NYC Council Bill Targets 311 Complaint abuse

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

• Queens City Council member rolls out bill to shield “harassed” properties from repeat 311 complaints and inspections.
• A coalition of left-leaning Council members is calling on the state Legislature to approve New York City commercial rent stabilization.
• The governor unveils state agency reforms aimed at trimming obscure red tape that slows affordable housing and drives up certain project costs.

In this edition we mention: City Council member Joann Ariola, Small Property Owners of New York Board President Ann Korchak, Council member Tiffany Cabán, state Sen. Julia Salazar, Assembly member Emily Gallagher and others.

We Heard

• False alarm: A new City Council bill would require 311 to stop referring repeat anonymous complaints for inspection when agencies are unable to substantiate the alleged property conditions. The bill, introduced Thursday by Republican Council member Joann Ariola, targets what it defines as “harassed” properties, barring inspections after three anonymous complaints within six months where city officials cannot verify the conditions or they do not constitute a city code violation. “We get a number of people who call us and say, ‘The Buildings Department has been here 10 to 15 times, they don’t find anything, but yet people continue to call,’” Ariola told The Real Deal. “Whatever agency is being called, it’s taking inspectors away from jobs that do result in violations and it has to stop.” Landlord advocates are on board. Ann Korchak, board president of the Small Property Owners of New York, said she “wholeheartedly” supports additional guardrails on the city’s 311 complaint system. A stack of complaints — even those that don’t result in violations — can raise red flags for banks weighing loans, insurers pricing policies and potential buyers, she said. “It’s not a victimless crime,” said Korchak. “Having a system that has no checks and balances has pretty severe repercussions for us.” So far, the bill only has two co-sponsors: Brooklyn Council member and zoning subcommittee chair Farah Louis and Staten Island Council member Frank Morano. It’s unclear where the Mamdani administration stands on the measure; City Hall did not respond to a request for comment on the bill by press time.
  
• Rent control redux: A perennial headache for landlords is back. Progressive City Council members are ramping up pressure on Albany to approve commercial rent stabilization for New York City next year, drawing attention to a long-shot proposal that has bounced around City Hall and the state Legislature for decades. Council member Tiffany Cabán late last week introduced a resolution urging state lawmakers to pass the New York City Small Business Rent Stabilization Act, sponsored by state Sen. Julia Salazar and Assembly member Emily Gallagher. Ten Council members signed on, including Chi Ossé, Crystal Hudson and Alexa Avilés. The bill would create a commercial rent-control system in the five boroughs, overseen by a nine-member Commercial Rent Guidelines Board modeled after the panel that sets rent increases for regulated apartments. It also calls for a minimum of 10-year lease renewals. Supporters cast the measure as a lifeline for small businesses squeezed by rising rents and competition from national chains. Opponents argue it would preserve commercial corridors in amber and distort the market. Framed largely as a retail measure (though the bill does not explicitly specify retail space), the legislation would extend to office space. Versions of commercial rent stabilization have surfaced in the City Council for roughly four decades, while iterations of the current state bill have circulated since at least 2019. The Council resolution signals that the city’s left flank is preparing another push for the measure next legislative session. “As treasured New York City businesses grapple with unaffordable rents that could threaten their existence, it is imperative that legislators step up to provide much needed protections,” the resolution states.
  
• Trimming the fat: Gov. Kathy Hochul on Monday unveiled 50 regulatory reforms aimed at cutting red tape across state government, including two designed to speed up housing production and lower specific project costs. The first eliminates a $25,000 bonding requirement imposed by the state Department of Transportation for transporting manufactured homes between 14 and 16 feet wide, aimed at making it cheaper to move prefabricated housing across the state. The second streamlines historic preservation reviews for state-funded affordable housing projects. The Office of Parks, Recreation and Historic Preservation and Homes and Community Renewal have streamlined the review process for determining which projects trigger full state preservation review, trimming a layer of bureaucracy that can slow approvals.

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

Bill Tracker

The Agenda

On Tuesday at 8 p.m., the Rent Guidelines Board will hold its final public hearing at Symphony Space in Manhattan before voting on whether to freeze or increase rent-regulated rents in the city later this month. More details here.

The City Council’s Committee on Public Housing will hold an oversight hearing Wednesday at 10 a.m. on soon-to-expire federal emergency housing vouchers administered by NYCHA.  More details here.

The Catch-Up

The battle over private listings is ramping up in statehouses. In New York, legislation regulating the practice is headed to Gov. Kathy Hochul’s desk. Washington state, meanwhile, has enacted the toughest restrictions on private listings, with the new law taking effect last week, reports The Real Deal.

The city will host a ticker-tape parade Thursday to celebrate the Knicks’ NBA championship, marking the franchise’s first title and prompting what is expected to be a massive turnout in Lower Manhattan, the Daily News reports.

From the western Bronx to downtown Brooklyn, it’s an unusually competitive primary election season that is pitting Mamdani-backed insurgents against establishment Democrats, The City Reporter writes.

The Kicker

“These astronomical rents disprove the myth that no one wants to live in NYC. They also show how far we have to go to solve the worst housing affordability crisis in our city’s history,” said New York City Comptroller Mark Levine on median rents in Manhattan hitting 

$5,125 per month — a 7 percent jump from last year, according to new analysis from The Corcoran Group.

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