{"id":536944,"date":"2023-01-07T22:30:00","date_gmt":"2023-01-07T19:30:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/why-adams-moonshot-housing-plan-needs-private-sector-support\/"},"modified":"2023-01-07T22:30:00","modified_gmt":"2023-01-07T19:30:00","slug":"why-adams-moonshot-housing-plan-needs-private-sector-support","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/why-adams-moonshot-housing-plan-needs-private-sector-support\/","title":{"rendered":"#Why Adams&#8217; &#8216;moonshot&#8217; housing plan needs private sector support"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2efaecbb151\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2efaecbb151\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/why-adams-moonshot-housing-plan-needs-private-sector-support\/#%E2%80%9CWhy_Adams_%E2%80%98moonshot_housing_plan_needs_private_sector_support%E2%80%9D\" >&#8220;Why Adams&#8217; &#8216;moonshot&#8217; housing plan needs private sector support&#8221;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9CWhy_Adams_%E2%80%98moonshot_housing_plan_needs_private_sector_support%E2%80%9D\"><\/span>&#8220;Why Adams&#8217; &#8216;moonshot&#8217; housing plan needs private sector support&#8221;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div>\n<aside class=\"single__inline-module alignleft\">\n        <\/aside>\n<p>Last fall, New York\u2019s Department of City Planning (DCP) proposed ambitious <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.nyc.gov\/site\/planning\/plans\/city-of-yes\/city-of-yes-housing-opportunity.page\">zoning changes<\/a> intended to break the regulatory logjam that stops the city from getting the housing it needs. That was followed by a <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.nyc.gov\/office-of-the-mayor\/news\/893-22\/mayor-adams-get-stuff-built-bold-three-pronged-strategy-tackle-affordable-housing#\/0\">flurry<\/a> of <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.nyc.gov\/office-of-the-mayor\/news\/907-22\/mayor-adams-governor-hochul-release-making-new-york-work-everyone-action-plan#\/0\">additional announcements,<\/a> including Mayor Eric Adams\u2019 \u201cmoonshot\u201d goal of 500,000 new housing units in the next decade, more than double the total in each of the past two.<\/p>\n<p>In a <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.manhattan-institute.org\/nyc-far-reaching-housing-proposals-still-not-ambitious-enough?utm_source=press_release&amp;utm_medium=email\">new Manhattan Institute issue brief<\/a>, I conclude the zoning initiatives could increase housing construction.\u00a0 Adams and Governor Kathy Hochul also endorsed badly needed state legislation. However, what Adams hasn\u2019t yet done is also important.\u00a0 While his housing unit goal is sensible, he hasn\u2019t supplied a credible path to attaining it.\u00a0 Moreover, neither Adams, Hochul, nor the City Council or state legislature has begun dismantling the anti-private investment shibboleths that grip New York politics.<\/p>\n<p>Let\u2019s start with the good.\u00a0New York City is beset by a housing supply shortfall, leading to record market rents and sales prices, and low vacancy rates.\u00a0Compared with other economically robust, relatively dense American cities, the city\u2019s new housing construction is anemic.\u00a0Adams\u2019 goal seems quite large, but it\u2019s less than a seventh of the city\u2019s current housing stock.\u00a0Other cities, like Seattle and Washington, D.C., grew more between 2010 and 2020.\u00a0\u00a0<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/mayor-eric-adams.jpg?w=1024\" alt=\"Even Mayor Adams views his plan to dramatically boost housing starts ambitious, describing this goal as a &quot;moonshot&quot; during its recent announcement. \" class=\"wp-image-25251845\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/mayor-eric-adams.jpg?quality=75&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/mayor-eric-adams.jpg?quality=75&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/mayor-eric-adams.jpg?quality=75&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>Even Mayor Adams views his plan to dramatically boost housing starts ambitious, describing this goal as a \u201cmoonshot\u201d during its recent announcement. <\/figcaption><figcaption><span class=\"credit\">WireImage<\/span><\/figcaption><\/figure>\n<p>NYC could as well, were it not saddled with anti-housing regulations.\u00a0DCP is on track towards alleviating some.\u00a0For example, many communities nationwide are allowing \u201cAdditional Dwelling Units\u201d (ADUs), second units on lots where only one is allowed today.\u00a0These are usually constructed in basements and backyards.\u00a0Despite its reputation as a dense city, NYC has a surprisingly large number of single-family lots where a second unit can\u2019t be built today.<\/p>\n<p>Another reform being pursued, both locally and nationwide, is repeal of minimum parking requirements, which encourage car ownership and use, and urban sprawl.\u00a0 Despite having the nation\u2019s best transit system (which is underutilized post-pandemic), the city forces new housing in many areas, and business establishments, to build sizable parking facilities.\u00a0 These are often so expensive that new housing has to subsidize its own parking, making some potential projects financially infeasible.<\/p>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/adr.jpg?w=1024\" alt=\"One way to create more adequate housing would be to make it easier to install Additional Dwelling Units (like this one above) in New York City backyards. \" class=\"wp-image-25251859\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/adr.jpg?quality=75&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/adr.jpg?quality=75&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/adr.jpg?quality=75&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>One way to create more adequate housing would be to make it easier to install Additional Dwelling Units (like this one above) in New York City backyards. <\/figcaption><figcaption><span class=\"credit\">dpa\/picture alliance via Getty Images<\/span><\/figcaption><\/figure>\n<figure class=\"wp-block-image size-large is-resized\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/bill-de-blasio.jpg?w=1024\" alt=\"Former New York City Mayor Bill de Blasio ushered in legislation that mandated minimum numbers of affordable housing units for rezoned development sites. \" class=\"wp-image-25251871\" width=\"618\" height=\"411\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/bill-de-blasio.jpg?quality=75&amp;strip=all&amp;w=1233 1236w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/bill-de-blasio.jpg?quality=75&amp;strip=all&amp;w=925 927w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/bill-de-blasio.jpg?quality=75&amp;strip=all&amp;w=618 618w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/bill-de-blasio.jpg?quality=75&amp;strip=all&amp;w=308 309w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/bill-de-blasio.jpg?quality=75&amp;strip=all 1024w\" sizes=\"auto, (max-width: 618px) 100vw, 618px\"\/><figcaption>Former New York City Mayor Bill de Blasio ushered in legislation that mandated minimum numbers of affordable housing units for rezoned development sites. <\/figcaption><figcaption><span class=\"credit\">Getty Images<\/span><\/figcaption><\/figure>\n<p>DCP also takes inspiration from recent California legislation, permitting denser housing on currently commercial lots.\u00a0 These lots should be less controversial for building, since existing houses won\u2019t be redeveloped or tenants displaced.\u00a0 In nearly all places in New York potentially affected by this reform, the city\u2019s ubiquitous six-story apartment buildings were allowed until 1961, when zoning became radically more restrictive.\u00a0 The city has since gained a million people, and many more would like to come.\u00a0 It\u2019s time to undo that sixty-year-old error.<\/p>\n<p>Now, let\u2019s look at what\u2019s missing.\u00a0Under former mayor Bill de Blasio, the city adopted \u201cMandatory Inclusionary Housing,\u201d (MIH) a zoning policy requiring a substantial percentage of units built on rezoned sites to have below-market rents.\u00a0That might sound good, but looking past the <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">media<\/a> hype we understand what this effectively is: a tax on badly needed new housing.\u00a0Developers don\u2019t pay this tax \u2013 they\u2019ll just build elsewhere unless they get a comparable return on their investment.\u00a0 Rather, New Yorkers pay for the affordable housing they get.\u00a0One way was through a generous property tax exemption program called Section 421a.\u00a0Sadly, it expired in June 2022 and needs new state legislation to be reinstated.\u00a0Adams and Hochul have endorsed that, but the outlook in the legislature is uncertain.\u00a0\u00a0\u00a0<\/p>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/bronx-affordable-housing.jpg?w=1024\" alt=\"Affordable housing developments such as this one in the Bronx help politicians secure voters while providing developers with tax breaks. But the the city is still delivering far fewer low-cost units than promised (and needed).\" class=\"wp-image-25251888\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/bronx-affordable-housing.jpg?quality=75&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/bronx-affordable-housing.jpg?quality=75&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/bronx-affordable-housing.jpg?quality=75&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>Affordable housing developments such as this one in the Bronx help politicians secure voters while providing developers with tax breaks. But the the city is still delivering far fewer low-cost units than promised (and needed).<\/figcaption><figcaption><span class=\"credit\">Christopher Sadowski<\/span><\/figcaption><\/figure>\n<p>New Yorkers also pay for MIH affordable housing through cash subsidies, which were needed to supplement 421a in all but the strongest housing markets.\u00a0 MIH effectively forces most new residential construction into a city regulatory agreement, in which subsidies are exchanged for a commitment for below-market units.\u00a0 Our elected officials love this arrangement because it enables them to <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/newyorkyimby.com\/2022\/11\/new-york-city-council-approves-2b-innovation-qns-complex-in-astoria-queens.html\">promise lots of affordable units to their constituents<\/a>.\u00a0<\/p>\n<figure class=\"wp-block-image size-large is-resized\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/innovation-qns.jpg?w=1024\" alt=\"The $2 billion QNS Complex in Astoria (above) will feature some 3,200 residential units\u2014 800 of them at below-market prices. The project exemplifies the type of mixed market-rate and affordable developments aimed at solving the city's housing crisis. \" class=\"wp-image-25251882\" width=\"618\" height=\"412\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/innovation-qns.jpg?quality=75&amp;strip=all&amp;w=1236 1236w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/innovation-qns.jpg?quality=75&amp;strip=all&amp;w=927 927w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/innovation-qns.jpg?quality=75&amp;strip=all&amp;w=618 618w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/innovation-qns.jpg?quality=75&amp;strip=all&amp;w=309 309w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/innovation-qns.jpg?quality=75&amp;strip=all 1024w\" sizes=\"auto, (max-width: 618px) 100vw, 618px\"\/><figcaption>The $2 billion QNS Complex in Astoria (above) will feature some 3,200 residential units\u2014 800 of them at below-market prices. The project exemplifies the type of mixed market-rate and affordable developments aimed at solving the city\u2019s housing crisis. <\/figcaption><figcaption><span class=\"credit\">Courtesy Innovation QNS<\/span><\/figcaption><\/figure>\n<p>The problem is twofold.\u00a0First, the city can\u2019t keep those promises in any reasonable timeframe.\u00a0The city\u2019s affordable housing spending is <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/dmmr.nyc.gov\/city-services\/promoting-viable-communities-and-neighborhoods\/housing-preservation-and-development\">producing fewer units<\/a>, not more, due to inflation and staffing shortages.\u00a0Second, the city faces future budget shortfalls as tax revenues recover slowly post-pandemic. The city can\u2019t meet Adams\u2019 housing goal because it can\u2019t afford to compensate developers for its own tax on new housing. My report proposes sensible steps to address this.<\/p>\n<p>Also missing is reform of the draconian 2019 rent regulation law. That\u2019s also hugely popular with New York politicians, who love to promise their constituents cheap rents.\u00a0 However, it has run up against the reality that private landlords won\u2019t invest at a loss.\u00a0The 2019 law greatly limited rent increases to recover the costs of apartment renovations.\u00a0As a result, thousands of vacant apartments can\u2019t feasibly be fixed up and rented anew.\u00a0State legislators need to allow owners to raise rents to reflect actual renovation costs.<\/p>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/california-housing.jpg?w=1024\" alt=\"New York would be wise to adopt a measure implemented in California that allows residential construction on one-time commercial lots. \" class=\"wp-image-25251884\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/california-housing.jpg?quality=75&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/california-housing.jpg?quality=75&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/california-housing.jpg?quality=75&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>New York would be wise to adopt a measure implemented in California that allows residential construction on one-time commercial lots. <\/figcaption><figcaption><span class=\"credit\">AP<\/span><\/figcaption><\/figure>\n<p>It\u2019s good to see Adams\u2019 rhetorical commitment to finding a path out of the city\u2019s self-inflicted housing supply crisis.\u00a0 But thus far, he\u2019s unwilling to acknowledge the crisis won\u2019t be resolved by promising New Yorkers cheap housing the government can\u2019t supply.\u00a0We\u2019ll only get half a million new housing units by treating private developers and landlords as partners, not enemies.<\/p>\n<p><em>Eric Kober is a senior fellow at the Manhattan Institute and former DCP official. He is author of the new issue brief <\/em><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.manhattan-institute.org\/nyc-far-reaching-housing-proposals-still-not-ambitious-enough?utm_source=press_release&amp;utm_medium=email\"><em>New York City\u2019s Far-Reaching Housing Proposals Are Still Not Ambitious Enough<\/em><\/a><em>.\u00a0<\/em>\n                        <\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/nypost.com\/2023\/01\/07\/why-adams-moonshot-housing-plan-needs-private-sector-support\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;Why Adams&#8217; &#8216;moonshot&#8217; housing plan needs private sector support&#8221; Last fall, New York\u2019s Department of City Planning (DCP) proposed ambitious zoning changes intended to break the regulatory logjam that stops the city from getting the housing it needs. That was followed by a flurry of additional announcements, including Mayor Eric Adams\u2019 \u201cmoonshot\u201d goal of 500,000&#8230;<\/p>\n","protected":false},"author":1,"featured_media":536945,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/nyc-housing1.jpg?quality=75&strip=all&w=1024","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[138142,81958,66147,12156],"class_list":["post-536944","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-1-7-23","tag-affordable-housing","tag-eric-adams","tag-housing"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/536944","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=536944"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/536944\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/536945"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=536944"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=536944"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=536944"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}