Tag Archives: Mayor Mamdani

Current Issues in Affordable Housing in New York City

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New York City Bar

I will be moderating a panel on Rent Freezes, the Housing Stability and Tenant Protection Act of 2019 (HSTPA), and Nonpayment at this in-person New York City Bar program on May 7th. The registration link is here and the full program description is below:

Description:

This program will provide an inside perspective on the future of affordable housing in New York City.  Seasoned practitioners from the private and public sectors will discuss the role of the city, state and federal governments, in conjunction with for-profit developers and not-for-profit organizations, in building and preserving affordable housing. Participants will learn about the statutory, regulatory and business considerations underlying critical topics in affordable housing.

Three expert panels will present on the following:

    • Rent Freezes, the Housing Stability and Tenant Protection Act of 2019 (HSTPA), and Nonpayment
    • The Community Opportunity to Purchase Act (COPA)
    • Case Study – Office to Residential Conversions

The detailed agenda for the day follows.

9:00 am – 9:05 am        Introduction & Program Overview

Farhana H. Choudhury, Associate Counsel/Chief of Staff for Legal at NYSHCR

Julia A. Solo, Senior Vice President & Counsel at Federated National Land

9:05 am – 10:05 am       Panel 1: Rent Freezes, the Housing Stability and Tenant Protection Act of 2019 (HSTPA), and Nonpayment

This panel will focus on the impacts of the HSTPA that have limited rent increases for things like apartment and major capital improvements, the Mamdani administration’s proposal for an extended rent freeze, and post-pandemic rent collection challenges.

Organizers:

Farhana Hassan Choudhury, Associate Counsel/Chief of Staff for Legal

Andrew M. Darcy, Pro Bono Counsel at Cleary Gottlieb Steen & Hamilton LLP

Moderator:

David Reiss, Professor, Cornell Law School

Panelists: 

Doug Apple, CEO, 1811 Consulting

Rafael Cestero, CEO, Community Preservation Corporation (CPC)

Tim Collins, Partner, Collins Dobkin & Miller LLP

Rob Ehrlich, Partner, Lazarus Karp Ehrlich McCourt, LLP

Topics will Include

    • Trends in Court
    • Long-Term Sustainability & Expectations Over the Next 5-10 Years
    • Potential Solutions
    • Public Commission

Question & Answer Session Conclusions

10:05 am – 10:15 am    Break

10:15 am – 11:15 am     Panel 2: The Community Opportunity to Purchase Act (COPA)

This panel will discuss the current status of the Community Opportunity to Purchase Act (COPA).  In December 2025, COPA passed the City Council but was vetoed by outgoing Mayor Adams on his last day in office. Mayor Mamdani and new City Council Speaker Menin did not attempt a veto override when the new City Council was seated in January, and the bill which passed City Council in December is effectively dead for the time being, although many advocates and politicians, including Mayor Mamdani, have vowed to continue the fight for COPA. It’s not clear where COPA will stand in May, but this panel will examine the history and advocacy behind COPA, its operation in Washington, DC and San Francisco, and potential constitutional challenges to the law.

Organizers:

Gerrald Ellis, Deputy General Counsel, Paths Development

Alexandra Hohauser, Associate at Nixon Peabody LLP

Moderator:

Gerrald Ellis, Deputy General Counsel, Paths Development

Panelists:

Erica F. Buckley, Partner, Nixon Peabody LLP

Arielle Hersh, Director of Policy and New Projects, UHAB

Topics will Include

    • Overview of COPA, as proposed, in NYC
    • Current status of COPA in NYC
    • Discussion of the main sticking points in even getting COPA passed
    • Discussion of COPA in Washington, DC and San Francisco
    • Potential constitutional challenges

Question & Answer Session  Conclusions

11:15 am – 11:25 am     Break

11:25 am – 12:25 pm     Panel 3: Office to Residential Conversions that include Affordable Housing

This panel will discuss the challenges and benefits to office-to-residential conversions in New York City, including land use considerations, challenges in design, the unique considerations of financing, the 467-m tax incentive and case studies.

Organizers:

Daniel M. Bernstein, Member and Leader of the Tax Incentives and Affordable Housing Department at Rosenberg and Estis, P.C.

Zachary L. Nathanson, Senior Associate Attorney at Adler & Stachenfeld LLP

Moderator:

Daniel M. Bernstein, Member and Leader of the Tax Incentives and Affordable Housing Department at Rosenberg and Estis, P.C.

Panelists: 

John Cetra, FAIA, Co-Founder, CetraRuddy Architecture D.P.C.

Tricia Dietz, Assistant Commissioner for Housing Incentives, NYC Department of Housing Preservation and Development

Alexander Tendler, Vice President at Vanbarton Group

Daniel Weisen, Senior Director at Eldridge Capital Management

Topics will Include

    • Land Use Considerations
    • Partial Conversions
    • Design Considerations in the Conversion Process
    • 467-m: Eligibility Considerations
    • 467-m: Applying for Tax Exemption Benefits
    • Lender Considerations
    • Case Studies

Question & Answer Session Conclusions

12:25 pm – 12:30 pm     Closing Remarks

Farhana H. Choudhury, Associate Counsel/Chief of Staff for Legal at NYSHCR

Julia A. Solo, Senior Vice President & Counsel at Federated National Land

Feet to The Fire on Property Taxes

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Newsweek interviewed me for Mamdani’s Property Tax Plans Holding Hochul’s Feet to Fire, Expert Says. It reads, in part,

New York City Mayor Zohran Mamdani’s proposal for a 9.5 percent property tax increase in the city is a way of holding Governor Kathy Hochul’s “feet to the fire,” according to David Reiss, professor of law at Cornell Tech and Cornell Law School.

Mamdani said this week that he was proposing the increase in property tax rates in New York City as an option if he could not persuade the governor to approve higher taxes on the wealthy.

“It’s very interesting, because Mamdani endorsed her in her race for governor, which is this year,” Reiss, an expert in real estate, told Newsweek, pointing at the strong relationship that the two have maintained until now.

Not only is the 34-year-old mayor backing Hochul in her reelection bid, but he also told organizers of a Tax the Rich rally in Albany, planned for February 25, that he would likely not attend the event because he does not want to antagonize the governor, as reported by The New York Times.

“So he’s done some things that are very good for her, but then he’s kind of holding her feet to the fire and saying that Albany can make the situation much better in New York, and this is how I want you to do it,” Reiss said.

“‘I want to raise taxes on the wealthy, and the backup—because I want more revenue for the city—would be my property tax hike, but I acknowledge that it’s painful,’” he added. “’I acknowledge that that’s unpleasant, but I want to hold your feet to the fire on the income tax increase.’”

* * *

“I think Mayor Mamdani is trying to set the terms of the debate and kind of trying to allocate blame for the budget deficit that the city’s about to face,” Reiss said. “And so he’s trying to say, ‘I have a path forward, but it requires partners in government to help with that path forward,’” he added.

“And so, he’s kind of trying to set up a dynamic where, when blame is allocated for budget cuts and promises unkept, he could say he did his best to make this happen, but partners in government are not playing ball with him.”

* * *

For Reiss, the unfolding tension between Mamdani and Hochul over a “rich tax” in New York is a reflection of a bigger split within the Democratic Party nationwide.

“I think both in New York and nationally, what we’re seeing is the economically progressive wing of the Democratic Party, as reflected in Mamdani, represents a push to reallocate resources away from the very wealthy towards the low-income and working class constituents,” Reiss said.

Mamdani, he thinks, is doing a good job at setting that debate up. The question is, he said, which wing of the party will win.

“It’s an interesting question in a majority Democratic state like New York, where both the governor and the mayor are Democrats. But it’s also going to be interesting in jurisdictions where you might have a Democratic mayor and a Republican governor, especially as we go to the congressional midterms,” he added.

“Republicans are going to talk about Socialist Democrats and Democrats are going to talk about billionaire-loving Republicans. And voters will have to decide, you know, which vision of America they agree with more.”

* * *

Voters, Reiss said, are sophisticated enough to understand that Mamdani might not keep all of his campaign promises, and might be willing to cut him some slack because he has already delivered some important reforms.

“For Mamdani, a very early win was getting the governor to go along with the child care proposal, which is, I think, fulfilling a major campaign promise,” he said.

“I think he now has the ability, because he’s been able to appoint a majority to the rent guidelines board, to encourage the board to implement a rent freeze, and that was a major campaign promise,” Reiss added.

Mamdani’s Property Tax Hike Proposal

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ABC News interviewed me in New York Mayor Mamdani’s Property Tax Hike Proposal Puts Pressure on Taxing Millionaires. It reads, in part,

David Reiss, a clinical professor of law at Cornell Law School, told ABC News that it was inevitable that Mamdani’s progressive policies would be met with initial resistance by moderates in a highly contested election year, but the debate over taxation will be one that resonates across the country as affordability takes center stage at the ballot box.

“I have no doubt this will be a flashpoint for national elections and state and local elections as well,” Reiss said.

    *     *     *

A Political Game of Chicken Not Limited to NYC

Reiss, who used to chair New York City’s Rent Guidelines Board, told ABC News that taxation has always been the big factor in elections, with Republicans previously running on a stance of no new taxes on Americans.

This year’s election season will be different, he noted, given Mamdani’s rise to national prominence, as well as that of progressive candidates who have been championing policies to help Americans make ends meet, such as improved child care and rent relief.

“You will see people say, ‘We want to increase revenues to support progressive issues,'” Reiss said.

Reiss said that Mamdani is “planting the flag” in a manner that is important to him and his supporters by making a property tax hike warning a part of his negotiations with the City Council and Albany.

Reiss further said that dangling a worst-case scenario this early puts the conversation on affordability and government fiscal priorities front and center, instead of it being buried under other issues that will surface as election season kicks off.

“You’re seeing a very popular mayor to use the bully pulpit for some change with a politically middle-of-the-road state government,” he said. “It really is a political game of chicken.”

    *     *     *

Reiss noted that the public push for more cost relief has seen leaders become more open to considering progressive policies.

Since Mamdani won the mayoral election, Hochul has been more open to some of his proposals to help New Yorkers, including expanding state funding for child care options for children aged two and older.

On Monday, the governor, whom Mamdani has endorsed, announced that the state would invest $1.5 billion in the city over the next two years for various services and programs, such as public health and youth services.

“It seems from a political perspective a logical strategy for a popular mayor to take, but it’s not without its risks,” Reiss said.

    *     *     *

Lawmakers across the country are facing growing calls from their constituents to address income inequality and the wealth gap, Reiss said, noting a proposed wealth tax in California on billionaires that has prompted some corporations threaten to leave the state.

“It’s the lightning rod, and it sets the terms of the debate,” Reiss said of Mamdani’s budget negotiation proposal. “But we’ll see if it compels other partners in government to go along or to resist it.”

Mamdani’s First 50 Days: Housing Edition

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NYC Mayor Zohran Mamdani

I was interviewed for AMNewYork’s story, Mamdani’s First 50 Days. It reads, in part,

For Professor David Reiss, a Cornell University housing expert and former chair of the Rent Guidelines Board, the mayor’s housing orientation so far is unmistakably pro-tenant, but it also underscores deeper challenges.

“He’s clearly pro-tenant,” Reiss said, noting Mamdani’s rhetoric, appointments, and actions such as launching his rental rip-off hearings and the revival of the Mayor’s office to protect tenants. But he cautioned that short-term policies aimed at controlling tenants’ costs must also account for the long-term viability of the housing stock.

“Are you pro-tenants five years, 10 years, 15 years down the line?” Reiss asked, pointing to the risk that buildings with constrained revenue might struggle to cover unavoidable expenses like property tax, insurance, and mortgage payments without meaningful engagement.

Reiss traced much of this pressure to state rent restrictions, which eliminated several mechanisms that previously allowed landlords to raise rents between tenancies. Under current conditions, he said, the annual RGB adjustments are often the only permissible rent increases, which, in recent years, have been modest in the view of landlord groups.

If rents are capped or frozen, his view is that the city will have very few tools to ensure financial stability without subsidies or cost reductions — whether direct (financial support) or indirect (tax relief or reduced operating costs).

“You have very few tools,” he said. “They usually involve somehow reducing costs directly or indirectly, or increasing income by subsidizing,” Reiss said that any meaningful approach will have to consider how the city allocates limited funds, especially in the face of a budget gap that has already pushed the administration to consider rainy day funds and reserve drawdowns elsewhere.

That tension between immediate affordability and long-range health of the housing stock frames much of the current policy conversation. Reiss said the rent freeze itself — assuming it survives legal and procedural hurdles — would represent a significant political success if delivered, given that it was a core campaign pledge. But he stressed that a broader housing strategy must also ensure that rent-regulated buildings can cover ongoing costs without descending into default or neglect.

“Success for the Mamdani administration,” Reiss said, “is to thread the needle between his expressed statement of reducing rent increases or rent freeze on the one hand, but ensuring that the housing stock has enough income to support itself — not just for this year, but for three years, five years, seven years down the line.”