The surcharge, often referred to as a pied-à-terre tax, is designed to ensure that wealthy individuals who maintain seasonal residences in the city contribute more robustly to the municipal services they utilize. According to the governor, the measure is expected to generate at least $500 million in annual revenue. In a statement delivered on Wednesday, Governor Hochul said, “If you can afford a $5 million second home that sits empty for most of the year, you can afford to contribute like every other New Yorker.”

The partnership marks a shift for Governor Hochul, who has historically resisted broad tax increases on the wealthy. However, the pressure of the city fiscal crisis and the political ascent of Mr. Mamdani, a democratic socialist who recently celebrated his first 100 days in office, appears to have moved the needle in the state capital. Mayor Mamdani, who campaigned on a platform of taxing the rich to fund public services like city run grocery stores and free bus transit, hailed the proposal as a step toward balancing the budget at the expense of global elites rather than the working class. “This is about basic fairness,” Mayor Mamdani said. “For too long, the wealthiest among us have treated New York real estate as a bank account while our neighbors struggle to pay rent.”

Critics were quick to denounce the plan as a threat to the real estate market of the city. Bruce Blakeman, the Nassau County Executive and the Republican nominee for governor in the upcoming election, called the proposal “a war on homeownership.” Mr. Blakeman argued that the promise of the governor to avoid tax hikes has expired and suggested that the policy would drive affluent residents out of the state entirely. Despite such opposition, the proposal has gained traction among housing advocates who argue that using real estate as a vehicle for wealth storage has exacerbated the affordability crisis for regular tenants.

The details of the tax are still being finalized as part of the late state budget negotiations. Officials indicated that the surcharge would apply to one to three family homes, condominiums, and cooperatives that do not serve as the primary residence of the owner. While the exact percentage of the levy remains a subject of debate, the agreement signals a new era of cooperation between the governor and the mayor, two leaders who have spent much of the year navigating their ideological differences. For Mr. Mamdani, the tax is more than a fiscal tool; it is a fulfillment of a central campaign promise to make the city belong to more of its people.

The program, centered on the creation of what the city calls ancillary dwelling units, or ADUs, provides homeowners with a suite of digital tools and a significant reopening of a dormant financing pool. By encouraging the construction of small apartments in basements, attics, and detached cottages, the administration hope to add thousands of new homes without altering the physical scale of residential blocks.

“One of the solutions to the housing crisis can be found in our backyards, our attics, or our basements — in an Ancillary Dwelling Unit,” Mr. Mamdani said during a press conference. “By making it easier for New Yorkers to turn their homes into an extra place for a loved one or a little more income, we are allowing our city to grow while keeping the character of the neighborhoods we love.”

Central to the announcement is the launch of the ADU for You website, a portal designed to help property owners navigate the often Byzantine world of city permits and construction costs. The site includes a guidebook and a library of eleven pre approved design plans. By using these designs, which the Department of Buildings has already reviewed for code compliance, homeowners can bypass many of the initial hurdles that often stall small scale development.

The administration also announced the return of the Plus One ADU program, a financial lifeline that had been closed to new applicants since early 2024. The program offers qualified owners up to $395,000 in technical assistance and low interest loans to fund their projects.

Officials estimate that the relaxed zoning rules, established under the City of Yes reforms late in 2024, could lead to the creation of roughly 25,000 units over the next fifteen years.

“These homes will not get built if the permitting process places too many barriers in the way,” said Ahmed Tigani, the Buildings Commissioner. He noted that the pre approved plans act as a menu for residents, offering a faster track to legal occupancy.

The push for ADUs also carries a weight of safety. For years, thousands of New Yorkers have lived in illegal basement apartments that often lack proper exits or fire protections. The issue became tragically clear during historic storms that led to several drownings in such units. By providing a legal and subsidized path to conversion, the city hopes to bring these existing homes into the light of safety regulation.

Housing advocates and organizations representing seniors praised the move as a victory for both affordability and family stability. Beth Finkel, the state director for AARP New York, said the units would allow older New Yorkers to age in place by providing rental income or a nearby space for caregivers.

While the program marks a major step for the Mamdani administration, challenges remain. The city faces a massive budget deficit, and critics of the plan often argue that even small additions can strain local infrastructure or change the feel of quiet neighborhoods.

For now, the mayor is betting that the path to a more affordable city begins at home. “In the midst of a dire housing crisis, ADUs are an important tool for homeowners to add space,” said Leila Bozorg, the deputy mayor for housing and planning. “These new tools will help ensure that any New Yorker who wants to add an ADU is able to do so.”

The judgment, announced on Thursday by Mayor Zohran Kwame Mamdani, targets the six story property at 919 Prospect Avenue. The ruling marks the first time a court has imposed the maximum civil penalties allowed under the Nuisance Abatement Law in a housing case. For the Mamdani administration, which took office in January with a pledge to aggressively protect tenants, the victory serves as a high stakes warning to the city’s most frequent housing law offenders.

“This judgment is a landmark victory not only for those who call 919 Prospect Ave home, but for tenants across the five boroughs who must contend with the daily misery, mistreatment and neglect of a bad landlord,” Mr. Mamdani said during an announcement at the building.

The $2.174 million penalty is the result of a $1,000 daily fine for each day that open violations at the property were deemed a public nuisance. The building has long been a fixture on the Public Advocate’s “Worst Landlords Watchlist” and was enrolled in a special city program for buildings with the most severe safety issues.

Inspectors from the Department of Housing Preservation and Development documented a litany of failures at the site. The court record details a deteriorated facade, unsafe electrical wiring, and obstructed fire escapes that posed immediate risks to residents. Tenants also reported a faulty elevator, a broken boiler during winter months, and widespread peeling lead paint and pest infestations. Parts of the building were under a partial vacate order due to the severity of the structural neglect.

Under the terms of the ruling, the owner is required to fix the most critical life safety violations within two weeks. All other remaining violations must be resolved within one month. If the owner fails to meet these deadlines, the city could move to appoint a receiver to take control of the property.

Tenant advocates, who have supported residents in their legal fight since 2016, called the decision a turning point. For years, residents at the Prospect Avenue building organized rent strikes and filed dozens of complaints only to see the property fall further into disrepair.

“This is progress,” said Claribel Morales, an attorney with TakeRoot Justice, which represented the tenants. “But the new administration must keep enforcing housing codes to ensure these wins aren’t just one time headlines.”

The $2.1 million will be directed toward city funds used for emergency repairs in other distressed buildings. Mr. Mamdani indicated that his administration is currently reviewing several other high volume offenders for similar legal action.

“We will use every tool to protect New Yorkers from bad landlords,” the Mayor said. “The days of profiting from neglect are over.”

The plan, unveiled at Highbridge Gardens on the 65th day of the mayor’s term, targets the roughly 380 miles of scaffolding that currently encase thousands of city blocks. It represents a significant escalation in a decades long struggle by City Hall to reclaim sidewalks from the ubiquitous green structures that many New Yorkers view as a permanent blight.

“In the greatest city in the world, we should not accept darkened sidewalks and covered walkways as a fact of life,” Mr. Mamdani said as city workers behind him began dismantling a shed that had stood at the complex for five years. “No New Yorker should have to go about their day under corrugated tin and plywood simply because their landlord would rather shirk their responsibilities than fix what needs fixing.”

A Strategy of Penalties and Progress

The centerpiece of the administration’s strategy is a set of new Department of Buildings rules that will penalize property owners who leave sheds in place for more than 180 days without beginning facade repairs. Under the proposal, landlords could face steep monthly fines and will be required to provide the city with progress updates every 90 days.

In a move to reduce the number of sheds erected in the first place, the city will also overhaul its facade inspection cycles. For buildings considered low risk and well maintained, the current five year inspection requirement will be extended to 12 years. Other eligible buildings will see their cycles move from five to six years.

The reforms also seek to limit the physical footprint of the structures. New regulations will restrict sheds to a maximum of 40 feet from a building facade, preventing them from swallowing up open spaces on large campuses like those operated by the New York City Housing Authority.

“Sheds may seem small, but they are a big imposition on New Yorkers’ quality of life,” said Leila Bozorg, the deputy mayor for housing and planning.

The Toll of Scaffolding

There are currently 7,859 sidewalk sheds across the five boroughs, according to city data. While most are installed for legitimate safety reasons during construction, more than 370 of them have remained in place for more than five years, often because owners find it cheaper to pay for shed permits than to fund expensive structural repairs.

At Highbridge Gardens, the removal of 2,800 linear feet of scaffolding was made possible by $14.4 million in state funding. The complex is part of a broader $650 million initiative involving state and federal funds to address facade repairs at 40 NYCHA developments citywide.

Buildings Commissioner Ahmed Tigani noted that the city has already seen a 17 percent decline in the total number of sidewalk sheds through earlier efforts. He described the new rules as a way to build on that momentum by giving the city stronger tools for oversight.

“The removal of shedding at Highbridge Gardens signifies safer conditions and clearer walkways,” said Lisa Bova-Hiatt, the chief executive of NYCHA.

The new enforcement procedures and oversight measures are expected to go into effect this summer.

Between them, they held a mock up of a Daily News front page. The headline, a cheeky reversal of the darkest hour for the city in the 1970s, read: “Trump to City: Let Us Build.”

The surprise meeting on Thursday marked the most significant step yet in an emerging and surreal partnership between two men who share almost nothing in the way of ideology but everything in the way of a New York developer obsession with scale. At the heart of the discussion was a $21 billion pitch to transform Sunnyside Yard in Queens into a brand new neighborhood. This project would represent the largest federal investment in New York City housing since the era of Mitchell Lama.

A Rare and Massive Request

The proposal is as ambitious as it is expensive. Mayor Mamdani is seeking federal grants to construct a massive deck spanning 115 acres over the active Amtrak rail lines in Sunnyside. On top of that platform, the city envisions a metropolis within the city: 12,000 units of housing where every single one is restricted by income levels, alongside schools, parks, and health clinics.

For the Mayor, federal intervention is a mathematical necessity. “New York City is facing a generational affordability challenge,” Mr. Mamdani said following the meeting. “Working families are being priced out of the neighborhoods they built. To meet this moment, we need a true federal partner prepared to invest boldly and act urgently.”

The city simply cannot afford the cost alone. The decking of a rail yard, which is essentially creating land where none exists, is one of the most complex and costly engineering feats in urban planning. Without a massive infusion of federal cash, the Sunnyside Yard Master Plan, which has lingered in various stages of development since 2015, would remain a collection of glossy renderings.

The Oddest Couple

The political chemistry between the two men has baffled observers. President Trump, whose own real estate empire was built on the skyline of Manhattan, appears to have found a kindred spirit in the big build energy of Mamdani. During his recent State of the Union address, the President even referred to the Mayor as a nice guy, though one with what he called bad policies.

The partnership is rooted in a pragmatic compromise. For the President, the project offers a chance to leave a physical and architectural legacy in his home borough of Queens. For the Mayor, it is a chance to deliver on the central promise of his campaign which was housing for the working class.

“He asked me to come back with big ideas,” Mr. Mamdani told reporters, referring to a cordial meeting the two held in November. “I took him up on his offer.”

Beyond the Blueprint

While housing was the primary agenda, the meeting also touched on the ongoing friction of the city with federal authorities. Mr. Mamdani reportedly used the opportunity to advocate for several Columbia University students detained by federal agents during recent protests. Shortly after the meeting, one student, Elmina Aghayeva, was released. The office of the Mayor credited this to the direct intervention of the President.

Whether this enthusiasm from the Oval Office translates into a check for $21 billion remains to be seen. Skeptics point to the mercurial history of the President with federal funding for New York, including past threats to withhold funds from sanctuary cities.

Yet, as the two stood together on Thursday, the usual partisan vitriol was replaced by the language of the trade. For a moment, the socialist and the tycoon were just two New Yorkers talking about how to move a lot of dirt and pour a lot of concrete.

The project involves a nearly 2 million square foot building spanning 55 floors. American Express will be the sole occupant of the tower, which is expected to be finished in 2031. The move represents a relocation from its current home at 200 Vesey Street, where the company has been based since 1986.

“The evidence keeps building: There is no better state than New York to do business,” Hochul said in a statement. She noted that the project will bring an iconic skyscraper to the skyline while creating thousands of jobs for New Yorkers.

Designed by the architecture firm Foster + Partners, the building at 200 Greenwich Street will feature flexible workspaces and more than an acre of outdoor space, including terraces and gardens. Silverstein Properties will develop the tower on land owned by the Port Authority of New York and New Jersey.

Construction is scheduled to begin in the spring of 2026. State officials estimated the project will create more than 2,000 union construction jobs and roughly 3,200 total jobs during the development phase. The project is expected to contribute approximately $5.9 billion to the economy of New York City and $6.3 billion to the state.

Stephen J. Squeri, the chairman and CEO of American Express, called the new headquarters an investment in the future of the company and the local community. Squeri said the building will be designed to encourage innovation and collaboration among the 10,000 employees it is built to host.

The announcement closes a long chapter in the redevelopment of the 16 acre World Trade Center campus. American Express, which traces its roots in the city back to 1850, plans to maintain its presence at its current headquarters until the new facility is ready for occupancy. The new tower will incorporate advanced building technology and focus on environmental sustainability, according to the company. While the total cost of the project was not disclosed, American Express stated the investment would not have a material impact on its financial results.

For Governor Hochul, the agreement serves as a cornerstone of her broader economic development agenda, which emphasizes corporate retention and the revitalization of New York City as a premier global hub. By securing a long term commitment from a major financial institution, she directly addresses concerns about businesses leaving the state for lower tax jurisdictions. The project also aligns with her “Let Them Build” initiative to streamline major infrastructure and development across New York. Furthermore, the emphasis on union labor reinforces the governor’s alliance with organized trades, positioning the completion of the World Trade Center site as both a symbolic and economic victory for her administration.

The development represents an early milestone in the Mamdani administration New York for All housing agenda, which seeks to triple the production of publicly subsidized homes. During his run for office, Mamdani vowed to create 200,000 new affordable units over the next decade to address the persistent housing shortage. By transforming an underutilized police lot into a residential tower, the Mayor is signaling a shift toward his promise of prioritizing people over parking.

A primary feature of the development is a 21,000 square foot permanent home for the Afro Latin Jazz Alliance, which recently rebranded as Belongó. The space will offer a performance theater with 300 seats alongside recording studios and education rooms designed to preserve the musical traditions of El Barrio. Mayor Mamdani told the crowd that the city is not just building apartments but is instead creating a sanctuary for the culture that makes the neighborhood iconic. This focus on cultural preservation aligns with his broader goal of treating public spaces as essential social infrastructure that connects New Yorkers to their heritage.

Of the 341 apartments, 97 units are reserved for formerly homeless individuals who will receive on site social services. This component of the project directly addresses Mamdani campaign commitment to prioritize those with the greatest needs and move vulnerable residents out of the shelter system. The remaining homes are available to households with incomes ranging from 30 to 80 percent of the area median income, providing options for both very low income and moderate income New Yorkers.

The design of the tower follows strict standards for energy efficiency to lower carbon emissions and reduce utility bills for those living there. Such sustainable features support the Mayor vision for a greener city and his promise to integrate climate resilience into all new public housing projects. Developers expect the work to be completed by the end of 2027.

Project partners include the Lantern Organization and Mega Development. Funding for the $255 million project comes through a combination of city housing bonds and private investment along with support from the Manhattan Borough President and the City Council. Arturo O’Farrill, the founder of Belongó, said the new center will allow the organization to expand its reach and provide a stable stage for world class musicians. He called the groundbreaking a historic moment for the jazz community and a victory for cultural equity in New York.

The project is part of a broader city plan to increase housing density near transit hubs while providing dedicated space for local non profit groups. Officials said the transformation of the site from a gated lot to a community resource is a model for future developments across the five boroughs as the administration works to fulfill its long term affordability targets.

The move, coming just months after Mr. Mamdani’s historic election as a democratic socialist, clears the path for him to fulfill a campaign cornerstone: a citywide rent freeze. By installing a new chair and a cohort of economists and labor leaders, the Mayor has effectively ended an era of incremental rent hikes that defined the previous administration.

An Ideological Shift

The appointees reflect a sharp departure from the real estate aligned pragmatism of the past. At the helm is Chantella Mitchell, a veteran of the city’s Department of Housing Preservation and Development and current director at the New York Community Trust. As Chair, Ms. Mitchell will oversee a board that now includes voices from the “heterodox” economic sphere—individuals who view rent stabilization not just as a regulatory tool, but as a mechanism for racial and economic equity.

Among the new public members are Lauren Melodia, an economist from the Center for New York City Affairs known for her work on macroeconomic justice, and Sina Sinai, a researcher from the Jain Family Institute whose work focuses on public wealth. They are joined by Brandon Mancilla, a regional director for the United Auto Workers, signaling a newfound alliance between the labor movement and the city’s tenant base.

The “Nuclear Option” and the Landlord’s Dilemma

The announcement did not happen in a vacuum. It comes less than 24 hours after Mr. Mamdani proposed a 9.5 percent property tax hike—which he termed a “nuclear option”—to close a $5.4 billion budget shortfall. The Mayor has framed the tax hike as a “last resort” should the state fail to pass a wealth tax on billionaires.

For the city’s property owners, the dual prospect of a rent freeze and a massive tax increase represents a “scissors effect” that many fear will lead to insolvency.

“The math simply does not work,” said Maksim Wynn, the newly appointed owner representative and a director at Procida Development Group. While Mr. Wynn is now part of the board, he represents a minority voice on a panel that appears poised to prioritize tenant “ability to pay” over landlord operating costs.

A Collision Course with the Law

Tenant advocates, led by the reappointed Adán Soltren of the Legal Aid Society, have hailed the appointments as a “restoration of the board’s true mission.” However, the path to a zero-percent increase is fraught with legal landmines.

State law requires the Rent Guidelines Board to base its decisions on economic data, including the cost of fuel, insurance, and maintenance. Real estate groups have already hinted at litigation, arguing that a predetermined rent freeze—driven by campaign promises rather than data—would be an “arbitrary and capricious” abuse of power.

What Comes Next

The board’s impact will be felt by tenants signing leases starting October 1, 2026. The immediate timeline for the board is as follows:

• March – April 2026: Review of the “Price Index of Operating Costs” and staff research.
• May 2026: A preliminary vote to set the range for rent adjustments.
• June 2026: A final, televised vote that will serve as the first major test of the Mamdani administration’s ability to govern from the left.

“New Yorkers voted for bold change,” Mr. Mamdani said Wednesday. “With this board, we are delivering it.”

Signed on Jan. 5, Executive Order 08, titled Protecting Tenants From Rental Ripoffs and Abusive Landlord Practices, directs the Mayor’s Office to Protect Tenants, the Department of Housing Preservation and Development, the Department of Buildings, and the Department of Consumer and Worker Protection — in coordination with the Office of Mass Engagement — to hold public hearings within the first 100 days of the administration. The order also requires a public report within 90 days after the final hearing summarizing common complaints and recommending policy changes.

“These hearings bring together renters to speak directly about what they’re facing, from hidden fees to broken tiles and unresponsive landlords,” Mamdani said in a statement. “Their testimony will guide our work and help shape the policies we advance to build a city New Yorkers can afford to call their home.”

Deputy Mayor for Housing and Planning Leila Bozorg said the sessions will give tenants a platform to influence real reforms, while Cea Weaver, director of the Mayor’s Office to Protect Tenants, described the hearings as an opportunity for residents to improve conditions for millions of city renters. Officials from HPD, the Department of Consumer and Worker Protection and the Department of Buildings also pledged to use testimony to drive policy and enforcement efforts.

Under the schedule announced by city officials, the hearings will be held:

• Thursday, Feb. 26, 5:30–8:30 p.m. — Downtown Brooklyn
• Thursday, March 5, 5:30–8:30 p.m. — Long Island City, Queens
• Wednesday, March 11, 5:30–8:30 p.m. — Fordham, The Bronx
• Saturday, March 28, 11 a.m.–5 p.m. — East Harlem, Manhattan
• Tuesday, April 7, 5:30–8:30 p.m. — North Shore, Staten Island

Tenants and other members of the public can register to attend in person through the city website at nyc.gov/RentalRipoff. At each hearing, participants will be able to record testimony or sign up for one-on-one conversations with city officials. Residents who cannot attend in person may submit testimony via email to RentalRipoff@cityhall.nyc.gov.

The executive order states that the hearings should solicit input not only from tenants but from tenant organizations, social services agencies, legal service providers, landlords and property managers about “illegal, unfair, abusive, deceptive, or unconscionable landlord practices” and operational improvements to strengthen housing and building code enforcement. It also calls for enhanced interagency cooperation and prioritization of tenant protection enforcement.

Within 90 days after the final hearing, the participating agencies are required to submit a joint summary and report to the mayor detailing themes and problems raised by the public and proposing a plan to address harmful landlord practices. The city will post the report on the agencies’ publicly accessible webpages.

Officials said the hearings represent a cornerstone of the Mamdani administration’s early housing agenda, aimed at amplifying tenant voices and driving policy changes to improve housing quality and affordability across New York City.

A new analysis from StreetEasy, which ranked the best neighborhoods for buyers this year, highlights where those conditions are most pronounced. Using listing data from December 2025, the report identifies neighborhoods where inventory is climbing and prices are trending lower, a combination that can translate into more options and more negotiating power for buyers. While the list spans all five boroughs, three neighborhoods stand out for different reasons: Midtown East for its unmatched Manhattan location, and Bay Ridge and Kew Gardens for their relative affordability and reputation for safety.

Midtown East

Midtown East may not be the first place many buyers expect to see on a “buyer friendly” list, but its inclusion underscores how market shifts are reshaping even some of Manhattan’s most established areas. According to StreetEasy, increased inventory in the neighborhood has given buyers more choice than they have had in years, particularly in co op heavy buildings where sellers are facing longer time on market. For buyers focused on location, Midtown East remains difficult to beat. The neighborhood sits at the center of the city’s transit network, with access to Grand Central Terminal, multiple subway lines, and quick connections to the rest of Manhattan and beyond.

Safety is another factor weighing on buyer decisions, especially for those moving into the city or purchasing for the long term. NYPD CompStat data from the most recent full calendar year shows that the 17th Precinct, which covers much of Midtown East, recorded comparatively low levels of violent crime relative to many other Manhattan precincts. Major crimes such as murder and shootings remained rare, reinforcing the area’s reputation as a stable, office driven neighborhood that stays active throughout the day and evening.

Bay Ridge

While Midtown East offers location, Bay Ridge stands out for value. Located at the southern edge of Brooklyn, the neighborhood consistently posts one of the borough’s lower median asking prices among areas with good transit access and established housing stock. The analysis points to a growing number of listings in Bay Ridge in late 2025, giving buyers more flexibility and reducing the pressure to bid aggressively.

Bay Ridge also benefits from a long standing perception of safety, which is supported by NYPD data. The neighborhood is primarily covered by the 68th Precinct, which has historically ranked among Brooklyn’s lower crime precincts, particularly when it comes to violent offenses. While property crimes such as larceny remain the most common issues, serious violent crime remains comparatively infrequent, a key consideration for families and first time buyers weighing long term quality of life.

Kew Gardens

In Queens, Kew Gardens offers a similar mix of affordability and stability, with the added benefit of proximity to both Midtown Manhattan and major transportation hubs. Median asking prices in the neighborhood remain below many other centrally located Queens markets, even as demand has increased for areas with easy access to Long Island Rail Road service and multiple subway lines. StreetEasy notes that rising inventory has helped keep prices in check, creating opportunities for buyers priced out of neighboring areas like Forest Hills.

Crime data from the NYPD’s 102nd Precinct, which covers Kew Gardens, further strengthens the neighborhood’s appeal. The most recent full year CompStat figures show relatively low levels of major crime, with sharp long term declines compared with historical highs. Violent crime remains uncommon, and overall complaint totals are significantly lower than decades ago, reinforcing Kew Gardens’ reputation as one of central Queens’ safer residential options.

Taken together, these neighborhoods illustrate how buyer opportunities in 2026 are less about finding a single “cheap” area and more about identifying places where market dynamics, location, and livability intersect. Rising inventory and easing prices are opening doors in parts of the city that once felt permanently out of reach. For buyers who are prepared, that shift could make this year one of the most flexible buying environments New York City has seen in some time.