The Real Estate Board of New York to The New York City Council Committee on Housing and Buildings regarding Intro 850, T2024 2764; T2024 2765, and Resolution 524

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The Real Estate Board of New York (REBNY) is the City's leading real estate trade association representing commercial, residential, and institutional property owners, builders, managers, investors, brokers, salespeople, and other organizations and individuals active in New York City real estate. REBNY appreciates the opportunity to provide testimony on the items before the Housing and Buildings Committee.

BILL: Intro 850

SUBJECT: This bill would require the department of housing preservation and development (HPD) to report on the disposition of city property for affordable housing development.

SPONSORS: Council Members Salamanca, Louis, Restler, Farias

Intro 850 would require HPD to submit quarterly reports to the Council regarding affordable housing development projects that included the sale, disposition or lease of city owned property. The quarterly reports would include the amount of city financial assistance received by the developer, the date the project received ULURP approval, and the estimated and actual closing dates for any financial assistance provided by the City.

REBNY supports the further expansion and understanding of the financing measures necessary to construct affordable housing in New York City, inclusive of the provision of land to do so. Reports made available to the Council should also be made available online. REBNY recommends that the bill be amended to clarify that the report should be made available online in a searchable database, consistent with other uploads to open data.

BILLS: T2024-2764; T2024-2765

SUBJECT: These bills would amend the administrative code to permit the construction of ancillary dwelling units and establish a pilot program to convert existing basement or cellar apartments to habitable dwelling units.

SPONSORS: Council Member Sanchez (by request of Mayor)

In combination, these two proposed bills will create a pilot program for the legalization of basement and cellar apartments, in select community districts, and defining such uses.

• T2024-2764 would require the Department of Environmental Protection ("DEP"), in consultation with the Department of Buildings ("DOB"), to promulgate rules creating an interim 10-year and 100-year rainfall flood risk area map. This bill would require such a map to be updated before January 1, 2028 and posted on DEP's website. This bill would also amend the definition of "flood hazard area" to include ancillary dwelling units ("ADU") constructed in basements or cellars or constructed in rainfall flood risk areas and coastal flood risk areas as identified by DEP. Additionally, this bill would set forth eligibility and design requirements for ADUs in one- or two-family dwellings, including but not limited to number of entrances and windows, lighting and ventilation, ceiling height, utilities, and fire protection systems.

• T2024-2765 would establish a basement and cellar dwelling unit legalization program in certain community districts. Building owners would be able to apply for an authorization for temporary residence for units that existed prior to April 20, 2024. The Department of Buildings would inspect such units prior to issuing an authorization and, if issued, the building owner would be permitted to do any necessary construction on the unit to legalize the unit and apply for an amended or partial certificate of occupancy. The Department of Housing Preservation and Development would be required to provide financial and technical assistance and outreach to owners of eligible basement or cellar residences. Tenants who resided in the basement or cellar unit on April 20, 2024 would have a right of first refusal to return to such unit upon its first occupancy following any necessary alterations.

New York City is facing a housing crisis, driven by a severe lack of production and a shortage of affordable housing needed to meet the city's growing population and workforce. To ensure increased housing supply, we need new tools, increased public investment, and strong partners in state and local governments. Housing of all types is important to addressing this shortage and ensuring New Yorkers have safe and habitable places to live.

New York's FY25 budget included a pilot program that enables the legalization of existing basement and cellar apartments in 15 of the City's 59 Community Districts, by providing much needed relief in the Multiple Dwelling Law (MDL). REBNY strongly supports the two bills before the Council today, which would facilitate the creation of an ancillary dwelling unit (ADU) pilot program and implement the legislation authorized by the State this year.

Furthermore, the legislation under consideration today would establish eligibility and design requirements for ADUs in one- or two-family dwellings. Defining "ancillary dwelling units" in the Administrative Code will be an important step as the Council considers the City of Yes zoning text amendment. This, however, depends on the passage of the zoning text, which would allow for the use of ADUs in low-density districts.

ADUs are an impactful housing production solution and ten states and over a dozen cities in the US have passed laws enabling the use of ADUs. In 2023, ADUs alone accounted for 21% of housing units permitted in California. REBNY supports this change, as ADUs are a practical, common-sense planning tool that would deliver thousands of new housing units, diversify the housing market, and preserve neighborhood character.

REBNY commends the City Council for taking practical steps to increase housing while ensuring the legalization and code compliance of living situations for existing units. Many New Yorkers rely on below-grade apartments for stable housing. Streamlining the process for converting basement apartments into safe, legal units would not only make housing safer but also provide much-needed housing options to alleviate the City's housing shortage.

Res: No. 524

SUBJECT: This resolution requests that the New York State Legislature pass, and the Governor sign, A.8591/S.1709, in relation to legal representation in certain mortgage foreclosure actions.

SPONSORS: Council Members Riley, Williams

A.8591 (sponsored by Assemblymember Bichotte Hermelyn)/S.1709 (Senator Comrie) would establish a right to counsel program for homeowners facing foreclosure proceedings on their homes. REBNY supports the City's right to counsel program for rental tenants and its success in reducing evictions by over a third. Providing legal assistance to lower income homeowners could be a lifeline to those homeowners who fell victim to predatory lending prices and to all who struggle with the City's inequitable property tax system and rising expenses in insurance and fuel.

Thank you for your consideration of these points.

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