NYC’s Housing Supply

The New York City Rent Guidelines Board (of which I am a member) released its 2017 Housing Supply Report. It has a lot of interesting data for housing nerds as well as those of us obsessed with NYC. Here is a taste:

  • There are a total of 3,217,521 units of housing.
  • 2,184,295 are rental units.
    • 848,721 are non-regulated rentals.
    • 1,335,574 are regulated rentals in one form or another (rent stabilized, rent controlled etc.)
  • 1,033,226 are owner units.
    • 116,134 are condos
    • 330,679 are coops
    • 586,413 are conventional homes.

Some other highlights include,

  • Permits for 16,269 new dwelling units were issued in NYC in 2016, a 71.2% decrease over the prior year and the first decrease since 2009.
  • There was a 31.3% decrease in the number of co-op or condo units accepted in 2016, to 282 plans containing 8,671 units.
  • The number of housing units newly receiving 421-a exemptions decreased 17.8% in 2016, to 4,493.
  • The number of housing units newly receiving J-51 abatements and exemptions decreased 22.5% in 2016, to 34,311.
  • The number of new housing units completed in 2016 increased 61.9% over the prior year, to 23,247.
  • Demolitions were down in 2016, decreasing by 2.0%, to 1,849 buildings.
  • City-sponsored residential construction spurred 23,408 new housing starts in FY 2016, 74% of which were rehabilitations.
  • The City-owned in rem housing stock declined 70.2% during FY 2016, to 125 units. (4)

For those who do not know the byzantine world of NYC housing policy, 421-a exemptions relate to new construction and J-51 abatements relate to renovation of existing construction. It is interesting to see how policy changes impact housing construction.

Any one year’s figures provide just a snapshot, so if you really want to get a sense of the big picture, you should check out the earlier reports too. For instance, last year’s report stated that there were permits for 56,528 new dwelling units in 2015, an increase of 176% from 2014.  This is way more than the long term trend. Permits for new dwelling units never got much higher than the low thirty thousand range but fell to a low as six thousand during the depths of the Great Recession.

When you realize that the 421-a tax abatement was set to expire at the end of 2015, this big jump in permits makes sense as developers filed a ton of permits to take advantage of the program while they could. It will be interesting to see how the new 421-a regime will impact permits for new construction going forward.

Renovating Among The Stars

Justin Theroux, photo by David Shankbone

Realtor.com quoted me in Justin Theroux’s Renovation Drama: What Went Wrong? It opens,

Actor Justin Theroux might have many admirers (including his wife, Jennifer Aniston), but apparently the “Leftovers” hunk inspires more than his share of haters, too—including his Manhattan neighbor Norman Resnicow. Apparently their feud started two years ago, when Theroux decided to renovate his apartment; Resnicow lives one floor down.

As anyone who’s lived under, next to, or anywhere near a demolition site knows, home renovations can get noisy—which is why Resnicow, a lawyer, felt it within his rights to ask Theroux to do the neighborly thing and install soundproofing to muffle the ruckus. There was just one problem: According to the New York Post, the requested soundproofing would cost a whopping $30,000 and make it difficult for Theroux to preserve the original flooring in his place, which he was keen to do. So he refused.

That’s when things got ugly. According to a lawsuit filed by Theroux, Resnicow embarked on a “targeted and malicious years-long harassment campaign” to derail those renovations and just make life unpleasant for the actor.

  • Resnicow accused Theroux’s contractors of damaging the marble in the building’s entranceway, and demanded they make repairs.
  • He halted Theroux’s roof deck renovations by arguing that the fence separating their portions of the deck encroached on his property.
  • Then, for good measure, he cut down the ivy lining the fence purely because he knew that the site of the foliage made Theroux happy.

Theroux now seeks $350,000 from Resnicow, alleging nuisance, trespass, and all in all “depriving Mr. Theroux of his right to use and enjoy his property.”

But Resnicow remains resolute, telling the Post, “I have acted for one purpose only, which remains to assure my and my wife’s health and safety.”

How to balance renovations with neighbor relations

As Theroux’s predicament makes painfully clear, few issues can ruin a neighborly relationship like noise—particularly if you live in an apartment building or other tight quarters. Problem is, homeowners also have a right to make home improvements. So at what point does reasonable renovation ruckus become so loud it’s a legitimate nuisance? That depends, for starters, on where you live, as noise ordinances and other regulations vary by area.

New York City’s Noise Code prohibits construction noise that “exceeds the ambient sounds level by more than 10 decibels as measured from 15 feet from the source.” (And in case you have no clue how to figure that out, the city uses devices called sound meters; you can also download sound meter apps to take your own measurements.) Volume levels aside, most areas have limits on when you can hammer away; in New York, work is typically limited to 7 a.m. to 6 p.m., Monday through Friday.

The third variable to consider is the co-op, condo, or HOA board that governs your building or community, which may place further restrictions on hours or even the type of renovations you do. Yet if a homeowner like Theroux is following these rules, odds are he’s in the clear.

“In New York City, they say ‘hell hath no fury like an attorney dealing with noisy neighbors,’ but as long as you have the proper permits, then construction noise created during normal business hours is generally allowed, with the understanding that it will only be temporary,” says Emile L’Eplattenier, a New York City real estate agent and analyst for Fit Small Business. “As long as he isn’t running afoul of his building’s rules—which is doubtful—then his neighbor has little recourse.”

Still, if you’re a homeowner about to embark on a renovation who doesn’t want to drive your neighbors nuts, what can you do? For starters, keep in mind that even if the sounds don’t ruffle you, people’s noise sensitivities can vary.

In the words of David Reiss, research director at the Center for Urban Business Entrepreneurship at Brooklyn Law School, “One person’s quiet hum is another’s racket.”

Reiss on the Right to Complain

Crane in NYC

Super Lawyers quoted me in Development’s Back, Baby!  But Do Neighborhoods Rights Extend Beyond the Right to Complain? It reads, in part,

The list of what can go wrong during construction is longer than Long Island, and some of the items on it are very bad indeed. Reading Chapter 33 of the New York City Construction Code, “Safeguards during Construction or Demolition,” is like Googling skin diseases: You encounter possibilities that, in your previous blissful ignorance, you’d never worried about.

*     *     *

So how can citizens stand up for their rights?

“City residents do not have tons of rights regarding construction,” says Brooklyn Law School professor David Reiss, who focuses on real estate finance and community development. But, he adds, “They do have some. Technically, many of them are not rights. Rather, citizens have a right to complain.”

According to Reiss, the Department of Buildings is the agency to call about excessive debris, problems with fences, safety netting, scaffolding or cranes; or work being done without a permit. (The DOB’s phone number is New York’s general information and non-emergency kvetching number: 311.)

To complain about after-hours construction-before 7 a.m. or after 6 p.m. Monday to Friday, or anytime on Saturday or Sunday, unless the contractor has a permit stating otherwise-Reiss recommends contacting the DOB or the Department of Environmental Protection. The latter’s number is also 311.

“It never hurts to start by talking with the contractor and/or owner directly, “ says Reiss, who also recommends talking to your community board and city councilmember. As with most things, there’s strength in numbers. “The more people that complain, the more likely it is to get on the radar of officials,” he says.

He also recommends collecting all the evidence you can, whether to show officials or, if worse comes to worst, to use in court. “Create a paper trail. Pictures, of course, are worth a thousand words, particularly if they are time- and date-stamped and you annotate them as appropriate.”