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.