The Real Estate Board of New York to The Committee on Land Use of the New York City Council Regarding Intro. No. 958

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REBNY thanks the committee for the opportunity to provide testimony on Intro 958, which relates to the creation of affordable homeownership opportunities through new construction and rental-to-ownership conversions.

Intro 958 would require the Department of Housing Preservation and Development (HPD) to enter into agreements to create homeownership opportunity units that represent at least 6% of all affordable units receiving financial assistance from the city. At least 50% of these units would need to be new construction.

REBNY supports the City Council’s goal to address the lack of affordable homeownership opportunities in New York City. Ownership remains an important vehicle for economic mobility, housing stability, and strong communities. According to New York City Comptroller Brad Lander’s 2024 report on the homeowner housing market, New York City’s homeownership rate is 30%, which is well below the nationwide average of 66%. Additionally, the availability of homes for purchase in New York City has declined over the past three years, reaching a seven-year low. At the same time, the ability to pursue new construction is constrained due to current interest rates, high inflation, and the City’s overly restrictive zoning policies. Therefore, we must adopt a comprehensive approach that fosters collaboration amongst the city, state, and the private sector. While Intro 958 may help boost homeownership production, it cannot be relied on as the only tool to do so.

As the City Council explores ways to accomplish this goal, we want to draw attention to a bill in the State Legislature that proposes amendments to the Martin Act (A6921-A/S3566-A). A6921-A/S3566-A would allow mixed-income buildings with existing regulatory agreements that are due to expire to convert to homeownership while maintaining the affordable rental units as now permanently affordable rental units. These units would become permanently affordable under the stewardship of a non-profit partner, without the need to provide any subsidy to the existing building owner or condominium sponsor, leveraging the private sector to provide a public good without any direct expenditure from the City or State. Absent this legislation, these affordable units will cease to be regulated or income-restricted upon turnover following the expiration of the building’s 421-a tax abatement and will become market-rate rentals.

Therefore, as part of today’s considerations, we urge the City Council to pass a resolution calling for the New York State Legislature to pass the amendments to the Martin Act, and for the Governor to sign them into law.

Thank you for your consideration of these points.