A New York business leader is warning that New York City Mayor Zohran Mamdani’s proposed housing plan could drive developers and investors away from the city.
FOX Business’ Madison Alworth joined FOX Business’ Stuart Varney on “Varney & Co.” to report on Mamdani’s proposal to create 200,000 new affordable, rent-stabilized housing units and preserve another 200,000 over the next decade. The $22 billion plan would include $5.6 billion for the New York City Housing Authority and require wages of at least $40 per hour on affordable housing projects.
The proposal includes the possibility of the city taking legal action against negligent landlords and potentially transferring chronically neglected properties to nonprofits or community land trusts.
Real estate and business leaders say they support the mayor’s focus on expanding housing but remain concerned about provisions tied to the proposal, including wage mandates for affordable housing projects, according to Alworth.
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“Developers, the private investors, the people with capital, that they’re better off in other cities than the ones with huge amounts of regulation. And you’ve seen it. You’ve seen that all across the country,” Partnership for New York City President Steve Fulop said.
“New York City has a big housing shortage. It has a big opportunity to grow as well. But you got to be careful with regulation and government overreach,” Fulop continued.
Rep. Nicole Malliotakis, R-N.Y., also joined FOX Business’ Stuart Varney to criticize the idea of the city taking a stronger role in property oversight, arguing that New York City has struggled to manage its own public housing stock.
“New York City is actually the biggest slumlord in the city of New York,” Malliotakis said. “We have 350,000 people living in New York City housing authority projects… When you look at these facilities, there’s mold… leaks… rodents… roaches, there are all sorts of problems, not to mention real serious dangerous crime issues as well.”
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Malliotakis said the city should focus on improving existing public housing, cracking down on illegal conversions and encouraging more investment in housing stock, including housing for seniors and people with developmental disabilities.
“If he wants to encourage investment, he has to stop with these crazy regulations that make it impossible to be a homeowner or landlord or a property manager in this city,” Malliotakis said.
At the same time, one progressive housing advocate praised the proposal.
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“Mayor Mamdani’s housing plan is what a progressive all-of-the-above housing plan looks like…,” Open New York Executive Director Annemarie Gray said in a statement to the New York Post.
Mamdani’s housing proposal takes center stage as New York City’s median asking rent has climbed above $3,600, according to data cited by FOX Business’ Madison Alworth.
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