News: POLITICO New York Playbook: Rent hikes up to 9 percent eyed

Friday, April 15, 2022

POLITICO New York Playbook: Rent hikes up to 9 percent eyed

Apr 15, 2022

By Erin Durkin, Anna Gronewold and Deanna Garcia

It's been obvious since Mayor Eric Adams took office that he would usher in a sea change in the city's approach to crime and public safety. But while that issue has sucked up much of the oxygen in the room, big changes have been brewing a bit more quietly in other policy areas as well. The change in direction under Adams was on display Thursday, when a city board report recommended rent increases for a million or so apartments across the five boroughs.

The report by the staff of the Rent Guidelines Board, which governs rent stabilized apartments, recommended a range of hikes between 2.7 to 4.5 percent for one-year leases. For two year leases, increases could go as high as 9 percent. To put that in perspective: In former Mayor Bill de Blasio's eight years in office, the board either authorized no increase at all – freezing rents for the first time in its history, something de Blasio was not shy about touting – or hikes of up to 1.5 percent for one-year leases. While Thursday's move is very preliminary – the board will set its own range and then vote on a final increase in June – it seems like a sign that those days are over.

Landlords have been hoping for a better deal under Adams, complaining that rent had not kept pace with their soaring costs in recent years. The board's members are appointed by the mayor, and one of Adams' picks this month has questioned the very premise of rent control. Arpit Gupta, an NYU professor, told Vox he is a "little skeptical of rent control," saying that the policy amounts to "a one-time transfer of equity from landlords to current tenants."

"My administration is focused on using data to inform decisions," Adams said Thursday, as he announced his pick for a tenant rep on the board. City Council Speaker Adrienne Adams came out against the proposal on the table Thursday night, saying in a joint statement with Housing committee chair Pierina Sanchez that "it is unfair and unreasonable" to pass the burden of increased costs on to rent stabilized tenants still struggling to recover from the pandemic. They said the suggested hikes "would only exacerbate the housing and homelessness crises confronting our city."

IT'S FRIDAY. Got tips, suggestions or thoughts? Let us know ... By email: EDurkin@politico.com and agronewold@politico.com, or on Twitter: @erinmdurkin and @annagronewold

WHERE'S KATHY? Making a public health and environmental justice announcement in Mount Vernon.

WHERE'S ERIC? Virtually thanking heroes of the Sunset Park subway shooting and holding a media briefing on social services.

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What City Hall's reading

"New York City to Expand Gifted and Talented Program but Scrap Test," by The New York Times' Lola Fadulu: "Mayor Eric Adams on Thursday unveiled a plan to expand the city's gifted and talented classes for elementary students and to permanently eliminate the contentious admissions test given to 4-year-olds in an effort to address concerns that the program has shortchanged low-income and Black and Latino students. Under Mr. Adams's plan, the city will add 100 seats to the current 2,400 for kindergarten students in the program and an additional 1,000 seats for third-graders…Before he left office, former Mayor Bill de Blasio pledged to eliminate the gifted program and replace it with a program that offered accelerated learning to students later in elementary school. Under his plan, the city would have trained roughly 4,000 educators to accommodate students with different learning abilities in their general education classes. But Mr. Adams pledged during his campaign for mayor to keep the gifted and talented program."

"COVID isn't over, but pandemic meal delivery for NYC seniors is coming to a close ," by Gothamist's Jaclyn Jeffrey-Wilensky: "Shirley Wulff likes almost everything in her weekly meal delivery from the city – except some of the vegetables. "I thank God for it," she said of the service. 'It's wonderful.' Wulff has mostly stayed home since the pandemic began, she said, venturing out only for the occasional grab-and-go lunch at the senior center in her South Brooklyn neighborhood of Bensonhurst. She said the frozen meals dropped off by city contractors come in handy when she doesn't feel well enough to go out. But these emergency meal delivery for seniors will end on June 30th, leaving clients like Wulff to fend for themselves. Many will pivot back to indoor meals at senior centers, just as COVID-19 cases are on the rise again, driven by the highly transmissible BA.2 substrain of the omicron variant."

— "Many Virus Cases Go Uncounted. Are There Better Ways to Track the Pandemic?" by the New York Times' Emily Anthes: "When the highly transmissible Omicron variant of the coronavirus arrived in the United States last fall, it pushed new case numbers to previously unseen peaks. Even then, the record wave of recorded infections was a significant undercount of reality. In New York City, for example, officials logged more than 538,000 new cases between January and mid-March, representing roughly 6 percent of the city's population. But a recent survey of New York adults suggests that there could have been more than 1.3 million additional cases that were either never detected or never reported — and that 27 percent of the city's adults may have been infected during those months."

"Brooklyn Democratic Party Filed Forged Signatures to Knock Rivals Off Ballots, Fellow Dems Allege," by The City's George Joseph and Yoav Gonen: "The Brooklyn Democratic Party submitted paperwork with at least two forged signatures to the city Board of Elections as part of a bid to knock fellow Democrats off June primary ballots, a grassroots political organization alleges. On Thursday, Rep Your Block, a volunteer organization, lodged a complaint with the board, citing sworn affidavits from two registered Democrats in Brownsville and East New York who said the signatures on ballot challenges to candidates filed in their names weren't theirs. The 'filing of these objections with your agency amounts to the criminal act of filing a false instrument,' the complaint to the BOE states."

"NYC's Controversial Big Clean-Energy Project Just Got The Green Light," by Huffington Post's Alexander C. Kaufman: "New York state regulators on Thursday approved two massive transmission projects to carry clean electricity into New York City, boosting hopes that the nation's largest city could start to meaningfully wean off fossil fuels this decade. At a hearing in Albany, five out of the state Public Service Commission's seven members voted in favor of a proposal to construct power lines from hydroelectric dams in Québec and upstate New York solar and wind farms. Once completed, the two projects combined are expected to reduce New York City's demand for fossil fuels by 51%."

"Brooklyn Subway Attack Suspect Is Ordered to Be Held Without Bail," by The New York Times' Troy Closson and Rebecca Davis O'Brien: "Frank R. James, who federal prosecutors said carried out a violent and well-planned attack on New York's subway system this week, was ordered to be held without bail on Thursday during his first appearance in federal court. His lawyers asked a judge to ensure Mr. James received psychiatric care in jail, and later said their client had called a tip line to turn himself in. Mr. James's brief initial court appearance marked a new stage in a case that shocked a city already on edge about crime and safety. It was the bloodiest crime on the city's public-transit system in nearly four decades, and came as many New Yorkers were wading with trepidation back into the routines of prepandemic life."

— "Mental-health advocates brace for backlash after subway shooting," by Gotamist's Chau Lam: "Advocates for people experiencing mental illness are bracing for an onslaught of blame after it was revealed that the man charged with carrying out one of the worst attacks on New York's subway system said he had a history of mental disorder. … High-profile incidents, the alleged gunman's mental-health may become the focus of a rallying call to force people diagnosed with psychiatric disorders to undergo treatment against their will, said Harvey Rosenthal, chief executive officer of the New York Association of Psychiatric Rehabilitation Services, an advocacy group."

FIRST IN PLAYBOOK — Dozens of faith leaders are calling on Mayor Eric Adams to stop sweeps of homeless encampments – and disputing his comments that Jesus's apostles would support his policies. Speaking to a gathering of clergy outside City Hall last week, Adams said, "I can't help but to believe that if Matthew, Mark, Luke and John was here today, he would be on the streets with me helping people get out of encampments." In a letter to the mayor, 56 ministers, rabbis and others begged to differ. "When you separate people from their belongings and makeshift homes on the streets, and fail to provide them with a better option, you are only shuffling people around and traumatizing them further," they wrote, urging the expansion of single-room shelters rather than traditional congregate shelters that many homeless people avoid. "Please stop the sweeps, and start prioritizing getting folks housed." — Erin Durkin

WHAT ALBANY'S READING

"N.Y. Democrats back election law change to remove former Lt. Gov. Brian Benjamin from ballot," by New York Daily News' Denis Slattery: "Advocates and Democratic lawmakers have devised a way to boot recently indicted ex-Lieutenant Gov. Brian Benjamin from the ballot. Or at least prevent another problem like the one Dems will face in two months when Benjamin's name will still appear on the June 28 primary ballot despite his resignation after being indicted earlier this week on federal corruption charges. An election law change being proposed by Common Cause/NY and sponsored by Assemblywoman Amy Paulin (D-Westchester) would allow a candidate to step off the ballot if they are indicted for a crime, have resigned from the office they are seeking or are diagnosed with a life-threatening illness."

— 'We did not have the truth': Hochul scrutinized for Benjamin pick, by POLITICO's Joseph Spector: When Gov. Kathy Hochul selected Brian Benjamin as her lieutenant governor just two days after being hastily sworn in as governor, she said her administration was "going to attract the best and the brightest." Now Hochul faces a bevy of criticism in an election year from her political foes for picking Benjamin and new questions over a flawed vetting process after the Harlem Democrat was arrested Tuesday by the U.S. Attorney's Office and charged in a federal bribery scheme involving his run for New York City comptroller last year. "Once again, it took leadership from others to try and fix this massive error in judgment," Republican gubernatorial candidate Lee Zeldin said in a statement. "Hochul owns this mess."

"New York approves first round of 50 adult-use marijuana growing licenses," by New York Daily News' Denis Slattery: "New York's budding cannabis industry is growing by leaps and bounds. The state's Cannabis Control Board on Thursday approved the first batch of 52 adult-use cannabis cultivation licenses allowing already established Empire State hemp farmers to begin growing marijuana for recreational use. Approval for the farmers comes two months after Gov. Hochul signed legislation creating a new Conditional Adult-use Cannabis Cultivator license that ensures existing hemp growers would get first crack at getting seeds in the ground."

" Prison Officials Block Most Requests from Terminally Ill New Yorkers for Medical Release," by New York Focus' Victoria Law: "If anyone were too sick for prison, Jose Medina thought, it would be him. Medina was 27 years old when he entered New York's prison system. Four decades later, at 68, he's still behind bars — and afraid that he may die there. In 2005, he was diagnosed with lung cancer, which necessitated a complete removal of his left lung and a partial removal of his right lung. He survived the cancer, but was left with chronic respiratory disease and severe emphysema. He now depends on inhalers and, at times, a breathing machine. The following year, he applied for medical parole. His request was denied."

"Andrew Giuliani rips Lee Zeldin as Cuomo clone in ugly GOP ballot battle," by New York Post's Carl Campanile: "Republican gubernatorial hopeful Andrew Giuliani ripped into rival Lee Zeldin as a clone of disgraced ex-Gov. Andrew Cuomo after accusing the Zeldin camp of leading an effort to have him knocked off the primary ballot. Giuliani, the son of former New York City Mayor Rudy Giuliani who served as a White House aide to former President Donald Trump, filed 24,579 signatures to qualify for ballot status. Fifteen thousand valid signatures from registered Republicans are needed to earn a spot on the ballot. But specific objections were filed Thursday with the state Board of Elections against at least 8,776 signatures collected by Giuliani."

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FROM THE DELEGATION

"Tom Suozzi faces possible ethics probe over his reporting of stock investments," by New York Post's Carl Campanile: "The House Ethics Committee announced Thursday that it has extended a probe into the finances of Long Island Rep. Tom Suozzi, a Democratic candidate for governor. A complaint was filed with the US Office of Congressional Ethics last August claiming Suozzi failed for years to timely report stock transactions as required under the Stock Act and House rules. 'The Chairman and Ranking Member of the Committee on Ethics have jointly decided to extend the matter regarding Representative Thomas Suozzi, which was transmitted to the Committee by the Office of Congressional Ethics on February 28, 2022,' the statement said."

"Rep. Ritchie Torres takes ghost gun fight to Congress after DOJ rule," by New York Daily News' Tim Balk: "As the Biden administration works to reel in the raging spread of so-called ghost guns with a new Justice Department rule, Rep. Ritchie Torres said Thursday that he was taking aim at the lethal kit-assembled weapons by taking the fight to Capitol Hill. Torres, a Bronx Democrat, said he plans to introduce legislation on Monday that would allow private parties to sue manufacturers of ghost gun parts after shootings. The long-shot legislation would appear to face a Sisyphean path in Congress, where stringent gun-control proposals tend to wilt."

AROUND NEW YORK

— Former Nassau County Executive Edward Mangano was sentenced to 12 years in prison in a bribery case.

— Columbia University president Lee Bollinger is stepping down after two decades in the job.

— A former state lawyer claims in a lawsuit he was fired for cooperating with the sexual harassment probe into ex-Gov. Andrew Cuomo.

— A school safety agent was slashed in the neck by an intruder at a Bronx school.

— Richmond Hill community calls for peace after attacks against Sikh men.

— Electric cargo bikes became popular for parents taking their children to different parts of the city.

— Beginning in 2023,'X' will be a gender option on all New York state forms.

SOCIAL DATA BY DANIEL LIPPMAN

HAPPY BIRTHDAY: POLITICO's Anna Gronewold … Sarah Bloom Raskin … Tom Rosenstiel … Alexandra Hudson … Max Neuberger … Newsha Ghaeli of Biobot … Cameron McRae … FTI Consulting's Cheyenne Hopkins … MSNBC's Brian Montopoli … (was Thursday): Micah Fergenson

MAKING MOVES – Jessica Kelley is joining the Association for Behavioral Health and Wellness as a policy manager. She previously was a legislative assistant for Rep. John Katko (R-N.Y.).

WEEKEND READS: Today, POLITICO's The Recast launched the second installment of the Next Great Migration – its series exploring the immense shift in Black population out of American cities, and how that's changing politics and power. Today's stories focus on Washington, D.C. Nine of the 10 American cities with the largest Black populations experienced a decline in Black residents over the past two decades, according to census data analyzed by POLITICO. This includes New York.

9 out of 10 U.S. cities with the most Black residents saw significant decreases since 2000.

Ming Li/POLITICO

Real Estate

"SoHo Rezoning Faces Yet Another Lawsuit, This Time From NYU," by Commercial Observer's Mark Hallum: "New York University has joined the ranks of those filing a lawsuit against the controversial rezoning of SoHo and NoHo, passed in the final days of Mayor Bill de Blasio's tenure. The university filed the suit on Thursday, arguing that sections of the rezoning stopping college and university use in the neighborhood is a violation of New York state's Cornell Doctrine, which prohibits blanket exclusions of school or church uses in the area. Even though the school — which has previously expanded greatly in the surrounding neighborhoods — claims it has no plans for new classrooms or dormitories in the rezoning area, it still filed a suit to overturn the entire rezoning in New York State Supreme Court."

"At Bronx Welcome Center, NYC Tests New Approach to Shelter for Street Homeless," by City Limit's David Brand: "The hotel, long used as a shelter for New Yorkers experiencing homelessness, was abruptly converted into a so-called "Welcome Center" for unsheltered New Yorkers by DHS and the nonprofit Acacia in late March. The facility seems to signify a somewhat different approach to addressing street homelessness for Mayor Eric Adams as he continues to prioritize sweeps of outdoor encampments and subway cars, with police cracking down on people who refuse to leave. The Bronx location functions as a "pre-assessment" site with 84 short-term beds for people who agree to move out of public spaces, DHS said."

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