefit greatly from this type of housing. Zoning

Proponents also feel that supportive housing would be a big improvement over the current parking lot. They claim that there is space available for mixed-income housing down the road in the area which should not affect the approval of The Lirio.

Next Steps for The Lirio

Before being allowed to break ground on the Lirio, its developers must win a rezoning through the Uniform Land Use Review Procedure, which involves the community board, the Manhattan Borough President, and the City Planning Commission. It also requires the approval of the local city council member for Hell’s Kitchen, Erik Bottcher.

Whether or not the Lirio receives approval to move forward, the issue brings to light the need for lower-income/supportive housing as well as middle-income housing in many New York City neighborhoods. While this is a goal of the current NYC mayor and administration, rising rents have affected New Yorkers faster than enough affordable housing can be created.

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