How Mayor Eric Adams and City Council will approach real estate?

On Saturday, Eric Adams was sworn in as the 110th mayor of New York City. Adams, a former NYPD captain and Brooklyn borough president, has primarily focused on public safety and quality-of-life issues in his winning mayoral campaign. 

As Eric Adams takes office, he faces the surge in COVID-19 cases and the new Omicron variant that would most likely affect multiple industries, including real estate. Adams’ approach to real estate relies on creating and preserving affordable housing. Adams plans to combat New York City’s affordable housing shortage by up-zoning wealthier neighborhoods and turning city office buildings and hotels into residential units. 

Eric Adams has served eight years as Brooklyn borough president. In 2021, Adams agreed to back de Blasio’s plan to up-zone East New York if several changes were made. Adams requested to make affordable units permanent and add more anti-displacement measures. 

One of the first big housing projects that the mayor Eric Adams will oversee is Gowanus rezoning. In late 2021, the New York City Council approved the proposal to rezone 82 blocks and add 8,000 housing units to Gowanus, Brooklyn. Adams announced his support for the rezoning plan after the city agreed to fund $274 million to repair two public housing developments in the area.

New York City’s budget is projected to grow to $102.8 billion in 2022. On December 17, Queens Councilmember Adrienne Adams became the next City Council speaker. Speaker Adams and Mayor Eric Adams will oversee the city’s budget and decide which issues will be addressed first. In addition, Adrienne Adams can influence land-use decisions. 

One of the speaker’s priorities is legalizing basement apartments and bringing them up to code. The measure could face several challenges. For example, landlords might raise the rent after spending money on adding drainage systems and creating new exits. Currently, the pilot program offering financial assistance to owners of basement apartments has a limited budget. If the program receives enough funding, it will help to create more affordable and safe housing units available to New Yorkers.

Resources:

“Eric Adams Sworn In As 110th New York City Mayor,” by David Cruz (Gothamist, 2022)

“City Council Speaker Adrienne Adams’ Real Estate Positions: What to Know,” by Aaron Short (Commercial Observer, 2021)

“Here's What We Know About Adrienne Adams, Set To Be Next NYC Council Speaker,” by David Cruz (Gothamist, 2021)

“New York City Council Speaker Race Has Real Estate Holding Its Breath,” by Aaron Short (Commercial Observer, 2021)

“NYC budget projected to grow to $102 billion thanks to federal aid,” by Michael Gartland (New York Daily News, 2021)

“Eric Adams’ Approach to Real Estate as Mayor? See His Borough Presidency,” by Aaron Short (Commercial Observer, 2021)

“Eric's Housing Plan,” (Eric Adams, 2021)

“What Council Speaker Adrienne Adams means for real estate,” by Kathryn Brenzel (The Real Deal, 2021)

“Eric Adams says "we will not be controlled by crises" in first speech as New York City mayor,” (CBS News, 2022)

“Adams Pledges Support for Gowanus Redevelopment, Boosting Delayed Project,” by Sadef Ali Kully and Sarah Maslin Nir (The New York Times, 2021)

“Borough President Adams Says No to Mayor’s Affordable Housing Plan for East New York,” by Hannah Frishberg (Brownstoner, 2016)

“Here Are 4 Key Challenges Mayor Eric Adams Faces As He Takes Office,” by Elizabeth Kim (Gothamist, 2022)

“Council to Create Pilot Program to Create Basement Apartments to Expand Housing Stock,” (New York City Council, 2019)