Expectation on post-moratorium evictions – POLITICO

Welcome to Monday’s edition of the Real Estate newsletter. We’ll take a look at the week ahead and pick up on what you might have missed last week.

It’s been over a month since the state’s eviction moratorium expired, but New York hasn’t seen a tsunami of new cases materialize — at least not yet. Eviction cases in the five boroughs are down 79% this month from the pre-pandemic average, according to court records tracked by Princeton University’s Eviction Lab.

Tenant groups continue to expect an increase in evictions over the next few months, and there is much concern about tenants struggling with arrears who have not received help through the Housing Assistance Program. state emergency housing, which is underfunded.

Evictions are a “slow, steady and painful process,” said Cea Weaver, a prominent tenant activist. “It’s like climate change, it happens slowly.”

Governor Kathy Hochul has requested $1.6 billion from the US Treasury Department in additional federal aid for the program at the end of last month — an amount she said would help 174,000 renters, but it remains to be seen how much her application will actually bring in. While tenants who apply for the program are protected from eviction while their applications are pending, advocates – who are pushing for eviction legislation for ‘good reasons’ – say it’s unclear how many of time these protections will apply given the lack of funds.

“People are really, really anxious,” said council member Diana Ayala, who will chair a council oversight hearing today into the impact of the expiration. She said she hoped the hearing could help lawmakers “hopefully create a pathway where we’ll be strategic and make sure we don’t contribute to any displacement.”

Homeowners’ groups, meanwhile, say the courts are moving at a glacial pace. “Even if you had an eviction [case] pre-pandemic, we tell our members that you shouldn’t expect a move to marshal action for a year from today, given the huge backlog,” said Jay Martin, executive director of the Community Housing Improvement Program.

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AROUND THE WORLD — “Sanctions Could Affect Local Real Estate Transactions in Russia,” by Eddie Small and Beth Treffeisen of Crain: “The sanctions against Russia that President Joe Biden announced Thursday in response to his invasion of Ukraine could make it significantly more difficult for the country’s citizens to invest in real estate in New York. It remains difficult to say what the Russians have been up to in recent years. The new sanctions will target more than $1 trillion in assets in Russia by blocking four major banks from accessing their assets in the United States, Biden said. Institutions sanctioned include VTB, Russia’s second-largest bank, which has more than $250 billion in assets, he said. “We will limit Russia’s ability to do business in dollars, euros, pounds and yen to be part of the global economy,” Biden said. The Russian government is also barred from raising funds from U.S. and European investors, and the new sanctions apply the same restrictions to Russia’s largest state-owned companies, those with assets exceeding $1.4 trillion, Biden said.

— “Manhattan Borough President: Now seize the assets of Russian oligarchs in New York”, by The Real Deal staff: “Many Russian oligarchs have for decades put their money in the safe haven that is the US luxury real estate market, but now that their country has invaded Ukraine, some are calling on the US to seize these properties as punishment. for the raid. Such a strong statement came from Manhattan Borough President Mark Levine, who took aim at Russia in a tweet early Friday morning. “For years, Manhattan has been one of the most popular havens for Russian oligarchs to park their money, especially via ultra-high-end apartments,” he tweeted. ‘It’s time to start capturing their properties. #SupportUkraine.’ Levine pointed out in his tweet that such sanctions are already on the table across the pond, where, according to The Atlantic, London Mayor Sadiq Khan has demanded that the real estate of oligarchs there – estimated at £1.1 billion – be expropriated.

HOUSEKEEPING — “Condo faults? Council Bill Would Make Developers Pay,” by Kathryn Brenzel of The Real Deal: “The unit was modern and immaculate, but three years later the ceiling is leaking, the walls are cracked and the floors are warped. Such complaints about construction defects are relatively common among condo owners in New York, even at the city’s most exclusive addresses. But some of those unlucky homeowners may soon have new remedies: A City Council bill would challenge developers for needed repairs within 10 years of completing a “homeownership” project. As written, the legislation would only apply to condo and co-op projects receiving financial assistance from the city, such as financing, tax breaks, loans and other benefits. But Council member Diana Ayala, sponsor of the bill, said those parameters are likely to change.

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NOT ALL ROSES – “They fled to greener pastures, and there were weeds”, by Julie Lasky of The New York Times: “…Two winters into the pandemic, New Yorkers who have moved to the suburbs, suburbs or beyond, are taking stock of their low-density lifestyles. Overall, their decision to move to places that often lack food delivery, municipal sewage systems and corner pharmacies has been positive, judging by dozens of interviews and responses to questions about social networks. But even the most enthusiastic transplants have noticed a series of unforeseen inconveniences: pests, property damage, social isolation, automobile dependence and a shortage of healthcare and childcare providers – conditions that residents have faced. faced all their lives. The less enthusiastic have lifted the bids and returned to the city – or hope to do so if they can afford it now that the New York real estate market is booming again. According to a November report by the New York State Comptroller based on United States Postal Service change of address forms, a trend of migration from New York after the March 2020 lockdown has is reversed from July 2021, driven by the reopening of schools, offices, and arts and entertainment offerings.

BIG DEAL – “A&E makes the biggest apartment deal in Queens of the pandemic,” Rich Bockmann of The Real Deal: “Douglas Eisenberg’s A&E Real Estate has completed Queens’ largest multi-family transaction since the pandemic began. A&E paid $130 million for the 22-building Cunningham Heights apartment complex in Queens Village, a company representative told The Real Deal. The 1950s development has over 1,000 apartments spread over four city blocks and was 99% occupied. The deal reflects the company’s strategy of buying apartment buildings that have fallen out of favor with big buyers. “As was the case with Cunningham Heights, we continue to offer a wide range of multi-family investment opportunities which, despite their very strong fundamentals, do not attract nearly the same level of interest among institutional investors as we saw before the pandemic,” Eisenberg said. in a report.”

LUXE IN FLUX – “A Limestone Mansion on the Upper East Side Sells for $56 Million”, by Vivian Marino of The New York Times: “A six-story limestone mansion on the Upper East Side, with a long list of amenities, including a lower level fitness center with pool, gym and massage room, finally sold after more than six years on the market and several price cuts.The building, at 12 East 63rd Street, between Fifth Avenue and Madison Avenue, was bought by an anonymous buyer for $56 million.It was the largest closing in New York in February and the second highest so far this year, although the sale price was well below the $77 million originally sought in November 2015. In other major closed deals of the month, Norman Lear, the prolific television writer and producer, and his wife, Lyn Davis Lear, a film producer, sold their apartment at 15 Central Park West.The couple were among the first residents of the condominium.

NEW LOOK — “Christian Pascal buys Bill’s Townhouse as old restaurants take on new life,” by Steve Cuozzo of the New York Post: “The shuttered former home of Bill’s Townhouse restaurant — and Bill’s Gay ’90s for many years before that — is coming back to life with the backing of a powerful Manhattan impresario, Realty Check has learned. The lease at 57 E. 54th St. was signed a few days ago by Christian Pascal, co-owner of the famous Hunt & Fish Club. It exemplifies a growing trend: ambitious restaurants opening in large dark venues that previously housed other dining establishments. Pascal’s new spot, in the swanky block that’s also home to Cellini and Nerai, will likely be called Bill’s Supper Club. James Famularo of Meridian Retail Leasing, which represented the owners of 57 E. 54th St., said they were “close” to the listed asking price of $40,000 a month for 8,000 square feet over three floors.

– “Software company, investment company and advertising platform take 73K SF at 1 WTC”, by Celia Young of Commercial Observer

— “Deals of the Day: February 25,” by Natalie Sachmechi and Eddie Small of Crain

— “Tribeca residents fear ‘dangerous’ cobblestone streets in New York City borough”, by Griffin Kelly of the New York Post

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