DSA Wins Could Revive REST Act, City Council Deals Advance

13 minutes read

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Hey there, let’s get into today’s news at the intersection of policy and real estate:

A larger DSA caucus could give tenant advocates new momentum to expand rent stabilization beyond New York City, to the dismay of landlord groups.
Gotham’s waterfront megaproject survived ULURP after a last-minute affordability boost.
Dewey Clinton Park North cleared a key hurdle, despite one Council member’s derision.

In this edition we mention: Tenant-rights attorney Adam Bojak, Onondaga County Legislator Maurice Brown, state Sen. Julia Salazar, Council member Lincoln Restler, Council member Gale Brewer and others.

We Heard

Progressive gains: The real estate industry is likely to face a tougher crowd in Albany next year. The Legislature’s Democratic Socialists of America caucus is poised to grow from nine members to at least 15 — and possibly 16, depending on the outcome of a Syracuse Assembly race that remains too close to call. Many of those gains came in New York City, but two upstate races could have an outsized impact on one of the industry’s biggest policy concerns: the Rent Emergency Stabilization for Tenants Act, better known as the REST Act. The bill, which would make it easier for municipalities outside New York City to adopt and expand rent stabilization, became one of the session’s fiercest housing battles. Despite a late push from supporters, it never made it to the floor of either chamber for a vote. Its sponsors, however, told The Real Deal that they plan to bring it back next year. Progressives appear poised to gain key reinforcements in that fight. Tenant-rights attorney Adam Bojak won an open Assembly seat in Buffalo’s District 149, while Onondaga County Legislator Maurice Brown holds a razor-thin 82-vote lead in the race for Syracuse’s Assembly District 129, currently represented by Bill Magnarelli. Both candidates were backed by the DSA. They were also endorsed by the influential New York State Tenants’ Bloc after the REST Act stalled in Albany. The group explicitly tied its support to the legislation, betting that more upstate voices could help convince lawmakers and push the measure across the finish line next session. For landlords outside New York City, that’s an unsettling prospect. The DSA bloc remains a small faction in the 63-seat Senate and 150-seat Assembly, but the organization has punched above its weight in Albany since it sent its first member there (Brooklyn Sen. Julia Salazar) in 2018, helping advance eviction protections and efforts to reduce the state’s reliance on the private sector in building renewable energy projects.
Gotham blinks: Gotham Organization secured approval for its contentious Monitor Point project after striking a last-minute deal with the City Council that added 202 affordable apartments. Following weeks of pressure from Council member Lincoln Restler, the developer increased the share of below-market units from 40 percent to 50 percent, paving the way for unanimous approval by the Council’s zoning and land use committees this afternoon, and a final full Council signoff Monday. In its current form, the project calls for 1,324 apartments across three waterfront towers on land leased from the Greenpoint Monitor Museum and the MTA. Of those, 662 will be affordable: 329 units are earmarked for those earning 40 to 60 percent of the Area Median Income. Another 172 apartments will target households making 80 to 125 percent of AMI. Seniors will be prioritized for 161 units and 110 supportive housing units will be reserved for formerly homeless New Yorkers. The agreement gives Gotham a path through ULURP while avoiding a potential showdown before the city’s affordable housing appeals board. It also hands Restler a political victory after he pushed for more affordability, green space and waterfront access. The biggest losers may be neighborhood activists who opposed the development and wanted the site for parkland. “I know that many of my neighbors will be disappointed in this outcome, but I believe this is ultimately a positive project for our community,” said Restler.
Affordability squeeze: Over on Manhattan’s West Side, City Council member Gale Brewer had a tougher time squeezing more affordable housing out of The Chapman Group and Friedland Properties for their 1,094-unit project spanning two towers supercharged with air rights from the Hudson River Park Trust. The development, dubbed Dewey Clinton Park North, will include 287 income-restricted units — just 14 more than the prior proposal. Brewer accused the developers of “nickeling and diming” the community. “It makes me crazy,” said Brewer during a Council committee meeting where she reluctantly voted to advance the project. “We should have more affordable housing than what we’re able to negotiate.” Still, the Council’s zoning and land use committees signed off on the plan, paving the way for a final rubber stamp from the full Council on Monday. The developers couldn’t immediately be reached for comment.

Have a tip or feedback? Reach me at caroline.spivack@therealdeal.com.

The Catch-Up

Landlord representative Christina Smyth resigned from NYC’s Rent Guidelines Board ahead of Thursday’s pivotal vote, reports The Real Deal’s Lilah Burke.

Mayor Mamdani has promised relief for rent-stabilized tenants. But thousands of Bronx apartments under a separate city program are subject to increases, creating an awkward contrast, reports The New York Times.

Amtrak is a landlord, and as a tenant, the Metropolitan Transportation Authority isn’t keen on giving up its rights under the remaining 160 years of its lease at Penn Station, reports Crain’s New York Business.

Congress this week celebrated a rare bipartisan victory after overwhelmingly passing the largest housing affordability bill in a generation. On Wednesday, President Donald Trump was set to sign it into law — then he abruptly canceled the ceremony, reports NPR.

The Kicker

“We are literally fighting to stay alive,” said landlord Jerry Waxenberg, who owns 900 units across multiple boroughs ahead of Thursday’s Rent Guidelines Board vote.