Dive Brief:
-
New York Mayor Bill de Blasio has proposed a “mansion tax” to help build or rehab 200,000 affordable homes.
-
A 1% surcharge on homes selling for more than $1.75 million would help raise $1.9 billion — the amount the state’s Department of Housing Preservation and Development is short for the plan.
-
The measure is likely to face opposition from the state Legislature, and a spokeswoman for the governor said a defeat in Albany — which the New York Daily News said is a likely result — would “be a major blow to us.”
Dive Insight:
The proposal coincides with other New York mansion regulation. Officials in three beachfront communities are exploring ways to stop the building of mansions elsewhere in the state.
Residents of the Hamptons have complained that huge houses on small lots are detracting from the aesthetics and charm of the villages.
In East Hampton, officials have proposed limiting the size of homes to discourage builders from tearing down small houses and replacing them with mansions. Sag Harbor is considering a three-month moratorium on homes larger than 3,000 square feet.
Across the country in San Francisco, the Board of Supervisors this week failed to pass a proposed, 45-day moratorium on the building of luxury apartments and condominiums in the city’s Mission District.