If a real estate problem pops up, it’s often possible to get legislation introduced to address it.
There’s no limit to the number of bills a City Council member can introduce, and staffers in the bill-drafting unit will do the work of writing them — as will lobbyists and industry groups. Even if a measure has little chance of becoming law, introducing it can generate goodwill (and campaign contributions) for the legislator.
Which brings us to Intro 1281. Fifteen City Council members are sponsoring the bill, which would postpone a law requiring natural gas detectors above gas appliances.
Local Law 157 took effect May 1, but many building owners waited until the last moment to order detectors — and only one company makes UL-rated, battery-powered devices that comply with the law.
The bill would push back that mandate until at least Jan. 1, 2027, and possibly longer; It would make the start date one year after the Department of Buildings determines that natural gas alarms are sufficiently available and affordable.
My impression, as the May 1 deadline approached, was that Buildings believed that point had already been reached. When I ordered five detectors directly from the manufacturer in February, for $91.79 apiece, they arrived two days later. But last month, one vendor told me orders for the devices were backlogged 11 weeks.
Does the bill have a chance to pass? Several of the sponsors are conservatives not allied with the City Council’s leadership. But most sponsors are mainstream Democrats, including prime sponsor Eric Dinowitz of the Bronx.
Whether the bill is necessary is another question. No reports have emerged of building owners being fined for not having detectors within 10 feet of gas stoves and dryers and one foot from the ceiling.
The devices remain in stock, although it’s not clear if an order for hundreds of them could be immediately filled.
Potential unintended consequences of Local Law 157 remain a concern. Could it lead to gas shut-offs that last for months, if not forever? Could it result in apartments failing inspections for rental vouchers, leaving New Yorkers stuck in homeless shelters? Will it actually make buildings safer? We shall see.
What we’re thinking about: Vornado Realty Trust asked the Young Men’s/Women’s Real Estate Association of New York to exclude the press from the organization’s June 10 luncheon at Vornado’s Penn 2. The topic is not controversial: Vornado’s Glen Weiss will speak on “Reimagining Office Leasing: Strategies for a Post-Pandemic Market.” The REIT is hosting the event.
Send your thoughts to eengquist@therealdeal.com.
Vornado’s stock price is up 63 percent in the past year but down 8 percent from $42.75 on Election Day.
A thing we’ve learned: Any rent increase above 8.79 percent is presumed to be unreasonable, according to the latest “good cause eviction” guidance from New York state. The cap, which moves with the Consumer Price Index, applies to New York City, Albany, Ithaca, Kingston, Beacon and the city and town of Poughkeepsie, with exclusions for very small landlords and high-rent apartments.
Landlords who exceed the limit would have to justify the increase in court if a tenant declined to pay it.
Elsewhere…
New York City has a reputation for regulatory and legislative overreach, but there’s no shortage of that in its suburbs and weekend-home markets.
On the North Fork of Long Island, Hamptons-based Paramount Homes bought an 18-acre waterfront site where an abandoned oyster processing factory has become a fenced-off eyesore. It planned to build a hotel, rental cottages and a restaurant.
If you think the Town of Southold would embrace such a transformation, you’d be wrong. A broad rezoning of the town proposes an R-80 designation for the so-called Oki-Do site, at the southern end of Shipyard Lane in East Marion. That would kill the hospitality project.
Instead of helping meet the demand for tourism on the North Fork, R-80 zoning would yield a few megamansions used by a few people for a few weeks a year. At best.
At worst, it would not generate enough housing to make removal of the existing eyesore financially viable.
Shipyard Lane residents want as little activity as possible on their street, which is understandable. But the rezoning should do what’s best for the town, not a handful of homeowners.
Rushing to beat the rezoning is not an option for the developer: The town passed a moratorium on hotel projects and is extending it until the new zoning is in place.
Closing time
Residential: The top residential deal recorded Thursday was $23.6 million for a 4,675-square-foot condominium unit at 100 11th Avenue in Chelsea. The Real Deal reported today on the transaction by Hugh Jackman and his soon-to-be ex-wife, Deborra-Lee Furness.
Commercial: The top commercial deal recorded was $105.5 million for a 129,135-square-foot office building at 148 Lafayette Street in SoHo. The Real Deal reported in April on Steven and Michael Elghanayan’s EPIC sale to Tishman Speyer.
New to the Market: The highest price for a residential property hitting the market was $4.75 million for a co-op unit at 850 Fifth Avenue in Lenox Hill. Lisa Simonsen and Charles McDonald of Brown Harris Stevens have the listing.
— Matthew Elo
