WORLD WORLDWIDE USA New York NY New York City NYC the city THE CITY News Journal Update - Signature mortgages sold in deals that could keep affordable housing, City Council limits Rikers solitary confinement, NYC’s 2024 economic outlook

 

Dear New Yorkers,

Until it crumbled in the fourth largest bank failure in American history, Signature Bank was the largest lender to rent-regulated buildings across New York.

After its collapse, there were fears that the federally backed loans that Signature had granted on rent-regulated housing would be auctioned off by the Federal Deposit Insurance Corporation — possibly to questionable lenders, or financiers who would encourage landlords to push out lower-paying stabilized tenants or scrimp on maintenance to meet loan payments.

Luckily for those in the affected rent-stabilized housing, that didn’t happen.

Instead, the Federal Deposit Insurance Corporation on Wednesday concluded the second of two massive deals that leave it with controlling interests in $15 billion of mortgages across New York.

The agency has entered into two agreements with Santander, a national commercial bank, and a partnership led by the Community Preservation Corporation, which features organizations focused on housing preservation.

The two deals will manage loans covering more than 2,000 apartment buildings and 70,000 rent-controlled or rent-stabilized units in every borough but Staten Island.

Read more about the deal here.

Weather scoop by New York Metro Weather Thursday's Weather Rating: 5/10. Sunshine dominates once again, but a brisk air mass is overhead with blustery north winds. High temperatures barely reach 40° F this afternoon. It's far from terrible out there, but it's cold — grab that winter jacket, the vibes are all right!

Our Other Top Stories

The City Council passed legislation yesterday to strictly limit the use of solitary confinement in city jails — a punishment that the United Nations has deemed to be torture. More than two-thirds of the 51-member council approved the bill, which is what’s needed to override a mayoral veto. (Mayor Eric Adams is against the legislation, while also paradoxically contending the city’s Department of Correction does not use solitary confinement as a punishment.) Curious about New York City’s economic outlook for 2024? Here is THE CITY’s forecast — from the tech and green industries building toward future growth, to the vastly different predictions for how many jobs the city might add in the coming year.

Reporter’s Notebook

Building Cleaners Authorize Strike

More than 20,000 janitors at iconic New York buildings from the World Trade Center and the Empire State Building to Grand Central Station on Wednesday authorized a strike if they do not reach a deal on a new collective bargaining agreement to succeed one that expires Dec. 31.

Thousands of workers, who are members of 32BJ SEIU, rallied near Radio City Music Hall ahead of the vote alongside supporters in labor and government, including Mayor Eric Adams and Sen. Chuck Schumer.

Talks between the union and the Realty Advisory Board, the consortium of building owners, are scheduled to resume Thursday.

A major point of contention for workers is a management proposal demanding cuts to the workers’ paid vacation and sick time, as well as proposals for workers to contribute toward their health insurance, which is currently paid for entirely by building owners. Management contends that it is obligated to make cuts amid anemic office occupancy levels lingering after the pandemic.

— Claudia Irizarry Aponte

Things To Do

Here’s what’s going on around the city this week.

Saturday, Dec. 23: An owl birding event hosted by the city Parks Department, with rangers who will teach about the species living in parks and the best places to try to spot them. (Bring your own binoculars). Free from 1-2 p.m. at Pelham Bay Park in The Bronx.  Sunday, Dec. 24: Christmas Eve Caroling at Washington Square Park, featuring the Rob Susman Brass Quartet. Free from 5 to 6 p.m., under the arch. Tuesday, Dec. 26: Winter Recess Family Activities, with daily, winter-inspired programs to keep kids entertained during the holiday break. Free with museum admission from Dec. 26 to Dec. 30, 11 a.m. to 3 p.m., at the Museum of the City of New York.

THE KICKER: The secret to a (nearly) crowd-free photo in front of the Rockefeller Center tree? Getting there before dawn.

Thanks, as always, for reading. Make it a great Thursday.

Love,

THE CITY

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