Major Developments:
- The Rent Guidelines Board voted 7-1 to freeze rents on both one- and two-year rent-stabilized leases.
- The new pied-à-terre surcharge is expected to significantly increase total property taxes for many homeowners, effectively doubling costs for some. Implementation will likely be administratively challenging. Will property owners absorb the increased financial burden or adjust their residency and real estate strategies?
- New York has enacted a new annual New York City surcharge on certain high-value residential properties that are not primary residences.
- J-51 Renewal: The State has also renewed and revised the J-51 rehabilitation tax abatement program for New York City residential buildings. The State law authorizes a renewed program for eligible construction completed on or after June 30, 2026 and before June 30, 2036. City Council action is still required before new benefits become available.
- SEQRA Amendment Part R: The enacted budget significantly streamlines environmental review for housing development by creating new categorical exemptions from SEQRA—and by extension CEQR—for qualifying projects. For NYC, projects of up to 250 units (or 500 units in medium- and high-density districts) at previously disturbed sites with no more than 50,000 SF of non-residential space are exempt from environmental review entirely. The Department of City Planning is preparing implementation guidance for applicants.
- 421-a(16) Amendment for Certain Large-Scale General Developments: A new law in the State Budget narrowly expands the otherwise expired 421-a(16) by amending the definition of "Eligible Multiple Dwelling" to cover future residential buildings on certain large-scale general development sites.
- SCRIE and DRIE Programs Amended: The State also amended the Senior Citizen Rent Increase Exemption and Disability Rent Increase Exemption programs, known as SCRIE and DRIE. The amendments increase the income eligibility ceiling to $75,000 beginning July 1, 2026, extend the programs through June 30, 2028, and add new notice requirements intended to inform tenants of their potential eligibility for rent-increase exemptions.
- Mayor Mamdani and the City Council have reached a deal on a $125.8 billion city budget, resolving a contentious dispute over the CityFHEPS rental assistance program. Empire State Development has proposed a $5 billion plan to revive the Pacific Park project, which includes over 5,600 residential units, more than 1,200 of which are income-restricted, and over 8 acres of open space. A joint venture between Cirrus Real Estate Partners and LCOR will lead the project's second phase.
- Gotham Organization's Monitor Point development in Greenpoint secured City Council approval after successful negotiations to increase the affordable housing component to 50% of the total units.
- An application to build a 198,437-square-foot, 224-unit building at 530 Utica Avenue was filed. The developer is Apex Investments.
- REBNY taps Fried Frank partner Jonathan Mechanic as new chair. Law firm's real estate head taking over for Jed Walentas.
- Chetrit Group plans to convert 45,000 SF at 404 Fifth Avenue into a school.
- Meliá Hotels International closed on the acquisition of the 313-key property at 132-142 West 27th Street for $203 million. The sale by Artimus Construction breaks down to $649,000 per key.
- Hochul is poised to approve the legislation that will seal New York's place among the states with their own plays against private listing networks.
