NYC Landlords Win Major Case in State's Highest Court Over Rent-Regulation

In a historic decision that could have affected an estimated 150,000 apartments throughout the City, the Court of Appeals has held landlords did not have to re-regulate apartments in rent-stabilized buildings that were properly deregulated once the rent-stabilized renter moves out.

The initial case was brought two years ago in Altman v. 285 West Fourth LLC.  The case involves a lease that was $1829.49 at the time of the vacating of the rent-stabilized tenant.  The subtenant (Robert Altman) then signed a new lease with the landlord (S.W. Management Acquisitions) that exceeded the prior rent and included a 20 percent vacancy increase ($2,484 per month) which is allowed under the  Rent Regulation Reform Act of 1997.  The legal rent thereafter exceeded the threshold of $2,000 a month rent in order for the rental to be deregulated.  The 2015 case indicated that the 20 percent vacancy increase could not be included in meeting the threshold which Altman was awarded $165,363 in overcharged rent.  The court stated that the rent had to exceed the threshold when the tenant was living there.  The Court of Appeals overturned this decision and now indicates that apartment rents can be increased and deregulated based on legal rents (including the 20% vacancy increase) on when the tenants move out.  The legal threshold for deregulation currently is $2,733.

According to The Commerical Observer the affirmation of the lower court's decision "would have given as many as 150,000 renters a precedent to sue their landlords for illegally deregulating their apartments and potentially allow them to win hundreds of thousands in rent overcharge judgements."

Real Estate Board of New York (REBNY), which filed an affirmation in support of the landlords is in support of the decision.   REBNY president John Banks stated “The New York State Court of Appeals, the state’s highest court, has reaffirmed the long-standing legal practice and widely held understanding of the application of the Rent Stabilization Law’s vacancy decontrol provisions.  This means that the owners of thousands of rent-stabilized apartments which have been deregulated over the last two decades can rest assured that the rules were followed and these units can remain deregulated.”

Blue Harbour Property Management is a full service NYC property management company servicing the boroughs of Queens, Brooklyn, Manhattan and the Bronx.  Whether it be a 1 bedroom condo or multi-family building we are able to assist our clients maximize their investments.

http://www.blueharbourpropertymanagement.com/nyc-landlords-win-major-case-in-states-highest-court-over-rent-regulation/

Existing-Home Sales Increase For Second Consecutive Month Bolstered By Strong Activity In The Northeast

The National Association of Realtors (NAR) has released their existing-home sales report for March.  The report indicates that existing-home sales grew 1.1% and was assisted by increased sales activity in the Northeast and higher total inventory.  Despite overall existing-home sales increasing, the market in still being hampered by overall affordability issues and inventory being low despite and increase in new houses hitting the market.  The figures indicate that overall demand remains high as purchasers have to pay a premium for the low level of existing homes.

Existing-home sales, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops increased to an adjusted annual rate of 5.60 million in March.  This is an increase from 5.54 million in February. The report indicates that sales are still 1.2% below from the same time a year ago.  The median existing home prices increased for the 73rd consecutive month to $250,400 and is 5.8% higher than a year ago ($236,600).   Total inventory of existing-home increased increased 5.7% for March to 1.67 million existing homes.  This is still significantly lower than a year ago when 1.8 million existing-homes were available.

Existing-home sales regionally increased in the Northeast and Midwest.  The Northeast saw an increase of 6.3% to a adjusted rate of 680,000.  Median prices also increased by 3.3% to 270,600.  The Midwest saw an increase of 5.7% to an annual rate of 1.29 million in March with median sales prices increasing 5.1% to $192,200.  The West region saw an increase of sales price of 7.9% to $377,100.  Inventory in the region was down 3.1%.

Lawrence Yun, chief economist for NAR said the following:

"Robust gains last month in the Northeast and Midwest – a reversal from the weather-impacted declines seen in February – helped overall sales activity rise to its strongest pace since last November at 5.72 million.  The unwelcoming news is that while the healthy economy is generating sustained interest in buying a home this spring, sales are lagging year ago levels because supply is woefully low and home prices keep climbing above what some would-be buyers can afford.  Although the strong job market and recent tax cuts are boosting the incomes of many households, speedy price growth is squeezing overall affordability in several markets – especially those out West."

Blue Harbour Property Management is a full service NYC property management company servicing the boroughs of Queens, Brooklyn, Manhattan and the Bronx.  Whether it be a 1 bedroom condo or multi-family building we are able to assist our clients maximize their investments.

http://www.blueharbourpropertymanagement.com/existing-home-sales-increase-for-second-consecutive-month-bolstered-by-strong-activity-in-the-northeast/

Manhattan Continue To Lead NYC In Most Expensive Neighborhoods With Brooklyn Making Strides

PropertyShark has published their quarterly report on the most expensive neighborhoods in New York City.  The list shows the top 50 neighborhoods according the median sales price for the first quarter of 2018.   The report shows that Manhattan continues to lead the city with the most expensive neighborhoods with Brooklyn picking up steam.  Manhattan had 9 of the top 10 neighborhoods with Tribeca leading the way . The median sale prices were calculated based on residential property sales closed between January 1, 2018 and March 31, 2018. The residential properties which comprised the report were single-family homes, condos and co-ops.

In Manhattan, Tribeca led the way with a median sales price of $3,575,000 (#1 overall).  This was despite having a 30% decrease in transactions year over year.  The biggest increases were in the West Village (#3 overall) with a median sales price of $2,312,500 and an 88% increase year over year and the East Village (#9 overall) with a median sales price of $1,535,012.    The Upper East side (#15 overall) led the way in the total amount of transactions with 495 during the quarter.

Brooklyn continues to show increased value to properties as several neighborhoods have made moves on the list.  Particularly Greenpoint and Fort Greene showed tremendous increases on the list.  Fort Greene (#14 overall) led the way with a 131% year over year increase and a median price of $1,280,000.  Fort Greene (#12 overall) showed tremendous a tremendous upside as well showing an 81% increase and a median price of $1,352,182.

Queens did not have any neighborhoods hitting the 1 million dollar mark however Belle Harbor (#27 overall) came close at $995,000.  The other leading neighborhoods as to ranking and median sales price in Queens were to the south of Belle Harbor.  Queensboro Hill (#34 overall, $883,500) and Auburndale ($35 overall, $883,000) remained steady in these categories.

Blue Harbour Property Management is a full service NYC property management company servicing the boroughs of Queens, Brooklyn, Manhattan and the Bronx.  Whether it be a 1 bedroom condo or multi-family building we are able to assist our clients maximize their investments.

http://www.blueharbourpropertymanagement.com/manhattan-continue-to-lead-nyc-in-most-expensive-neighborhood-with-brooklyn-making-strides/

Queens County Is Seeing A Housing Boom Increasing Affordable Housing Options Throughout The Borough

The New York Post recently published an article highlighting something that many have known for years.  That is that Queens County has increased options of housing with new construction happening all throughout the borough.  The article indicates that middle class families are finding relief in Queens as rental prices have remained moderate due to increased apartment choices.  Queens has always been an affordable option in NYC as median rent is an estimated $600 less than other areas of the city.  The NYC Economic Development Corp. (NYCEDC) registered 2,847 new housing units in February, with 1,234 of those in Queens.  This is 43% of all housing units in the city and a 300% increase for the last 12 months preceding.

Long Island City has been the center of the housing boom for the borough, however other areas are seeing new developments as well.  According to construction data analyzed RentCafe in June 2017, Long Island City led the nation in most new apartments since 2010.  The neighborhood had 66% more apartments built than the 2nd placed locale.

Queens Chamber of Commerce President Thomas Grech said of housing starts “we’ve been waiting for someone to notice this for a while. Queens has become very popular, and it is a low-cost housing alternative for many in the city. We have, as we speak, between 20,000 and 40,000 housing units being built in a cluster in Long Island City as well as in certain parts of Jamaica, which is also an up-and-coming area.”

Most recently Curbed New York highlighted the development boom in and around Jamaica, Queens.  The 15 new projects is overall impressive and the centerpiece project is The Crossing at Jamaica Station.  The project will have 669 affordable housing units across two buildings adjacent to the Long Island Railroad Station hub.  Clearly these are major changes that will change the landscape of the borough for decades to come.

Blue Harbour Property Management is a full service NYC property management company servicing the boroughs of Queens, Brooklyn, Manhattan and the Bronx.  Whether it be a 1 bedroom condo or multi-family building we are able to assist our clients maximize their investments.

http://www.blueharbourpropertymanagement.com/queens-county-is-seeing-a-housing-boom-increasing-affordable-housing-options-throughout-the-borough/

NYC Property Management Companies Readies For Strike As Workers' CBA Set To Expire

NYC property management companies and landlords throughout the city are preparing their occupants of impending strike by building employees as the collective bargaining agreement between the parties is set to run out on April 20th.  The possible strike cover employees in condos, coops and rentals throughout the city and involves over 30,000 workers in total.  The last time employees went on strike was 25 years ago.

The four-year agreement set to expire on April 20th covers doormen, porters, building laborers and supers.  According to Bisnow, companies are already seeking volunteers from their residents to pick up the slack until an agreement can be reached between the parties.  The Realty Advisory Board is representing building owners and managers.  SEIU local 32BJ are representatives for the employees.  Their relationship of representation extends over an 80 year period.  They have already met 3 times and negotiations are heavily under way.

 “We hope for the best and prepare for the worst,” Realty Advisory Board President of Labor Relations Howard Rothschild told Bisnow. “We don’t want a strike, [but] we also want to plan in case something goes wrong … We want to communicate with our residents and let them know what’s going on.”  Mr. Rothschild states that the cost to an employer for an average doorman or porter is more than $85,000 in wages and benefits  and $91,000 for a maintenance worker.   Also covered is full family health insurance, pension and 401(k) which Mr. Rothschild says is the best benefits in the nation.  Local 32BJ says that compensation is more like $49,000.  Also, 32BJ President Hector Figueroa states  “The real estate market has been strong and profitable, and our members are a key part of what makes New York City apartment living so desirable. We hope to come to an agreement by the April 20 expiration date for a new four-year contract that preserves the good, middle-class jobs our members have fought for over 80 years of contract negotiations."

Blue Harbour Property Management is a full service NYC property management company servicing the boroughs of Queens, Brooklyn, Manhattan and the Bronx.  Whether it be a 1 bedroom condo or multi-family building we are able to assist our clients maximize their investments.

http://www.blueharbourpropertymanagement.com/nyc-property-management-companies-readies-for-strike-as-workers-cba-set-to-expire/

City Council Passes Rezoning of Jerome Avenue Enabling The Development of Residential Buildings

The City Council has finally approved the rezoning of 95 blocks of Central and South Bronx along Jerome Avenue.  The approval which took over three years to be finalized will allow for the development of an estimated 4,600 new housing in the area.  The plan also calls for a permanent 1,150 affordable units to be built within the next decade and transform what is now considered an industrial area into one with mid-sized high rise apartments and retail.

According to the Commercial Observer, the Jerome Avenue district will run from McClellan Street in the south to 184th Street in the north, passing through Highbridge, Concourse, Mount Hope, University Heights and Morris Heights. Along with the deBlasio administration's adherence to the recently passed Mandatory Inclusionary Housing Amendments enacted in 2016, the administration also agreed to constructing two elementary schools, initiating a Housing Task Force whose goal is to preserve 2,500 units in the area and creating a program funded by up to $200,000 which will be used for tenant organizing and addressing tenant displacement.

Opponents of the City Council vote were very vocal of the displeasure of the rezoning.  Of their concerns are that the rezoning would reduce the amount of affordable housing.  They wanted more assurances that there would be added requirements by developers to include affordable housing.  Another concern is that businesses along Jerome Avenue would be compromised by construction that will eventually take place.  Many would have to shutter because of it.  Despite this, Borough President Ruben Diaz, Jr. supports the overall plan and believes that the protections set forth in the plan should enhance the visibility of the area.

"With today’s vote, the City Council has secured a positive future for the Jerome Avenue corridor that is inclusive of the area’s current residents and does not leave the people of The Bronx behind.  As part of the ongoing negotiations on this rezoning, both my office and the City Council, led by Council Member Vanessa Gibson, have secured considerable protections for the area’s existing residents and businesses. My office was able to negotiate commitments from the administration that will provide deep affordability in new apartments, new protections against tenant harassment and the preservation of thousands of existing affordable units in Community Boards #4 and #5, among others.

 

The City Council has built on that success, securing new protections and job training services for the autoworkers within the Jerome Avenue corridor, new funding for park and infrastructure improvements, and new programs to encourage local hiring. I especially want to thank City Council Members Gibson and Fernando Cabrera for their focus and dedication on this issue, and the years they have spent working to ensure that the needs of the community are balanced against the expectations of this rezoning. The people of The Bronx are not opposed to improvement. However, the rezoning of the Jerome Avenue corridor must work for everyone. The agreements that have been secured by my office and the City Council will help do just that, and I look forward to working with the administration to begin the implementation of the initiatives and programs they have agreed to provide."

Blue Harbour Property Management is a full service NYC property management company servicing the boroughs of Queens, Brooklyn, Manhattan and the Bronx.  Whether it be a 1 bedroom condo or multi-family building we are able to assist our clients maximize their investments.

http://www.blueharbourpropertymanagement.com/city-council-passes-rezoning-of-jerome-avenue-enabling-the-development-of-residential-buildings/