The Real Deal: lots of implications for real estate in federal stimulus bill (and maybe some for Atlantic Yards)
The Real Deal on 4/2/20 published What the $2 trillion stimulus does for real estate. I'll try to distill a few highlights that should have resonance for Atlantic Yards/Pacific Park.
Late payments?
Landlords get no direct relief, but individuals (earning up to $75,000) gaining a $1,200 check and those receiving unemployment insurance--which may take a while to get processed--will get some help to pay their bills.
Bottom line: some people in many buildings, including the four Atlantic Yards/Pacific Park towers, will have trouble paying rent or possibly, in the case of the condos at 550 Vanderbilt, their mortgages/maintenance payments (though presumably they have more of a cushion)
Borrowers from Fannie Mae and Freddie Mac get 90 days of forbearance if they don't evict renters and--this wasn't addressed in an article aimed at federal/national policy--those in New York have a three-month moratorium on evictions. Still, that seems to simply postpone the inevitable, which could mean that courts are clogged with evictions.
The article notes that real estate investors will be able to take advantage of a three-year suspension on of a cap on losses, thus leading to tax savings--presumably--even on buildings where revenues have logged.
Tax-exempt bonding
Also, to quote the Real Deal:
A boost for infrastructure, which means...?
Another potential benefit for the project is funding for infrastructure--if/assuming it can be used to construct the deck over the Vanderbilt Yard.
Never-say-never
The article closes by quoting law firm as suggestion that various "contracts likely will need to be restructured and renegotiated." Those presumably will include obligations to the public sector.
So, stay tuned for changes, including in the deadline to deliver affordable housing. After all, as I like to say, Atlantic Yards is a "never-say-never project."
Late payments?
Landlords get no direct relief, but individuals (earning up to $75,000) gaining a $1,200 check and those receiving unemployment insurance--which may take a while to get processed--will get some help to pay their bills.
Bottom line: some people in many buildings, including the four Atlantic Yards/Pacific Park towers, will have trouble paying rent or possibly, in the case of the condos at 550 Vanderbilt, their mortgages/maintenance payments (though presumably they have more of a cushion)
Borrowers from Fannie Mae and Freddie Mac get 90 days of forbearance if they don't evict renters and--this wasn't addressed in an article aimed at federal/national policy--those in New York have a three-month moratorium on evictions. Still, that seems to simply postpone the inevitable, which could mean that courts are clogged with evictions.
The article notes that real estate investors will be able to take advantage of a three-year suspension on of a cap on losses, thus leading to tax savings--presumably--even on buildings where revenues have logged.
Tax-exempt bonding
Also, to quote the Real Deal:
The bill will also add significant liquidity to municipal markets. The Fed is now exercising its power to buy municipal bonds, which the stimulus expanded to include all types of bonds, not just short-term ones. Because bonds allow municipalities to raise money cheaply, that’s good news for affordable housing developers who use tax credits to finance their projects.That would be good news for future Atlantic Yards/Pacific Park affordable housing--assuming there's still a market for it.
A boost for infrastructure, which means...?
Another potential benefit for the project is funding for infrastructure--if/assuming it can be used to construct the deck over the Vanderbilt Yard.
Never-say-never
The article closes by quoting law firm as suggestion that various "contracts likely will need to be restructured and renegotiated." Those presumably will include obligations to the public sector.
So, stay tuned for changes, including in the deadline to deliver affordable housing. After all, as I like to say, Atlantic Yards is a "never-say-never project."
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