As the debate around New York City's housing crisis intensifies, many are asking: if not 485x, then what? BK Real Estate Advisors' CEO Bob Knakal offers a compelling roadmap to create more housing, reduce costs, and stimulate economic growth—without the political posturing and half-measures that have stalled progress for years.
Key Takeaways from Bob Knakal’s Housing Plan
Restore the Original 421a Program Reviving 421a in its original form would increase land values, motivate sellers to transact, and generate thousands of construction jobs—boosting both supply and economic activity.
Fix Rent-Regulation Incentives Reinstating the original Major Capital Improvement (MCI) and Individual Apartment Improvement (IAI) programs would lead to immediate renovation of tens of thousands of vacant apartments, creating jobs and improving housing conditions.
End the Ban on Vacancy Decontrol Allowing vacancy decontrol again would help return currently shuttered units to the market, increasing supply without displacing existing tenants.
Implement Means Testing for Rent-Regulated Units Requiring income verification for rent-regulated tenants would ensure subsidies go to those who truly need them, while reducing landlord-tenant conflicts and discouraging misuse of the system.
Modernize Mortgage Portability Nationally Allowing homeowners to transfer their low-interest mortgages to new homes—subject to financial tests—would increase national housing mobility, reduce bidding wars, and ease upward pressure on prices.
Fund Affordable Housing with Federal Support A $20 billion federal fund administered locally could empower HPD to finance affordable housing faster, in exchange for relaxed rent regulations that re-engage private developers.
Frequently Asked Questions
Q: Why is 485x failing to incentivize new development?
A: 485x imposes high wage requirements and regulatory burdens, discouraging developers—especially for buildings over 100 units.
Q: What’s the problem with leaving rent-regulated apartments as-is?
A: Many are vacant and unrenovated due to low economic incentives. Reinstating improvement programs would get them back on the market quickly.
Q: Would relaxing rent regulations hurt low-income tenants?
A: Not if paired with means testing and targeted subsidies. The goal is fairness and functionality—not blanket deregulation.
Q: Who benefits from mortgage portability?
A: Homeowners, buyers, and sellers all win. It frees up housing stock and removes the disincentive to move created by ultra-low locked-in rates.
Q: Would restoring 421a just benefit developers?
A: No—higher land values spur sales, construction jobs increase, and more housing supply helps everyone from renters to buyers.
Q: Can federal and local policy really work together here?
A: Yes. A targeted federal funding program paired with local regulatory reform could break through the housing bottleneck in NYC.
