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REAL ESTATE

WINTER / SPRING 2023

Those Hefty Broker’s Fees Can Still Be Collected Following State Judge’s Ruling

CITY SETS SECURITY DEPOSIT CHANGES IN MOTION

Signs of life in New York home sales

Those Hefty Broker’s Fees Can Still Be Collected Following State Judge’s Ruling

The Regional Plan Association wants tri-state legislators to phase out single family homes most New Yorkers can’t afford and turn them into apartments.

The RPA believes re-writing the zoning rules for the four million houses in the area would level the playing field to give more people a roof over their head.

“For our region to thrive equitably, state and local policy makers must create diverse, new, affordable housing options,” said Tom Wright, President and CEO, Regional Plan Association.

“Large single-family homes are misaligned with what many people today can afford or need. We can’t just build our way out of the problem. We need to comprehensively rethink our existing housing stock to meet the needs of a new generation.

“We have an opportunity to create a model for smart densification that minimizes the strain on infrastructure, and an obligation to undo the harm which exclusionary zoning has inflicted on communities of color.”

In a new report, entitled Be My Neighbor: Untapped Housing Solutions – ADUs and Conversions, the RPA calls on the governments of New York, New Jersey and Connecticut allow more Accessory Dwelling Units (ADUs), which are basement, garage and attic apartments, and offer financial incentives large single-and two-family houses to include additional units.

Calling the move “one of the best ways to reduce the impact of new housing, as they require minimal additional infrastructure” the RPA says the plan could create 500,000 new homes, including 100,000 in New York City.

According to the RPA, the coronavirus pandemic has exposed overcrowding as a major crisis in the tri-state metropolitan region.

Fundamentally, to self-quarantine, everyone needs a home. New York City alone created 363,000 more jobs than homes over the past two decades, and the region has been creating only one new housing unit for every two new jobs.

Even if job losses from COVID-19 temporarily reverse this trend, the Association believes the pandemic is driving us toward a wave of homelessness and foreclosures that will create an even greater need for affordable housing choices.

“In this economic crisis we are entering, ADUs provide a dual benefit: more affordable homes for those who need them and more income for homeowners who will struggle to pay their mortgage,” said the civic group, which believes its report highlights the connection between land use and racial and economic segregation.

Across the tri-state region, but most noticeably in the suburbs, municipalities have created exclusionary zoning codes where the only residential buildings allowed are large single-family detached houses.

Apartment hunters can continue to be asked to shell out steep broker’s fees, a judge ruled Friday, after state regulators sought to suspend them following sweeping updates to the state’s rent laws in 2019.

In a nine-page ruling, Albany County Judge Shannon Kushner said the passage of the Statewide Housing Security & Tenant Protection Act of 2019 does not allow the Department of State to prohibit brokers from collecting fees from renters. The act dramatically overhauled the state’s prior rent laws that critics said contributed to inequality in the city. Included in one provision of the act was a passage that states brokers acting on a landlord’s behalf can no longer charge certain fees “before or at the beginning of the tenancy.” Kushner ruled the state misinterpreted that portion of the act and erred in issuing guidance early last year that sought to clarify that brokers cannot collect a fee just because there is a “meeting of the minds.”

In her ruling, Kushner pointed directly to a statement by the lead sponsor of the bill, Manhattan/Brooklyn state Senator Brian Kavanaugh, who said the legislature seeks only to eliminate application fees and “fees for background checks and other costs landlords sometimes impose before even agreeing to rent an apartment.”

“In others words, the prohibition was intended to apply to application fees, background check fees, credit check fees, and any other fees imposed as a pre-condition to

negotiations for entry into a lease agreement,” Kushner said. “No reference is made to ‘broker’s commission’ in the statute.”

Kushner said that if lawmakers intended to eliminate broker’s fees, the act “would have expressly stated it,” saying the guidance the Department of State issued last year to brokers was an “error,” and “abuse of discretion.”

The decision was hailed by the Real Estate Board of New York, the lobbying arm of the real estate sector that sued the state over the provision and successfully won a temporary injunction last year, alongside the New York State Association of Realtors, Inc. REBNY’s president, James Whelan, said the ruling “ensures that thousands of hardworking, honest real estate agents across New York State can earn commissions without fear of unwarranted discipline by the Department of State based on its erroneous interpretation of the Housing Stability and Tenant Protection Act [sic]. We appreciate the support of our members throughout this challenging process and we are proud to continue advocating for the rights of New York’s real estate agents.”

The ruling once again allows brokers to impose upfront fees as high as 15% of the total annual rent a tenant will pay. This is typically on top of first month’s rent. According to the Real Deal, an apartment hunter can be saddled with a broker fee as high as $5,580 if the apartment they seek has rent that falls within Manhattan’s median rent $3,100.

New York getting its sexy back, say housing experts

“There needs to be some kind of curb on how much brokers can charge,” Mike McKee, a tenant organizer and treasurer of the Tenants Political Action Committee, told Gothamist/WNYC. “The clear solution here is that the legislature should step in and clarify the law.”

It also makes New York City one of the few cities in the country to continue allowing the practice. The Department of State did not immediately respond with a request for comment.

After its biggest upheaval in a decade, New York’s apartment rental market looks primed to rebound as the city slowly emerges from its COVID coma.

Real estate giant Douglas Elliman released its February rental market report yesterday (Thursday) noting a major surge in leasing activity as renters jockey for a place in what was one of the world’s hottest markets, before the coronavirus sparked a migration from the city and brought the apartment sector to a grinding halt.

But with the numbers indicating that Manhattan hasn’t lost its appeal, experts predict the corner has been turned.

“The ‘fleeing the city’ narrative that suggested Manhattan would be a bleak dystopian hellscape after the lockdown really needs an update,” said appraiser Jonathan Miller, whose firm prepared the report for Douglas Elliman.

“The market return is predicated on consumers feeling safe in the city. There has been notable progress on that in recent months as the vaccine distribution has surged and infection rates have fallen sharply.”

The February report shows landlords have dropped their prices and upped their concessions, offering two or more

months free rent, depending on their building’s vacancy. The result has been a 112.4 percent spike in signed leases compared to the same time last year. Even at the cost of an 11 percent drop in actual rents, the experts agree momentum is building for a return to normal.

Hal Gavzie, Elliman’s executive manager of leasing, noted that the sharp drop in rents and tempting concessions has produced month-by-month increases in leasing volume since the fall.

“It looks like the rent reductions have now stabilized and, barring any unknown scenario, it is all heading in the right direction,” said Gavzie.

“With the vaccine rollout well underway, people are getting more comfortable and the city is getting busier. So much is tied to the commercial component but, as the restaurants, arts and theaters start to reopen, I am optimistic that we will have a nice velocity in the market this summer as people seize this opportunity in the market.”

Elliman’s February rental report recorded the largest number of new monthly lease signings since the financial crisis with net effective rent sitting at $2,843 a month as over 40 percent of city landlords looked to secure tenants by shaving payments.

The last time Manhattan rents were under $3,000 was 2012. But the price chopping has helped eat into the apartment inventory.

According to Elliman, there 11,750 empty market rate apartments in Manhattan compared to around 5,000 just ahead of COVID. Although that number is nearly triple year-ago levels, Gavzie noted it has gradually been

dropping since the fall as previously price-constrained first-time renters grab their chance to live in Manhattan and city families upgrade to bigger spaces.

Notably, concessions at the luxury market are nearly half that of the non-luxury market, according to Elliman, a phenomena that Miller categorizes as “characteristic” given unemployment has skewed heavily against lower wage earners, who tend to be in the rental versus sales and in the entry level rather than other housing

vaccine roll-out and New York slowly lifting many of the restrictions that have taken the sexy out of the city “speaks to the confidence people have New York.”

He added, “Not even one quarter into 2021 and I am seeing the Manhattan residential market more active than I have in my entire career. All of a sudden there is a tremendous sense of urgency as pricing has adjusted slightly and buyers and renters think they are getting a deal. They are now in a rush to secure a property knowing that it is only a matter of time till the city rebounds.”

That rebound, according to Gavzie, will unfold over the next 18 to 24 months.

“I think with the overwhelming amount of vacancy we have seen it will take a while to eat through it,” he said. “While there are a lot of variables, I think that, after the summer, we will see the metrics spike in the right direction.”

Signs of life in New York home sales

tiers. Overall, Miller said, “The fact that new lease signings have surged year-over-year to records for each respective month since October suggests early signs of an improving market.”

The numbers augur well with a report from Bloomberg News yesterday that suggested many of the Wall Street A-Listers who fled to Florida are now eying a return. Missing the nightlife, arts, private schools and social events just now starting to be revived, the wealthy want to be back in the heart of the nation’s confirmed financial capital.

Equity Residential is one of the city’s biggest luxury apartment landlords with 6,600 apartments in 37 properties , including 777 Sixth Avenue.

Equity residential, one of the city’s biggest market rate landlords, is also optimistic that the city has turned a corner.

In the company’s year-end report, CEO Mark Parrell said, “We are optimistic that 2021 will be a year of recovery. Our affluent, well-employed resident base remains drawn to our nation’s great cities and we expect demand to accelerate and pricing to continue to improve as vaccines are widely administered and cities become more active.”

Equity reported that its rents had stabilized and even seen “modest improvement” in the past two months. The company has now begun to “moderate” its concession offerings as its portfolio-wide apartment occupancy levels show significant signs of improvement, led by New York where it has 6,657 apartment units.

Attorney Pierre Debbas of Romer Debbas, who handles conveyancing for many of the city’s well-heeled, said that a combination of pent-up demand from last year, the

The Real Estate Board of New York (REBNY) today reported that New York City’s total residential sales volume and total residential transactions increased significantly in the final quarter of 2020.

According to the board’s Q4 2020 Quarterly Residential Sales Report, the end-of-year surge was driven by particularly strong activity in the four boroughs outside Manhattan.

Citywide total residential sales volume increased to $9 billion in Q4 2020 from $6.5 billion in Q3 2020, representing a nearly 40 percent quarterly increase in sales volume. This turnaround came after three consecutive quarters of declining sales volume.

Citywide total residential transactions increased to 9,397 sales in Q4 2020 from 6,305 sales in Q3 2020, representing a nearly 50 percent quarterly increase in transac-

tions. This boost in activity also came after three consecutive quarters of declining transactions.

Even as major quarterly increases marked a step forward in New York City’s recovery, both citywide residential sales volume and transactions in Q4 2020 showed year-over-year declines of 10 percent and seven percent, respectively, compared to Q4 2019 – demonstrating just how severely the citywide real estate market has been impacted by the COVID-19 pandemic.

“Last year was a historically difficult one for New York City and the real estate industry that fuels its economy. This end-of-year surge in home sales is another positive sign that the City has begun down a long road to recovery,” said REBNY President James Whelan.

“This momentum can be maintained and accelerated by securing much needed state and local aid from the federal government, successful vaccination and rapid testing efforts, and strong local, State and federal leadership that promotes more economic activity and an improved quality of life for all New Yorkers.”

Condominiums, cooperatives, and one-to-three family homes each observed quarterly increases in both sales volume and transactions. Citywide condominium transactions increased 48% to 2,040 units; Citywide cooperative transactions increased 18% to 2,007 units; and citywide one-to-three family home transactions increased 66% to 5,350 units.

The report also found significant quarterly changes from Q3 to Q4 2020 by borough:

• Brooklyn: Sales volume increased 90% and transactions increased 73%

• Queens: Sales volume increased 69% and transactions increased 56%

• Staten Island: Sales volume increased 56% and transactions increased 52%

• Bronx: Sales volume increased 50% and transactions increased 39%

• Manhattan: Sales volume remained flat while transactions increased 18%

The Quarterly Residential Sales Report is New York City’s most comprehensive compilation of residential sales data. Launched in 2006, the report captures the citywide and by borough breakdowns of closing data for condominiums, cooperatives and one-to-three family dwellings. Additionally, for the first time, the Quarterly Residential Sales Report now captures the active and in-contract data for Manhattan and Brooklyn as a result of REBNY’s partnership with Perchwell, a real estate data and analytics platform.

Co-ops now eligible for forgivable PPP loans

Under the original Coronavirus Aid, Relief, and Economic Security (CARES) Act passed in April 2020, Congress created the Paycheck Protection Program (PPP) to help small businesses retain employees and remain in operation.

Unfortunately, the CARES Act did not provide any assistance to co-ops, which depend solely on maintenance (rent) payments from their shareholders to fund ongoing operations of the corporation.

This was problematic given the risk and uncertainty of a significant number of shareholders going into maintenance arrears due to the Covid-19 pandemic (due to loss of jobs, illness, etc.) and the inability of co-ops to be able to timely exercise any of their usual remedies for nonpayment of maintenance.

That changed as of December 21, 2020, when Section 7(a)(36)(A) of the Small Business Act (15 USC 636(a)(36) (A)) was amended by Section 315 of the Consolidated Appropriations Act, 2021 (CAA) and the “Economic Aid to Hard-Hit Businesses, Nonprofits, and Venues Act” to include cooperative housing corporations with 300 or fewer employees.

The CAA introduced an additional $284 billion into the PPP pool, and amended certain aspects of the PPP. The CAA is silent as to whether or not condominiums and HOAs are included in this new round of PPP loans available to co-ops.

The major provisions of the new round of PPP loans applicable to co-ops under the CAA include:

• The co-op must have 300 or fewer employees.

• The co-op must have been in operation on February 15, 2020.

• Approved co-ops are eligible to receive a maximum loan of $2 million or up to 2.5 times their monthly payroll expenses, whichever is less.

• To qualify for loan forgiveness, 60% of the proceeds must be used for payroll and the remaining 40% may be used for other eligible expenses such as utilities, rent and mortgage payments.

• No collateral is required, nor are there any fees associated with the loan, which is up to 100% forgivable (provided that program rules are followed and all funds are used accordingly).

• No personal guaranties are required.

• The CAA specifies that expenses paid with PPP loans are now tax-deductible.

• The CAA extends the availability of PPP loans through March 31, 2021 (subject to the availability of funds).

The Small Business Administration is due to issue new regulations in the coming days which will provide additional details and further clarification.

Co-ops should contact their lenders right away to discuss the PPP loan as the loans are only available on a first come, first served basis, and it is likely that demand will be high.

Rachel Sigmund McGinley is chair of the Cooperative & Condominium Representation Group with Adam Leitman Bailey, PC.

Camber opens affordable property for seniors in Harlem

Camber Property Group today opened Victory Plaza, a 136-unit affordable housing development in Central Harlem with 81 units set aside for low income seniors and 55 homes for formerly homeless seniors.

Located at 11 West 118th Street, the nine-story building was developed by Camber in partnership with Harlem Congregations for Community Improvement, Inc. (HCCI), the New York City Department of Housing Preservation & Development (HPD) and the New York City Housing Development Corporation (HDC).

“A truly equitable city requires us to build dignified, permanent homes for all New Yorkers, including our most vulnerable,” said Rick Gropper, Principal and Co-founder of Camber Property Group. “Victory Plaza will allow many low income and formerly homeless seniors to remain in the city they love as we begin to rebuild and recover from the COVID-19 crisis. Camber is committed to the future of New York, and projects such as this will pave the way.”

“The opening of Victory Plaza represents our commitment to housing our most vulnerable New Yorkers,” said HDC President Eric Enderlin. “This development will benefit the Central Harlem community for generations to come, with more than 130 homes for low-income and formerly homeless seniors – more than a third of which are permanently affordable. Thank you to all our partners for their dedication to bringing this vital project to completion during these challenging times.”

The $65 million project was financed by HDC, HPD and Wells Fargo, and was designed by Aufgang Architects. Amenities available to residents at Victory Plaza include a landscaped outdoor recreation area, fitness center, programmed community space, laundry and bicycle parking. The building will feature on-site wraparound social services, provided by HCCI, addressing areas such as financial security, health and wellbeing and isolation prevention.

Red Hook resident unveils plan for new model community on his doorstep

Alexandros Washburn, the former chief planner for the City of New York who now leads Brooklyn-based design firm DRAW Brooklyn, has unveiled a plan to build a mixed used housing and manufacturing development in Red Hook. Called the Model Block, the plan aims to transform a vacant warehouse at 145 Wolcott Street into a 210-unit apartment complex with 65,675 s/f of light manufacturing space and 74,325 s/f of commercial space including restaurant, shops, maker space and creative office space.

Washburn has partnered with Washington D.C.- based development firm Four Points, LLC on the project. He also worked with architects Arquitectonica, AE Superlab and Marpillero Pollak Architects on the design, which he has already shown to hundreds of local residents and community groups as part of an ambitious outreach to secure support. The team used new technology to give Red Hook Houses residents an opportunity to tour the site with augmented reality goggles so they could see what the development would look like and used their feedback to tweak the designs.

According to Washburn, the result is a design that creates a thriving neighborhood hub that delivers on the core elements of housing, jobs, environmental cleanup and resilience long identified by community members as local priorities while providing an alternative to a wave of last mile warehouses rising in Red Hook.

“This is a site my neighbors and others from across Red Hook have discussed for years – often at community planning sessions on the ground floor of my house on Van Brunt Street,” said Washburn. “The Model Block is the direct result of those conversations.

“We asked our neighbors: what do we need in Red Hook? What do we love about Red Hook? And how can we get it all in a model block? The top priorities that emerged were clear: housing, jobs, resilience and the environment. And the process was clear: doing it in a way that was shaped and led by the community.

“We are thrilled to unveil this proposal, and we’re looking forward to continuing those conversations with our friends and neighbors.”

The Model Block would create Red Hook’s largest new mixed income housing in decades: 61 affordable apartments in a 160,000 s/f building with 210 overall apartments. At its highest point, the building would have 14 stories of apartments: the same number of stories as the tallest residential building in Red Hook, 135 Richards Street/80 Dwight Street within the Red Hook Houses. It would also create more than 337 jobs in an ecosystem of companies, including art manufacturing, restaurant, retail and office space.

According to Washburn, the development plan evolved in the aftermath of Hurricane Sandy when he began talking to his neighbors. “It was in the tough weeks and months after Sandy that we said, ‘something needs to change’,” said the designer, “so we worked with our neighbors to envision a solution.”

Increasing housing stock for a range of income levels and the number of good jobs in the neighborhood have been a longstanding local priority, formalized when a community-driven process led to the creation of the Red Hook: A Plan for Community Regeneration, also known as the 197-a Plan, adopted by Community Board 6, passed by the Planning Commission and ratified by the City Council in 1997. The 197-a revitalization plan centered around more inclusive housing opportunities, and growth and support for local artists.

The Model Block development team says their plan creates many more and better jobs than last mile warehouses , which they claim provide few jobs per square foot of building, but many trucks per square foot of building on local streets.

In the last few years, Red Hook’s disused waterfront land has become fertile ground for warehouse developers. DH Property Holdings has built facilities at 55 Bay Street (82,000 s/f) and 640 Columbia Street (336,000 s/f); UPS tore down the Lidgerwood Building near Valentino Pier to make way for a 1.2-million-square-foot last-mile distribu-

tion center; Thor Equities signed a deal with Amazon for it 312,000 s/f warehouse at 280 Richards Street.

Washburn believes the last-mile warehouses that are now the largest source of new investment in Red Hook provide few community benefits.

The Model Block, on the other hand, constitutes the neighborhood’s largest addition of income-restricted housing since the creation of the Red Hook Houses themselves, in 1939.

Red Hook residents and Community Board 6 residents would be given preference in the lottery for half of the affordable apartments, enabling many who grew up in Red Hook to stay there.

The plan also includes rigorous site remediation in coordination with the New York State departments of Environmental Conservation and Health through the Brownfields Cleanup Program.

The Model Block has entered the New York Board of Standards and Appeals public review process for a variance to allow a range of uses in character with the neighborhood and community benefits.

The BSA process includes opportunities for public consultation and comment, including a meeting of Community Board 6 and a BSA public hearing.

The development team hopes to complete the BSA process by the fall of 2021 and start construction in 2022 with completion expected in 2024.

Rendering of The Model Block

“Red Hook, a historic waterfront peninsula, has worked for many years to foster initiatives that embrace the whole community,” said Florence Neal, Executive Director and Co-Founder Kentler International Drawing Space on Van Brunt St. and Co-Author of Red Hook’s 197-a Community Plan.

“We welcome development that meets our needs of housing, job creation, resiliency, including social justice and cultural access for all. The Model Block is exactly the type of project we have envisioned for Red Hook. We welcome this inclusive vision for a former unused industrial site with its potential as an urban planning model for more cities rethinking their future.”

Rendering of The Model Block

“RHI is looking forward to supporting the power of young people to share their voice about changes and development coming to Red Hook and chart out a path that has a positive impact in their community,” added Morgan Monaco, Executive Director, Red Hook Initiative.

“We don’t just want a Model Block, we want a Model Community,” said Karen Blondel, Environmental Activist and Red Hook Houses resident. “The Model Block builds toward community goals. Let’s use the problems Red Hook has today to train our youth in the solutions for the future, like cleaning up the environment.”

“This project is uplifting — and is just what Red Hook needs,” said Tiffany Davis, Founder and Director, Red Hook Arts Project. “It fits right into the community, not overpowering any of the buildings, fits the structure of the buildings, and the block that it’s on, including the school right across the street. It really blends in and looks really good.”

Between 175,000 and 185,000 rent-regulated tenants are more than two months in arrears, according to a new survey by the Community Housing Improvement Program (CHIP).

The survey also found that roughly 50,000 tenants owe more than $15,000 in arrears.

The total arrears is estimated to be around $1.14 billion.

CHIP’s survey found that 19.42 percent of residential tenants are more than two months behind in rent. This is a more than 300 percent increase from February, when 6.14 percent of rent-regulated tenants were more than two months in arrears.

“To solve a problem we first have to understand the scale of the problem,” said Jay Martin, executive director of CHIP. “Clearly the $1.3 billion coming in federal rental assistance will be a huge help if it is properly allocated toward owed arrears. Still, these numbers show that

renters and housing providers will need more relief, either from the federal government or through creative strategies on the state level even after this initial allocation of relief.”

The average renter in arrears owes about $6173.21, according to CHIP’s survey. That is roughly four-and-ahalf months rent, according to the Rent Guidelines Board, which estimates that the average monthly rent for a rent-regulated apartment is about $1,400.

The survey also found that 5.64 percent of tenants are more than $15,000 in arrears, or more than 11 months behind on average rent.

“We have a clear blueprint to protect renters from eviction and the housing system from collapse. The government needs to pay the rent for those who can’t afford it,” Martin said.

“The government has mandated that owners provide housing without compensation throughout the public health crises regardless of the renters’ ability to pay. Our owners have done their part, now the government must do their part to help pay for the cost of housing tens of thousands of people.”

Survey finds rent-regulated tenants owe $1.1B in arrears

CHIP’s December survey of its members also found the city vacancy rate to be 11.8 percent when calculating in apartments not listed for rent because of surplus supply or not available for rent because of renovation needs.

CHIP represents the owners and operators of more than 400,000 units of rent-regulated housing. The survey size was roughly 40,000 units.

City sets security deposit changes in motion

The New York City Department of Housing Preservation and Development (HPD) and the New York City Housing Development Corporation (HDC) today issued a Request for Expressions of Interest (RFEI) aimed at providing renters more choices for paying their security deposits.

As the City considers incorporating more security deposit payment options, the Security Deposit Alternatives RFEI is the first step in identifying eligible companies that can offer alternatives to traditional, lump-sum deposits for affordable housing applicants of newly constructed homes.

The RFEI is the latest in the City’s efforts to make it easier for New Yorkers to access affordable housing and fulfills Mayor de Blasio’s State of the City 2020 commitment to put money that used to go to security deposits back in the pockets of hardworking New Yorkers by creating options for how renters pay security deposits, starting with City financed homes.

“Many New Yorkers are living paycheck to paycheck making it difficult to afford the high upfront costs that come with moving into a new home. This administration is committed to creating better options for renters who might

have trouble paying a security deposit all at once, and we’re looking for the right partners to join us in this important goal,” said HPD Commissioner Louise Carroll.

“I applaud the Mayor for his vision to create a city that all New Yorkers can afford. This is another major step toward that goal.”

“Security deposits create barriers to mobility for too many New Yorkers. Providing alternatives to these burdensome requirements is an important step towards creating a fairer and more equitable city,” added HDC President Eric Enderlin. “We look forward to advancing this initiative to make it easier to obtain a safe, secure, and affordable home.”

Security deposit alternatives are financial products that allow renters to pay a portion of their security deposit value instead of the full amount at the time of lease-up. A traditional lump-sum security deposit can present a barrier for low-income and middle-income households. The requirement can prevent tenants from relocating to new housing when they need it.

HPD and HDC will determine if the products and services being offered can meet the needs of the City’s development partners and tenants and consider select providers for a pre-qualified list that developers may consider for doing business.

Under the RFEI, providers cannot charge more than one month’s rent over a renter’s tenancy. They must also allow renters to pay a small portion of the security deposit upfront or the full amount over time while insuring owners against property damage claims or unpaid rent, among other requirements.

“Policymakers must work with just as much urgency to respond to the economic challenge. The purpose of security deposits is to ensure that apartments are livable, but it is time to reimagine this so that everyone benefits,” said Council Member Robert E. Cornegy, Jr.

“Security deposits help landlords avoid damage to their properties, which ultimately should help tenants as well by keeping building maintenance expenses down. For many renters, security deposits only seem like an arbitrary extra fee. So I am very encouraged that HPD and HDC are working to find new solutions to keeping apartments habitable, which will help keep our communities whole.”

To be considered for the initial pre-qualified list, companies should send their responses in a single PDF to securitydeposits@hpd.nyc.gov by February 15, 2021. More information about the RFEI can be found on HPD’s website.

Affordable housing set to collapse like ‘house of cards’ warns RSA

tion extends the eviction moratorium for residential tenants based on the submission of a simple declaration of financial hardship without proving such hardship caused by COVID-related job loss or income reduction,” said Strasburg.

“With no requirement of proof that the COVID-19 pandemic negatively affected their income, and no income limitation to qualify for eviction protection, a tenant whose household income went from a half-million dollars to $250,000 would qualify for eviction protection by declaring that their income has been ‘significantly reduced,’” Strasburg said.

“Technically, it has – but they clearly could afford to continue paying their rent and should not be protected by an eviction moratorium.

“This law should have the same scrutiny and eligibility review as Section 8, senior citizen rent increase exemption, and other government-sponsored assistance. Anything less, what impetus would there be for any tenant to pay rent, even if they are still employed – including thousands working from the apartments they will be withholding rent payments?” Strasburg added.

Strasburg said the legislation is in stark contrast to California’s legislative approach in their eviction law (AB3088), which requires tenants earning $100,000 on 30 percent of AMI to provide documentation supporting their hardship claims.

“A cap on the amount of the rent level would ensure that the benefits of this legislation would reach those that need it. This legislation does not make a serious effort to require tenants to take advantage of available rent relief – such as the DHCR rent relief program, the federal rental assistance program, or the city’s HRA one-shot program. Lawmakers should be directing their constituents to these programs, whose funds are critical to landlords in maintaining and keeping their buildings safe and to paying their real property taxes – the latter vital to keeping the city and essential services afloat,” Strasburg said.

“The tsunami of evictions is not occurring; in fact, a minimal number of evictions have been executed since March 7 –and those cases pre-dated March 7. Tenants have been protected by the Governor’s eviction moratorium executive orders and the Safe Harbor Act,” Strasburg said.

The Senate Democratic Majority today passed the COVID-19 Emergency Eviction and Foreclosure Prevention Act.

RSA President Joseph Strasburg warned that a blanket eviction moratorium without the requirement of proving economic hardship effectively encourages thousands of employed tenants – many using their apartments as their workplace – not to pay rent, and will push the city off the cliff of bankruptcy and take down the affordable rental housing infrastructure like a house of cards.

“Owners recognize and support the need to help tenants without sufficient financial resources to pay rent due to job loss or health circumstances. However, this state legisla-

Considered the strongest bill in the nation to block eviction proceedings from going forward, it allows renters and homeowners to stay in their homes if they are facing hardships due to the pandemic for at least 60 days.

Car maker Aston Martin designing NYC apartments, throwing in free car

Luxury car manufacturer, Aston Martin is getting into the apartment business.

The company is partnering with architect Sir David Adjaye and real estate company, Lightstone, to create a collection of five homes at 130 William in the Financial District.

Aston Martin is also creating a special edition car for exclusively for the apartment owners.

Special Edition Aston Martin DBX

Aston Martin Chief Creative Officer, Marek Reichman said: “This is a fascinating project for the Aston Martin design team to work on and a great opportunity to collaborate with Sir David.

“It is our first real estate project in New York City but our second collaboration in real estate design after the Aston Martin Residences in Miami.

“We can apply what we have learnt in Miami and also bring our unique automotive design skills to these beautiful luxury homes.”

Adjaye is responsible for the vision of 130 William, designing its exterior architecture, as well as all of the building’s interiors which includes 242 residences, over 20,000 s/f of amenities, and a new plaza park.

The building stands 800 ft. and 66 stories. It features a custom hand-cast façade with bronze detailing, contemporary stonework and large-scale arched windows.

Living dining room, 130 William

Sir David Adjaye, said: “It was exciting to find an opportunity to collaborate with the Aston Martin team. The 130

William Aston Martin homes have been touched in a very particular way that merges our design sensibilities. Together with the limited edition SUVs that come with these units, we’ve created a truly unique signature that blends our two disciplines.”

Scott J. Avram, senior vice president of development, Lightstone, added, “130 William is an architectural triumph and in developing this collaboration, we knew we had to offer something truly unique.

“The partnership between David Adjaye, Aston Martin and Lightstone, will bring to market homes unlike anything seen before in New York City.

“The addition of the 130 William Adjaye Special Edition Aston Martin DBX is truly noteworthy and a must have for any true automobile enthusiast.”

Aston Martin Homes at 130 William include five fully furnished units located on the 59th and 60th floors.

Each home has a private outdoor loggia spanning the entire length of residence and screens dividing the balconies into a series of zones for dining and relaxing.

The residences are fully furnished, with hand-crafted materials and textiles and furniture from the Aston Martin Home Collection by the Italian manufacturer Formitalia. Interior design elements feature Aston Martin’s signature crosshatch pattern in a bronze finish. A smoked glass mirror created by Aston Martin Design reflects the skyline view in an arched form.

Each home features a grand living and dining room, with furnishings, textiles and fittings curated by Marek Reichman and Sir David Adjaye.

Located adjacent to the dining room is an open plan kitchen with textured blackened oak Italian cabinetry, Gaggenau appliances, marble countertops from the Apuan Alps in Tuscany, Italy and a cantilevered Nero Marquina marble top, which provides additional bar seating.

As well as a custom cashmere headbard, the master bedrooms have walk-in closets, a Flos light track system and a lounge chair by Hans Wegner.

Buyers have the option of customizing one of the rooms, in the two-and three-bedroom homes, into a racing simulator, an office and library space, or a bedroom.

Aston Martin Design collaborated with Curv Racing Simulators, a new British technology company founded by Darren Turner, a three-time class winner of the 24 Hours of Le Mans for Aston Martin to create the ultimate in luxury home racing simulators.

Aston Martin racing simulator

The 130 William Adjaye Special Edition Aston Martin DBX marks the first time that Aston Martin has collaborated with an architect on the custom fit out of one of their signature vehicles. The DBX is the first SUV to be created by the luxury British manufacturer.

The five homes include two penthouses, priced at $11.5 and $10.5 million. Corcoran Sunshine is handling sales and marketing.

The factory, designed by Rogers Partners Architects + Urban Designers, will house research and development operations as well as production and design by the company’s artificial intelligence researchers, computer scientists, chemists and physicists.

“The Brooklyn Navy Yard has a history of serving New Yorkers in times of crisis, and it proved its worth once again at the height of the COVID-19 pandemic. Today, it has an important role to play in our city’s recovery – by building a sustainable and high-tech manufacturing base in the heart of New York City,” said Mayor Bill de Blasio. “From creating hundreds of jobs to nurturing the next generation of STEM talent, Nanotronics and the Navy Yard are helping build a recovery for all of us, and I’m proud to support their extraordinary efforts.”

De Blasio was joined by executives from the Brooklyn Navy Yard Development Corporation (BNYDC), Nanotronics, Empire State Development (ESD) and CUNY’s Medgar Evers College for the ribbon-cutting ceremony to celebrate the opening of the center in the Navy Yard’s historic Building 20, a 150-year-old former shipbuilding factory.

The project was primarily funded through $3.25 million from the City of New York and a $2.25 million Regional Economic Development Council capital grant through ESD in exchange for a commitment of 190 jobs.

Nanotronics expects to recruit talent locally through New York institutions including the Navy Yard’s Employment Center and STEAM Center (the Yard’s on-site vocational high school), the City University of New York (CUNY), Cornell Tech, New York University and Columbia University. The company has already has partnered with CUNY Medgar Evers College to host nearly 30 interns in the last three years as part of Empire State Development’s STARTUP-NY program.

Mayor opens 45,000 s/f Nanotronics hub at Brooklyn Navy Yard

Mayor de Blasio has officially opened the 45,000 s/f Nanotronics manufacturing center at the Brooklyn Navy Yard.

Nanotronics, a science technology company that combines AI, automation and sophisticated imaging to manufacture hardware and software capable of working on a nanometer scale, will use the building as its headquarters.

“We wanted to create a modern-day Edison Lab,” said Matthew Putman, CEO and cofounder of Nanotronics. “That vision of building in a way that was never done before, with the same hope and possibilities of better jobs, local products, and leading the world in invention seemed like a real possibility in the Brooklyn Navy Yard. We are thrilled to advance manufacturing with the perspective of seeing our past, looking out of our windows at the city where so much of our present is on view, and build an intelligent factory where robotics, AI, and humans can work together to create a sustainable future.”

Nanotronics expanded its New York presence into the Brooklyn Navy Yard in 2016. As the first and largest tenant of New Lab, the company grew its Research and Development workforce three-fold. By 2018, the company needed to expand manufacturing operations both for redundant manufacturing and to rapidly scale new products. The foundational roots within the former manufacturing hub created an ideal location with waterfront access. The hub’s location in the Navy Yard also provides space for partner firms in the life sciences, semiconductor, aerospace, automobile, additive manufacturing and quantum computing sectors to grow alongside Nanotronics.

BNYDC played an integral role at the outset of the COVID-19 pandemic last spring, serving as a central PPE production hub for the City as it faced shortages in face shields, medical gowns and ventilators, among other equipment. Ultimately BNYDC spearheaded the production of roughly a dozen products by Yard tenants, including nearly 10 million units of PPE and more than 26,000 gallons of hand sanitizer.

that received an EAU from the FDA. In just 90 days, Nanotronics team conceived, designed, built, and received Emergency Use Authorization from the FDA for its non-invasive respiratory relief product, nHale, to treat COVID-19 in private hospitals, homes, and large converted spaces. nHale was one of the first and most cost-effective products to fill the much-needed gap in the NIH treatment guidelines for a phased respiratory approach to COVID treatment.

The opening of Building 20 comes as the Navy Yard is undergoing its largest expansion since World War II, which will increase the Yard’s job total from 12,000 to 20,000 in the coming years. The expansion includes the $187 million renovation of Building 77 to provide space to vertically integrated design and manufacturing companies and the ground-floor Food Manufacturing Market; the Green Manufacturing Center, which houses New Lab, Crye Precision, and Bednark; and an expanded Steiner Studios, the largest film and television production studio outside Hollywood in the United States. BNYDC also recently announced a $2.5 billion master plan to create 10,000 additional jobs housed in vertical manufacturing buildings, which would bring the total number of jobs at the Yard to 30,000 in the coming decades.

Building 20 was constructed in 1865 and housed the production for the Navy’s first iron-plated wooden warships. Rogers Partners collaborated with Nanotronics to turn the warehouse into a vertically integrated advanced manufacturing headquarters for the company. Few advanced manufacturing facilities seamlessly integrate the entire process; bringing together R&D and manufacturing under one roof. Initially coined as New York City’s first “smart factory,” Rogers Partners designed the building to be cleaner and more efficient than traditional factories. The adaptive re-use on legacy infrastructure along with the design, greatly reduces carbon footprint. This work helped the project win an Architect’s Newspaper Best of Design award in 2019.

Nanotronics played a critical role in COVID-19 response efforts as well. BNYDC helped Nanotronics open half of Building 20 at the start of the pandemic to enable the implementation of Intelligent Factory Control (IFC) –a first step to building the tools that sequenced the virus’ genome, necessary for diagnosing SARS-CoV-2, identifying variants, validating the first vaccines, and the production of the vaccine itself.

In July 2020, ESD restructured the disbursement schedule for Nanotronics’ $2.25 million capital grant to assist with COVID-19 response efforts and frontloaded the funding to help the company accelerate production of nHale, a BIPAP machine it created for patients suffering from COVID-19

The new building is also a model for sustainable development. While the construction of the main shell for a similarly sized facility would result in approximately 1,971 metric tons of embodied CO2, the newly constructed portion of the project is estimated at approximately 425 metric tons. The building is one of the first Commercial Cross Laminated Timber (CLT) projects built in New York City – using CLT for the interior to act as a carbon sink. Altogether, the CLT stores an estimated value of 411.2 metric tons of CO2, effectively offsetting the new construction’s emissions and resulting in a carbon neutral project.