Board Sets New Guidelines for Rent Stabilized Apartments

The Rent Guidelines Board approved rent increases for New York City’s 1 million rent stabilized apartments of 2 percent for one year leases and 4 percent for two-year leases. Although tenants wanted a rent freeze because of the economic downturn, landlords argued that the increase won’t cover the increased real estate taxes and water bills they are forced to pay. Small property owners will be especially hurt by the modest rent increase.

A recent report found that during the economic downturn, the median rent in New York City increased to $1,100 a month in 2011 from $950 a month in 2008. The percentage of New Yorkers spending more than half of their income on rent rose to 29 percent in 2011 from 26 percent in 2008. The president of the Rent Stabilization Association put the situation in perspective, however, saying landlords need cash to cover operations and repairs, otherwise rental units will deteriorate.

The National Association of Realtors announced that total existing home sales, which are completed transactions that include single-family homes, townhomes, condominiums, and co-ops, declined 1.5 percent to a seasonally adjusted annual rate of 4.55 million in May from 4.62 million in April, but are 9.6 percent above the 4.15 million-unit pace in May 2011. The slight month-over-month decline was attributed to supply constraints rather than softening demand.

Mayor Michael Bloomberg and other elected officials cut the ribbon to officially open the Via Verde affordable housing development in the South Bronx. The largely City-financed project features 151 rental units and 71 co-op units and innovative and sustainable green design elements. The project was the winning proposal in New York City’s first juried design competition for affordable and sustainable housing, and is the latest development to be completed in the Administration’s efforts to rebuild the blighted South Bronx.

The board of Brooklyn Bridge Park has selected Toll Brothers City Living and Starwood Capital Group to develop a 550,000 square foot complex next to Pier 1 in Brooklyn Bridge Park on Brooklyn’s waterfront. The project will include a 200-room luxury hotel and 159 residential units as well as a restaurant, banquet and meeting space, retail shops, and a spa and fitness center.

Queens Development Group, a joint venture between Sterling Equities, Inc. and Related Companies, has announced development plans for the Willets Point section of Queens. Initially the developers will acquire 23 acres east of Citi Field to begin the build-out of Phase 1 and will create a retail and entertainment attraction to the west of Citi Field. The build-out will include retail, hotel, and commercial uses to complement a residential community of 2,500 housing units, of which 875 units will be affordable. The project will infuse $3 billion of private investment into the local economy and create 7,100 permanent jobs and 12,000 direct construction jobs.