News : POLITICO New York Playbook: Inside the demise of 421-a

Tuesday, May 31, 2022

POLITICO New York Playbook: Inside the demise of 421-a

May 31, 2022

Presented by the American Chemistry Council

With just three days until the legislative session wraps up in Albany, it's looking quite likely that a key real estate tax break will get left on the cutting room floor. Indeed, the blame game is already underway, our Sally Goldenberg and Joe Anuta report , as the 421-a program seems destined to expire this month without action from lawmakers.

It could have gone a lot differently, with moderate, real estate-friendly Democrats Eric Adams and Kathy Hochul at the helm and no Cuomo-de Blasio-style feud to complicate matters. But the real estate industry's optimism has faded, and most acknowledge a deal is highly unlikely before the program expires on June 15.

Progressives are just fine with that, calling the $1.8 billion tax break an unnecessary giveaway to developers that did little to promote affordable housing. But Adams wanted the program to continue, and Hochul proposed a revamped version known as 485-w.

What went wrong? It depends on who you ask. Some blame Hochul for failing to deliver during budget negotiations, instead kicking it to the end of the legislative session when her leverage waned. Others say Adams didn't make it a priority, instead focusing his energy on bail reform, and hasn't laid out a comprehensive housing plan and made the case for how 421-a fit in.

Either way, it's a tough sell among lawmakers, especially in an election year. "It's a bad program in a vacuum, and it has been abused by real estate," state Sen. Mike Gianaris. There was talk of making a deal to pair renewing the break with passing the "good cause eviction" law pushed by progressives, but real estate balked at that idea.

With rents already skyrocketing, the program's absence will inject further uncertainty into the housing crisis. "Not only does it produce rental housing, it's really the only tool we have to make sure there's affordable housing in higher-income neighborhoods," former Deputy Mayor Alicia Glen said.

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

T-3 SCHEDULED DAYS left in the 2022 legislative session. The Senate is planning to pass a package of abortion-related bills today.

WHERE'S KATHY? In New York City, making an announcement about East Side Access.

WHERE'S ERIC? Appearing on MSNBC's Morning Joe, kicking off gun violence awareness month, and speaking at a faith leaders response to mass killings event.

A message from the American Chemistry Council:

Only 10% of plastics are recycled using the antiquated recycling infrastructure New York currently relies on.

18 states have adopted cutting-edge technology to recycle 100% of plastics using advanced recycling facilities. Senator Mannion and Assemblywoman Hyndman's legislation (S.7891/A.9495) will make New York the 19th state to pave the way for billions of dollars in private investment and new green collar jobs in New York's sustainable economy. Say yes to advanced recycling; say yes to S.7891/A.9495.

WHAT CITY HALL IS READING

"Inmate awaiting trial on murder, robbery charges dies in custody on Rikers Island," by Gothamist's Herb Pinder: "Another person has died in custody on Rikers Island. Twenty-year-old Emanuel Sullivan was discovered unresponsive on his bed Saturday and pronounced dead about 4:25 p.m., the Department of Correction announced in a statement. Sullivan was the sixth person to die in city custody this year and the 22nd since January a year ago. Correction Department Commissioner Louis Molina said the cause of death has yet to be determined. All deaths in custody are investigated by the state Attorney General's Office and the city Department of Investigation."

— Legislation proposed by City Council Member Robert Holden would create a commission to study building a new jail complex on Rikers Island, rather than closing it and replacing it with borough based jails.

" It's Going to Be a Hot Summer. It Will Be Hotter if You're Not Rich," by The New York Times' Anne Barnard, Corey Kilgannon, Jazmine Hughes and Emma Goldberg : "As summer begins, danger lurks behind New Yorkers' joy at getting back to beaches and parks. Blazing heat is expected to blanket most of the country, setting records as it has for several years running. The Northeast is most likely to spike above average summer heat according to the National Oceanic and Atmospheric Administration. ... In New York, a city where life unfolds in public spaces, the ingredients are supposed to be available to all. Just as rich and poor share subways and sidewalks, anyone — in theory — can enjoy public pools, parks, libraries and tree-lined streets. But in practice, these public spaces do not serve New Yorkers equally."

"Rising COVID cases but no mask mandate? NYC Mayor Adams' decision sparks fear among frontline nurses: 'You get this lump in your chest,'" by New York Daily News' Josephine Stratman: "Aretha Morgan spent spring 2020 on the front lines of the COVID pandemic — and it has taken its toll. The pediatric emergency nurse now awakens at the slightest noise, her head is full of gray hairs and she goes to church more often. Memories of the days when ICUs overflowed, personal protective equipment was scarce and more than 700 New Yorkers died every day remain fresh for her and other frontline nurses. Now, as the city endures another surge in infections, Mayor Adams' decision not to reinstate an indoor mask mandate as cases rise has helped bring back those dark memories."

WHAT ALBANY'S READING

Big donors fuel Hochul's latest campaign haul, while Delgado starts with $2M in Lt. Gov. race, by POLITICO's Bill Mahoney: Gov. Kathy Hochul received the maximum contribution of nearly $70,000 from more than a dozen donors since mid-January, a campaign finance disclosure report submitted to the state Board of Elections on Friday showed. Hochul reported raising nearly $10.3 million, the fourth-large haul for a single filing period in state history. But only $138,000 of it — or 1.3 percent — came from contributors who gave $250 or less.

Meanwhile, $6.6 million came from those who gave $10,000 or more. That includes 14 donors who gave $69,700, the maximum amount that one source can give to a candidate for governor who will be on the ballot in a Democratic primary on June 28. Those big donors include the New York State United Teachers' VOTE/COPE PAC. That's a notable break in precedent: NYSUT is usually the top donor to Democrats in New York, but it's been a long time since they've given major sums to the top Democrat in the state.

" Jumaane Williams Owns the Left Lane. Why Hasn't His Campaign Taken Off?" by the New York Times' Jeffery C. Mays and Jesse McKinley: "After a competitive run for lieutenant governor four years ago, Mr. Williams generated excitement in progressive circles when he announced that he would challenge Gov. Kathy Hochul in her bid for her first full term. He had name recognition, charisma and a clear political lane: Ms. Hochul and another primary rival, Representative Thomas R. Suozzi, are considered centrist Democrats; Mr. Williams is backed by numerous progressive-oriented groups, including the Working Families Party. But Mr. Williams has failed to gain much momentum ahead of the June 28 primary. He is far behind in fund-raising, has not run any television ads, and has done far fewer campaign events than might be expected of a major candidate for governor. Beneath it all is an underlying issue, though Mr. Williams is careful not to blame his campaign woes on it: His wife was diagnosed with cervical cancer last year, and their daughter was born prematurely in February."

"After years of trying, NY is on the brink of requiring 'microstamping' technology for new handguns ," by WNYC's Jon Campbell: "Now, as New York reels from an increase in gun violence, gun-control activists appear on track for victory once again. This week, New York could become the second state in the U.S. to begin the process of mandating microstamping capability in newly manufactured handguns sold in New York. The push comes despite significant opposition from the firearms industry. Gun-control activists say they're hopeful the Democratic-controlled state Legislature will approve a measure advancing the initiative before lawmakers end their annual legislative session on Thursday."

"Cuomo ethics inquiry could die with outgoing commission," by Times Union's Joshua Solomon and Chris Bragg: "Former Gov. Andrew M. Cuomo was supposed to face an ethics hearing last month concerning whether he'd violated the law by using state employees to assist in the production of a book that netted him millions of dollars. But a presiding officer overseeing the hearing has postponed the date until Sept. 15, according to a filing by Cuomo's legal team on Thursday — and by that time, the state Joint Commission on Public Ethics will no longer be in existence, throwing the yearlong investigation's future into question. In July, the new Commission on Ethics and Lobbying in Government will replace JCOPE as the result of a deal tucked into this year's budget legislation."

#UpstateAmerica: Don't worry; the Plaza ducks are safe for now. A video that looked like a coyote hunting the Capitol-adjacent waterfowl was actually just someone's dog swimming. It's nothing like #budgetcoyote2k18.

A message from the American Chemistry Council:

TRUMP'S NEW YORK

"Trump's Federal Suit Against New York A.G. Is Dismissed," by The New York Times' Ben Protess, William K. Rashbaum and Jonah E. Bromwich: "In the latest legal blow to Donald J. Trump, a federal judge on Friday dismissed a lawsuit the former president filed that sought to halt the New York attorney general's civil investigation into his business practices. The ruling, in federal court in Albany, was Mr. Trump's second defeat related to the investigation in two days. On Thursday, an appellate court ordered Mr. Trump and two of his children to sit for questioning under oath from the office of the state attorney general, Letitia James."

AROUND NEW YORK

— Duanesburg parents are so divided about diversity and inclusion that they're using their infant and childrens' names to vote for PTA officers.

— A $2 million tabernacle was stolen from a Park Slope church.

— Ten people were injured at the Barclays Center when a loud noise people mistook for gunshots sparked a stampede.

— City beaches officially opened for the summer.

— Times Square is full of tourists again, but not office workers.

— Out-of-state residents appear to have gotten discounted in-state SUNY tuition because no one followed up on the box they checked, the state comptroller found.

— More trucks are hitting low-hanging bridges than ever before, and it's costing millions of tax dollars.

— The Catskills population is booming after decades of loss.

— Queens state Sens. John Liu and Toby Ann Stavisky will run in new districts after maps were redrawn.

— Two borough presidents proposed a plan to bring the city back into compliance with the right to counsel law for housing court.

— Albany lawmakers are pushing to put regulations on a largely unregulated immigration bail bond industry.

— " The Only Living Pay Phones in New York"

SOCIAL DATA BY DANIEL LIPPMAN

HAPPY BIRTHDAY: Matt Berman ... Michael O'Connor of Williams & Connolly … CNN's Sara Sidner … Juli Weiner … Zenia Mucha … Stripe's Sarah Heck … Ogilvy's Phil Elwood … Vidhya Murugesan … World Bank's Kelsey Kats … Bert Kaufman ... Bernard Goldberg … Grant Thornton's Howard Homonoff … Zofia Wawner … (was Monday): NBC's Frank Thorp … Treasury's Natasha Sarin … CNN's Eric Levenson … Ashley Bender Spirn … Brian Infante … Hunter Williams …

… (was Sunday): former Rep. Steve Israel (D-N.Y.) … NYT's Michelle Cottle and Kirsten Danis … Steven Levitt … The Forward's Jacob Kornbluh … Teddy Schwarzman ... Jake Adler … Alexander Berger … (was Saturday): Rudy Giuliani … Julie Hershey Carr … Edelman's Chris Donahoe … Coleen Jose … Isabella Moschen Storey … Kim Ton-That … (was Thursday): Deloitte's William Hatheway (h/t girlfriend Elizabeth Powell)

WEEKEND WEDDING — Libby Flores to Paul Morris, per NYT: "[Morris] works as the executive director of the House of SpeakEasy, a literary foundation in New York. Ms. Flores is a freelance writer and the associate publisher of BOMB Magazine."

MEDIAWATCH — " FT's How To Spend It magazine rebrands as big spenders go out of style: Newspaper says possible definitions of renamed HTSI include 'how to save it' as cost of living crisis bites," by The Guardian's Jim Waterson

MAKING MOVES — Saharra Griffin is leaving the White House, where she has been special assistant to the chair of the Council of Economic Advisers. She is heading to the MBA program at UPenn's Wharton School in the fall.

A message from the American Chemistry Council:

New York needs modern recycling solutions now. Only 10% of plastics are recycled using the antiquated recycling infrastructure we currently rely on, leaving the other 90% of plastics to inundate our environment and overfill local landfills – from Brookhaven to Seneca Meadows.

Fortunately, there's a recycling solution within reach. Senator Mannion (D-Geddes) and Assemblymember Hyndman (D-Queens) introduced legislation S.7891/A.9495 to bring advanced recycling technologies to New York; 21st century technologies that will pave the way for billions of dollars in private investment and new green collar jobs in the sustainable economy.

18 states have shown New York that advanced recycling can be done here. We can – and must – be next.

Say yes to advanced recycling; say yes to S.7891/A.9495.

Real Estate

"N.Y.C. Companies Are Opening Offices Where Their Workers Live: Brooklyn," by The New York Times' Matthew Haag: "More than 26 months after the pandemic sparked a mass exodus from New York City office buildings, and after many firms announced and then shelved return-to-office plans, employees are finally starting to trickle back to their desks. But remote work has fundamentally reshaped the way people work and diminished the dominance of the corporate workplace. Companies have adapted. Conference rooms got a makeover. Personal desks became hot desks, open to anyone on a first-come basis. Managers embraced flexible work arrangements, letting employees decide when they want to work in person. And some are taking more drastic measures to make the return to work appealing: picking up their offices and relocating them closer to where their employees live. In New York City, the moves reflect an effort by organizations to reduce a major barrier to getting to work — the commute — just as they start to call their workers back."

"The Men Lost to 20 Bruckner Boulevard ," by the New York Times' Dan Barry and Karen Zraick: "Two laborers board an elevator at the top of a five-story building under renovation in the Bronx. They wear construction helmets, reflective vests and face masks, none of which will do them any good. The older man, a supervisor, rarely talks about anything beyond what needs to be done at this work site at 20 Bruckner Boulevard. But he and his younger co-worker have become friends through a morning ritual: One buys the coffee and the other, the doughnuts. The job at hand is to take two waist-high containers of construction debris down to the ground. The doors are closed and a button is pushed. The elevator shudders, then drops. The floor seems to vanish beneath the men's work boots. They scream as they plummet. A crash. Then stillness, save for clouds of disturbed dust."

"NYCHA's federal monitor has spent $32M in city cash, key reforms not done: report," by New York Post's Nolan Hicks : "The federal monitor installed to overhaul the city's embattled Housing Authority has spent at least $32 million so far — and still has not ordered overhauls of labor contracts and other key reforms that could stabilize the cash-strapped agency, a blistering new report reveals. The federal government selected Bart Schwartz and his firm Guidepost Solutions to head the oversight effort three years ago as part of a settlement with City Hall that left the Big Apple responsible for the watchdog's tab."

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