The Real Estate Board of New York to The Committee on Housing and Buildings: Oversight - Social Housing

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The Real Estate Board of New York (REBNY) is the City’s leading real estate trade association representing commercial, residential, and institutional property owners, builders, managers, investors, brokers, salespeople, and other organizations and individuals active in New York City real estate. REBNY thanks the Committee on Housing and Buildings for the opportunity to voice support for an amendment to Local Law 157 of 2016. Thank you to the committee for the opportunity to also provide feedback regarding the package of bills related to social housing (Intros 78, 350, 570, 902, 1034, 1006, and 1007).

Support for Amendment of Local Law 157 of 2016

REBNY supports Int. 1281-2025, sponsored by Council Members Eric Dinowitz, Erik Bottcher, and Robert Holden, which responsibly delays the mandate for natural gas alarm installation until the necessary equipment is both available and affordable.

Local Law 157 of 2016 required the installation of natural gas alarms in dwelling units on May 1 of the year after the department establishes applicable standards and rules for those alarms. This bill would postpone that mandate to take effect one year after the Department of Buildings determines that natural gas alarms are sufficiently available and affordable, but no earlier than January 1, 2027.

REBNY strongly supports this common-sense measure. Supply chain disruptions, acknowledged publicly by the manufacturers of these devices, have caused significant delays in the production and distribution of compliant natural gas alarms. Imposing a mandate before this equipment is readily accessible would place an undue burden on property owners and managers, while failing to achieve the law’s underlying safety goals. This legislation ensures that the requirement can be implemented effectively and equitably, once the necessary infrastructure is in place.

Challenges and Opportunities with Social Housing

As the city continues to face a deepening housing crisis, it is key that policy solutions be inclusive, evidence-based, and grounded in practical experience. We want to express our concerns about elements of the proposed legislation that could inadvertently limit housing production, increase costs, and undermine long-standing public-private partnerships that have delivered thousands of affordable homes to New Yorkers.

Bill-specific feedback is as follows:

Intro 0078-2024: Disposition of Real Property to the City

Subject: A local law to amend the New York City charter, in relation to the disposition of real property of the city.

Sponsors: Council Members Lincoln Restler, Sandy Nurse, Tiffany Cabán, Shekar Krishnan, Pierina Ana Sanchez, Darlene Mealy, Carlina Rivera , Crystal Hudson, Alexa Avilés, Chi A. Ossé, Gale A. Brewer, Jennifer Gutiérrez, Shaun Abreu, Carmen N. De La Rosa, Julie Won, Christopher Marte, Amanda Farías, Shahana K. Hanif, Erik D. Bottcher, Justin L. Brannan, Rita C. Joseph, Nantasha M. Williams, Mercedes Narcisse, Yusef Salaam, Selvena N. Brooks-Powers, Diana I. Ayala, Chris Banks, Keith Powers , Rafael Salamanca, Jr., (in conjunction with the Brooklyn Borough President)

This bill would require that when the city disposes of land for affordable housing, or for any other public use or purpose, it prioritizes not-for-profit developers and community land trusts as a preference category.

REBNY appreciates and supports the use of land banks and community land trusts as stabilization tools, such as the successful use of land banks in Kingston and Albany to deal with swaths of vacant properties that were foreclosed during the last recession with the help of public-private partnerships.

Affordable units are challenging to maintain regardless of ownership, and the rents obtained often do not cover operational costs. While we appreciate that the bill has been amended to not exclude private developers altogether, we continue to recommend that prioritizing public-private partnerships is the best way to leverage the skill sets and mission of each side of that equation to stimulate much needed housing at scale.

Intro 0350-2024: Study on the feasibility of establishing a social housing agency and the repeal of this local law upon the expiration thereof.

Subject: A Local Law in relation to a study on the feasibility of establishing a social housing agency and the repeal of this local law upon the expiration thereof.

Sponsors: Council Members Sandy Nurse, Lincoln Restler, Julie Won, Shahana K. Hanif, Crystal Hudson, Tiffany Cabán, Alexa Avilés, Carlina Rivera

This bill would require the Department of Housing Preservation and Development, in collaboration with the Department of City Planning, the Department of Social Services, and any other appropriate city agency, to conduct a feasibility study on the establishment of an agency that would focus exclusively on the promotion and development of social housing and report on the findings of the study. The report would address several topics, including the governance and funding of the proposed agency, the strategies the agency could use to create new social housing, and legal and practical barriers to the establishment of the agency and to the creation of social housing.

REBNY supports utilizing data-driven policy to solve the most pressing concerns of our city and there is no more pressing concern than solving our housing crisis. While well intentioned, we caution whether this is the best usage of city resources. Given existing staffing shortages at HPD and uncertainty around federal funding that covers the staff lines at HPD and City Planning responsible for this type of planning, it may not be feasible at this time.

Intro 0570-2024: Establishment of NYC Land Bank

Subject: A local law to amend the administrative code of the city of New York in relation to creating a land bank.

Sponsors: Council Members Gale Brewer, Shahana K. Hanif, Pierina Ana Sanchez, Sandy Nurse, Julie Won, Erik D. Bottcher, Lincoln Restler, Crystal Hudson, Tiffany Cabán, Nantasha M. Williams, Alexa Avilés, Shekar Krishnan, Carlina Rivera , Kamillah Hanks, Diana I. Ayala, Amanda Farías, Chris Banks, Lynn C. Schulman, Chi A. Ossé, Althea V. Stevens, Rita C. Joseph, Selvena N. Brooks-Powers, Jennifer Gutiérrez, Keith Powers

This bill would establish a land bank for New York City, which would be tasked with acquiring, warehousing and transferring real property to develop, rehabilitate and preserve affordable housing. The bill would require that when conveying, leasing as lessor or otherwise disposing of real property for a use that would result in the creation or preservation of affordable housing units, the land corporation shall prioritize disposition to a community land trust, a community housing development organization or a nonprofit organization, and shall prioritize disposition for a proposed use that will maximize the number of affordable housing units at the zoning lot containing the property and the affordability of such units.

As referenced above, land banks can be successful tools for stabilizing neighborhoods and producing housing. However, their success is predicated on available government resources and the establishment of such program should be viewed through today’s lens of fiscal uncertainty stemming from present and anticipated federal changes in funding toward these types of initiatives.

Intro 0902-2024: Community Opportunity to Purchase Act

Subject: A local law to amend the administrative code of the City of New York, in relation to giving qualified entities a first opportunity to purchase and an opportunity to submit an offer to purchase certain residential buildings when offered for sale.

Sponsors: Council Member Carlina Rivera, Sandy Nurse, Kamillah Hanks, Lincoln Restler, Tiffany Cabán, Crystal Hudson, Yusef Salaam, Shaun Abreu, Alexa Avilés, Shekar Krishnan, Chi A. Ossé, Carmen N. De La Rosa, Julie Won, Rita C. Joseph, Nantasha M. Williams, Gale A. Brewer, Pierina Ana Sanchez, Chris Banks, Jennifer Gutiérrez, Amanda Farías, Mercedes Narcisse, Diana I. Ayala, Shahana K. Hanif, Erik D. Bottcher, Selvena N. Brooks-Powers, Keith Powers , Farah N. Louis, Oswald Feliz, Rafael Salamanca, Jr., (by request of the Brooklyn Borough President)

REBNY strongly objects to the framework espoused in this bill. This bill would give qualified entities a first opportunity to purchase and an opportunity to submit an offer to purchase certain residential buildings when offered for sale. The bill would require building owners to notify the Department of Housing Preservation and Development and a list of qualified entities when their buildings will be listed for sale. The entities would have the opportunity to submit the first offer and match any competing offers for the property.

Increasing affordable homeownership opportunities for New Yorkers is an important policy objective. Unfortunately, this bill does not accomplish that goal and instead prioritizes one type of business model over another in an overreach into private property transactions, raising a number of legal concerns along the way. First, this bill raises the very same legal concerns that existed in 2005 when the City Council passed the Tenant Empowerment Act. That bill, like this one, was deemed preempted under State and Federal Law for being overly broad and for failing to take into consideration certain statutory rights of first refusal.

Additionally, there is no consideration whatsoever on the interplay with the Martin Act, since these transactions could be considered a syndication if the non-profit takes a penny from the tenants or any other third party for that matter to effectuate the sale, thereby subjecting these parties to enforcement actions by the New York Attorney General, who has recently taken an aggressive stance against syndicates, including those involving affordable housing.

The bill also raises serious scope and implementation concerns. The program is incredibly far reaching in subject properties, with purchase timelines that may be seen as too long and unworkable to interfere with reasonable backed expectations for the transfers of property. In addition to interfering with the private marketplace, they also do not help non for profits, as the timelines are not consistent with the timing to negotiate necessary tax exemptions and financing to make the purchase work with subsidy.

There’s no regulatory regime to handle contract disputes, and it does not carve out buildings in foreclosure or mortgage default that may be operating on court ordered timelines different to the ones laid out in this bill.

The number of eligible properties coupled with no funding mechanism would leave HPD resource starved to implement, then forces an overzealous and punitive penalty structure on private property owners who are unable to comply with a system that cannot be set up.

Lastly, the list of qualified owners are just nonprofits. This doesn’t help put buildings into the hands of tenants. It just assumes a nonprofit is a better landlord. The exclusion of any private entity and any private-public entity from the qualified entities list is both pernicious and based on false valuation of good versus bad for business practices.

Intro 1006-2024: Defining community land trusts for the provision of services in addition to housing that benefit the local community.

Subject: A Local Law to amend the administrative code of the city of New York, in relation to defining community land trusts for the provision of services in addition to housing that benefit the local community.

Sponsors: Council Members Sandy Nurse, Tiffany Cabán, Jennifer Gutiérrez, Nantasha M. Williams, Carlina Rivera

This bill would define Community Land Trust (CLT) as a non-profit, community-run organization that can acquire and develop land with the goal of promoting permanent affordable housing and stabilizing housing markets. They would be established in the City to be entities that cover more uses beneficial to the local community beyond housing, such as manufacturing and commercial uses, as well as the development of open space and community gardening.

Community land trusts are typically singularly minded when they are established. We welcome a discussion to understand if the intent of the bill is to allow multiple types of CLTs to be created, or to allow a single CLT to cover multiple uses and purposes in its portfolio. If the latter, we express concern with the appropriateness of such a model, especially since successful CLTs require government funding, and whether that is the appropriate model to manage a multitude of land uses with different regulatory requirements, concerns, and public policy objectives.

Intro 1007-2024: Community land trust regulatory agreements for the provision of services in addition to housing that benefit the local community.

Subject: A Local Law to amend the administrative code of the city of New York, in relation to community land trust regulatory agreements for the provision of services in addition to housing that benefit the local community.

Sponsors: Council Members Sandy Nurse, Lincoln Restler, Tiffany Cabán, Nantasha M. Williams, Carlina Rivera

This bill would permit City agencies to enter into regulatory agreements with Community Land Trusts (CLT) that cover more uses beneficial to the local community beyond housing, such as manufacturing and commercial uses, the development of open space and community gardening. REBNY appreciates the intent behind supporting Community Land Trusts (CLTs) as a tool to promote affordable housing and community development. However, we are concerned that this bill grants overly broad authority to City agencies to enter into regulatory agreements with CLTs for a wide range of non-housing uses—including manufacturing, commercial activities, and open space—without sufficient oversight or accountability. Expanding CLTs' scope in this manner risks diverting public resources away from urgently needed housing production and raises questions about the appropriate role of non-governmental entities in managing and controlling long-term land use decisions. Any such agreements must be carefully evaluated to ensure transparency, alignment with citywide planning goals, and a clear focus on maximizing the production of deeply affordable housing.

Intro 1034-2024: Notices in connection with rent increase exemptions, real property tax abatements, and exemptions from payments in lieu of taxes for certain properties occupied by senior citizens or persons with disabilities.

Subject: A Local Law to amend the administrative code of the city of New York, in relation to notices in connection with rent increase exemptions, real property tax abatements, and exemptions from payments in lieu of taxes for certain properties occupied by senior citizens or persons with disabilities

Sponsors: Julie Menin, James F. Gennaro, Inna Vernikov

This bill would require that relevant agencies provide: (1) notices to tenants in connection with eligibility for senior citizen and disability rent increase exemptions (SCRIE and DRIE); (2) notices to landlords in connection with eligibility for real property tax abatements and eligibility for exemptions from payments in lieu of taxes for certain properties occupied by senior citizens or persons with disabilities; and (3) notices to designated third parties about exemption renewal and transfers. REBNY supports this legislation as a key step toward improving awareness and access to financial relief programs for seniors and individuals with disabilities.

Res. 0374-2024: Mandating that any owner intending to sell a multi-unit residential dwelling must first make a fairly appraised offer of sale to the tenants within the residence before making any sale offers to third parties.

Sponsors: Public Advocate Jumanne Williams and Council Members Farah N. Louis, Crystal Hudson, Alexa Avilés, Rita C. Joseph, Nantasha M. Williams, Julie Won, Shaun Abreu, Yusef Salaam, Chi A. Ossé, Lincoln Restler, Diana I. Ayala, Shekar Krishnan, Sandy Nurse, Jennifer Gutiérrez, Shahana K. Hanif, Chris Banks, Pierina Ana Sanchez, Tiffany Cabán, Carlina Rivera

This resolution is in favor of a statewide bill referred to as the Tenant Opportunity to Purchase Act, or TOPA. Like COPA, TOPA would severely undermine the residential building transaction market, putting at risk much needed housing production, limiting tax revenue to the State, and significantly extending the timeline to complete transactions.

Additionally, there is no consideration whatsoever on the interplay with the Martin Act, New York state’s ‘blue sky’ anti-fraud law. Under this law, since these transactions could be considered a syndication if the non-profit takes a penny from the tenants or any other third party to effectuate the sale, it could thereby subject these parties to enforcement actions by the New York Attorney General, who has recently taken an aggressive stance against syndicates, including those involving affordable housing.

REBNY supports increased affordable homeownership opportunities in New York, like the recently adopted Affordable Housing Retention Act sponsored by Habitat for Humanity and approved in this year’s state budget. However, the timeline outlined in TOPA is far too lengthy and limits the pool of potential buyers for private property transactions. The bill exempts non-profits but requires an affirmative application for exemption without regard for how long it would take for an application to be put together. The timelines also appear unrealistic for tenants when attorneys specializing in these types of deals share it typically takes two years of planning with a property owner that volunteers for such arrangement.

Res. 0777-2025: Creating a public benefit corporation for the construction, acquisition, and rehabilitation of permanently affordable housing (A.9088/S.8494).

Sponsors: Council Members Christopher Marte, Crystal Hudson, Shahana K. Hanif, Chi A. Ossé, Pierina Ana Sanchez, Lincoln Restler, Alexa Avilés, Sandy Nurse, Carmen N. De La Rosa, Tiffany Cabán, Jennifer Gutiérrez, Nantasha M. Williams, Chris Banks, Carlina Rivera

REBNY supports a comprehensive, all-hands-on-deck approach to addressing New York City’s housing crisis—one that leverages the strengths of both the private and public sectors. Effectively expanding affordable housing opportunities will require a broad set of tools and strategies that reflect the complexity of the challenges.

However, the success and scalability of government-driven housing programs will ultimately depend on two key factors: adequate and sustained funding, and thoughtful program design that promotes long-term viability. At present, both state and city resources are constrained, and any new initiative must take into account the fiscal realities facing our public agencies. It is critical that we prioritize policies that not only set ambitious goals but are also grounded in the financial and operational capacity necessary to achieve them.

REBNY thanks the Committee on Housing and Buildings for consideration of these points and would welcome the opportunity to work with the City Council to improve the legislation to address these concerns.

CONTACT:

Dev Awasthi

Vice President of Government Affairs

Real Estate Board of New York

dawasthi@rebny.com