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Tuesday, July 28, 2020

Why bathtubs bizarrely wound up in kitchens of old NYC apartments

Alan Steinfeld is finally coming clean.
The video producer and YouTube host has a bathtub in his East Village kitchen — and he’s gleefully soaked up the unusual amenity since 1980.
That year, Steinfeld nabbed the sixth-floor walk-up for the bargain price of $190/month. His tub was an oasis in a neighborhood that still felt “like a war zone,” he said. Perched on four feet, it doubles as a laundry basin and can easily be converted to extra counter space when Steinfeld places a cover on top.
At first, Steinfeld shared the three-room flat to reduce costs while he worked as a photographer — he washed in the morning and his roommate in the evening. For privacy, neither man cooked while the other soaked.
“We were roommates in college, so the bathing thing wasn’t a big deal,” Steinfeld, who is now in his 60s, recalled. “He was only there for a year.”
Now Steinfeld lives alone and says his rent “hasn’t gone up that much.” He enjoys what he calls “bathtub yoga.” “I like to really stretch out,” he said.
A number of old New York City apartments have the same quirky setup, thanks to legislation in the early 20th century that mandated all residences have a sink and bathtub for sanitary reasons. Units that haven’t been renovated since the early 1900s — or were redone without relocating pipes or plumbing — may still have a tub or shower in the kitchen.
When these bizarre-looking homes come on the market, they make a splash. In June, a studio in Williamsburg with a tub and shower in the kitchen listed for $1,650 a month, garnering a storm of comments and likes on Twitter.
“Luxuries or weird? Kitchen or bathroom vibes? You decide,” read the apartment description for a unit at 114 Walton St. “Weird, but good-priced if you don’t care (or do care and wanna be a weirdo).”
An L-shaped pad on a third-floor walk-up at 164 Mott St. in Chinatown currently sports a $1,500/month price tag. “THERE IS A BATHTUB IN THE KITCHEN,” the owners write in the listing (in case there was any confusion).
The kitchen bathtub is at least ubiquitous enough to infiltrate pop culture. The 1988 cult classic “Married to the Mob,” in which Michelle Pfeiffer plays the wife of a murdered mafioso who flees the suburbs for the city, was shot in a kitchen bathtub unit at 71 Clinton St. on the Lower East Side. (The apartments, now hawked for about $2,500 a month, have since been renovated to separate the kitchens and bathrooms.)
The rare vestiges are clustered in areas with tenement-style buildings, such as the East Village and Lower East Side, according to Jason Eisner, an educator manager at the Tenement Museum.
Conditions in those buildings at the turn of the last century were dire — lacking lights, running water and ventilation. At 97 Orchard St., for example, a former tenement now part of the museum had four toilets and one single faucet in the rear yard that were shared by an entire building.
“People were doing their laundry in the backyard,” said Eisner. “They were getting the water that they need and schlepping it up the stairs [for cleaning dishes, laundry and themselves], in the dark.”
The unhygienic conditions spurred the passage of the New York Tenement House Act of 1901, which regulated things like access to air, light, water and indoor plumbing. After being disputed by landlords, the reforms became mandatory in 1905. With it came gas lights, one toilet on the floor for every two families, a sink in every kitchen and a tub.
“But where are you gonna put a tub? Those apartments are small,” Eisner said. “The only place to really put a tub would be what [was expanded to become] a larger room, as a result of having to put the sink in.” That room was the kitchen.
The kitchen tubs became a soapstone symbol of reform, and those that remain are illustrative. “It was standardizing the basic minimum standard of life in New York City,” said Eisner. “The tub in the kitchen is a reminder that we live in a city that has a living history.”
In the modern era, though, kitchen baths evolved to serve a more superfluous purpose: as the centerpieces for memorable parties. In the ’90s, for example, Noah Fecks hosted soirees from his Ludlow Street specimen.
“I used to have parties where I would have a bubble bath, drink Champagne, have a bunch of people over and be in the tub the whole night,” the 45-year-old photographer, author and TV host told The Post.
And long before televisions in bathrooms were de rigueur in posh hotel rooms, Fecks jerry-rigged a comparable arrangement.
“I had one of those cross-trays where I could eat in the bathtub and had the television set pointed to where I could sit in the bathtub and watch,” he said. “For 1998, that was pretty decadent. I could watch ‘One Life to Live’ while eating granola.”
‘But where are you gonna put a tub? Those apartments are small.’
Another Lower East Side resident, Adam Aleksander, used his kitchen tub to entertain dates. (It fit two.) The events producer also pumped up dinner parties by transforming it into a prep table with a custom-made cover or turning it into an oversized ice bucket to chill beer or lobsters.
Aleksander, 37, moved into his tenement apartment in 2006. But in 2013, the building was bought and renovated. And despite being promised his apartment wouldn’t be touched, the place was gutted. “They broke the bathtub into a million pieces,” he lamented. The new floor plans featured showers.
A judge nixed Aleksander’s dreams of getting the bathtub reinstalled in the kitchen, but was sympathetic in his ruling, saying, “Sometimes you just want a bath!” As a consolation, Aleksander could choose a drop-in tub for the bathroom.
The luxurious porcelain model does the trick, but the renovation is not without hiccups. When running a bath, Aleksander sometimes runs out of hot water and is forced to heat more on the stove in giant pots. It would be so much easier, he said, if the bathtub were still in the kitchen.

Coronavirus could cause mass exodus of Wall Street firms in NYC

New York City faces a mass exodus of Wall Street firms — and jobs — as some financial and professional-services industries consider trimming their presence in the city by at least 20 percent because of the coronavirus pandemic, according to a new study.
About one in four office employers intend to reduce their footprint in the city by about 20 percent or more, according to findings published by the Partnership for New York City, a group consisting of top corporate CEOs. Roughly 16 percent plan to relocate jobs from New York City to the suburbs or other locations.
Half of the companies surveyed expect just 75 percent of their workforce to return to the office full-time. What’s more, companies only expect 10 percent of their employees to return to the office this summer and just 40 percent by the end of the year, according to the study, which was conducted in mid-May and published last week.
“Based on these responses, COVID-19 will accelerate the hollowing out of mid-level jobs in the financial sector,” the study found.
The worst economic downturn in nearly a century is bleeding the city of revenue: According to the study, New York could lose more than $37 billion in state and city tax revenue over the next two fiscal years.
The massive losses are already evident in the balance sheet. In May, state tax receipts were down 20 percent, and city sales tax collections were down 32 percent, amounting to $196 million in lost revenues in a single month.

“Depending on how quickly the economy recovers and whether there is a recurrence of disease, these losses could be deeper,” the study said. “Federal reimbursement for state and city losses is anticipated, but deep cuts in expenses, as well as possible tax increases, will likely be needed to bridge what is expected to be a three-year trough in revenues.”
Small businesses have been particularly hard-hit by the pandemic and subsequent economic shutdown, resulting in a big hit to the real-estate sector. Owners of mixed-use apartment buildings have reported that that rent collection plunged 60 percent from commercial tenants.
Nearly all of the city’s tax revenue stems from real estate.

In April, New York City and state collected a combined $78.5 million in tax revenue on the sale of commercial and residential properties — well below March, when it raked in $217.5 million, according to a report published by the Real Estate Board of New York.
That marks a 64 decrease from March, and a 48 percent loss from year over year, according to the report.
“This dramatic loss in tax revenue is alarming,” real estate board President James Whelan said in a statement. “The real estate sector is the city’s economic engine. The pandemic has caused that engine to stall and we should expect such alarming trends to carry through May and June in the best-case scenario.”

Friday, July 24, 2020

Extended Eviction Moratorium Could Deter Investment In Affordable Housing

Discussions are underway in Washington, D.C., among lawmakers to create a new federal stimulus package that will offer continued financial support for Americans still reeling from the economic disruption of the coronavirus pandemic.
The Coronavirus Aid, Relief and Economic Security Act is poised to expire on July 31, ending a variety of stimulus initiatives, including higher unemployment pay and a moratorium on evictions at properties with a federally backed mortgage.
Among the possible features of a new stimulus package is a proposal to extend the eviction moratorium for 12 months, a prospect that has developers concerned about the ability to finance and deliver future affordable housing at a time of pressing need.
“If investors lose money and get burned, they’re not going to come back,” Slate Property Group principal David Schwartz told Bisnow.
The CARES Act eviction moratorium is due to expire on July 24, with an additional 30-day notice period requirement for tenants to vacate. The Health and Economic Recovery Omnibus Emergency Solutions, or HEROES, Act and the Emergency Housing Protections and Relief Act of 2020 were passed by the U.S. House of Representatives in May and June, respectively. The bills provide $100B in emergency rental assistance, as well as a 12-month extension on eviction moratoriums.
ITEX Group President Chris Akbari said that if the 12-month eviction moratorium makes it through a final iteration of the new stimulus bill, the company would probably finish the 1,500 affordable units in its pipeline across several states, but it would be very difficult to move forward with any new projects.
“A large part of the way that we do our business is by having a solid portfolio of properties that we were able to [keep] a strong balance sheet [for]. People don’t lend to borrowers who have a very shaky portfolio,” Akbari said. “A lot of my investors that are in the properties that we have — if that moratorium goes through, they’re probably not going to be investing in new projects. They’re going to be investing their time and capital in trying to protect their current projects that are going to be suffering from not having income coming in and not being able to evict people who were unable to pay their rent.”
Slate Property Group has around 800 affordable housing units in New York City, with another 3,000 units in the pipeline over the next eight to 10 years. Schwartz said the company is still waiting on financing to proceed with development, but the latest 40% cut to the city’s affordable housing budget for fiscal year 2021 could make it very difficult.
“The need for affordable housing has only increased significantly, and I think that it’s only going to be harder, as local governments have fewer dollars to work with,” Schwartz said.
Like Schwartz, Joy Construction principal Eli Weiss is concerned about the cuts to New York’s affordable housing budget, which will affect the company’s own anticipated delivery of around 1,000 units over the next 15 months.
“The degree of uncertainty right now in the field of affordable housing in New York is higher than it was in 2009 during the Great Recession,” Weiss said.
Rent collections have remained relatively high across most multifamily portfolios, thanks to stimulus provisions such as one-time checks, higher unemployment pay and government loans for small businesses. But developers are increasingly concerned that a lack of financial support for tenants after the CARES Act expires could have a serious impact on rent collections.
Weiss said rent collections have been high for the company’s existing 2,800 units in New York City. Those units are a mix of low-income housing tax credit units and middle-income units. But if stimulus funding isn’t renewed soon and evictions become necessary, it could hurt the image of the sector.
“My big worry about affordable housing right now is, will there be enough money to fund more affordable housing, because it’s needed, and it’s needed now more than ever,” Weiss said. “But if people look and say, well, you know, there were just mass evictions in affordable housing — well, why are we building more? I think it would work against that.”
At this stage, capital for affordable housing development is still available in the market. Real estate investment firm Tishman Speyer announced plans this week to establish a new affordable housing platform within its organization, which will initially focus on the New York City region.
In addition, Alliant Capital this week announced it closed a $92M fund, which will facilitate the construction of eight new affordable housing properties with 870 units in five states and the District of Columbia.
“While investor interest has understandably diminished as the uncertainty surrounding eviction moratoriums, mortgage forbearance, and government assistance for renters and the unemployed persists, being able to close a $92M fund in these circumstances, as well as a $65M fund last week, shows us that investments are still happening and not likely to disappear completely, even if the eviction moratorium is extended,” Alliant Capital Executive Vice President Dudley Benoit told Bisnow. “We can see that the need for this type of investment will grow as the cost of housing becomes more challenging for many, particularly if federal unemployment support ends on July 31.”
For some states, the eviction moratorium on federally backed properties is less pressing than state and city eviction moratoriums, many of which have been extended already, typically through September or October. Weiss noted that in New York, which has a state eviction moratorium running through Aug. 20, it still takes around nine months to evict a tenant. He said in reality, the CARES Act moratorium has been more of a topic of cocktail conversation than a pressing daily issue.
“It’s hard for me to believe that a short-term acute eviction moratorium — when you know somebody is not paying their rent for valid reasons — I don’t think it should have any effect on people’s outlook on the industry,” Weiss said.
Rather than extending an eviction moratorium, Akbari said housing choice vouchers would be a better solution to the issue, as it would provide rental assistance that would also be passed on to the landlord.
Schwartz said he wasn’t necessarily opposed to a moratorium extension, but he believes there should also be some kind of loan forgiveness for landlords and developers, who could face hardship in making their own payments on time.
“I think that there needs to be some thought through that the lenders need to give forgiveness at the same time, because the thing that you worry about is, you don’t want to break this ecosystem of people that are producing affordable housing,” Schwartz said. “The last thing that we want to do is create a system in which people are disincentivized for building affordable housing.”

Thursday, July 23, 2020

U.S. Properties with Foreclosure Filings in 1st 6 Months of 2020 Hit All-Time Low


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Foreclosure Rates Highest in Delaware, New Jersey, and Illinois; Only 10 of The Greater Populated Metro Areas Saw an Annual Increase; Q2 Foreclosure Activity Below Pre-Recession Levels in 93 Percent of Metros
ATTOM Data Solutions, licensor of the nation’s most comprehensive foreclosure data and parent company to RealtyTrac (www.realtytrac.com), a foreclosure listings portal, today released its Midyear 2020 U.S. Foreclosure Market Report, which shows there were a total of 165,530 U.S. properties with foreclosure filings — default notices, scheduled auctions or bank repossessions — in the first six months of 2020, down 44 percent from the same time period a year ago and down 54 percent from the same time period two years ago.
Bar Graph with Numbers
Bucking the national trend with increasing foreclosure activity compared to a year ago were 10 of the 220 metro areas analyzed in the report, including Stockton, California (up 161 percent); Chico, California (up 61 percent); McAllen, Texas (up 42 percent); Lake Havasu, Arizona (up 39 percent); and Fort Wayne, Indiana (up 21 percent).
“The residential foreclosure market across the nation continues to contract amid a combination of booming housing market conditions before the current Coronavirus pandemic hit and a moratorium on activity while the country struggles to overcome the crisis,” said Ohan Antebian, general manager of RealtyTrac. “Foreclosure starts and completions were already declining rapidly last year because the housing market and the economy were riding so high. Now they’re down to lows not seen for at least 15 years as the federal government has banned lenders from pursuing most delinquent loans until at least the end of August 2020 to help people weather the pandemic. ​Distressed property volume is almost guaranteed to ​increase significantly once the moratorium is lifted because millions of Americans ​missed their mortgage payments ​in June and will continue to because of unemployment. But for now, everything is on hold and the foreclosure numbers reflect that pause.”
Delaware, New Jersey, Illinois post highest state foreclosure rates
Nationwide 0.12 percent of all housing units (one in every 824) had a foreclosure filing in the first half of 2020.
States with the highest foreclosure rates in the first half of 2020 were Delaware (0.28 percent of housing units with a foreclosure filing); New Jersey (0.25 percent); Illinois (0.24 percent); Maryland (0.21 percent); and Connecticut (0.18 percent)
Other states with first-half foreclosure rates among the 10 highest nationwide were South Carolina (0.18 percent); Florida (0.17 percent); Ohio (0.16 percent); North Carolina (0.14 percent); and Georgia (0.14 percent).
Highest metro foreclosure rates in Peoria, Trenton, Rockford
Among 220 metropolitan statistical areas with a population of at least 200,000, those with the highest foreclosure rates in the first half of 2020 were Peoria, Illinois (0.37 percent of housing units with foreclosure filings); Trenton, New Jersey (0.36 percent); Rockford, Illinois (0.36 percent); Atlantic City, New Jersey (0.32 percent); and Lake Havasu, Arizona (0.30 percent).
Other metro areas with foreclosure rates ranking among the top 10 highest in the first half of 2020 were Fayetteville, North Carolina (0.27 percent of housing units with a foreclosure filing); Bakersfield, California (0.27 percent); Columbia, South Carolina (0.25 percent); Chicago, Illinois (0.25 percent); and Cleveland, Ohio (0.25 percent).
Foreclosure starts down nationwide, up in three states
A total of 99,028 U.S. properties started the foreclosure process in the first six months of 2020, down 44 percent from a year ago to the lowest six-month total going back to the second half of 2005, the earliest data available.
Counter to the national trend, three states posted year-over-year increases in foreclosure starts, including Tennessee, Idaho, and Indiana. States that saw an annual decrease included
Florida (down 63 percent); New Jersey (down 43 percent); Illinois (down 37 percent); Georgia (down 33 percent); and California (down 29 percent).
Bank repossessions drop to lowest level
Lenders foreclosed (REO) on a total of 37,917 U.S. properties in the first six months of 2020, down 44 percent from a year ago to the lowest six-month total since we began tracking in 2005.
States that saw the greatest year-over-year decreases in REOs in the first half of 2020, included Mississippi (down 76 percent); South Dakota (down 65 percent); Kansas (down 64 percent); Idaho (down 64 percent); and Nevada (down 61 percent). The only state that posted a year-over-year increase in REOs in the first half of 2020 was Nebraska, with a 76 percent increase.
Q2 2020 foreclosure activity below pre-recession averages in 93 percent of markets
There were a total of 30,656 U.S. properties with foreclosure filings in Q2 2020, down 80 percent from previous quarter as well as a year ago to lowest quarterly total since Q1 2006.
The national foreclosure activity total in Q2 2020 was 89 percent below the pre-recession average of 278,912 per quarter from Q1 2006 to Q3 2007, making Q2 2020 the 15th consecutive quarter with foreclosure activity below the pre-recession average.
Second quarter foreclosure activity was below pre-recession averages in 205 out 220 (93 percent) metropolitan statistical areas with a population of at least 200,000 and sufficient historical foreclosure data, including Los Angeles, Chicago, Dallas, Houston, Miami, Atlanta, San Francisco, Riverside-San Bernardino, Phoenix and Detroit.
Metro areas with second quarter foreclosure activity above pre-recession averages included Portland, McAllen, Huntsville, Salisbury, and Gulfport.
Average foreclosure timeline drops from last year
Properties foreclosed in the second quarter of 2020 took an average of 685 days from the first public foreclosure notice to complete the foreclosure process, up from 673 days in the previous quarter but down from 716 days in the second quarter of 2019.
Historical Bar Graph
States with the longest average foreclosure timelines for foreclosures completed in Q2 2020 were Hawaii (1,558 days), Louisiana (1,341 days), New York (1,242 days), New Jersey (1,202 days), and Indiana (1,033 days).
States with the shortest average foreclosure timelines for foreclosures completed in Q2 2020 were Arkansas (181 days), Minnesota (212 days), Arizona (233 days), West Virginia (254 days), and Michigan (265 days).
June 2020 Foreclosure Activity High-Level Takeaway
  • Nationwide in June 2020 one in every 14,798 properties had a foreclosure filing
  • States with the highest foreclosure rates in June 2020 were Maryland (one in every 5,393 housing units with a foreclosure filing); New Mexico (one in every 6,346 housing units); Delaware (one in every 6,798 housing units); New Jersey (one in every 8,800 housing units); and South Carolina (one in every 9,326 housing units).
  • 4,869 U.S. properties started the foreclosure process in June 2020, up 12 percent from the previous month but down 80 percent from a year ago.
  • Lenders completed the foreclosure process on 2,504 U.S. properties in June 2020, down 12 percent from the previous month and down 76 percent from a year ago.

Breaking Down the Case for Scaling Back on Office Space

The sudden shift to remote work in March answered the question many employers wondered—would productivity fall if employees worked from home full-time?
The answer is no, according to many surveys including one from Mizuho Securities. It found that the majority of the company’s employees (80 percent) work from home, and more than half would like to continue to do so. About three-fourths of Mizuho employees expressed they were very comfortable working from home.
These sentiments are hardly limited to Mizhuo. It is a paradigm shift that is affecting landlords with offices in expensive urban centers and central business districts. The expensive office leases look less desirable to companies as more employees request to work from home, without a decline in productivity. The empty offices also affect the business districts with fewer patrons frequenting shopping centers and restaurants during work breaks.
COVID-19 also affects office space for companies that will require employees to return to work. Social distancing protocols will reverse the trend of less office space per employee, which had been declining since 2009. New protocols require a minimum of six feet of distance between each employee. These protocols may increase the need for more office space, but it is offset by the lowered demand for in-person office space.
Certain niche office spaces may still hold value, such as offices in the suburbs, government offices and specialized offices in the life sciences field. Fields such as life sciences are not as impacted by the remote work trend as the need for conducting lab work requires the employee to commute to an office.
The COVID-19 pandemic has affected rent collections for office landlords, with an overall collection rate of 95 percent or higher. Broken down into sectors, the healthcare sector holds steady at up to 97 percent rent collected, but only 20-30 percent for malls, 50-70 percent for shopping centers, and 20-40 percent for retail space.
Bottom line: Global Workplace Analytics estimates that companies can save roughly $11,000 per employee with a flexible work-from-home arrangement. This decrease is attributed to savings on office leases and an increase in productivity from the employee.  Employees themselves can save up to $4,000 on commuting and food costs.