Wednesday, June 22, 2022

POLITICO New York Playbook: A Bloomberg-esque rent increase

Presented by Equinor: Erin Durkin and Anna Gronewold's must-read briefing informing the daily conversation among knowledgeable New Yorkers
Jun 22, 2022 View in browser
 
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By Erin Durkin, Anna Gronewold and Julian Shen-Berro

Presented by Equinor

New York City tenants are in for their biggest rent hikes in nearly a decade after a city board voted last night to let landlords of a million rent stabilized apartments hike rents by 3.25 percent for one-year leases and 5 percent for two year leases.

It's the first such vote under Mayor Eric Adams and signals a sea change from Mayor Bill de Blasio's tenure, when the Rent Guidelines Board enacted multiple rent freezes and one-year hikes that topped out at 1.5 percent. The last time a significant increase was approved was in 2013, when Mike Bloomberg was mayor.

Amid howls of protest, one of those expressing frustration is… Adams, despite the fact that he appoints the members of the board. He distanced himself from the decision, saying: "While we raised our voices and were successful in pushing the increases lower, the determination made by the Rent Guidelines Board today will unfortunately be a burden to tenants at this difficult time — and that is disappointing."

But he also again expressed sympathy for landlords dealing with rising costs. "Small landlords are at risk of bankruptcy because of years of no increases at all, putting building owners of modest means at risk while threatening the quality of life for tenants who deserve to live in well-maintained, modern buildings," he said.

Others aren't shy about pinning the hikes squarely on the mayor. "We had hoped that Mayor Adams would have used his bully pulpit, as the previous occupant of City Hall had, to fight for a freeze, but that was wishful thinking given his appointment of known anti-tenant members to the Board," said Adriene Holder, predicting a surge in homeless New Yorkers. The Met Council on Housing charged that "Mayor Adams' Rent Guidelines Board made a cruel and shameful decision," while city Comptroller Brad Lander said the board is "capitulating to property owners" with an increase higher than a realistic assessment of costs.

Landlords say they have not in fact gotten what they want — and their reps joined tenant representatives in voting against the plan in a close vote. Rent Stabilization Association president Joseph Strasburg said the vote "even in the face of the most alarming data in recent memory" on property tax, water, and energy costs shows that "this is a broken system." The consequences of the change will become clearer when they take effect in October.

IT'S WEDNESDAY. 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 economic development announcement at Regeneron Pharmaceuticals in Tarrytown.

WHERE'S ERIC? Touring a Covid-19 vaccination site for kids, speaking at the opening of an affordable housing project in the Bronx, raising a Haitian flag at Bowling Green Park, and making an announcement at Rikers Island.

QUOTE OF THE DAY: "Every time I take away a hot dog, I lose a vote." — Mayor Eric Adams, describing his health food crusade as "political suicide."

 

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What City Hall's reading

"NYC downgrades COVID-19 alert level from 'high' to 'medium,'" by NY1's Maya Rajamani: "New York City has downgraded its COVID-19 alert level, officials said Tuesday, citing a shift to 'the other side' of a recent wave of cases. The five boroughs have moved from a 'high' to 'medium' risk level, Mayor Eric Adams and the city's health commissioner, Dr. Ashwin Vasan, said in a joint press release Tuesday afternoon. The city had been at a 'high' alert level since May 17. 'Day after day, New Yorkers are stepping up and doing their part, and because of our collective efforts, we are winning the fight against COVID-19,' Adams and Vasan said in a statement."

"Parents seeking early COVID vaccines for kids under 5 strike out as NYC websites lag," by Gothamist's Sophia Chang: "New York parents seeking the COVID-19 vaccine for their infants and toddlers have had little luck so far. Despite the federal government authorizing the vaccines for children ages 6 months to 5 years old over the weekend, supplies of the Pfizer and Moderna shots have yet to be delivered, according to interviews with a half dozen pediatricians, pharmacies and clinics. City officials had vowed last week that the COVID-19 Vaccine Finder website would be updated 'beginning on June 21 … to find convenient locations across the five boroughs to vaccinate young children.' Appointments for 10 city-run sites were expected to open Tuesday under this pledge."

— Broadway theaters will be allowed to drop their mask mandates starting July 1.

— "Then-Mayor Bill de Blasio personally ordered the Sheriff's Department to crack down on a Staten Island pub that was flouting COVID protocols during the height of the debate over pandemic restrictions, new court papers reveal."

"Another person dies in city custody, DOC says — eighth so far this year," by WNYC's Ann Givens and David Giambusso: "Another person detained by the city Department of Correction has died, officials confirmed Tuesday, marking the eighth person to die in city custody this year and the second in as many days. Albert Drye, who was being held at Bellevue Hospital's Prison Ward, died at 11:34 a.m. according to information provided by The Legal Aid Society, which was representing him, and the DOC. The city did not provide information on the cause of death."

Adams' subway safety plan leans on straphangers, by POLITICO's Erin Durkin: Mayor Eric Adams thinks New Yorkers aren't doing enough to curb rising subway crime. Adams said Tuesday he is planning a "massive" campaign to teach straphangers "how to be a safe passenger" — as he announced that police have begun patrolling the transit system solo, rather than in pairs, so they can cover more ground. "We need to educate people," Adams said at a Brooklyn press conference.

WHAT ALBANY'S READING

Cuomo, Trump and Chris Farley get attention of attacks in New York's final GOP gubernatorial debate, by POLITICO's Bill Mahoney: As Andrew Giuliani piled the attacks on Rep. Lee Zeldin during the third and final Republican gubernatorial debate ahead of next Tuesday's primary, Zeldin decided to cut loose. "For somebody whose claim to fame is Chris Farley making fun of him on Saturday Night Live for being an obnoxious kid, who ends up becoming more obnoxious and gets kicked off the Duke golf team," Zeldin told Giuliani, who was mocked when he was a kid at the side of his father, Rudy, at his inauguration as New York City mayor in 1994. … The final gathering of the four Republicans seeking to be their party's nominee was held on Newsmax, a conservative cable station and a departure from the more traditional television stations that have hosted debates in New York. It was marked by a loose moderation style before a live crowd in Rochester where discussion repeatedly devolved into bitter back-and-forth that ignored the questions at hand.

— A total of 51,037 voters showed up to polling sites throughout the state in the first three days of early voting for this year's June primaries, according to the Board of Elections.

— The Hochul campaign has declared 'imminent victory' just a week out from the June 28 primary.

DOH COMMISSIONER Mary Bassett for Elle Magazine: " Without My Abortion, I Would Not Be New York's Health Commissioner"

"U.S. Supreme Court to decide NY v. NJ fight over port watchdog," by WNYC's Karen Yi: "The U.S. Supreme Court will take up a dispute between New York and New Jersey over the future of a port watchdog agency that was created 70 years ago to combat organized crime. On Tuesday, the court granted both states' joint motion to decide whether New Jersey can withdraw from the Waterfront Commission of New York Harbor, a watchdog agency established in 1953 through an interstate agreement approved by Congress. The court earlier this year temporarily halted New Jersey's plans to exit the commission. 'Governor Murphy is pleased that the U.S. Supreme Court has decided to hear the case regarding the Waterfront Commission in an expeditious manner, with briefs being filed this summer and fall,' Murphy spokesman Bailey Lawrence said in a statement."

"FBI ballot fraud investigation shifts to GOP elections commissioner," by Times Union's Brendan J. Lyons: "The focus of an FBI investigation that led to the recent guilty plea of a Troy councilwoman is shifting to Jason T. Schofield, the Republican Rensselaer County Board of Elections commissioner, according to multiple sources familiar with the matter. GOP employees at the board of elections have recently been subpoenaed to testify before a federal grand jury in Albany. The county also recently received a new federal grand jury subpoena that sought materials related to absentee ballots that had been handled by Schofield last year, including through a state-run online portal, the sources said."

" Ocasio-Cortez to Endorse Insurgent in New York Lt. Governor's Race," by The New York Times' Jeffery C. Mays and Grace Ashford: "For much of her first term, Representative Alexandria Ocasio-Cortez raised her profile by fighting for nationwide initiatives favored by the far left, like Medicare for All and the Green New Deal. But in recent months, Ms. Ocasio-Cortez, whose district includes parts of Queens and the Bronx, has shown a strong interest in more local issues, and in lifting the profile of people far closer to home. On Wednesday, Ms. Ocasio-Cortez will make her first statewide endorsement in the contest for lieutenant governor, backing Ana María Archila, an activist who some on the left believe has a chance of becoming the first Latina elected to statewide office."

#UpstateAmerica: Parts of Albany and Cohoes' Harmony Mills are joining Troy in getting "The Gilded Age" treatment.

 

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FROM THE DELEGATION

New York GOP roiled by feud with Stefanik at the center, by POLITICO's Olivia Beavers and Meridith McGraw: Bad blood is brewing between Rep. Elise Stefanik and the head of her home-state GOP. And the hotter it runs, the more it threatens to monopolize a Republican primary in her backyard. The tiff between Stefanik and New York GOP party chair Nick Langworthy began escalating this year when Langworthy jumped to support Rep. Lee Zeldin (R-N.Y.) for his gubernatorial bid while she was weighing her own statewide run, multiple Republican officials familiar with the matter said in interviews. It escalated from there after Langworthy nudged Rep. Chris Jacobs (R-N.Y.) into retirement over his decision to support an assault weapons ban, two well-placed Republicans said. Stefanik enraged the chair by quickly endorsing Carl Paladino in the race to replace Jacobs — whose seat Langworthy is running for too.

— Stefanik's late-May meet-and-greet event at the Brunswick Community Center bypassed town policies for political events at the venue.

" Former NYC Mayor Bill de Blasio nabs first endorsements for Congress," by New York Post's Sam Raskin: "So he does have friends! Ex-Mayor Bill de Blasio's congressional campaign is receiving backing from a former Brooklyn political mainstay, and a city lawmaker who represents parts of the borough and a union — his first official endorsements in the race. Marty Markowitz, who served as Brooklyn borough president from 2002 to 2013, is supporting de Blasio as he competes in the crowded contest for an open Brooklyn-Manhattan House seat."

— FIRST IN PLAYBOOK: Assemblymember Yuh-Line Niou, another candidate in the 10th District, will announce endorsements today from two progressives running for Democratic district leader in Brooklyn, Aaron Ouyang and Lydia Green. Both are insurgents running against the candidates backed by the Brooklyn Democratic party, whose leader has expressed support for de Blasio.

TRUMP'S NEW YORK

"Donald Trump Likely No Longer in Contempt of Court in New York Probe, State AG Says," by Bloomberg's Erik Larson: "Former President Donald Trump, who was fined for failing to comply with a New York subpoena in a probe of his real estate company, may finally be in compliance with a court order, according to the state's top law enforcement officer. Affidavits filed by Trump employees outlining record-retention policies at his business are likely sufficient to resolve a contempt-of-court finding against the former president that resulted in $110,000 in fines, a lawyer for New York Attorney General Letitia James said in a letter to a judge on Tuesday."

AROUND NEW YORK

The cab involved in a Manhattan crash that injured six people had 18 traffic violations since late 2019.

— A new visitor center will open next door to the Stonewall Inn.

Uber is bringing back the shared rides formerly known as Uber Pool that were suspended early in the pandemic.

— A federal judge upheld new solitary confinement limitations by dismissing a challenge filed by the state correction officers union last year.

— The federal government isn't too happy with the Port of Albany after it allowed tree cutting at a Hudson River site being developed for an offshore wind turbine tower assembly facility.

Cash, two firearms and drugs were among the items seized by customs officers on the Peace Bridge, which has a history of being less than peaceful.

SOCIAL DATA BY DANIEL LIPPMAN

HAPPY BIRTHDAY: AP's Jill Colvin … Apple News' Michael FalconeLauren Weiner of the ACLU … Brit Hume

WEDDING — Emily Mayer and Waleed Shahid, via NYT: "Ms. Mayer, 30 … now works as the director of the Progressive Caucus of the New York City Council. Mr. Shahid, 31, is a Democratic strategist and the spokesman for Justice Democrats … [T]he two were married at Gather Greene, an events space and retreat center in Coxsackie, N.Y."

WELCOME TO THE WORLD — Julia Marsh, a New York editor for Politico, and Shawn Cohen, senior reporter for DailyMail.com, recently welcomed Simon William Cohen. Pic

MAKING MOVES — Scott Matus has joined EV company Lucid Motors as a policy manager. He most recently worked for Rep. Yvette Clarke (D-N.Y.) as a senior policy adviser handling energy, environment and transportation issues. … Rich Feuer Anderson has hired Ben Harney, one of the top Democratic staffers on the House Oversight Committee, away from the Hill. Harney has worked for Chair Carolyn Maloney (D-N.Y.) since 2013, serving as her counsel and designee for House Financial Services' investor protection and capital markets subcommittee and most recently as deputy staff director on the Oversight Committee. … Sophia Templin has been promoted to be a director in the New York office of strategic advisory firm FGS Global. (h/t POLITICO Influence)

OUT AND ABOUT — Citi CEO Jane Fraser, Yankees greats Hideki Matsui and Joe Torre along with Mayor Eric Adams, headlined Japan Society's Annual Dinner in New York celebrating its 115th anniversary with a Mayoral Proclamation of "Japan Society Day" and message from Japanese Prime Minister Fumio Kishida at Cipriani 42nd Street with Stephanie Ruhle of MSNBC MC'ing along with Japan Society President Joshua Walker and new Chair Merit Janow. Also SPOTTED: New York Secretary of State Robert J. Rodriguez, Permanent Representative of Japan to the United Nations Ambassador Kimihiro Ishikane, Israeli Ambassador to UN Gilad Erdan, Ambassador and Consul General of Japan in New York Mikio Mori, Raymond McGuire, Kurt Tong and Fred Katayama.

Real Estate

"Council Bill Could Force NYC to Report Actual Homeless Shelter Census—Eventually," by City Limits' David Brand: "For years, policymakers, journalists and everyday New Yorkers have used a daily census published by a single municipal agency to gauge the extent of the city's homelessness crisis. On June 16, the day of the most recent report by the Department of Homeless Services (DHS), there were 46,543 people staying in adult and family shelters. But the actual number is much higher: thousands of people staying in city shelters run by other agencies—as well as some facilities administered by DHS—go uncounted, leading to funding shortfalls and policy gaps for victims of domestic violence, young people experiencing homelessness and New Yorkers coming in off the streets, advocates say. Data compiled by City Limits shows that more than 15 percent of the shelter population is excluded from the number touted as the daily homeless census.The City Council is now considering a legislative package that could overhaul homeless census reporting rules and force municipal agencies to publicize the true number of people staying in and exiting city shelters."

 

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