Res 0105-2024

Whereas, New York City (NYC or City) has an ongoing housing affordability crisis, as real estate firms and housing market companies like Douglas Elliman and Zumper reported that, as of May 2023, rental prices across the city have reached record highs, with median rents for a 1-bedroom apartment reaching $3,900 per month, averaged across all 5 boroughs, and reaching medians as high as $4,395 per month in Manhattan and $3,550 per month in Brooklyn; and Whereas, The 2021 NYC Housing and Vacancy Survey (HVS), a joint project conducted by the NYC Department of Housing Preservation and Development (HPD) and the U.S. Census Bureau, revealed several key statistics that underlined the NYC housing crisis, including that rental homes listed below $1,500 per month had a vacancy rate of less than 1 percent, the lowest rate in 30 years, and that 54.1 percent of renting households are rent-burdened, meaning that they are paying at least 30 percent of their household income towards rent; and Whereas, The U.S. has seen cost-of-living increases in the wake of the COVID-19 pandemic, experiencing record inflation rates of 7 to 9 percent while also witnessing month-to-month increases in food prices that were as high as 10 percent in February 2023, according to the U.S. Bureau of Labor Statistics; and Whereas, A June 2023 NBC article reported that high consumer prices were likely to persist through 2023 amidst a slowdown in wage growth and the Federal Reserve hiking interest rates, underscoring the need to ensure the preservation and production of affordable housing in NYC; and Whereas, NYC is experiencing its housing affordability crisis and cost-of-living increases against a backdrop of record homelessness, as NYC officials reported that the City's homeless shelter populations hit record levels of over 100,000 in June 2023, up from the previous record of 66,000 in October 2022, further emphasizing the importance of keeping people housed and making more affordable housing available for New Yorkers; and Whereas, Housing experts recommend increasing the supply of housing, particularly affordable housing, as fundamental to solving NYC's housing crisis; and Whereas, Despite widespread agreement on the need to increase housing supply, especially affordable housing, the 2023 Preliminary Mayor's Management Report listed just 16,428 units of affordable housing that began construction in NYC in the 2022 fiscal year, down from 29,388 and 30,311 units in fiscal years 2021 and 2020, respectively; and Whereas, In addition, the New York Housing Conference's NYC Housing Tracker found that in calendar year 2022, the City produced just 14,766 units of affordable housing when taking into account both new construction and preservation of existing housing, a 48 percent decrease from 28,387 units, which was the average production over the past 5 years; and Whereas, Thousands of affordable units that could otherwise be used to alleviate the housing shortage are reported to be kept off the market because property owners find the repairs needed to rehabilitate them upon vacancy too expensive; and Whereas, Allowing the possibility for rent adjustment would provide a means to address the concern that rental rates do not adequately cover the cost of repairs; and Whereas, S.6352-A, introduced by State Senator Leroy Comrie and referred to the State Senate Committee on Housing, Construction, and Community Development, would incentivize the preservation and restoration to the rental market of rent-stabilized dwelling units vacated after long-term occupancies, in part by allowing property owners to apply to adjust the rent for their apartments after submitting documentation verifying the completion of certain restorations; now, therefore, be it Resolved, That the Council of the City of New York calls on the State Legislature to pass, and the Governor to sign, S.6352-A, in relation to certain housing accommodations and certain hardship provisions. Session 13 LS #13565 01/19/2024 Session 12 CCK LS # 13565 08/23/2023 1