The City Council closed out its final meeting by approving a sweeping housing package that reshapes the economics of city-backed development and hands the next administration a deeply altered policy landscape.
Lawmakers signed off on COPA, new affordability and unit-mix mandates and a construction wage floor, despite warnings from the Adams administration and housing groups that the measures could reduce production and spook investment.
The most immediate impact is financial. HPD estimates a trio of bills would require roughly $600 million more per year to maintain current housing output, or force the city to finance 3,275 fewer units annually if that funding doesn’t materialize.
Speaker Adrienne Adams did not contest those figures. Instead, Council leaders framed the bills as a necessary recalibration of how public money is used.
COPA is the flashpoint. The bill gives nonprofits and city-approved entities a right of first offer and refusal on certain distressed or expiring-affordability multifamily properties, a change landlords and brokers say will slow deals and deter buyers.
The measure passed without a veto-proof majority, signaling potential trouble ahead if Mayor Eric Adams opts to reject it on his way out the door. Notably, presumptive next speaker Julie Menin abstained, leaving the bill’s durability in question.
Beyond COPA, the legislation package layers new requirements onto city financing: minimum thresholds for extremely low- and very low-income units, mandated shares of two- and three-bedroom apartments, a homeownership set-aside and a $40-an-hour wage and benefits floor for large, city-funded projects.
Together, they significantly raise development costs and narrow the pool of feasible deals.
These bills land just as Mayor-elect Zohran Mamdani prepares to take office with a goal of producing 200,000 affordable units over the next decade and as the city touts pro-growth zoning reforms.
By locking in stricter conditions on public financing, the outgoing Council has effectively forced the next mayor to choose between scaling back ambitions, finding fresh funding or fighting to unwind the legislation.
We’re in the thick of the holiday season, but New York’s real estate industry has shown no signs of taking time off. Here’s some of the week’s other big stories.
Zeckendorf, Atlas Capital’s 80 Clarkson nabs contract for $129M
A buyer signed a contract to purchase multiple units at 80 Clarkson, the 112-unit, buzzy, ultra-luxury project being developed by Zeckendorf Development and Atlas Capital Group. Should a sale close at the $129 million ask, it would easily surpass the record for the most expensive deal in Downtown Manhattan.
Jackpot! 3 NYC casinos get official go-ahead, with caveat
As expected this week, the New York Gaming Commission approved casino licenses for the three remaining proposals in New York City: Steve Cohen’s Metropolitan Park near Citi Field, the complex at Bally’s Golf Links at Ferry Point and Resorts World’s expansion of the Queens Aqueduct.
The caveat? The companies needed to agree to have an independent monitor to ensure they adhere to the promises they made to their respective communities.
Charles Cohen’s 750 Lex headed to auction block
Charles Cohen’s 750 Lexington Avenue is scheduled for auction on Jan. 21 to pay off a $155.9 million loan. It’s the latest in a series of well-documented asset sales and losses for Cohen.
Bushburg buys FiDi office at steep discount for possible resi conversion
Joseph Hoffman’s Bushburg Properties bought the 1970s-era office building at 100 William Street for $70 million. The plan? A potential conversion for the half empty property.
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Housing wallop: City Council passes COPA, other legislative overhauls
Zeckendorf, Atlas Capital’s 80 Clarkson nabs contract for $129M
Jackpot! 3 NYC casinos get official go-ahead, with caveat
