The last two days have felt a little like playing a breakneck round of red light green light. As things stand, a federal judge temporarily blocked the administration’s order freezing federal loans and grants, and on Tuesday, the administration rescinded the order.
Before all that happened, the administration released a memo (obtained by Politico) listing the federal programs under review during the freeze, including more than 100 programs overseen by the Department of Housing and Urban Development.
That raised concerns about housing vouchers and grants provided for affordable housing construction and rehabilitation. An incentive program for localities that make moves to lift restrictive zoning was also on the list. The New York Housing Conference warned that the pipeline of New York City’s public housing projects that are being converted into Section 8 housing could also stall out.
Does the reversal on the freeze mean these programs are safe?
Karoline Leavitt, the White House press secretary, posted on X that the federal freeze was not rescinded, just a memo ordering a federal freeze. She appeared to be referring to the president’s executive order directing agencies to review their spending and eliminate certain types of programs.
Housing groups are bracing themselves. New York Housing Conference’s Rachel Fee said her group is concerned about HUD’s budget, and the future of low income housing tax credits and tax-exempt private activity bonds, which may be on the chopping block as part of Republican efforts to pay for tax cuts. But a lot can happen between now and when those issues are finalized.
“This just feels chaotic and disruptive, and really hoping we’re not battling fire drills every week,” Fee said.
What we’re thinking about: The funding freeze was not the only whiplash-inducing news on Wednesday. Rumors were swirling that Mayor Eric Adams is resigning. His attorney told reporters he is not. Did he mean not this very minute? Not today? Not at all? Later, the New York Times reported that the Justice Department is discussing dropping the case against Adams. Then the New York Post reported that Adams was returning to his public schedule on Thursday. What’s going on? Send a note to kathryn@therealdeal.com.
A thing we’ve learned: Housing Justice for All’s account on X changed to the NYS Tenant Bloc on Wednesday, with the former creating a new account. The move was a hint of more to come: The group announced Wednesday that a new sister organization focused on building a tenant voting bloc who will only vote for candidates that have committed to freezing rent (something at least three candidates vying for Mayor Eric Adams’ job have done). The group will also have its sights set on the 2026 gubernatorial race “when real estate-backed Governor Hochul will be up for election.” The new group is backed by the Working Families Organization.
Elsewhere in New York…
— Former New Jersey Sen. Bob Menendez was sentenced to 11 years in prison for using his position as head of as leader of the Senate Foreign Relations Committee to help a N.J. businessman in exchange for nearly $500,000 worth of bribes, Gothamist reports. “You were successful, powerful. You stood at the apex of our political system,” federal Judge Sidney Stein said. “Somewhere along the way you lost your way. Working for public good became working for your good.” Menendez has pledged to appeal and called the case a “political witch hunt.”
—Speaking of appeals and popular phrases, President Donald Trump is appealing his criminal conviction in his hush money case, Associated Press reports. At his sentencing this month, Trump referred to the case as a “political witch hunt.”
Closing Time
Residential: The priciest residential sale Wednesday was $21.2 million for a 4,859-square-foot condominium unit at 24 Leonard Street in Tribeca
Commercial: The most expensive commercial closing of the day was $43 million for a 75,000-square-foot office building at 21 West 46th Street in Midtown.
New to the Market: The highest price for a residential property hitting the market was $12 million for a 3,500-square-foot condo unit at 151 East 85th Street on the Upper East Side. Alexandra Hedaya of Compass has the listing.
Breaking Ground: The largest new building application filed was for a 92,400-square-foot, eight-story, 89-unit residential project at 726 Bay 32 Street in Far Rockaway. Alen Moghaddam of Urban Architectural Initiatives filed the permit on behalf of The Community Builders.
— Matthew Elo