400th Anniversary of New York City

While NYC faces a budget deficit due to the recession and reduced revenue from Wall Street, yesterday marked the 400th anniversary of the arrival of Henry Hudson aboard the Dutch vessel 'Halve Maen' to New York City.

Henry Hudson was greeted by the native Lenepe tribe when he arrived in New York harbor in 1609. In 1626 the Dutch purchased Manhattan Island "Manhatta" from the Native Chiefs for guilders (worth approximately $24 dollars) paid in trading goods, then changed its name to New Amsterdam.

The Dutch colony of New Amsterdam flourished into a modern community of cobblestone streets, fire and police patrols, a hospital, and a protective stone wall that is now called Wall Street. In 1664, the British conquered the colony and renamed it "New York" after the English Duke of York.

The New Netherlanders negotiated 24 articles of provisional transfer with the British which sought to guarantee New Netherlanders liberties, including freedom of religion, under British rule. Manhattan was at the heart of several major battles during the Revolutionary war and served as the capital of the United States from 1785 until 1790.

Mayor Bloomberg along with officials from The Netherlands announced a year of special events, exhibits, outdoor activities and performances to celebrate the 400th anniversary of the arrival of Henry Hudson aboard the Dutch vessel 'Halve Maen' to New York City.

City officials also announced that the celebration of the City's Dutch roots and its waterfront will culminate with a special Harbor Day on September 13. The first ever Harbor Day will feature events and activities including free bike rental and ferry rides to encourage New Yorkers and visitors to enjoy the City's waterfront districts in Manhattan and Brooklyn and on Governors Island.

Harbor Day will become an annual event to recognize and appreciate the progress New York City has made in reclaiming its waterfront and opening harbor parks and greenways, as well as in creating sustainable developments that improve habitats and preserve resources for future generations.

Bloomberg said: "New Yorkers share with our Dutch friends a strong sense of optimism and tolerance, and a great appreciation for diversity, design and innovation. All of these celebrations will give people one more reason to visit New York City this year. Tourism is going to be one of those industries that helps support our local economy during the recession".

A gift presented by The Netherlands Government to New York City, designed by Dutch architect Ben van Berkel of UNStudio, Amsterdam is a 5,000 square-foot Plein & Pavilion, a tribute to 400 years of friendship that will be permanently erected at the Battery in late 2009 and will signify the deep ties between The Dutch and New York City.

The NYC400 Quadricentennial Celebration signifies a commitment to preserving the memory of the discovery of New York City and also an allegiance to valuable and productive political, economic and cultural relations between the City and the Netherlands.

NYC400 Week is September 8 - 13, 2009.

(photo NY Harbor Statue of Liberty view from Battery Park City condo)

Wall Street Bonuses Drop by Almost Half

A report released today finds a huge drop in Wall Street bonuses last year.

According to an estimate being released by State Comptroller Thomas DiNapoli, the bonus pool on Wall Street dropped from $32.9 billion in 2007 to $18.4 billion in 2008 – a 44 percent decrease.

That's the largest drop on record in terms of absolute dollars and the largest percentage-wise in more than 30 years. The bonus pool was still the sixth largest on record.

The state comptroller says this will have a significant effect on the state's revenues. He says New York as a whole will lose nearly $1 billion in tax revenues and the city in particular will lose $275 million. Wall Street Bonuses usually fuel the Manhattan real estate market every year.

Property Tax Update

On January 22, Mayor Bloomberg signed into law a bill that provides a grace period for payment of real property taxes for properties with an assessed value of more than $250,000.

The City Council agreed to Mayor Michael Bloomberg's proposal to rescind the 7-percent property tax reduction. The need to rescind the temporary property tax cut last month required recalculation of the real property tax installment that was due and payable on January 1.

The Council rejected the mayor’s proposal to cancel the $400 homeowner rebate. The city sent out the checks during the week of December 22. The legislation also increased the amount of assessed value from $80,000 to $250,000 to enable a property owner to pay the property tax on a quarterly basis.

The enactment of the original property tax legislation provided little time for the City to mail out Statements of Account with the amount of the January installment prior to the payable due date, nor did it provide a grace period for payment of this installment without interest for properties with an assessed value of more than $250,000. Under the new law, no interest or fees will be imposed if the tax was paid by January 16, 2009.

Congratulations Secretary of State Hillary Clinton

Congratulations to Hillary Clinton on her successful Senate confirmation as Secretary of State.


Many New Yorkers including myself will miss her in the Senate, where she was a hard working leader and effective advocate for New York State and New York City. She was admired throughout the state for her knowledge and concern of local issues including real estate.

She successfully filled the seat of former Senators Patrick Daniel Moynihan and Bobbie Kennedy. The new junior Senator from New York will have big shoes to fill as well.

The international challenges our nation face require strong, intelligent and diplomatic leadership. President Obama made a great choice appointing her to help our country meet those global challenges.

At the Committee hearing last week, Clinton - who served eight years in the Senate - said she would pursue a foreign policy of "smart power," with multilateralism and diplomacy taking the lead.

She will officially take up her duties as Secretary of State with a welcoming ceremony for her at the State Department on Thursday morning.

Congratulations President Barak Obama

Today the nation's 44th President, Barak Obama was sworn in. He has the support of Congress with legislation that will stimulate the economy and help the housing market.

Part of the economic stimulus bill is aimed at stimulating home buying and preventing foreclosures. The bill includes tax breaks for first-time home buyers, and a return to the higher loan limits in place for Fannie Mae, Freddie Mac and FHA.

The American Recovery and Reinvestment Act of 2009 is intended to create 3 million to 4 million jobs. The bill would provide $275 billion in tax cuts and $550 billion in spending in areas such as increased unemployment benefits for workers and investments in science and technology.

There are several real estate-related provisions, including returning FHA loan limit ceilings in high-cost areas to the higher, temporary limits put in place during 2008. The bill allows Fannie Mae and Freddie Mac to once again purchase and guarantee loans of up to $729,750 in high-cost areas such as Manhattan.

In the Economic Stimulus Act of 2008, the previous $417,000 conforming loan limit was raised to $729,750 until December 31 2008. As of January 1 2009 the limit was lowered in New York (high-cost area) to $625,000.

Unfortunately many buyers in Manhattan were not able to take advantage of the $729,750 temporary limit. It began in the spring of 2008 and coops were not included. It wasn't until the summer of 2008 that coop buyers were able to get the loans. A coop transaction usually takes 45 - 90 days from the time a contract is signed.

The $625,500 limit now in place in New York is better than the previous $417,000 conforming loan, but the real estate industry including the National Association of Realtors are pushing for a return to the higher limits. Borrowers who require "jumbo" mortgages larger than those eligible for purchase or guarantee by Fannie, Freddie and FHA pay higher rates.

Interest rates on jumbo loans are at least 2 percent or more higher than conventional conforming loans. The 2008 temporary limit of $729,750 was more realistic for Manhattan home buyers since the average price of an apartment in Manhattan is over a million dollars.

The past 2 Sundays here in Manhattan there has be a lot of activity at Open Houses. Last week I was with a buyer looking for an apartment in the $500,000 range. An open house we attended for a 500 square foot studio was packed with buyers.

Buyers with good jobs and decent incomes seem to be taking advantage of the current low interest rates and price decreases. Many buyers were out looking this past Sunday as well. At some open houses there were lines of boots outside the door at some buyers were waiting in the lobby to be brought up. Many of the properties had price drops and are still negotiable.

New Yorkers are excited about the Inauguration today, people are feeling optimistic about our President Obama and his vision for the future.

Congratulations to President Obama. You are inheriting huge problems but the nation is behind you as you make history today.

"What works, we will keep, what does not, we will shed" President Barak Obama

NYC Bagels are being trucked to Inaugural in DC

The New York State Young Democrats are hosting a pre-inaugural brunch on Monday, January 19, 2009 at 11:30 at the 18th Street Lounge.

The building at 1212 18th Street NW Washington, D.C. is the former mansion of U.S. President Theodore Roosevelt. Roosevelt also served as Governor of New York State.

World famous New York City bagels, lox and deli are being trucked from Bagel Boss on First Avenue in Manhattan to the hundreds of young democrats and elected officials from across the United States that attend this authentic and historic luncheon.

For many it will be the first time they experience a real New York bagel with a schmear. The cost is 25.00 dollars for Young Democrats and 50.00 for non members. Sponsorships are available.

Portion of the proceeds will benefit Autism United and Family Residences & Essential Services, which supports over 3,000 disabled individuals across the tri-state area

For more information call Gina Sillitti at 646-781-9469 or finance@nysyd.net

Sellers' Beware! It's A Buyer's Market

For the past decade sellers had the power in the NYC real estate market. No longer can sellers dictate every aspect of the transaction. No financing contingencies, shopping around offers, listing brokers double ending deals are no longer the norm.

Currently buyers have the upper hand. Buyers are putting in low offers and they are getting countered. Developers are offering incentives and are marketing value rather than luxury.

Buyers are putting in multiple bids on several properties just as sellers were accustomed to receiving multiple bids and playing buyers against each other.

It won't last for ever as real estate goes in cycles. It is however the best buying opportunity since the early 90's. I remember the last buyer's market well since I bought a new apartment in 1989 right before the market turned.

For buyers that have been looking for a long time but have been trigger shy now is the opportunity to finally get that lower price with favorable terms - but please be realistic. Pay attention to comps. Know what you're asking for and what you're getting.

For sellers motivation is key. Your apartment has a lot of competition. Make it stand out from the crowd. Be flexible and consider all reasonable offers.

Buyers: Click here to receive current Manhattan listings.

Sellers: Click here to find out how much your apartment is worth in today's market.

Tips for Greening Your Manhattan Apartment

In spite of the cold weather, "Be Cool" Go Green!

Here are some simple ideas that will help the environment and might actually save you money.

1. Recycle according to your building's guidelines.
2. Upgrade appliances. Modern appliances are more efficient than older ones.
   
3. Unplug chargers and appliances such as VCR or a coffee maker when you're not using them. Believe it or not, left plugged, these appliances take up energy. You'll actually save on your electric bill. And when buying appliances, look for the "Energy Star" label.
4. Switch to a green energy provider: http://www.askpsc.com/ or call 866-GRN-POWR
   
5. Switch to ENERGY-STAR - qualified compact flouresent light bulbs (CFLs)
6. Bring a cloth or canvas bag to the supermarket
7. Switch to paperless bank statements
8. Recycle unwanted electronics, computers monitors and printers through one of the retailer or manufacturer-sponsored, take-back programs below. Beginning July 2009 NYC law will require all electronics manufacturers to adopt e-recycling programs.

Manufactures Take - Back Programs:

• Apple: 888-638-2761; http://www.apple.com/enviroment/recycling/nationalservice/us.html

• Cannon: 800-385-2155

• Dell: 800-915-3355; http://www.dell.com/content/topics/global.aspx/about_dell/values/environment/reccling_main?~ck=ln&c=us&l=en&lnki=0&s=corp

• Epson: http://www.epson.com/cgi-bin/Store/Recycle/RecycleProgram.jsp

• Hewlett-Packard: http://www.hp.com/hpinfo/globalcitizenship/environment/recycle/index.html

• IBM: 888-SHOP-IBM; http://www.ibm.com/ibm/environment/products/recycling.shtml

• Lenovo: (including IBM laptops) http://lenovo.ecotakeback.com

• Lexmark: 800-LEXMARK (539-6275) http://www.lexmark.com/recycle/

• Sony: 877-439-2795; http://www.sonystyle.com/webapp/wcs/stores/servlet/CategoryDisplay?catalogId-10551&categoryId=8198552921644513777&langId=1&storeId=10151

• Toshiba: http://explore.toshiba.com/innovation-lab/green
  

For home renovations, go to www.environmentalhomecenter.com, where you can purchase green building materials such as paint, countertops, flooring, cleaning supplies, etc. The www.thegreenguide.com has useful, practical everyday living information.

And finally if you're ready to live in a new green (LEED) certified condo recently built or currently under construction in Manhattan - go to my new developments page on my website fill out the buyer form and write green in the comment section. I will send you email listings of green condos that match your buying criteria.

Courtesy of: New York State Assemblymember Linda B. Rosenthal: 212-873-6368 - Rosenthal@assembly.state.ny.us