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The Bronx See Less Housing Development In 2007

The Bronx See Less Housing Development In 2007

It looks like the borough’s hot residential growth spurt may finally be cooling off.

Despite record amounts of cash poured into local housing, a new report from the city’s housing and buildings departments shows building permit applications plunged 33% in the Bronx in 2007.

Permits were issued for 3,104 new residential units in the Bronx last year, compared with 4,658 in 2006.

A unit can constitute one apartment in a 20-unit building, for example.

Development experts say the decline may be particularly significant because Brooklyn, Queens and the city as a whole saw record increases in new permits issued in 2007.

Christopher Jones, of the Regional Plan Association, cautioned that a few big projects can throw the numbers off, but suggested that the decline in the Bronx is more likely a trend.

With mortgage foreclosures, a slowing housing market and a souring economy, Bronx construction levels may be the first sign of weakness in a city that has largely escaped the national price falloff and slowdown in construction.

“Most people are expecting that the residential building boom is going to start to decline based on what is happening to the housing market,” Jones said. “Given that the Bronx is the poorest of the five boroughs, it might be experiencing some of the problems earlier than the rest of the city.”

Irene Baldwin, executive director of the Association for Neighborhood and Housing Development, hypothesized that since so much citywide development is for luxury units, the Bronx may be getting left behind.

“It could be the Bronx is still the borough where there is still a fair amount of affordable housing, while much of the stuff we’re seeing is luxury housing going up,” Baldwin said.

Another development expert suggested builders may be focused on the section 421a program, which gives them tax exemptions for building multi-family housing in certain areas. There are many more eligible buildings in Queens and Brooklyn than in the Bronx.

Extensive rezoning of commercial and industrial areas into new residential-friendly land also drew developers to Queens and Brooklyn in 2007.

Borough President Adolfo Carrion’s office argues the numbers do not represent a leveling off of local housing development, because there were still a record number of dollars invested last year — more than $925 million, compared with $713 million in 2006 and $237 million in 2002.

Carrion’s office said that more “substantial structures” were built in 2007 — including multi-family apartment buildings on smaller parcels of land and more elevator buildings, which cost more to build. The investment dollars also went into significant renovations of buildings.

“It was a great year for housing in the Bronx — the fourth largest year in decades,” said Carrion. “That’s something to take notice.”

He noted, “While actual address numbers are slightly down, investment in residential properties has increased tremendously, and the number of housing units has increased significantly over a period going back to 2002.”

Before 2001, the Bronx had not issued permits for more than 2,000 new units since 1971, said Seth Donlin, spokesman for the city Department of Housing Preservation and Development.

SOURCE: NYDailyNews.com

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Slumming for Landlords

Slumming for Landlords: A pair of Bronx pols try to shoot down the latest in tenant protection

When it comes to lopsided battles, it’s hard to top the steady war that’s long raged between New York’s landlords and their tenants.

Any given weekday, just poke your head into a hearing room in the city’s housing courts. There, row upon row of despairing tenants grimly clutch legal papers that demand back rent and/or eviction. Stalking the aisles, briefcases in hand, shouting out the names of their next victims, is a platoon of lawyers, all of them representing building owners willing to spare no legal expense.

As combat, this has all the fairness of a Panzer division rolling up on a fife-and-drum corps.

More than 90 percent of tenants arrive in these corridors without any kind of legal representation; for landlords, the ratio is the exact reverse. And no wonder: At stake here are the enormous profits that New York’s housing market represents, now more than ever.

A hefty lawyer’s retainer? Just a business deduction. An apartment vacated by a tenant paying an affordable, regulated rent? Priceless.

Which is why a group of tenant advocates seized the moment last year and began pressing City Council Speaker Christine Quinn, herself a former housing organizer, to introduce new legislation that would try to balance the scales a little, giving tenants something more of a fighting chance.

Quinn took them up on it. Two disturbing trends, cited to her by the Association for Neighborhood and Housing Development, caught the speaker’s attention: One is the steady slippage of apartments from rent regulation for reasons having nothing to do with reaching the magic deregulation mark of $2,000 a month; the other is the recent flood of private-equity money into buildings occupied by tenants whose current rents are nowhere near high enough to meet the returns that the new investors are likely to demand.

The bill that resulted from those talks would try to keep everyone honest. It would allow tenants subjected to repeated and purposeful abuses—where owners have withheld heat and hot water, constantly failed to make repairs, or dumped garbage in the hallways—to cite landlords for harassment. For the first time, harassment would be covered under the city’s housing-maintenance code, with violators subject to stiff fines and other penalties.

Introduced in October by Quinn and Manhattan council members Daniel Garodnick, who fought to keep apartments at Stuyvesant Town and Peter Cooper Village affordable, and Melissa Mark-Viverito, whose East Harlem district is rapidly becoming a real estate hunting ground, Intro No. 627 is headed for hearings later this month before the council’s housing and buildings committee.

As is a little look-alike piece of legislation called Intro 638 that was quickly introduced in response by a pair of Bronx legislators happy to oblige the city’s ever-generous real estate lobby. The competing bill mandates that every harassment complaint be screened outside the courts to make sure it’s legitimate. It also contains the novel notion of letting landlords sue tenants for their own harassment. The goal here is to snuff this new tenants’-rights legislation in its cradle by generating much heat and little light about its potential impact.

“We just don’t want to open a Pandora’s box,” said Joel Rivera, the 28-year-old council majority leader, whose father is Bronx Democratic Party boss and State Assemblyman Jose Rivera. “Tenants who have a legitimate case deserve their day in court. But what we’re worried about,” Rivera added as he sat in the gallery in the council chamber last week, “is that there could be a lot of frivolous cases brought under this. We met with the tenant groups, and I said, ‘I hear you, but I have a responsibility to make sure it doesn’t produce frivolous cases.’ ”

Here now is a far-sighted legislator. Every day in housing court, there is a parade of panicked tenants who have received eviction notices claiming they never paid rent. They must comb through bureaus and pocketbooks in desperate search of their receipts. After these crumpled papers are produced, the landlords’ lawyers shrug. “Never mind,” they say. Since the tenants have no lawyers of their own to sputter to the judge about this outrageously frivolous and anxiety-producing waste of everyone’s time, these abuses go unchecked.

It has not previously occurred to anyone that there could be a long line of vengeful tenants bent on payback, scheming about filing their own frivolous lawsuits to burn up the landlords’ profits. “It’s human nature,” shrugged Rivera.

The councilman was asked if he’d had any help crafting his bill. “No, this was a result of a few of us in the council talking it over,” he said.

Had he consulted with landlord advocates, such as the Rent Stabilization Association, the prime lobbying arm for building owners? “Just in passing,” he answered. Rivera couldn’t remember when or where the discussions took place, or who the landlord representatives were. “I can’t remember who it was. But it was just in passing, not a set meeting or anything.”

The landlord reps, whoever they were, said that what Speaker Quinn’s bill needed was “balance,” Rivera recalled.

Rivera is actually not the lead sponsor on the counterproposal. That honor fell to Maria Baez, another Bronx representative and a close ally of the Rivera clan who once served as chief of staff to Rivera’s father. When Baez’s name appeared on the bill, tenant organizers in her district asked to discuss the matter.

“I called her office and asked for a meeting,” said Jackie Del Valle, an organizer for CASA (Community Action for Safe Apartments), which is based on Townsend Avenue in the West Bronx. “They said they’d get back to me. Then we heard nothing for two weeks.”

To get Baez’s attention, Del Valle brought a couple dozen residents last Tuesday to form a picket line in front of Baez’s office at 176th Street and the Grand Concourse. They marched around an immense red dollar sign made of wood chanting about tenant rights.

Among those present was Harold Dell, 65, who lives on nearby Morris Avenue. “Right now the landlord is a bank, and they keep taking us to court,” he said. “We can’t even find a super to call when things break.” Maggie Silva, 72, limped to the rally from her top-floor apartment on the Grand Concourse. Her ceilings have collapsed repeatedly in the past three years. “She has had to go to housing court every time to get repairs,” said Del Valle. “With this bill, she could file for harassment and, hopefully, get some justice.”

Baez wasn’t at her office to meet Silva or hear the chants. At City Hall the next day, the councilwoman was asked why she’d introduced the countermeasure. “For balance,” she said without breaking stride as she walked through the rotunda. Had she met with the RSA, the landlord organization? “No. Never met with them,” she said.

Frank Ricci, the longtime lobbyist for the RSA, remembered the process differently. “We met with her, and with Rivera,” he said in a telephone interview. “Our concern with the Speaker’s bill is that there’s a potential for a lot of frivolous cases and no one to screen them.”

Had he just been passing through when he met with the council members? “No,” he said, “it was a meeting. It was at City Hall. Baez and her staff, and Rivera and his staff, were there.”

Under term limits, both Baez and Rivera are in their final years as council members. Baez’s future plans are unclear, but in the game of musical chairs that term limits creates, Rivera is expected to run for Bronx borough president. Is that true, he was asked? He is an agreeable young man, and his face crinkled into a smile. “That’s something we are looking at,” he replied.

Such a race will cost at least $1 million. So far, Rivera has raised $155,000 toward that goal. Half of it has come from the real estate industry.

SOURCE: Village Voice

 

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