Tuesday’s election results were not exactly what the real estate industry was hoping for, though it did avoid a worst-case scenario.
Incumbents backed by the Democratic Socialists of America held their seats in contested primaries, despite challenges from moderate candidates who had the backing of real estate interests and establishment Democrats, including Mayor Eric Adams.
Perhaps most significant was that a socialist newcomer, Kristen González, crushed the industry’s preferred candidate, Elizabeth Crowley, in a Queens-based Senate district that includes parts of Manhattan and Brooklyn.
The results will help determine the fate of key measures for real estate in the state legislature for the next two years, including the expired property tax break 421a, which developers call essential to multifamily construction in New York City.
Lawmakers showed little appetite this year to renew or replace the tax break, so the wins for far-left candidates do not bode well for the incentive’s future, or for landlords’ efforts to change the 2019 rent law.
At the same time, progressives did not gain enough ground to give a good cause eviction bill a significant boost next year. The measure, which bars “unreasonable” rent increases, did not gain traction in the state legislature this year, despite a few localities passing their own versions.
Albany’s good cause ordinance, which a judge recently found violates state law, was temporarily reinstated by a state court until an appeal of the judge’s decision is decided. That could give state lawmakers a rationale to settle the issue.
Here is where the most watched races ended up, according to unofficial election results from the Associated Press and state Board of Elections:
Real estate’s wins
Attorney Dan Goldman, the most politically moderate of the six viable candidates in the race for an open House seat in the 10th Congressional District, edged the far left’s candidate, Assembly member Yuh-Line Niou.
Rep. Mondaire Jones, who relocated from Westchester when his district was obliterated in reapportionment, finished third, and Council member Carlina Rivera was fourth.
Rivera’s role in passing the Soho and Noho rezoning never became a major factor in the race, other than to help her win financial support from pro-housing group Open New York.
Still, Goldman’s win — or, more specifically, Niou’s loss — was a big plus for the industry and for political consultant Jeff Leb, known for running political action committees funded by real estate interests.
A PAC tied to Leb had poured money into ads opposing Niou, who was backed by the Working Families Party. Bill de Blasio dropped out of the race five weeks ago. In November, Goldman will face Republican Benine Hamdan, who ran unopposed in the heavily Democratic district.
Rep. Jerrold Nadler defeated Carolyn Maloney for a seat that represents much of their old districts. Nadler received donations from some of the city’s biggest developers, although Maloney also received support from the industry.
An insurgent candidate finished a distant third in the Manhattan-Queens race, which is a preferred outcome for business interests. Nadler will run against the sacrificial Republican candidate, Michael Zumbluskas, in the general election.
Incumbent Brooklyn Sen. Kevin Parker fended off DSA-endorsed challenger David Alexis, and in the Hudson Valley’s Congressional District 17, Rep. Sean Maloney defeated Sen. Alessandra Biaggi, who had the backing of Rep. Alexandria Ocasio-Cortez and the Working Families Party. Maloney will face Republican Michael Lawler in November.
Industry losses
Kristen González beat out industry favorite Elizabeth Crowley for the open District 59 state Senate seat. González was endorsed by the DSA, and is a vocal supporter of good cause eviction.
“Today we really proved that socialism wins, we are not going anywhere, and we will not stop until we see a socialist slate across this city,” González said during a celebration in Long Island City, according to the City.
They have a long way to go: Socialists will hold fewer than 10 of the legislature’s 213 seats when the new class of lawmakers is sworn in this January. But her win over the moderate Democrat Crowley could persuade some legislators to support left-wing bills next session.
One who will need no convincing is Sen. Jabari Brisport, who defended his Brooklyn seat from Conrad Tillard, who had the mayor’s support despite being an obscure longshot. Brisport, a good-cause fan who has vehemently opposed development in his district, was endorsed by the DSA and the Working Families Party.
In a closely watched Bronx race, DSA-backed Sen. Gustavo Rivera enjoyed a lead over more-moderate challenger Miguelina Camilo, but the Associated Press had not called the race as of Wednesday morning.