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Hey there, let’s get into the latest news at the intersection of policy and real estate:
A challenge to New York’s electric buildings laws could be headed to the U.S. Supreme Court.
New York’s power grid is facing a major heat test.
The city has temporarily suspended evictions during the extreme temperatures.
In this edition we mention: Managing partner at Reichman Jorgensen Lehman & Feldberg Sarah Jorgensen, Director of the city’s Department of Investigation Marshals Bureau Michael Bernstein, state Sen. Jamaal Bailey, Assembly member Yudelka Tapia and others.
We Heard
Power struggle: New York’s push to electrify new buildings cleared a major legal hurdle — but it may be a temporary win. The Second Circuit U.S. Court of Appeals ruled in a 46-page decision Tuesday that federal law does not preempt New York state and city laws restricting fossil fuel appliances in certain new buildings. The ruling clears the way for the state to restart its 2023 All-Electric Buildings Act, which had been paused during the litigation. It also allows the city to continue phasing in its 2021 Local Law 154, which currently applies to new one- and two-family homes and buildings under seven stories with at least 50 percent income-restricted apartments. The ruling, however, creates a split among federal appeals courts. In 2023, the Ninth Circuit held that the same federal law preempted Berkeley, California’s gas hookup ban. The conflicting decisions could tee up the issue for the U.S. Supreme Court. Sarah Jorgensen, managing partner at Reichman Jorgensen Lehman & Feldberg who represents the gas and construction trade groups challenging New York’s laws, said the plaintiffs are weighing an appeal. “We continue to believe the Ninth Circuit has the better side of this issue,” Jorgensen told The Real Deal. “We are still discussing the options with our clients, but at the end of the day, this is a legal question the Supreme Court may ultimately need to resolve.” The outcome of the suit stands to dictate the pace of electrification across New York’s development pipeline, and, if appealed, could have national implications. We’ll keep you posted on the case.
Grid strain: New York’s buildings are facing a heat test. Scorching temperatures are expected to drive air conditioning use to a seasonal peak this week, sending electricity demand soaring as the heat index, which combines air temperature and humidity, climbs as high as 115 degrees on Thursday and Friday, according to the National Weather Service. The sweltering weather is expected to linger through the weekend, increasing the strain on the electric grid that keeps the city’s buildings and infrastructure up and running. The New York Independent System Operator, which manages the state’s power grid and wholesale electricity market, expects peak demand — the average amount of electricity consumers use over a one-hour period — to climb into the low-30,000-megawatt range over the coming days. On Thursday, demand is forecast to reach 31,730 megawatts, slightly higher than the summer peak NYISO projected and it’s only the first week of July. Sustained demand at those levels can strain equipment, raising the risk of localized outages that could leave buildings without air conditioning, elevators or other essential services. In April, NYISO warned that a three-day stretch of 95-degree weather could leave the state short of power under certain conditions, and force the grid operator to tap emergency reserves to avoid blackouts.
Eviction reprieve: As the city grapples with the heat wave, the Mamdani administration has suspended evictions at least through Wednesday and Thursday. A memo from Michael Bernstein, director of the marshals bureau at the Department of Investigation, directs city marshals to postpone scheduled evictions over the two days “in anticipation of extreme heat and associated risks to health and safety.” Last month the city carried out 1,849 evictions, enforcing roughly 50 residential evictions per day, according to city data. Bronx state Sen. Jammal Bailey and Assembly member Yudelka Tapia introduced a bill last session that sought to outlaw evictions during extreme heat or cold, but the bill failed to gain traction and stalled in committee in both chambers.
Have a tip or feedback? Reach me at caroline.spivack@therealdeal.com.
The Catch-Up
The fate of a bipartisan housing bill is in limbo thanks to President Trump. He now has three options to make or break the legislation, reports The New York Times.
A judge struck down the Trump administration’s changes to a widely used federal housing-assistance program to fight homelessness, reports Bloomberg.
The 485x tax break program was designed to spur affordable housing but has cost New York City apartments due to its wage rules, reports Gothamist.
A daredevil couple known for scaling skyscrapers climbed to the tip of the Empire State Building’s spire and unfurled a massive black flag, reports ABC7.
The Kicker
“I’m asking every New Yorker to make a heat plan before the worst of it arrives,” Mayor Mamdani warned Wednesday ahead of a multi-day heat wave.
