Lawmakers signed off on COPA, new affordability and unit mix mandates and a construction wage floor, despite warnings from the Adams administration and housing associations that the measures could reduce output and spur investment.
The most direct impact is financial in nature. HPD estimates that a trio of bills would require roughly $600 million more per year to maintain current housing production, or force the city to fund 3,275 fewer units annually if that funding does not materialize.
Speaker Adrienne Adams did not dispute those figures. Instead, Council leaders framed the bills as a necessary recalibration in how public money is used.
COPA is the flashpoint. The bill gives nonprofits and city-approved entities the right of first offer and refusal on certain distressed or expiring multifamily properties, a change that landlords and real estate agents say will delay deals and deter buyers.
The measure passed without a veto-proof majority, signaling potential trouble if Mayor Eric Adams chooses to reject the measure on its way out the door. Notably, presumptive next speaker Julie Menin abstained, casting doubt on the bill’s sustainability.
In addition to COPA, the legislative package sets new requirements for city funding: minimum thresholds for extremely low- and very low-income units, mandatory shares of two- and three-bedroom apartments, a homeownership set-aside, and a $40 per hour wage and benefit floor for large city-funded projects.
Together they significantly increase development costs and reduce the pool of viable deals.
These bills come as newly elected Mayor Zohran Mamdani prepares to take office with a goal of producing 200,000 affordable units over the next decade, and as the city touts proponents of pro-growth zoning reforms.
By setting stricter conditions for public funding, the outgoing Council has effectively forced the next mayor to choose between scaling back ambitions, finding new funding or fighting to abolish the legislation.
We’re in the middle of the holiday season, but New York’s real estate industry shows no signs of slowing down. Here are some of the other big stories of the week.
Zeckendorf, Atlas Capital’s 80 Clarkson nabs contract for $129 million
A buyer signed a contract to purchase multiple units at Clarkson 80, the vibrant, ultra-luxury 112-unit project being developed by Zeckendorf Development and Atlas Capital Group. Should a sale end at the asking price of $129 million, it would easily surpass the record for the most expensive deal in Downtown Manhattan.
Jackpot! Three casinos in NYC are officially given the green light, with caveats
As expected this week, the New York Gaming Commission approved casino licenses for the three remaining proposals in New York City: Steve Cohen’s Metropolitan Park near Citi Field, the complex at Bally’s Golf Links at Ferry Point and Resorts World’s expansion of the Queens Aqueduct.
The caveat? The companies had to agree to an independent monitor to ensure they keep the promises they made to their respective communities.
Charles Cohen’s 750 Lex goes to auction
Charles Cohen’s 750 Lexington Avenue will be auctioned on January 21 to pay off a $155.9 million loan. It’s the latest in a series of well-documented asset sales and losses for Cohen.
Bushburg purchases a FiDi office with a significant discount for possible resi conversion
Joseph Hoffman’s Bushburg Properties purchased the 1970s office building at 100 William Street for $70 million. The plan? A potential conversion for the half-vacant building.
Read more
Housing crisis: City council approves COPA, other law revisions
Zeckendorf, Atlas Capital’s 80 Clarkson nabs contract for $129 million
Jackpot! Three casinos in NYC are officially given the green light, with caveats
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