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Q&A
Commissioner Diane Savino and Bob Kelly discuss how ULURP affects housing project viability
1:24:26
·
127 sec
Commissioner Diane Savino asks Bob Kelly about the potential for expediting the ULURP process for certain projects and its impact on builders.
Kelly confirms that the current ULURP process deters development, stating that larger developers are often uninterested in projects under 150 units due to the time, effort, sweat equity, and risk involved.
- He emphasizes the financial impracticality of purchasing land today for a project that won't be built for five years, given market uncertainty, without significant city support (not just expediting, but financial).
Diane Savino
1:24:26
I know.
1:24:27
I know.
1:24:27
The the mapping issue, thank you for the for your testimony.
1:24:31
But I wanted to ask you your as a builder and the head of the building industry associates, the the issue about performing expediting the EULAR process for certain projects.
1:24:41
Have have you guys taken a look at that potential for you to be able to move forward?
1:24:45
Because we hear all the time the permitting process, the EULAR process, it slows down and a lot of builders just say, you know what, I'm not even going to bother.
Bob Kelly
1:24:52
Correct.
1:24:53
And I'm glad that Nicole brought it up as well from, again, another part of the industry.
1:24:58
But there are projects on Staten Island that would be built today were it not for EULA.
1:25:03
Because if you're larger developer in in in Brooklyn.
1:25:38
If I bring him anything under a 150 units, he says, I'm not interested because the time, the effort, the sweat equity, and and and the risk.
1:25:48
And that's the other thing that obviously Nicole doesn't really, if that part of it, I shouldn't say that she gets it, but it's not her job.
1:25:55
You can't buy something today knowing that you won't build for five years.
1:26:00
You have no idea where the market will be.
1:26:03
I mean, today's a great example.
1:26:04
We saw the stock market look like a pinball machine today.
1:26:08
And as a developer who's using his own money along with bank money, there's no way to really sink your teeth into a project that's five years away without complete support from the city.
1:26:20
And I'm not talking about, expediting support.
1:26:22
I'm talking about financial support.
1:26:24
And that's why a lot of projects just get passed over because you just can't do that work without the scale.
Diane Savino
1:26:32
Right.
1:26:32
Thank you.
Richard R. Buery Jr.
1:26:33
Thank you.