More than 500 new york city construction projects currently stalled; number dropped slightly in november after accelerating in october
Brooklyn is Home to 46 Percent of Stalled Projects Citywide;
Queens Is Next at 27 Percent
As of November 29, 2009, work had stopped on a total of 515 formerly active construction sites throughout the five boroughs of New York City, according to a New York Building Congress analysis of New York City Department of Buildings (DOB) inspection records. The DOB began tracking stalled sites on July 21, 2009. While no breakdown of building type is available, virtually all of the stalled projects are residential developments.
The number of stalled projects dropped slightly in November, reversing a trend in which building projects were stalling at an accelerating rate. Early in the month, 531 projects were stalled a 33 percent increase from July 21 when the DOB identified 398 projects on hold and a 17 percent increase in the number of stalled projects since September 27 (444 projects).
Among the five boroughs, Brooklyn is the hardest hit with 237 stalled projects (46 percent of the total number of stalled buildings in New York City). In fact, eight out of the ten New York City neighborhoods with 10 or more stalled projects are located in the Borough.
The Northern Brooklyn neighborhoods of Williamsburg, East Williamsburg, Greenpoint and North Side-South Side, which have been the focus of intense residential development in recent years, are home to 30 percent of the stalled Brooklyn projects.
Queens contains the second highest level of stalled construction projects, with 140 (27 percent of Citywide total), down from a peak of 147 on November 1, and up only slightly from July 21, when the numbers stood at 136.
As of November 29, a total of 80 projects were listed as stalled in Manhattan (16 percent of Citywide total), up from 57 on July 26. Manhattan's Turtle Bay-East Midtown area contains 11 buildings, or 14 percent of Manhattan's stalled projects.
The number of stalled projects more than doubled on Staten Island over the past three months from 15 projects as of July 26, to 34 on November 29.
According to DOB's weekly inspection data, the number of stalled projects has remained relatively steady in the Bronx rising slightly from 22 on July 26, to 24 as of November 29.
"Earlier this year, we reported on the dearth of applications for permits to begin new residential projects in New York City. Apparently, the economic contagion has now spread to residential projects that were already permitted and where construction already began," said Building Congress President Richard T. Anderson. "Though the late November numbers offer some encouragement, it is important for government and the development community to continue working together to minimize the immediate environmental and quality-of-life impacts of these stalled projects on the hardest hit communities."
The Mayor and the City Council recently enacted legislation that incentivizes owners of stalled sites to submit comprehensive site safety plans to DOB. In exchange, owners will be able to renew their building permits for up to four additional years thus allowing construction to restart at these sites without having to go through the lengthy permitting process a second time.
"The City should consider further incentives to encourage developers to re-start stalled projects. These could include new tax credits, zoning modifications and related steps to help get development back on track. These efforts could represent one of the best stimulus programs available to New York City and an important way to prepare for economic recovery, added Mr. Anderson. "A great deal is at stake when jobs and tax revenues more than ever need to be jump-started."
