Owners of multi-million dollar co-ops and condos in New York City would have to pay property tax at full market value under a recently released proposal to overhaul the current system. The city’s Advisory Commission on Property Tax Reform on Thursday unveiled its long-awaited report detailing reforms of the complex system that would tax properties of similar values at equitable rates. Currently, homebuyers pay property tax based on assessed value, rather than the market rate, which puts a bigger tax burden on low- and middle-income homeowners.
Photo via Creative Commons
New homebuyers in New York City could be charged property tax based on actual market prices, the New York Post reported on Wednesday. A group of city lawmakers is pressing Albany to change state laws to close a loophole that offers tax breaks to homebuyers in gentrifying neighborhoods. The “gentrification tax,” as the Post called it, would have homebuyers pay market rate taxes, rather than the assessed value, as a way to make the system fairer.
Photo by 6sqft
The prominent Union Square storefront on 16th Street and Union Square West that was home to sceney restaurant Coffee Shop for 28 years has changed quite a bit since the former diner closed its doors last October. Reports that yet another Chase branch and an outpost of vegan chain By CHLOE. would open in its place were confirmed a few months ago, and now the transformation is complete. A new location for Joe Coffee is also open in the building, and, interestingly, is part of a partnership with Chase, according to the Wall Street Journal. With an entrance on 16th Street, By CHLOE.’s colorful storefront stands where the former diner’s back dining room used to be, while the Union Square side has lost its iconic neon sign for ubiquitous Chase branding.
Via alphabetjenn on Flickr
Last fall 6sqft reported rumors that late-night Union Square model-spotting icon The Coffee Shop would be replaced with three new restaurants and possibly a Chase Bank. In June, Jeremiah’s Vanishing New York confirmed the rumors after learning that an application by the bank to open a branch on the 16th Street and Union Square West corner was approved by the Office of the Comptroller of the Currency. Now, Gothamist tells us that the bank will be joined by fast-casual vegan spot by CHLOE, shooting down rumors that an Outback Steakhouse was moving in. The two spots are planning to open in December.
As if Quooklyn wasn’t bad enough. A recent tipoff about townhouse at 16-35 Hancock Street in prime Ridgewood near the Myrtle-Wyckoff subway stop informed us that: “SoMA (South of Myrtle Avenue) is the new SOHO, with a blossoming creative community of artists and restauranteurs. Former Soho/Tribeca residents have moved to Ridgewood for a more authentic experience and stimulating lifestyle.” It’s true that Soho/Tribeca residents have long ago fled those neighborhoods on account of billionaire rents and not wanting to live in a sneaker mall, and also true that Ridgewood is ablaze with creative newcomers and packed to the gills with authentic experience. But after SoBro (South Bronx), Dobro (Downtown Brooklyn) SoHa (South Harlem), Soho West (New Jersey) and NoLo (uh…we’re really not sure), and, apparently, NoBat, NoCal, BoHo, and GoCaGa, enough may just be enough. Plus, Ridgewood requires no rebranding–it’s cool enough on its own.
Image: Clover Grocery via Facebook.
There was a time not too long ago when New Yorkers began to resent the apparent gentrification of local bodegas, which had begun carrying high-priced, healthy food items sought by new neighborhood residents. Chain convenience stores like 7-11 were yet another blow to the concept of the quirky corner deli. And then, of course, there was the Whole Foods effect. The latest development in the ascent of the local grocery store is even more difficult to grok: The “wellness bodega” has arrived. As Eater reports, mini-markets–like Clover Grocery in Manhattan’s West Village–in metro areas like NYC and LA are stocking items like $18 “vegan friendly” condoms and marine collagen supplements–and confusing the daylights out of ordinary city folk.
Inwood Hill Park; Image: Dana via Flickr.
On Wednesday the City Council approved a rezoning plan for a 59-block section of Inwood, a neighbhorhood often referred to as the “last affordable neighborhood in Manhattan,” the New York Times reports. The plan was approved last week by the city’s zoning subcommittee and the Land Use Committee. The Inwood rezoning is part of Mayor Bill de Blasio’s plan to rezone neighborhoods across the city as part of the push to create and preserve 300,000 affordable housing units by his goal date of 2026. Inwood is the fifth neighborhood–including the also-controversial East New York and East Harlem–to be approved for rezoning under the plan.
Governor Cuomo announced a $1.4 billion initiative last week to bring resources like health care services and new jobs to Central Brooklyn. According to the governor, the plan, called “Vital Brooklyn,” will bring 7,600 jobs and more than 3,000 new affordable housing units to Brownsville, East New York, Bedford-Stuyvesant and Crown Heights. And while Cuomo’s administration found these neighborhoods to be some of the most disadvantaged in the state, residents worry about the possible gentrification and displacement effects (h/t NY Times).
A new report from the Regional Plan Association finds that residents of the Bronx are at highest risk of being pushed out due to gentrification compared to other New Yorkers, according to DNAinfo. The report, titled “Pushed Out: Housing Displacement in an Unaffordable Region,” looks at the effect of rising housing costs in New York City and addresses what it names “A Crisis of Affordability.” The report found the threat of being pushed out due to lack of affordable housing was a threat in 71 percent of census tracts in the Bronx. Following in displacement risk was Brooklyn at 55 percent, Manhattan and Queens at 31 percent each and Staten Island at 15 percent.
We hear so frequently about the players behind Manhattan’s billion-dollar real estate projects and how foreign investors are pouring a global vault’s worth of currency into New York City property, often shielded by LLCs. It’s illuminating to get a closer look at the city’s larger real estate landscape–one that has changed so much in recent decades–and learn who’s behind the soaring property values, skyrocketing rents, frenzied flipping and veritable horse-trading that has driven the unprecedented and transformative gentrification beyond Manhattan’s rarified development scene.
A recent story by The Real Deal titled “Learning and earning: Hasidic Brooklyn’s real estate machers” reveals that a huge slice of the borough’s real estate pie is owned by the Hasidic community. The ultra-orthodox sect reportedly includes some of Brooklyn’s wealthiest property owners, to the tune of $2.5 billion.