Developers can now start applying for a new density bonus.
The Department of Housing Preservation and Development on Tuesday released an application for the Universal Affordability Preference, or UAP, program.
The program was created as part of the City of Yes for Housing Opportunity and replaces the city’s voluntary inclusionary housing program. UAP does not provide as big a bonus as its predecessor. Under the new program, which provides a 20 percent density bonus, any additional space must be dedicated to affordable housing. VIH provided an up to 3.5-square-foot bonus per every square foot of affordable housing.
Rents in the affordable units must cater to those who, on average, earn no more than 60 percent of the area median income. For projects where affordable housing takes up 10,000 square feet or more, at least 20 percent of the affordable floor area must be rented to those earning at or below 40 percent of the area median income.
In the lead-up to the passage of City of Yes, I heard from developers who were unhappy about the reduction of the bonus. They also objected to the proposed elimination of the option for developers to build required affordable units off-site. That option was restored for certain areas by the City Council.
The city is also working to finalize rules for the revamped J-51 property tax break, which provides an abatement to owners renovating their rental buildings, condos or co-ops. The break is worth up to 70 percent of the cost of the renovation work, split up over 20 years.
The City Council revived the program in December, but one of the most contentious aspects of the tax break — a schedule of reasonable costs on which the value of the abatement is calculated — is still being worked out.
Owners must rely on a tentative list of reasonable costs in the meantime. Property owners who completed renovation work before December 31, 2024, must apply for the tax break by April 30. Owners who completed work after that must file an application within four months of finishing the renovation.
What we’re thinking about: Are you planning to apply for the J-51 tax break? Send a note to kathryn@therealdeal.com.
A thing we’ve learned: Two Trees Management gave former Gov. Andrew Cuomo’s super PAC, Fix the City, $250,000, campaign finance records show. Other recent real estate donations to the PAC include: $50,000 from an entity tied to L&M executives Ron Moelis and Lisa Gomez and $25,000 from the Douglaston Companies.
Elsewhere in New York…
— Food and beverage company Chobani (best known for its yogurt) is building a $1.2 billion factory in Rome, N.Y., Gov. Kathy Hochul announced Tuesday. The company, which opened its first plant in New York in 2005, is building a 1.4 million-square-foot facility capable of manufacturing more than one billion pounds of dairy products per year.
— Three prosecutors who have been on administrative leave since refusing to drop criminal charges against Mayor Eric Adams at the behest of the Justice Department have resigned, Politico New York reports. The prosecutors, Celia Cohen, Andrew Rohrbach and Derek Wikstrom, quit due to what they described as pressure from the Justice Department to admit wrongdoing before returning to the Manhattan U.S. Attorney’s office. “It is now clear that one of the preconditions you have placed on our returning to the Office is that we must express regret and admit some wrongdoing by the Office in connection with the refusal to move to dismiss the case,” they wrote in a letter to Deputy Attorney General Todd Blanche. “We will not confess wrongdoing when there was none.”
— New Yorkers are, in fact, worried about the lateness of the state budget. A new Siena College poll found that 72 percent of voters surveyed between April 14 and 16 are concerned that the spending plan has not yet been approved, and 31 percent said they were very concerned, City & State reports. Only 2 percent did not have an opinion. Still, those surveyed also indicated they believed the governor should hold up the budget for non-fiscal policy priorities, including her proposal to ban cellphones in school and amend rules around evidence sharing in criminal cases.
Closing Time
Residential: The priciest residential sale Tuesday was $7 million for a 4,157-square-foot condominium unit at 60 Warren Street in Tribeca. Nick Gavin Properties at Compass had the listing.
Commercial: The most expensive commercial closing of the day was $27.5 million for a 5,391-square-foot retail property at 97 North Sixth Street in North Williamsburg. City Urban Realty sold the property to Arcadia Realty Trust.
New to the Market: The highest price for a residential property hitting the market was $16 million for a 5,975-square-foot house at 25 Grace Court in Brooklyn Heights. Brandon Bogard at SERHANT has the listing.
Breaking Ground: The largest new building application filed was for a 730,492-square-foot inpatient medical facility at 431 East 66th Street in Lenox Hill. Michael Ritchie of AAI Architects filed the permit on behalf of Memorial Sloan Kettering Cancer Center.
— Matthew Elo