TESTIMONY
Emily Klein, Senior Policy Associate at the Community Preservation Corporation, on the Need to Pass Introduction Number 654 to Support Renovations of New York City's Aging Affordable Housing Stock
2:04:00
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125 sec
Emily Klein testifies in support of Introduction Number 654, an incentive program to fund renovations of New York City's aging affordable housing stock.
- The city's housing stock has a median building age of 90 years, with many pre-war rent-stabilized buildings in need of major capital investments
- Intro 654 proposes a tax abatement covering up to 70% of certified construction costs to help fund renovations
- The proposal includes updated cost schedules accounting for current material and labor costs, as well as electrification and decarbonization work
- Klein urges annual review and adjustment of the cost schedule to keep pace with inflation
- With proper program guidelines, Intro 654 can facilitate necessary renovations without risk of abuse
Emily Klein
2:04:00
Great.
2:04:01
Thank you, chair Sanchez, and council members of the committee on housing and buildings.
2:04:05
My name is Emily Klein.
2:04:06
I'm a senior policy associate at the Community Preservation Corporation, a nonprofit based in New York City.
2:04:12
CPC is honored to provide testimony today in support of intro number 65 war.
2:04:18
New York City is one of the oldest housing stocks in the country with a median building age of 90 years.
2:04:24
These prewar rent stabilized buildings are some of the last and largest remaining sources of the city's affordable housing, multifamily rental housing stock, and many of these buildings need major capital investments to address essential repairs and renovations.
2:04:37
This need is especially acute 4 aging multifamily buildings with less than 50 units as they tend to operate on thin margins and are occupied by low income tenants.
2:04:45
As we just heard from HPD, J51 was a key strategy for the second half of this 20th century in modernizing New York City's rental housing.
2:04:55
And its exploration has left building owners without the necessary financial tools to offset the major cost of capital improvements.
2:05:03
The new J51 incentive is structured as a tax abatement with up to 70% of their recent certified reasonable cost of construction.
2:05:11
And this incentive includes an updated certified cost schedule that accounts for the current cost of materials and labor in addition to modernize scope of work that include electrification and decarbonization items, both of which will help buildings comply with local N 97.
2:05:25
While intros 654 currently states that the CRC schedule shall be, quote, updated as necessary.
2:05:31
We urge the council to amend this language require the relevant city agencies to review and adjust the CRC schedule annually or index rates to keep pace with inflation and price changes.
2:05:41
After successful passage by the council, we at CPC stand ready to support HPD and crafting program guidelines concerning eligibility and proof of completed work.
2:05:50
To maximize impact, these program parameters must be thorough enough to discourage abuse, but not so burdensome as to discourage adoption.
2:05:58
In conclusion, intro 654 meets the needs of our current market in moment, and we urge the council to pass it with minor edits incorporated.
2:06:05
Thank you.
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Ambur Nicosia, Board President at Penn South, on the Importance of the J51 Program for Preserving Affordable Housing at Penn South Cooperative
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Sharon Brown, Member of the Public, on Concerns Regarding Housing Requirements, the Treatment of Undercover Public Servants, and Underpayment across Professions
