Housing

by

California’s Radical Experiment: Granny Flats

Most would not be as fancy as Alexandre Dumas’.

Driving home from the train station on a recent night, I heard this piece on NPR’s Marketplace: a story about a recent California statute that makes it significantly easier for homeowners in that state to develop additional units on their property. Here’s a link to a memo from the Department of Housing and Community Development, describing the changes. Among other things, the new statute overrides certain off-street parking requirements, which can preclude new units that would otherwise be permitted under zoning rules. These requirements are particularly onerous in large cities where public transportation is a viable option — and this law takes aim, specifically, at requirements within walking distance of transit. Of course, this development is just a small step toward achieving a land marketplace that is actually allowed to be responsive to market demands, rather than legal ones; but I think it is a very important one.

As early as the mid-1970s, the primary cases in New Jersey’s Mount Laurel doctrine began to lay out all of the major land use regulatory devices that have stifled the development of resourceful housing options since the early 20th century. Getting rid of unnecessary off-street parking requirements, and taking a publicly favorable stand toward in increase in the number of units in heavily-regulated suburban neighborhoods, are both major steps toward dismantling the regulatory morass that has been strangling housing development as the amount of raw, zoned land has dwindled throughout our major metropolitan areas. This is an important step in the right direction. Would be interested in hearing from people who would like to see a similar bill in New Jersey.

One of the most important takeaways from the NPR story was its hard evidence of pent-up demand for smaller, less-expensive housing units in pricey California. Local builders and contractors who specialize in the construction of small homes cannot keep up with demand. Their schedules are full for months into the future.

by

Safety Codes, Politics, and the Crowding of Old Manhattan

‘Old law’ tenements on New York’s Lower East Side. Theo Mackey Pollack.

My recently published piece highlights how architects and builders used resourceful massing devices to save scarce urban land when developing many of the Late Victorian apartment buildings in New York City. So I was intrigued by a journal article I recently found that examines the city’s massing in the same period from a different angle: the restrictive height regulations that governed buildings and even, in the pre-zoning era, placed artificial restrictions on builders that may have exceeded the requirements of safety. In Keeping the Tenants Down: Height Restrictions and Manhattan’s Tenement House System, 1885-1930, Professor Michael Montgomery highlights the history of tenement laws and other safety codes in New York City during that time, shining a spotlight on how they limited the ability of the market to respond to the demand for more and better inexpensive housing units.

A bunch of examples of pre-law, old-law (dumbbell/airshaft), and new-law (courtyard) tenements can be found in my photo galleries of Chinatown and the Lower East Side.

by

Spotlight: 2013 Mount Laurel Exhibit at Rutgers

mtlaurel
Click on the above photo to see the full album.

Here are some pictures I took of a special exhibit at the Rutgers Law Library in 2013, focused on the Mount Laurel doctrine, its history, and its legacy. I just discovered them while I was going through old photos, and thought they might be of interest to some readers. Incidentally, I was in John Payne’s Con Law class during his last semester of teaching at Rutgers. His untimely death was jarring for those of us who were in his class. Interesting fact: he and his wife lived in a Frank Lloyd Wright house, in Glen Ridge.

by

The Jewish Roots of Planned Green Space

Howard's concept of the Garden City, visualized.

Howard’s concept of the Garden City, visualized.

A recent piece in The New York Jewish Week looks at the Torah concept of migrash. Rabba Sara Hurwitz’s description reads like an early outline of Ebenezer Howard’s Garden City. I also find it interesting that the financing structure Howard proposed is much like the one described by Herzl in Old New Land, and the one used to fund the original limited-equity coops in New York City (which grew out of Jewish labor unions on the Lower East Side).

by

Paul Krugman Hits the Nail on the Head

NYC Zoning mapIn a Times piece called “Inequality and the City” about the competitive real estate markets in America’s affluent cities, Paul Krugman identifies the role that restrictive land use regulations continue to play in the chronic shortage of affordable housing:

But what about all the people, surely a large majority, who are being priced out of America’s urban revival? Does it have to be that way?

The answer, surely, is no, at least not to the extent we’re seeing now. Rising demand for urban living by the elite could be met largely by increasing supply. There’s still room to build, even in New York, especially upward. Yet while there is something of a building boom in the city, it’s far smaller than the soaring prices warrant, mainly because land use restrictions are in the way.

Exactly. Thank you. In the last five years, we seem to have gone from a time when no one was even cognizant of the role that zoning laws played in the chronic shortage of urban affordable housing, to the beginnings of a left-right consensus about the inequitable and anti-competitive impacts of those laws — and the ways in which they are distorting the market. This is really a cause for celebration, and I think we should take a moment to recognize how far the conversation has come.

But we almost certainly have not come to the end of the line. This issue has been so far beneath the radar that even those who have benefited from distortions of the real estate market by restrictive zoning laws have made little political effort to defend the status quo. They have just assumed that it would go on forever. Now, as those with vested interests in the artificial limits to development — primarily, urban land owners — begin to realize that their gravy train could be in peril, the attacks on reform proposals will begin in earnest. Here’s a great example of what’s likely to be on the way, peddling the usual pseudo-leftist bullshit that appeals to the urban bourgeoisie:

We, the undersigned residents of New York City, call for an end to the violence that real estate developers have inflicted on our skyline, parks, public areas, and cityscape with the proliferation of dramatically over-scaled buildings that ignore the historic context of our city.

Translation: we paid a lot for the exclusive right to live in our neighborhood. We have just realized how precarious our investment could become if the regulations were changed, and people actually had housing choices in the same (or comparable) locations.

Keep an eye out for more of this nonsense in the near future. Of course there’s a role for design and aesthetics in development policy, and massing considerations may sometimes be a part of that role. But for now, I’m sticking with those who recognize the need to permit much more residential construction in places like New York City. Let’s keep the conversation going.

by

A Right to Counsel for Tenants

Mark Levine, a New York City Council member, has a bill in the hopper that would retain an attorney, at public expense, for low-income tenants facing eviction. In a Times op-ed authored by Levine and Mary Brosnahan of the Coalition for the Homeless, they cite some stark statistics:

▪ Only ten percent of tenants facing eviction in New York City have lawyers, while nearly 100 percent of evicting landlords are represented by counsel.

▪ Tenants represented by counsel are 80 percent less likely to be evicted than those acting pro se.

▪ Nearly 29,000 New York City households were evicted last year.

▪ Providing an attorney for a tenant would cost taxpayers about $2,500, but sheltering a homeless family in New York City costs, on average, more than $45,000.

by

New Jersey Real Estate Law Update

Scales and Lamp USSC

One New Jersey Supreme Court case, Cashin v. Bello, focused on a real estate matter this week. It was an unusually interesting case. The Star-Ledger explains:

The legal issue involves the grounds upon which a landlord can evict a tenant in order to occupy a home. Under New Jersey law, a landlord may evict a tenant from a building with three units or less if he or she intends to occupy the unit.

However, Cashin was prevented from evicting Bello for many years because she also owns an adjacent apartment building at 627 Washington Street with five rental units and both the apartment and the converted garage are listed in tax records as being part of the same property.

Bello has been living in the carriage house since 1973, and is paying just $345 per month under the Hoboken rent control law. Cashin — whose name seems apt in this case — has been trying to evict Bello since the 1980s. Now she can. The Supreme Court held that the lower courts had erred by treating the entire land parcel as a single building, containing more than three units, rather than treating the carriage house, alone, as a single, one-unit building. The temporary New Jersey Courts link is alive for now, but the original opinion will be archived next week at the Rutgers Law Library in Newark.

For your curiosity’s sake, here’s a look at the house:

by

Should America’s Condo Laws be Reformed?

432 Park. Source: Macklowe Properties / CIM. (Fair use.)

432 Park. Source: Macklowe Properties / CIM. (Fair use.)

Matthew Gordon Lasner, who teaches at Hunter College, believes they should. (He also provides a nice, succinct history of residential shared-ownership arrangements in the United States.) There has been an uptick recently in the amount of ink spilled about luxury condominiums as cash-stashes, rather than residences. The Times has been running a series called ‘Towers of Secrecy’, and New York magazine had a long-form article last June about the same phenomenon. The statistic that struck me most from the New York article:

The Census Bureau estimates that 30 percent of all apartments in the quadrant from 49th to 70th Streets between Fifth and Park are vacant at least ten months a year.

So, in a city with no affordable market housing, much the best residential real estate sits almost completely vacant. Wonderful. If the laws can be tweaked to discourage this, they should be. Lasner suggests limits on the numbers of absentee or anonymous buyers — I think those kinds of measures could help.

Still, the results of this development trend are a mixed bag for New York City, even in the realm of social equity. When I worked on Mount Laurel analysis at Rutgers (for New Jersey’s constitutionally-mandated affordable housing programs), one of the factors that we analyzed was filtering — or, the tendency of new, market-rate units to take some of the price pressure off of the existing housing stock. In theory, at least, a larger number of units in a particular region will bring down the degree of competition for housing units, across the board. So, even the development of incredibly expensive luxury units ought to have some knock-on effect for housing affordability in the local market, by taking wealthy buyers out of competition for (and gentrification of) existing units in the same city.

111 West 57. Source: SHoP Architects. (Fair use.)

111 West 57. Source: SHoP Architects. (Fair use.)

Finally, on a purely aesthetic level, I do like the architecture of many of the city’s new sliver skyscrapers. Vishaan Chakrabarti, in particular (who led the design of 111 West 57th Street, above), has an incredible eye, and a vision of urbanism that goes far beyond luxury investment units. Technology allows for the development of slender, elegant towers that were physically impossible in the past. They represent the forefront of engineering and design, and some of them are truly striking. Beautiful architecture — even if it contains private spaces — can still bring value to everyone who spends time in the city.

by

The State of the City: De Blasio Focuses on Housing


Mayor Bill De Blasio used his 2015 State of the City address, delivered at Baruch College, to focus on the high stakes of New York City’s affordable housing crisis, and how his administration intends to address housing as a policy matter. I found it particularly hopeful that De Blasio identified the important roles of land use regulations and additional, market-rate units in solving the chronic shortage of affordable units in the city.