Housing Stability and Tenant Protection Act: An Initial Analysis of Short-Term Trends
On June 11th, 2019, the New York State Legislature enacted the Housing Stability and Tenant Protection Act (HSTPA). Three days later, Governor Andrew Cuomo signed the act into law, making most of the law’s provisions effective immediately on June 14th, 2019. HSTPA made significant changes to the state’s rent stabilization system and expanded protections for New York State renters. The primary purpose of the legislation was to limit the size of rent increases and to prevent rent increases from leading to the deregulation of rent stabilized apartments. While many applauded the reforms as a tool to protect housing affordability and stability for renters, others contended that the law changes would lead to disinvestment in multifamily housing, decrease the tax base for the city, and result in a long-term decline in the quality and safety of housing. In an effort to contribute information about the impact of the rent law changes, this brief describes the changes in a few key housing indicators after HSTPA and, given that most of these predicted effects would likely take years to materialize, identifies future areas for research.
Treasury Emergency Rental Assistance Programs in 2021: Analysis of a National Survey
A new report published in partnership with the National Low Income Housing Coalition and The Housing Initiative at Penn examines the program design and implementation challenges of emergency rental assistance (ERA) programs created or expanded in response to the COVID-19 pandemic and economic fallout. The research uses survey responses from 64 of the 140 ERA programs launched by April 8th, 2021, and compared select results to the National Low Income Housing Coalition’s (NLIHC) Treasury Emergency Rental Assistance Dashboard. Some key trends of the survey include implementation challenges surrounding tenant and landlord responsiveness, lowered barriers that allowed vulnerable populations to participate, and increased efforts to advance racial equity by targeting disadvantaged groups or communities. This report captures key trends from the earliest ERA implementors, and additional rounds of surveys will inform how program characteristics evolve and translate into outcomes.
COVID-19 Emergency Rental Assistance: Analysis of a National Survey of Programs
The report examines program decisions against outcome metrics, such as a ratio of actual number of applicants to expected number of applicants and funds obligated as a share of total program funds. A survey launched in August 2020, and ran through October 2020, collecting information from program administrators, many of whom provided follow-up responses to requests for outcome data in December 2020 and January 2021.
21st Century SROs: Can Small Housing Units Help Meet the Need for Affordable Housing in New York City?
Single-room occupancy housing (SROs) used to be a readily available affordable housing type in New York City. During the second half of the 20th century, many SROs came to serve as housing of last resort, and mounting criticism of SROs led to laws banning their construction and discouraging their operation. Today, New York City faces a significant housing affordability crisis. In this context, it is worth considering whether the city needs an updated housing model that helps meet the need SROs filled in the last century. Here we analyze the benefits, risks, and challenges of reintroducing small housing units (self-contained micro units and efficiency units with shared facilities) in order to shed light on whether and how a new small-unit model could help meet the demand for affordable housing in the city today.
How Do Small Area FMRs Affect the Location and Number of Units Affordable to Voucher Holders?
This brief explores how the location and number of homes affordable to voucher holders will change in the 24 metro areas mandated by HUD to adopt Small Area Fair Market Rents (“Small Area FMRs”). The change to Small Area FMR—a more localized rent measures as a determinant of subsidy standards—is designed to allow housing choice voucher holders to rent homes in a wider variety of areas. The analysis finds that switching to Small Area FMRs would open up options for voucher holders in high-rent ZIP Codes while reducing them in low-rent ZIP Codes. In addition, the aggregate number of units affordable to voucher holders in these 24 metros would increase with the use of Small Area FMRs.
The Effects of the Low-Income Housing Tax Credit (LIHTC)
The Low-Income Housing Tax Credit (LIHTC) Program is the largest federal subsidy for the development and preservation of affordable housing. Since it was established by the Tax Reform Act of 1986, LIHTC has financed the development and preservation of more than 2.1 million units in over 28,000 developments across the country. As federal tax reform looms, however, there is growing uncertainty surrounding the future of LIHTC. In contemplation of debate about these possible changes, this brief explores what we know about who LIHTC serves and what research has shown about the impact of the program.
The Latest Reform Proposal for the 421-a Program
This report analyzes the potential impact of the most recent reform proposal for the 421-a program on housing development in New York City, which is currently under consideration by the New York State Legislature. In evaluating the proposal, the report finds that the proposed 421-a program’s increase in tax exemption exceeds the additional affordable housing benefit by $2.6 to $5.7 million for a 300-unit building. The report also finds that the higher tax break for developers may support a 10-18% rise in hard construction costs without affecting long-term financial returns.
Gentrification Responses: A Survey of Strategies to Maintain Neighborhood Economic Diversity
This report examines strategies used by local governments to address rising housing costs and displacement of low-income households in gentrifying neighborhoods. To assist tenants at risk of displacement, the report details strategies to regulate the landlord/tenant relationship well as strategies to provide assistance for households that move. To create and preserve affordable housing, the report explores ways to use city-owned land and other resources strategically to promote affordable housing in areas where costs are on the rise. It also examines ways to harness the market, such as inclusionary zoning and linkage fees. The report is part of an ongoing series of work by the NYU Furman Center on gentrification, but is the first to provide an overview of policy responses to the effects rapidly rising rents.
Selling the Debt: Properties Affected by the Sale of New York City Tax Liens
This data brief sheds light on the process of tax lien sales in New York City, which affected over 15,000 properties and roughly 43,600 residential units between 2010 and 2015.
It finds that most tax liens in New York City eligible for sale are sold and generate substantial revenue for the city; between 1997 and 2015, the city raised more than $1.3 billion from the sale of tax liens. However, the city also has the power to remove liens eligible for sale from the lien sale list. The report also describes the characteristics of properties with liens sold in New York City between 2010 and 2015, including the property type, their location, and the outcome following the lien sale.
Mortgage Financing for Small Multifamily Rental Properties: What is the Problem?
This study examines the effect of mortgage financing on the long-term viability of the small multifamily rental stock in both Chicago and New York City. It also explores the relationship between the size of the mortgage gap and the condition of the housing stock, and looks for how the financial crisis and Great Recession affected and continues to affect the rate of origination of new mortgages for multifamily buildings of different sizes in the two geographies. It finds that, despite the mortgage gap, smaller multifamily rental properties may be in better condition generally and properties that have mortgages are generally in worse condition than those without mortgages, regardless of size. Moreover, it surfaces a number of possible reasons that can account for the mortgage gaps.