News : POLITICO New York Playbook: City advances on rent hikes

Friday, May 6, 2022

POLITICO New York Playbook: City advances on rent hikes

May 06, 2022

By Erin Durkin, Anna Gronewold and Deanna Garcia

Presented by Compassion & Choices

The biggest rent hikes since the Bloomberg administration are on tap for New York City's million-plus rent stabilized apartments, after the Rent Guidelines Board voted last night to approve jumps of 2 to 4 percent for one-year leases and 4 to 6 percent for two-year leases.

The vote signals a new approach under Mayor Eric Adams, who has expressed sympathy for small landlords, and a departure from the eight years of Bill de Blasio, who oversaw rent freezes or small increases. The board did, however, set a lower limit than had been suggested in a report last month, which floated hikes up to 9 percent over two years. The vote came in closely divided, at 5 to 4.

Tenants and landlords alike have suffered from the Covid-19 pandemic, with many tenants still deep in debt and landlords losing out on rent payments. After a moratorium, evictions recently resumed and have been growing in number . But Adams took a friendlier stance to property owners, saying that landlords have been "decimated" by the pandemic. "We must be fair here, allow tenants to be able to stay in their living arrangements, but we need to look after those small mom-and-pop owners," he said last month.

Not that the owners were satisfied with the larger hikes. "These preliminary ranges have proven our biggest fear — that the RGB continues to believe its duty is to operate solely as an affordability program for tenants," said Rent Stabilization Association president Joseph Strasburg. But Sheila Garcia, one of the board's tenant members, pointed out that more than a quarter of people living in rent stabilized apartments are already paying half their income in rent. "Tenants are still struggling to survive," she said.

City Comptroller Brad Lander said the math doesn't add up, arguing that the board's own method for calculating costs justifies a hike no higher than 2.7 percent for one-year leases. "Every penny above that is capitulating to landlords' demands to extract more from tenants who are under increasing financial strain from inflation and unemployment rates that remain double the national average," he said.

Last night's vote is preliminary, but typically sets a range the board will stick to. They'll narrow it down to a specific number and take a final vote in June.

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 an announcement with New Jersey Gov. Phil Murphy at the Regional Plan Association Centennial Assembly.

WHERE'S ERIC? Delivering remarks on construction safety, Department of Correction Officers and Small Business Week, announcing redevelopment of One Times Square, and meeting with Consul General of Qatar.

A message from Compassion & Choices:

Lawmakers have the power to give New Yorkers autonomy at the end of life and stop needless suffering by passing the Medical Aid in Dying Act. 1 in 5 Americans now has access to the compassionate option of medical aid in dying, including our neighbors in NJ and VT. Stacey Gibson, whose husband died an agonizing death, is raising her voice so no one else's loved one has to suffer at the end of life.

What City Hall's reading

Poll finds crime, cost of living concerns across New York City region, by POLITICO's Erin Durkin: The wealthy and suburban are souring in their view of the metropolitan region's future — while city dwellers and those with lower incomes have become more optimistic about where things are headed, according to a new poll. Crime has narrowly outstripped the high cost of living as the top threat residents see to the New York City metropolitan area, the survey by the independent nonprofit Regional Plan Association found. The poll found broad support for two of Mayor Eric Adams' policies that have sparked controversy: his blueprint to tackle gun violence, and the push to remove homeless people from the subway system. And more people are returning to the transit system, with the share who ride frequently getting closer to pre-pandemic total. Those staying away cite crime as a top obstacle to returning.

Police commissioner goes against union, siding with family of slain man in officer discipline case, by POLITICO's Sally Goldenberg: Mayor Eric Adams met virtually last month with the relatives of six people killed by NYPD officers. Now, his administration is heeding one of their top requests by overruling the city's rank-and-file police union in a pending discipline case. The determination, which criminal justice reform advocates shared with POLITICO Thursday, contradicts the Police Benevolent Association's wish to have the issue handled by the NYPD rather than the Civilian Complaint Review Board — the city's police oversight panel. Police Commissioner Keechant Sewell penned a letter to the CCRB informing the board it could proceed with its case involving Officer Wayne Isaacs, who fatally shot 37-year-old Delrawn Small in Brooklyn six years ago, agency spokesperson Clio Calvo-Platero said.

— "NYPD to blow OT budget again as cops flood streets to combat crime surge," by New York Post's Bernadette Hogan and Craig McCarthy: "The NYPD is expected to blow past its overtime budget by nearly $150 million — after already almost burning through its allotted funds earlier this year, a new projection shows."

— A new bill introduced in the City Council would require the Department of Investigation to maintain a referral system for complaints about NYPD officers lying in court.

"Hollywood agent is latest controversial figure in NYC Mayor Adams' entourage," by New York Daily News' Chris Sommerfeldt: "Since taking office over four months ago, Mayor Adams has raised some eyebrows for the company he keeps — and the latest addition to his entourage is a high-powered Hollywood talent agent once accused of sexual harassment. Adams has in recent months spent many evenings with Cade Hudson, a Creative Artists Agency agent who counts Britney Spears, Sean Penn and Emma Roberts among his clients, according to two sources with direct knowledge of the matter."

" As fatal crashes spike, Adams blows deadline for recommending solutions," by Gothamist's Jake Offenhartz: "As Mayor Eric Adams pledges to crack down on the surging rates of traffic fatalities, his administration is falling short of a legal mandate to make improvements on some of the city's most dangerous streets. In spring of last year, in response to longstanding complaints about the NYPD's handling of crash investigations, the City Council voted to create a crash analysis and safety unit within the Department of Transportation. The legislation cast the DOT as the primary agency in charge of street safety, requiring it to conduct 'systematic evaluations' of crash sites before making quarterly recommendations on street design interventions, according to the bill's sponsor, former Councilmember Ydanis Rodriguez — now the department's commissioner. More than a year later, as traffic deaths have reached their highest level in nearly a decade, the highly-publicized unit has shown little signs of progress."

"City Council bill would nix extra tax to help eateries recover COVID ," by New York Post's Bernadette Hogan: "City officials want to temporarily nix an extra city tax incurred by bars and restaurants in a move aimed at helping the hard-hit industry in its ongoing COVID-19 recovery. The potential relief is included in a new City Council bill introduced Thursday by Democratic Majority Leader Keith Powers that would suspend an annual 25 percent city surcharge eateries pay for their liquor licenses."

— Adams is supporting a City Council bill that would suspend the city's liquor license tax.

STEP INSIDE THE WEST WING: What's really happening in West Wing offices? Find out who's up, who's down, and who really has the president's ear in our West Wing Playbook newsletter, the insider's guide to the Biden White House and Cabinet. For buzzy nuggets and details that you won't find anywhere else, subscribe today.

WHAT ALBANY'S READING

"Hochul says New York may need federal help with abortion services," by Spectrum's Nick Reisman: "New York may need federal assistance if there is an influx of women seeking abortion services in the state, Gov. Kathy Hochul said Thursday in an interview. It's not clear what support New York would seek from the federal government. Such assistance may be constrained by the Hyde amendment, which bars federal money being used to pay for abortions with exceptions made for rape or incest. 'This is an area where the Biden administration can help us financially,' Hochul told MSNBC on Thursday. 'We would appreciate that support because, you know, this is going to be an enormous cost to us. But we want people to feel this is a safe harbor mean, this is a fundamental right under assault.' Hochul and Democratic elected officials are expected to move in the coming weeks to approve new measures designed to strengthen the state's abortion laws ahead of a pending Supreme Court ruling expected in late June or July that could overturn the landmark Roe v. Wade ruling."

"Antonio Delgado gave up a seat in Congress to take on a role that has very little institutional power ," by City & State's Rebecca C. Lewis: "According to the state Constitution, the lieutenant governor has just two concrete responsibilities: to preside over the state Senate, and to serve as second in line to succeed the governor. The latter role became relevant just last year when Hochul stepped up to replace former Gov. Andrew Cuomo when he resigned. But more often than not, the need does not arise. Former Gov. David Paterson, who served as lieutenant governor to former Gov. Elliot Spitzer, is one of the few who fulfilled the role the LGs wait for. Paterson told City & State about a 2008 meeting of the National Lieutenant Governors Association he hosted in 2008 as an example of the overall lack of power they have. 'I told them that we were going to have classes on how to shoot down a plane, how to put sugar in a car engine and how to perform fake CPR,' Paterson joked of various forms of sabotage that would take out a governor. 'So the lieutenant governor's position has always been a source of antics and humor and that kind of thing.'"

"How federal, state money could supercharge Buffalo's waterfront projects ," by Buffalo News' Jerry Zremski: "Six months after Rep. Brian Higgins outlined a proposal to spend $189.5 million in infrastructure funding to supercharge redevelopment of Buffalo's waterfront, key pieces of that plan are already falling into place. It's not all been Higgins' doing, either. The new state budget, along with money Higgins obtained in the federal budget process, are combining to bring some of his suggestions to fruition. …To hear Higgins tell it, the funding for waterfront projects shows the confluence of last year's $1.1 trillion federal infrastructure bill and the current array of state power players who hail from Buffalo: Gov. Kathy Hochul, Assembly Majority Leader Crystal Peoples-Stokes and State Sen. Timothy M. Kennedy, who chairs the Senate Transportation Committee."

"COVID still surging in New York as numbers edge up in NYC: Hochul," by New York Daily News' Dave Goldiner: "COVID cases and hospitalizations rose Thursday across New York State although the surge is easing in some of the worst hit areas upstate, Gov. Hochul announced Thursday. More than 10,000 new positive cases were reported in the most recent 24 hours as the ultra-contagious BA.2 sub-variant of omicron continues to spread fast. The statewide positivity rate stood at 7.53%, above the seven-day average and a sign that numbers are still rising."

#UpstateAmerica: The "Super Flea" is coming back.

A message from Compassion & Choices:

AROUND NEW YORK

— Aaron Judge and Anthony Rizzo appear to have gotten vaccinated to comply with Toronto's mandate, despite Mayor Eric Adams carving out an exception for professional athletes in New York.

— The City Council passed legislation to require a report on conditions in city parks and how to fix deficiencies.

— A man wrongly convicted of murder will get $10.5 million in a lawsuit settlement.

— A cyclist was struck and killed by a private garbage truck in Brooklyn.

— Police shot a man who allegedly stabbed a cop in the hand in Coney Island.

— An investigation into subway policing launched more than two years ago by the state attorney general hasn't reached any conclusions.

— An alleged Colombian drug cartel leader was extradited to face charges in New York.

— State marijuana regulators gave 36 additional New York farmers the green light to begin growing cannabis.

— The Times Union looks at how New York's timeline to open recreational marijuana dispensaries measures up to other states that have legalized the drug.

— State Sen. John Mannion wants to extend coverage for workers' compensation to workers who contract Lyme disease and other tick-borne illnesses while working outdoors.

— A former public official who vehemently opposed short-term rentals listed her own Hudson home and folks were not happy.

— Starbucks workers in Buffalo held a one-day strike.

— The MTA has documented a recent surge in the number of subway cars tagged with graffiti, nearly double so far this year from the same time period in 2019.

— There's a bipartisan push to make it a misdemeanor to send unwanted penis pictures.

INTRODUCING DIGITAL FUTURE DAILY - OUR TECHNOLOGY NEWSLETTER, RE-IMAGINED: Technology is always evolving, and our new tech-obsessed newsletter is too! Digital Future Daily unlocks the most important stories determining the future of technology, from Washington to Silicon Valley and innovation power centers around the world. Readers get an in-depth look at how the next wave of tech will reshape civic and political life, including activism, fundraising, lobbying and legislating. Go inside the minds of the biggest tech players, policymakers and regulators to learn how their decisions affect our lives. Don't miss out, subscribe today.

SOCIAL DATA BY DANIEL LIPPMAN

HAPPY BIRTHDAY: Jamie Gorelick … Liza Romanow ... Benjamin Levine of BlackRock … Cardinal Timothy Dolan, archbishop of New York … CBS' Lisa Ferri ... Joe Nocera … Benjamin Levine of BlackRock … Abraham David Sofaer … Martha Nussbaum

MAKING MOVES — Darrell P. Wheeler has been appointed president of SUNY New Paltz by the SUNY Board of Trustees. Wheeler, who currently serves as provost and senior vice president for academic affairs at Iona College and has decades of experience, steps into the new role July 18. … Weil Gotshal partner Lori Pines has been named the firm's first chief wellness officer. Pines, a veteran complex commercial litigator, has had a 30-year tenure at Weil. … Sezlyn Robertson has joined the Parkside Group as a policy associate. She was previously an aide to then-Assemblymember Robert Rodriguez.

… Allan Schoenberg has been promoted to be chief communications officer at Vinson & Elkins, while Aubrey Bishai has been named chief innovation officer and Randi Revisore as chief business development officer. ... Deborah Martin Owens is now global director of diversity equity and inclusion at Vinson & Elkins. She most recently was East Coast diversity director at Sidley Austin.

MEDIAWATCH — "The Tucker Carlson origin story ," by Insider's Aaron Short

A message from Compassion & Choices:

A river, a mountain, a zip code -- these things prevent New Yorkers from access to compassionate care at the end of life. That's why Stacey Gibson is asking lawmakers to give New Yorkers the same access to comprehensive end-of-life care that our neighbors in New Jersey and Vermont (and 8 other states) already have. Stacey Gibson's beloved husband Sid was diagnosed with a rare degenerative motor neuron disease. When his treatment options ran out and he began to suffer, Sid decided to stop eating and drinking. It took twelve days for him to die. His slow, agonizing death was exactly what he feared and haunts Stacey to this day. Access to the compassionate option of medical aid in dying would ensure that no one's loved one is forced to suffer the way Sid did. It's time our lawmakers stop needless suffering and PASS the Medical Aid in Dying Act.

Real Estate

"Rising rates slow new development sales in Brooklyn, Queens," by The Real Deal's Joe Lovinger: "The buying frenzy that's defined New York's new development scene for the past year is showing signs of calming. But that's not necessarily good news for all condo hunters. New developments in the city reported 397 signed contracts for sponsor units in April, a 14 percent dip from March, according to a new report from Marketproof. Most of the decline can be attributed to Brooklyn and Queens, where activity plummeted 26 percent and 24 percent, respectively. Typically less expensive than those in Manhattan, new developments in the outer boroughs attract a class of buyers more heavily reliant on mortgage financing, and thus more sensitive to rising interest rates. As it's grown more expensive to borrow in recent months, some buyers have pulled back, while high-rolling Manhattanites who can make all-cash offers aren't as phased."

Follow us on Twitter