Ben Kallos, Re-Elect to New York City Council in 2017 - Affordable Housing

Brooklyn Daily Eagle Council votes to crack down on cheating landlords by Paula Katinas

Feed — Fri, 22 Dec 2017 06:42:17 +0000

Brooklyn Daily Eagle

Council votes to crack down on cheating landlords

http://www.brooklyneagle.com/articles/2017/12/20/council-votes-crack-down-cheati...

Paula Katinas

12/20/2017

On Tuesday, the Council approved Intro 1015-A, a bill sponsored by Councilmembers Ben Kallos and Jumaane Williams, with input from Manhattan Borough President Gail Brewer, to hold building owners who receive tax abatements accountable to the city.

Starting in 2020, landlords who aren’t providing affordable apartments after they have received financial windfalls in the form of city financing or tax breaks will be required to register their units with the city.

Landlords who benefit from big tax breaks in exchange for agreeing to provide affordable housing units and then fail to offer cheaper apartments will come under new scrutiny if a bill passed by the City Council is signed into law by Mayor Bill de Blasio.

The legislation is designed to crack down on building owners who cheat the system, advocates said.

Under the legislation, the landlords will also have to offer at least some of their apartments in tax-abated buildings for rent at affordable prices. If they fail to follow the rules, they will be hit with escalating fines that start at $100 per unit per month and go up to $2,000 per unit per month.

Williams (D-Flatbush), chairman of the Council’s Housing Committee, said the legislation is aimed at righting a wrong.

“Landlords cannot be permitted to make promises of affordable housing, collect taxpayer money, and then shirk their responsibility to uphold that promise of delivering affordable units,” Williams said in a statement. “This bill helps to create the transparency that is badly needed in this process, by listing all registered units online and keeping landlords accountable.”

The bill was drafted in response to a report by ProPublica in which it was estimated that real estate developers have received $100 million in tax breaks and other amenities while at the same time 50,000 housing units that were supposed to be affordable might not be affordable after all.

“New York City is in desperate need of affordable housing. It is a crisis, and we cannot allow landlords to hide even a single unit of it from the public,” Kallos said. “We need a full accounting of every affordable unit of housing in the city, and we need regular monitoring and strict enforcement.

In 1993, New York state eliminated penalties for failing to register affordable units, a move that opened the door to building owners flouting the law and charging high rents, according to Kallos (D-Upper East Side).

Some landlords benefit from direct financing from the city, tax abatements lasting decades or being allowed to add density to their buildings.

The de Blasio administration combed through city records and found 37,141 apartments in tax abated buildings where the owners failed to comply with affordable housing rules, costing the city an estimated $304 million in property taxes, Kallos said.

The legislation would also give tenants the chance to learn if the rent they are being charged by their landlords is legal under Department of Housing Preservation and Development (HPD) regulations.

In addition, a listing of all affordable housing units listed by street, apartment size and the affordable housing subsidy would be available for the public.

“This legislation is an important step in the right direction; improving the lives of those in need of housing and protecting the financial interests of New York City taxpayers,” said Stephen Werner, an HPD analyst who first called attention to the issue.

Harvey Epstein, director of Community Development Project at the Urban Justice Center, called the bill a major step toward transparency in the affordable housing market.

“This will provide an additional check to ensure owners are registering their affordable housing and give tenants the information they need to make well informed decisions their housing needs,” Epstein stated.

Issue:

Affordable Housing

6sqft New legislation will a create a real-time portal for affordable housing in NYC by Devin Gannon

Feed — Fri, 22 Dec 2017 06:42:17 +0000

6sqft

New legislation will a create a real-time portal for affordable housing in NYC

https://www.6sqft.com/new-legislation-will-a-create-a-real-time-portal-for-affor...

Devin Gannon

12/20/2017

The goal of the legislation is to make the housing lottery application and search process more efficient and transparent for renters. Applicants would be able to track their application’s progress online and see their place on the waiting lists. By 2021, residents will be able to verify if the rent landlords are charging is legal.

Council Member Benjamin Kallos, who was a lead sponsor on the bill, called Housing Connect “incredibly broken” because it doesn’t match renters with available units. Following the passage of Kallos’ bill, the HPD said it will upgrade and expand the capabilities of their website.

The final version of the bill does help the city enforce rent limits for apartments that are not income-restricted, although Kallos originally hoped to apply it to other rent-regulated units. Aaron Carr of the nonprofit Housing Rights Initiative told the WSJ that renters in rent-stabilized suffer the most under the new bill. “Tens of thousands of units in the buildings receiving those

During its last full-body meeting of the year, the New York City Council passed a bill Tuesday that makes it easier for low-income renters to find apartments by creating a user-friendly online portal. Under the new legislation, landlords who receive tax breaks in exchange for renting below-market units will be required to register units each year with the city’s Department of Housing Preservation and Development. As the Wall Street Journal reported, the department would list these units online and match potential tenants by their income with apartments.

The current search feature on NYC Housing Connect

Currently, the city runs a website called NYC Housing Connect that lets users create a profile, search open housing lotteries and sometimes apply to the income-restricted buildings directly. After the housing lottery’s deadline, applications are reviewed, and if selected, applicants will be interviewed to determine eligibility.

Issue:

Affordable Housing

FOX 5 WNYW Legislation seeks to make NYC a bit quieter by Fox News

Feed — Fri, 22 Dec 2017 06:42:16 +0000

FOX 5 WNYW

Legislation seeks to make NYC a bit quieter

https://www.fox5ny.com/news/legislation-seeks-to-make-nyc-a-bit-quieter

Fox News

12/20/2017

Coming to the rescue is Council Member Ben Kallos, whose bill has just been passed. The bill seeks to turn down the volume during the off hours that construction sites aren't taking off, whether it be on the Upper East Side or across the East River in Queens or back across to Manhattan's West Side where construction seems never-ending.

Issue:

Affordable Housing

Community

Environment

Wall Street Journal Bill Seeking Transparency in Affordable Housing Passes New York City Council by Cezary Podkul

Feed — Thu, 21 Dec 2017 03:12:16 +0000

Wall Street Journal

Bill Seeking Transparency in Affordable Housing Passes New York City Council

https://www.wsj.com/articles/bill-seeking-transparency-in-affordable-housing-pas...

Cezary Podkul

12/19/2017

Applicants also would be able to track the progress of their applications and see where they are on waiting lists to rent units, which are awarded by lottery. By 2021, residents also would be able to verify with the city that they are being charged a legal rent.

The legislation is meant to make the application and search process more transparent and efficient, said the bill’s lead sponsor, Council Member Benjamin Kallos.

“I want to make it more like StreetEasy or Zillow,” Mr. Kallos said, referring to the popular housing search websites.

The city already runs a website that helps tenants find income-restricted apartments, NYC Housing Connect, but Mr. Kallos said it is “incredibly broken” because it doesn’t do enough to match tenants with available units.

The New York City Council approved legislation Tuesday that would make it easier for lower-income renters to find apartments that match their budgets.

The measure would require landlords who collect tax breaks and other benefits in exchange for renting apartments at below-market rates to register those units annually with the city’s Department of Housing, Preservation and Development.

The department would then be required to list those units online and help tenants find housing by matching them up with units that meet their incomes. Typically, such units are restricted to residents that meet various percentages of the New York City region’s area median income, which is now $85,900 for a three-person family.

The legislation is meant to make the application and search process more transparent and efficient, said the bill’s lead sponsor, Council Member Benjamin Kallos.

“I want to make it more like StreetEasy or Zillow,” Mr. Kallos said, referring to the popular housing search websites.

The Department of Housing, Preservation and Development said in a statement that it has “long planned to upgrade its housing lottery system” and will “greatly expand” the capabilities of Housing Connect to “achieve many of the same goals” sought by Mr. Kallos’s legislation.

A spokeswoman for Mayor Bill de Blasio declined to say whether he would sign the bill. The Real Estate Board of New York, which represents property owners, opposes the legislation.

While the bill would help the city keep better track of these income-restricted units, the measure would do little to help enforce rent limits in the broader universe of taxpayer-subsidized rental housing.

The city gives out two popular tax breaks—known as 421-a and J-51—which together cost more than $1.5 billion a year and require building owners to limit rent increases on all apartments, not just those that are income-restricted.

Mr. Kallos originally hoped to apply his bill’s annual rent registration requirements to these and other rent-regulated units. However, after opposition from the city housing department—he agreed to slim down the requirement to cover just income-restricted units.

Aaron Carr, a tenant organizer who is leading a campaign to enforce rent laws in taxpayer-subsidized buildings, said the bill’s narrower focus misses an opportunity to help a larger population of residents.

“Tens of thousands of units in the buildings receiving those benefits have been illegally removed from rent stabilization,” Mr. Carr, who heads the nonprofit Housing Rights Initiative, said in an email. Mr. Carr said the losers are rent-stabilized renters—frequently lower-income and minority tenants—who have to pay higher rents as a result.

Mr. Kallos said the bill isn’t perfect, but “we can’t let the perfect be the enemy of the good enough.”

—Mara Gay contributed to this article.

Write to Cezary Podkul at cezary [dot] podkulwsj [dot] com

Issue:

Affordable Housing

New York Daily News Construction sites must lower noise during city’s quiet time under new law by Erin Durkin

Feed — Thu, 21 Dec 2017 03:12:15 +0000

New York Daily News

Construction sites must lower noise during city’s quiet time under new law

http://www.nydailynews.com/news/politics/new-city-law-reduces-construction-noise...

Erin Durkin

12/20/2017

Construction done at odd hours will have to turn down the volume under a bill passed by the City Council on Tuesday.

The legislation sponsored by Councilman Ben Kallos places stricter limits on construction within 200 feet of a home before 7 a.m. and after 6 p.m. on weekdays, and any time on weekends.

“New York City may be the city that never sleeps, but that shouldn’t be because of after-hours construction that wakes you up,” said Kallos (D-Manhattan). “Noise is the top complaint in New York City.”

The construction cacophony will be capped at 80 decibels next year, and dropped to 75 in 2020. The current limit is 85 decibels.

http://assets.nydailynews.com/polopoly_fs/1.3709863.1513729726!/img/httpImage/image.jpg_gen/derivatives/article_750/parks.jpg

Issue:

Affordable Housing

Thousands of Subsidized Units Will Return to Affordable Housing Under Legislation that Passed the City Council

Feed — Wed, 20 Dec 2017 13:08:36 +0000

Affordable Housing

Thousands of Subsidized Units Will Return to Affordable Housing Under Legislation that Passed the City Council

Registration required for thousands of previously unaccounted for
affordable homes with fines for bad landlords

Upgrading Housing Connect to include existing affordable housing with
notification for eligible units so residents can apply all in one place

New York, NY – Landlords failing to provide required affordable housing in exchange for city financing, tax breaks or additional density will have to register their units and offer new and existing units to residents for rental in one location or face escalating fines under legislation that passed the New York City Council yesterday. Introduction 1015-A, authored by Council Member Ben Kallos and sponsored by Manhattan Borough President Brewer, and Housing and Buildings Chair Williams was introduced in response to a ProPublica report estimating that New York City has paid developers $100 million for 50,000 affordable units that might not be offered for affordable rates.

“New York City is in desperate need of affordable housing. It is a crisis, and we cannot allow landlords to hide even a single unit of it from the public,” said Council Member Ben Kallos. “We need a full accounting of every affordable unit of housing in the City, and we need regular monitoring and strict enforcement. If New Yorkers are going to pay billions of taxpayer dollars to developers in exchange for building affordable units, we need to ensure residents in need can actually get that affordable housing.”

New York City and State for decades have failed to hold landlords and developers accountable for agreements like 421-a, J-51, and Article XI. In 1993 New York State eliminated penalties for failing to register, allowing thousands of building owners to ignore the law for years and charge rents above the legal limit. These programs provide direct financing, decades-long tax abatements, or additional density to landlords and developers in exchange for building and maintaining affordable housing units whose tenants have income that meet a certain percentage of the Area Mean Income. Together these programs cost the city roughly $1.2 billion per year in tax revenue, but much of the affordable housing is getting lost. ProPublica found that owners of 15,000 buildings — receiving over $100 million from the city — failed to register any affordable units, leaving New Yorkers roughly 50,000 units short of what they paid for. After hearing this legislation, Mayor de Blasio identified 37,141 apartments that were avoiding $304 million in property taxes while failing to comply with the 421-a affordable housing program.

Non-Registration – owners fail to register thousands of buildings with tens of thousands of units for which they receive hundreds of millions in tax breaks each year.
Paper Applications – applicants must mail an application request, receive the application by mail, return the application by mail, and wait hoping nothing got lost in the mail.
Lotteries and Rejections – three quarters of applications have been rejected in lotteries because individuals apply for the wrong affordable housing for their income.
Waiting List Corruption – investigations revealed dozens of instances of corruption and bribery surrounding waiting lists for affordable housing.
Numerous Individual Places to Apply – Multiple websites offered by DHCR, HPD, HDC and non-profits like Met Council as well as at individual affordable housing buildings.

The legislation mandates the following solutions:

Finding Affordable Housing

Online Application for All City Subsidized Affordable Housing in One Place – owners will list all affordable housing receiving any city subsidies on a central city website where New Yorkers can apply for new and existing affordable housing. Residents would be able to find the address, apartment size and number of bedrooms, maximum rent, amenities with monthly fees, pet policy, elevators and ADA accessibility, and how to apply for the unit.
Matching Residents to the Correct Affordable Units by Income – residents will complete a profile which will be used to match, notify and pre-fill an application only to units for which they actually qualify. Individuals earning less than $53,450 a year and families earning 80% of the AMI will be linked to apply for NYCHA public housing.
Waiting List Transparency and Application Tracking – applicants will be able to track the progress of their applications and their position on waiting lists.

Ensuring Subsidized Housing is Offered at Affordable Rates

Owner Registration – starting in 2020 owners of affordable housing receiving direct financing, tax abatements or additional density from the City will receive outreach and be required to annually register each unit online with the city.
Enforcement and Fines – individuals can file complaints with HPD required to investigate and issue early warnings that would lead to fines escalating overtime from $100 per month per unit to $2,000 per month per unit if unresolved. In 1993 New York State eliminated penalties for failing to register, allowing thousands of building owners to ignore the law for years and charge rents above the legal limit, now they are back for city subsidized affordable housing.

Tenant Protections

Protection from Illegal Rents – tenants could verify whether the rent they were charged was legal with HPD.
Public Information – a list of all affordable housing by street, apartment size, manager, and the affordable housing subsidy would be available for the public to hold landlords and the city accountable.
Manager and Superintendent Information – already being filed by owners under the housing maintenance code and hard to find this information would be available online.
Privacy – privacy protections would be provided for victims of domestic violence with units receiving tenant based financial assistance such as SCRIE, DRIE, or HASA excluded.

Time Line

January 1, 2018 –All affordable housing receiving new or renewed subsidies from the city through financing, tax abatement, or additional density through Mayor de Blasio’s Affordable Housing Plan would be covered.
July 1, 2020 – Launch of upgrade Housing Connect or a new system to satisfy this legislation.
July 1, 2021 – HPD will provide recommendations for including all existing affordable housing. Prior to this date, existing affordable housing that is receiving city financing, tax abatements or additional density will be able to offer vacant units voluntarily.

The legislation’s requirements for registration, offering, disclosure and enforcement apply to affordable housing units that are restricted to tenants based on income and does not apply to units that are not restricted by income or are otherwise market rate.

“This legislation is an important step in the right direction - improving the lives of those in need of housing and protecting the financial interests of New York City taxpayers.
Let's continue to work together to see that these noble civic goals are met in the future through this and other forms of legislation and regulation at our disposal,” said Stephen Werner an HPD Analyst and hero whistle blower who built a rent stabilized building look up tool to call attention to the problem.

“I am very pleased that Council Member Kallos and an OSA member were able to work together to improve affordable housing in New York City. Although we have a lot more work to do, this bill is a great step in the right direction and will bring accountability to landlords and developers who cheat the system,” said Robert J. Croghan, Chair of the Organization of Staff Analysts (OSA), which represents Stephen Werner and protected his whistle blower rights.

“Combatting the affordable housing and homelessness crisis in this city is a complex and daunting task, and it is essential that there is adequate oversight over the process of creating and preserving affordable units. Landlords cannot be permitted to make promises of affordable housing, collect taxpayer money, and then shirk their responsibility to uphold that promise of delivering affordable units. This bill helps to create the transparency that is badly needed in this process, by listing all registered units online and keeping landlords accountable,” said Housing and Buildings Chair Jumaane D. Williams. “I thank Council Member Kallos for his work on this issue, and for this legislation that helps ensure that our city’s investment in affordable housing is put to meaningful, beneficial use, with lasting impact for New Yorkers in need.”

“Requiring affordable housing to be registered and accessible through a single user-friendly portal is a good idea that’s long overdue,” said Manhattan Borough President Gale A. Brewer, who sponsored the legislation in partnership with Councilmember Kallos. “In 2017, there’s no reason this information should be scattered among a hodgepodge of websites and PDF flyers, or for affordable units to go unregistered and unpublicized because of a lack of accountability.”

“This bill is a huge step forward in creating transparency about affordable housing in NYC. This will provide an additional check to ensure owners are registering their affordable housing and give tenants the information they need to make well informed decisions their housing needs,” Harvey Epstein, Director Community Development Project, Urban Justice Center. “I want to applaud the efforts of Councilmembers Kallos, Williams and Mendez as well as Borough President Brewer for introducing this and we look forward to quick hearing and passage of this important legislation.”

“New York's tenants are experiencing a severe affordable housing crisis, and I applaud Councilmember Ben Kallos, Borough President Gale Brewer, Councilmember Jumaae Williams, and Councilmember Rosie Mendez for increasing transparency and the preservation of affordable housing, and making it easier for tenants to know their rights and secure their housing protections,” said Katie Goldstein, Executive Director of Tenants & Neighbors.

“We applaud the leadership of Councilmember Kallos on addressing this important issue in New York City; Introduction 1015-A will ensure that units within buildings that receive a city benefits continue to be accessible to New Yorkers seeking affordable housing in their communities. This legislation will bring back to the affordable housing market, thousands of units throughout the City of New York,” said Rolando Guzman, Deputy Director for Community Preservation at the St. Nicks Alliance.

Real Estate Weekly Sutton Place rezoning sets stage for potential legal battle by Kyle Campbell

Feed — Fri, 08 Dec 2017 10:52:15 +0000

Real Estate Weekly

Sutton Place rezoning sets stage for potential legal battle

http://rew-online.com/2017/12/06/sutton-place-rezoning-set-stage-legal-battle/

Kyle Campbell

12/06/2017

Gamma Real Estate will challenge the decision in front of the city’s Board of Standards and Appeals, or BSA, a process Kalikow said he believes will be “very objective, very black and white” because of how much progress was made on the site prior to the zoning change.

If the BSA does not grant the appeal, the developer has already taken steps for a potential lawsuit, Kalikow said, including sending a letter to Councilman Ben Kallos, telling him not to delete any emails related to the case.

Kallos, who represents the Upper East Side, has championed the re-zoning effort at city hall since a group of his constituents raised the issue in 2015. He said had the proposed change not been stuck in the preapproval stage for more than a year, it would have passed through the council well before construction began on the site.

A Sutton Place zoning change approved by city council last week might have set the stage for a legal battle between the city and the would-be developer of an 800-foot-tall luxury apartment building.

On Thursday, the council adopted a text amendment to the area’s zoning that requires at least 45 percent of a building’s square footage to remain below 150 feet tall. This creates a problem for Gamma Real Estate, which has already broken ground on a 67-story, supertall apartment building at 426-432 East 58th Street.

With more than 90 percent of the foundation excavation complete, the developer had banked on a grandfather clause sparing its 125-unit tower. However, no such exception was granted and construction was brought to halt 15 minutes after the zoning change was passed, Jonathan Kalikow of Gamma Real Estate said.

Kalikow said his company will not amend its plan to make the building shorter, nor will it use a tower-on-base model, would allow it to build up to 260 feet high.

“Our building’s foundation is only 10 days away from completion,” he said. “Our building is going to be built as it was designed to 800 feet with the appropriate (floor area ration). That has been known for months.”

Kallos expects the BSA to uphold the council’s decision and he’s prepared for a lawsuit if that happens.

“The developer has threatened retaliation and though they also said they would be done with excavation by the time the amendment was approved, I will have to take them at their word,” he said. “Whatever that’s worth.”

Issue:

Affordable Housing

CBS News 2 New York Council Stopped Midtown Tower Project At Behest Of Wealthy Neighbors, Developer Claims by Jessica Borga

Feed — Wed, 06 Dec 2017 03:32:16 +0000

CBS News 2 New York

Council Stopped Midtown Tower Project At Behest Of Wealthy Neighbors, Developer Claims

http://newyork.cbslocal.com/2017/12/04/midtown-tower-construction/

Jessica Borga

12/04/2017

NEW YORK (CBSNewYork) — Construction on upscale condominiumshas been stopped in its tracks on Manhattan’s east side.

New zoning rules now say the controversial tower is too tall.

It’s known as Sutton 58 — the site of a 62-story condo building under construction.

Last Thursday, a City Council vote to limit the construction of tall towers on side streets in the area, led to a stop-work order.

“New Yorkers are sick and tired of out-of-control, out-of-scale overdevelopment, and for so very long, no one would stand up for real estate,” City Councilman Ben Kallos (D-5th) said.

NEW YORK (CBSNewYork) — Construction on upscale condominiums has been stopped in its tracks on Manhattan’s east side.

New zoning rules now say the controversial tower is too tall.

It’s known as Sutton 58 — the site of a 62-story condo building under construction.

Last Thursday, a City Council vote to limit the construction of tall towers on side streets in the area, led to a stop-work order.

“New Yorkers are sick and tired of out-of-control, out-of-scale overdevelopment, and for so very long, no one would stand up for real estate,” City Councilman Ben Kallos (D-5th) said.

The condo building on 58th Street near Sutton Place is designed to be taller than the co-op across the street.

Residents there have been fighting construction for two years and consider the council vote a victory.

“The tower is completely out of scale, it’s not in context with the neighborhood which is residential,” Lisa Mercurio, East River Fifties Alliance said.

Developer Jonathan Kalikow said his project was targeted and that the council vote to stop construction was unfairly fast-tracked.

“They’re doing it at the behest of a wealthy group of individuals who didn’t want their views blocked,” he said.

The developer said the foundation is 95 percent finished, and it would’ve taken less than two weeks to complete.

City rules allow construction to continue after a zone change if the foundation is 100 percent complete.

The developer said he’ll take the case to the city’s Board of Standards and Appeals.

“At the end of the day, we will have this building,” Kalikow said.

“It sounds like there’s still the opportunity for the developer to build a large building, just not as out-of-scale with the community as the original plan,” the mayor said.

John Banks, the president of the Real Estate Board of New York, said developers should be able to trust that properties they invest in can be built under existing zoning rules.

“It says you have to think carefully about what you plan to develop and where, because groups and organizations that can do this will use it now that a precedent has been established,” he said.

Right now, the site remains boarded up.

It’s anyone’s guess as to how high in the sky it can be.

The developer said the process of filing an administrative objection with the city’s Board of Standards and Appeals can take six months or longer. He also said about 100 construction workers have been laid off in the meantime.

Issue:

Affordable Housing

Wall Street Journal New York City Council Halts Midtown Tower Construction by Josh Barbanel

Feed — Mon, 04 Dec 2017 23:52:17 +0000

Wall Street Journal

New York City Council Halts Midtown Tower Construction

https://www.wsj.com/articles/new-york-city-council-halts-midtown-tower-construct...

Josh Barbanel

12/03/2017

Mr. Kalikow put much of the blame for the shutdown on the local councilman, Ben Kallos, a Democrat. Mr. Kallos signed the application for the zoning change, along with the East River 50s Alliance, and pressed officials to expedite it.

Mr. Kallos’s support was crucial in the council as other members followed his lead on the issue, a courtesy usually extended on local land-use issues.

“I take full credit for it,” Mr. Kallos said, after hearing of Mr. Kalikow’s complaints. He said the developer is welcome to pursue his rights under the law, but that eventually he might find there already are too many super-tall buildings “intended for billionaires.”

The city rules allow a building to continue construction after a zoning change only if the foundation was complete. Sutton 58’s foundation work was 95% finished, and would have been done in about 10 days, Mr. Kalikow said.

Work on an 800-foot-tall tower in East Midtown that has been under construction for six months was halted last week following a vote by the New York City Council to limit skyscrapers in the area, in a win for a grass-roots group that sought to block the project.

Within minutes of the council vote Thursday, the city’s Department of Buildings posted a “stop work” order on a plywood fence at the construction site, on East 58th Street near Sutton Place. Workers put down their tools and left.

Construction of the tower, known as Sutton 58, was stopped by a group led by residents of a 450-foot-tall co-op known as the Sovereign, which is across the street from the site.

The East River 50s Alliance, which worked with local elected officials and spent about $1 million on lawyers and consultants, drafted a proposed zoning change last year that would limit the construction of tall towers on side streets to protect the area from oversize development.

The council’s move was unusual because it overruled a provision adopted by the City Planning Commission just two weeks earlier that would have allowed Sutton 58 to be built.

Jonathan Kalikow, president of Gamma Real Estate, which is building the tower, said the council’s action would immediately lead to the layoff of more than 100 workers. He said he would file an administrative objection to the shutdown with the city’s Board of Standards and Appeals, but the process could take six months or more.

Mr. Kallos’s support was crucial in the council as other members followed his lead on the issue, a courtesy usually extended on local land-use issues.

Issue:

Affordable Housing

Upper East Side Patch Sutton Place Rezoning Passes City Council by Brendan Krisel

Feed — Sat, 02 Dec 2017 16:32:16 +0000

Upper East Side Patch

Sutton Place Rezoning Passes City Council

https://patch.com/new-york/upper-east-side-nyc/sutton-place-rezoning-passes-city...

Brendan Krisel

11/30/2017

City Councilman Ben Kallos hailed Thursday's City Council vote as a win for residents over billionaire developers.

"Today, the City Council voted to stop the march of supertall buildings from commercial districts on 57th Street into residential districts, where they would displace rent-regulated residents to build buildings for billionaires," Kallos said in a statement.

Since the East River Fifties Alliance's creation in 2015, the group has grown to include 45 Sutton Place buildings and 2,600 people from 500 buildings citywide, Kallos said.

A resident-led plan to curb overdevelopment in the Sutton Place neighborhood was approved Thursday by the New York City Council.

The City Council overwhelmingly voted in favor of the rezoning application proposed by a group called the East River Fifties Alliance. The plan will prevent supertall developments from rising in the small Sutton Place neighborhood from East 51st to 59th streets east of First Avenue.

The ERFA's plan would implement the city's "tower-on-a-base" development rules in the neighborhood. The rules require that 45 percent of a new development's floor area be contained below a height of 150 feet. Buildings could still rise above 150 feet, but nearly half of the total density would be at heights that wouldn't be uncharacteristic of the existing neighborhood, according to the plan.

The City Council also voted to remove a grandfather clause inserted into the plan by the City Planning Commission. The clause would have allowed any currently-planned developments from abiding by the new zoning rules.

City Councilman Ben Kallos hailed Thursday's City Council vote as a win for residents over billionaire developers.

Since the East River Fifties Alliance's creation in 2015, the group has grown to include 45 Sutton Place buildings and 2,600 people from 500 buildings citywide, Kallos said.

Opponents to the ERFA's zoning plan say it creates a dangerous precedent for spot-zoning in the city. Gamma Real Estate's Jonathan Kalikow has been one of the most outspoken critics of the plan. Gamma Real Estate, which is planning to develop a 700-foot-tall residential tower on a three-building site on East 58th Street. The site's previous owner, Joseph Beninati's Bauhouse Group, planned an even larger development for the site, which helped inspire the rezoning fight.

Kalikow vowed to challenge the plan in the city's Board of Standards and Appeals when the plan was approved by two City Council committees earlier this month.

"This illegal spot zoning will not stop our building from being built. The only impact of this charade is to cause Gamma financial harm from the delay and put innocent workers out on the street," Kalikow said in a statement.

Issue:

Affordable Housing