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The Daily Dirt: Governor to detail 421a plans
Hochul will unveil her budget proposals
A new 421a. An extension to the old one. Tuesday may bring some clarity to the governor’s agenda.
New York has another busy Tuesday this week: Gov. Kathy Hochul will unveil her executive budget, and Mayor Eric Adams will propose his own financial plan for the city.
Last Tuesday, Hochul laid out the broad strokes of her policy priorities, which include a new incentive for multifamily development and an extension to the construction deadline of the old one, 421a. The State of the State was sparse on details about what the governor is planning, but her budget is expected to provide specifics on her 421a replacement.
Here are the key questions:
1. Last year, the governor pitched extending the deadline four years. What length will she propose this time?
2. Will her new 421a look like the proposal she put forward in 2022?
3. The governor said she wants to test the legislature’s stated demand for “local control” by allowing the city to control its rules for housing development. That, combined with the phrasing of her State of the State book, indicated that she wants to let the city offer a 421a-like benefit and/or allow the city to shape one that the state would pass.
This approach has not worked for authorizing the city to legalize basement apartments or lift the floor-area ratio cap to allow more residential density. Why would it work for 421a? What minimum affordability standards will Hochul insist any city plan meet?
4. Will Hochul back a version of good cause eviction?
The governor also wants to re-up her proposal to lift the FAR cap and to allow NYC to legalize existing basement and cellar apartments. Keep an eye out for coverage of these and other issues in the governor’s budget.
What we’re thinking about: Who will buy $1.8 billion in commercial loans made by Signature Bank from the Blackstone-led venture? Send a note to kathryn@therealdeal.com.
A thing we’ve learned: “Lively Louie,” the talking litter basket, hit the streets of NYC in 1956. Per this 1963 account in the New York Times, the Department of Sanitation put a two-way microphone in trash bins and encouraged unsuspecting pedestrians to clean up after themselves. The agency also rolled out the cartoon character Phil D. Basket in 1965. Shout out to this Crain’s story, in which both characters are pictured alongside DSNY’s Joshua Goodman (who is the actual focus of the story).
Elsewhere in New York…
— Richard Hendersen, 45, was shot and killed on a No. 3 train in Brooklyn after trying to break up an argument between two other passengers over loud music in the car, the New York Times reports. As of press time, no arrests had been made.
— NYC libraries will likely stay open on Saturdays. Mayor Eric Adams announced on Sunday that the city’s public libraries will not face further cuts, Gothamist reports. Libraries were already grappling with $24 million in slashed funding that ended Sunday service. The budget dance is alive and well.
— The city is expected to see 1 to 3 inches of snow from Monday evening into midday Tuesday, Pix11 reports. Snow-melt may re-freeze later in the day. Alternate-side parking is suspended.
Closing Time
There were no sales or permits filed Monday because of the Martin Luther King Jr. holiday.
New to the Market: The priciest residence to hit the market Monday was a condo at 15 East 30th Street in NoMad asking $4 million. Corcoran Group has the listing. — Jay Young