The Real Estate Board of New York (REBNY) is "the leading trade group advocating on policy changes in the real estate industry," a
trade association
A trade association, also known as an industry trade group, business association, sector association or industry body, is an organization founded and funded by businesses that operate in a specific industry. An industry trade association partic ...
for the
real estate
Real estate is property consisting of land and the buildings on it, along with its natural resources such as crops, minerals or water; immovable property of this nature; an interest vested in this (also) an item of real property, (more genera ...
industry in
New York City
New York, often called New York City or NYC, is the List of United States cities by population, most populous city in the United States. With a 2020 population of 8,804,190 distributed over , New York City is also the L ...
. Formed in 1896, its current president is James Whelan.
History and overview
The board was formed in 1896 to "facilitate transactions in
real estate
Real estate is property consisting of land and the buildings on it, along with its natural resources such as crops, minerals or water; immovable property of this nature; an interest vested in this (also) an item of real property, (more genera ...
, such as buying, selling, leasing, mortgaging, and insuring of property and other business pertaining thereto. Among the current board members are the president John Banks, Fredrik Eklund and
Daniel Brodsky
Daniel Brodsky (born 1944) is an American real estate developer, art collector, and member of the board at The Metropolitan Museum of Art, where he served as Chairman from 2011-2021.Real Estate Board of New York: "Daniel Brodsky - The Brodsky Organization" retrieved February 7, 2018
Today, REBNY works to promote industry-backed policies. Its members frequently speak before government bodies to, among other things, expand New York's economy, encourage the development and renovation of commercial and residential real property, increase the city's appeal to a specific class of investors and residents, and facilitate property management for this same class. To help members hone their professional skills, the group conducts education programs, including state-certified required courses for licensing,
continuing education
Continuing education (similar to further education in the United Kingdom and Ireland) is an all-encompassing term within a broad list of post-secondary learning activities and programs. The term is used mainly in the United States and Canada.
...
courses, and free seminars. The group also performs research on residential and commercial conditions within the city.
In early 2015, the association represented the landlords of unsafe buildings in Councilmember Margaret Chin's downtown district and pushed back when approached about having to pay to move tenants while the buildings were being fixed. REBNY president Steve Spinola said, "This legislation would better protect tenants by strengthening the existing ( Department of Housing Preservation and Development) program to relocate tenants instead of cutting into funds used for building repairs and maintenance."
Political donations
The group also backs political candidates deemed friendly to real estate companies, "Few industries gave more — and frequently in large amounts — than real estate." Thanks to the enactment of the 1994 New York state Limited liability company (LLC) law millions of dollars are donated to Albany and local politicians "from luxury residential buildings, office towers and parking garages controlled by some of New York City’s biggest tycoons." All owned by "LLCs, a structure shielded from New York’s tight restrictions on corporate campaign donations." Real estate developers "can give virtually unlimited sums each campaign season," privately and through the REBNY. "By influencing state elections, developers have undermined rent stabilization and preserved a key tax break that saves them far more money than they spend on political campaigns. The value of that subsidy, which is known as 421-a, has soared from $73 million in 1986 to an estimated $1.4 billion this year 016 In return for the tax benefit, owners are supposed to limit rent increases and set aside a portion of units in high-demand neighborhoods for below-market rents — though they often don’t fulfill their commitments." REBNY President James Whelan in January 2022 "indicated support for Gov. Kathy Hochul’s proposed Affordable Neighborhoods for New Yorkers program, a rebrand of the expiring 421-a tax break."
"REBNY members gave a tenth of all N.Y. campaign money," in 2015 "which represents only some of the political spending by New York’s real estate industry." Michael McKee, treasurer o Tenants PAC said he "was concerned that state leaders would be more likely to heed REBNY’s positions than his own as a result of the contribution levels. (Tenants PAC and McKee contributed $61,565 to 2014 candidates.) “This is legalized bribery,” he said. “They’re quite used to buying what they want and getting it, and the legislature—both houses—has proven to be quite willing to give it to them.” Affordable housing and rent controlled apartments are disappearing as landlords exploit a "broken system, pushing out rent-regulated tenants and catapulting apartments into the free market."
For the 2013 political races in Brooklyn, REBNY created the Jobs for New York PAC, a pro-development political action committee to support controversial Brooklyn councilwoman Laurie Cumbo and other candidates. The PAC gave Cumbo at least $80,000 through August 2013, an unpopular move with residents in a rapidly gentrifying area. (In an
AARP
AARP (formerly called the American Association of Retired Persons) is an interest group in the United States focusing on issues affecting those over the age of fifty. The organization said it had more than 38 million members in 2018. The magazi ...
-sponsored discussion a week later, Cumbo claimed that she received no money from it.)
Lobbying
REBNY also started "Putting New Yorkers to Work, Inc.", a lobbying group that funds ads by groups like Affordable Housing and Local Jobs Now to counter union groups pushing for wage requirements for the building of new affordable housing.
Rent control in New York
Rent regulation in New York is a means of limiting the amount of rent charged on dwellings. Rent control and rent stabilization are two programs used in parts of New York state (and other jurisdictions). In addition to controlling rent, the system ...
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421-a tax exemption
The 421-a tax exemption is a property tax exemption in the U.S. state of New York that is given to real-estate developers for building new multifamily residential housing buildings in New York City. As currently written, the program also focuse ...