The Gold Rush Is Over!
There have only been 6 applications for new development in Community Board 9 this year compared to 37 in 2015 and 28 in 2014
Year |
New Building Permits |
Units |
2016 |
6 (applications only) |
101 |
2015 |
37 |
893 |
2014 |
28 |
986 |
Quadrant A 6 permits between 2014 and 2015 (4 in contextually zoned area)
This shows that developers like "contextually zoned areas" (areas that have already been rezoned) better than non-contextually zoned areas, which is most of CB9!)
Quadrant B 5 permits between 2014 and 2015
Quadrant C 31 permits between 2014 and 2015
Quadrant D 23 permits between 2014 and 2015
What has contributed to this drastic decline?
- The end of the 421a tax break!
- Increase Cost in Land
- CB9’s Current Zoning regulations
- Looming Economic Crisis in housing.
- Mayor Deblaiso’s scandal
421a Tax Break
The 421a tax break, that Senator Hamilton voted down and Assemblyman Mosey was absent for, has ended a complete give away in our community, where developers got a tax break just to build! There was a rush of applications for new development to be processed before the end of the tax break, last June, where the building’s department actually hired more staff and extended their office hours to accommodate the entire process! But now that tax break is gone!
Increase In Cost of Land
Property values have almost doubled in the last three years, making it more difficult for developers to make a profit or for them to buy and destroy property to rebuild.
Current Zoning Regulations
Our current rezoning regulations has serious constraints, only allowing buildings to be built of up to six stories on average, with property values so high and only a few more stories being able to be built it is no longer economically feasible to buy, destroy and rebuild. Also the current zoning requires a lot of parking spaces to be made, which again adds to the cost creating more of a burden to make a profit.
This neighborhood no longer looks as good as before, especially when developers can go over into neighboring communities that have been rezoned and build up to 20+ stories like Nostrand and Tilden, where a 23 story is going to be built because of the new zoning done there.
The Looming Economic Crisis
Everyone knows that a Capitalist country always has a downward turn. If you have lived long enough you would have experienced one. Well ours is coming and developers are concern.
First all of those buildings that rushed to get those permits last Spring will all be going on the market at the same time. And they will be seeking the same group of people to fill their apartments and what happens when there just isn’t enough wealthy people to go around!
You got it! The market then crashes, and values start plummeting, this is basic economics 101.
Second, the Chinese and the Russians who have been investing heavily in NYC market are starting to have some economies issues of their own and when these foreign groups start backing out of their agreements or foreclosing on their investments it will have a negative effect upon the NYC housing market.
Mayoral Deblasio’s Scandals,
It might not seem connected but with the Mayor obviously selling off NYC to developers who gave his nonprofit organizations money and five investigations occurring, this curtails local politicians from making backroom deals with developers, such as the scandal regarding the Retirement home in NYC. This means less developers will be getting their way, until the heat dies down.
Now this won’t save our Bedford Armory, because Councilwoman Laurie Cumbo has already sold that off to the highest bidder (as she professed she wasn’t going to stand around and allow developers to buy up property to the highest bidder!).
But I can tell you Borough President Eric Adamsis definitely looking at his non-profit organization “One Brooklyn” and seeing if there are any connections to property being sold to developers and his organization getting large sums of money.
Scandals always scare Politicians because it shows them that they are not invincible and they too can be caught, despite having a slew of attorneys bending the laws!
So the next time someone says, Oh we have to rezone because we are under attack, developers are building everywhere! Look at the facts! It is actually our current zoning that is stopping us
From looking like Crain City! Such as Down Town Brooklyn and North Crown Heights (CB8)!