Housing Boom

Good news on the housing shortage front: Crain’s New York Business reported yesterday NYC is on pace to issue permits for 34,000 new housing units this year. That would be the highest number of permits since the early 1960s (the last high was 33,084 in 1972). The vast majority of those will be in Brooklyn (permits up 13% over last year) Queens (18% increase); permits have declined in Manhattan, the Bronx and Staten Island.

One reason for the increase in permits is the expiration of generous 421-a tax abatements. In most of Brooklyn and all of Queens, projects that have their foundations vested by 30 June 2008 will qualify for abatements without needing to construct 20% on-site affordable housing. If you’re not vested by then, you will need to construct the affordable housing in order to get the abatement.

In related news, Curbed reported on Monday that Quadriad has been issued permits to pour a foundation for an as-of-right five-story project on North 3rd Street between Bedford and Berry. Because Quadriad wants to build affordable housing, it just doesn’t want to do it using any of the programs that are in place for building affordable housing.