T
he past year was marked by significant developments in housing policy, and now we're seeing those issues play out. Let's take a look at some of the major real estate-related battles that unfolded in 2024.
As we head into 2025, several key questions will be on everyone's mind. Who will become the next mayor of the city? How will a Trump administration impact federal funding for housing initiatives? These developments are closely tied to policies approved last year, including the new property tax break 485x and the City Council's approval of the City of Yes for Housing Opportunity.
The Real Estate Board of New York has predicted that the wage and affordability requirements in the 485x program will lead to less housing construction than its predecessor, 421a. This is because larger projects are subject to stricter rules, which may encourage developers to keep their projects under 100 units to avoid these regulations.
Another major issue on the horizon is the legal battle over the Fairness in Apartment Rental Expenses (FARE) Act. REBNY has filed a lawsuit seeking to block the law, which aims to make it easier for tenants to challenge excessive rent increases.
The City of Yes initiative and state budget have made it easier to convert office buildings into housing, but it remains to be seen how many building owners will take advantage of these changes.
At the state level, there are ongoing efforts to create a state-funded voucher program and establish a public developer (the Social Housing Authority) to renovate properties or buy up land for permanently affordable housing. Landlord groups have also been pushing for a measure that would allow owners to increase rents in stabilized apartments under certain conditions.
We're also seeing new developments on the horizon, including a proposal from the New York Apartment Association to allow some owners of vacant rent-stabilized units to rent their units to Section 8 voucher holders and collect the full voucher amount. Tenant groups have criticized this plan.
Looking ahead, we'll be keeping an eye on several real estate-related issues, including the impact of federal funding changes on housing construction and the effectiveness of new policies aimed at increasing affordable housing. What are you watching closely?
