Governor Hochul Announces New Protocols to Ensure New Yorkers Receive Continuity of Health Care Services Following Cyberattack

Change Healthcare Continues to Restore Systems Following Unprecedented Cyberattack

State Department of Financial Services Issues Letter Outlining Protocols for Health Insurers

Governor Kathy Hochul announced that health insurers were directed to follow new protocols and assist healthcare providers to ensure New Yorkers have access to uninterrupted healthcare services. This action was taken after a cyberattack on health care platform Change Healthcare, part of UnitedHealth Group, which saw disruptions from the cyberattack to the claims and payment systems on February 21, 2024.

“Every New Yorker deserves to feel confidence that their financial information, and sensitive medical data, are safe from digital attacks and the dark web,” Governor Hochul said. “Health care insurers and providers must work together to guarantee that any digital event doesn’t stop people from receiving appropriate care, and my administration has allocated $500 million to help hospitals rapidly and aggressively enhance their systems and safety protocols.”

Change Healthcare, a technology platform used by a substantial number of health care providers in New York, disconnected its systems during the cyberattack. The New York State Department of Financial Services (DFS) has issued a letter to health insurers and other health benefit issuers to ensure continuity of care following these disruptions. The letter provides guidance for how they should work with providers to avoid disruptions in care, which may include suspending certain utilization review requirements, appeal timeframes, claim submission timeframes, and eligibility verifications. The circular letter also strongly urges insurers to work with providers to address cash flow disruptions to avoid disruption of health care services.

As a result of the cyberattack, some providers are currently unable to request preauthorization; engage in concurrent or retrospective reviews; submit internal appeals, external appeals, or claims for payment within the requisite timeframes; verify an insured’s eligibility for coverage; and obtain timely payment for health care services. Governor Hochul has directed state agencies to actively monitor the impact of this cybersecurity incident.

A copy of the circular letter can be found on the DFS website.

NYS Office of the Comptroller DiNapoli: New York's Public and Private Colleges and Universities Face Significant Challenges in Years Ahead

 

A new report by State Comptroller Thomas P. DiNapoli highlights the challenges New York’s higher education sector is facing, including a looming enrollment cliff, growing costs of attendance, and rising student debt. The report examines both public and private institutions of higher education.

“New York has a robust higher education sector that attracts students and investment to our colleges and universities, which benefits our state and local economies,” DiNapoli said. “Declining enrollment over the last decade has already hurt the finances of several public and private institutions, forcing a few to downsize or close their doors. New York’s future depends on our institutions of higher education staying competitive by ensuring they are affordable, are diverse, and nurture a spirit of innovation and community in their students.”

Falling Enrollment and Looming Enrollment Cliff

In large part due to demographic changes, attracting potential students has become more competitive, and New York’s share of enrollment has decreased. In Fall 1970, New York’s higher education institutions enrolled about 1 in 11 students nationally; in Fall 2010, when enrollment peaked nationwide, it was 1 in 16. New York’s share of national enrollment remained stable at 6.2% between 2010 and 2020.

In Fall 2022, there were 896,000 students enrolled across all postsecondary institutions in the state. This was the lowest total enrollment over a 15-year period, a decline of approximately 73,000 full-time students, or 7.6% since Fall 2008. The decline was led by the nearly 14% drop in enrollment at public institutions, driven by decreases at community colleges that began in 2011.

In Fall 2023, 367,542 students were enrolled at the State University of New York (SUNY), its first year-over-year increase since Fall 2010. Most of the growth (nearly 75%) occurred at community colleges. Still, total enrollment was lower than in Fall 2021 and not all SUNY institutions experienced increases.

The college-age population that drives enrollments at postsecondary institutions has been dropping as a share of the total population nationally, and is forecast to undergo a precipitous drop beginning in 2025 – a looming “enrollment cliff.” The impact of enrollment declines over the last decade has impacted the finances of several public and private institutions, with a handful of institutions downsizing or closing.

While higher education enrollment typically grows during or immediately after a recession, the COVID-19 pandemic had the opposite impact, with enrollment declining in 2020 and 2021. Social distancing restrictions and a strong job market as the economy recovered may have played a role. The pandemic also spurred a rise in student transfers and withdrawals, or “stop-outs”, and declines in the upward transfer of community college students to higher degree programs, particularly for disadvantaged students.

Degrees and Return on Investment

Outcomes related to earning a degree, including salaries upon graduation, are more positive for New York’s college students than those in other states. Collectively, New York’s institutions exceed the national performance in enrolled students completing their degrees (69.1% compared to 62.3%). However, completion rates at community colleges are also lower than at four-year schools. Less than half of the students in public two-year colleges who began in Fall 2016 completed their coursework by June 2022. Declining enrollment and low completion rates resulted in 3.4% fewer associate degrees awarded in academic year (AY) 2020-21 than in AY 2009-10.

Research has consistently demonstrated that individuals with a college degree earn more than those with only a high school diploma. Median earnings for bachelor’s degree holders in the state are nearly $82,000 higher than for those in peer states, including California, Florida and Texas and neighboring states like New Jersey and Massachusetts. Overall, earnings in New York increased from 2010 to 2022 at a rate greater than nationwide and higher than the median.

Additional Challenges

For AY 2020-21, New York’s public and private average undergraduate charges were both higher than the national average, particularly for in-state costs at two-year public institutions. Private four-year tuition, fees, room and board of $58,423 in New York was 26% higher than the national average of $46,313. Public two-year, or community college, in-state tuition and fees of $5,576 in New York were 59% higher than the national average of $3,501. Public four-year out-of-state tuition and fees were 26% below the national average of $27,091.

Growing college costs nationwide have led to unprecedented growth in student loan debt in New York and the country. Federal Reserve Bank of New York data indicates that in the third quarter of 2023 New York’s per capita student loan debt was $5,830, higher than the national average ($5,370) and peer states like Texas ($5,170) and Florida ($4,960).

Student diversity varies by system and campus. According to SUNY’s data, the proportion of “minority” students in Fall 2022 was 37.2%, up from 33.2% in Fall 2017. At CUNY, 76.1% of all students in Fall 2022 identified as a race or ethnicity other than white, up more than six percentage points from Fall 2010.

DiNapoli’s report examined options to facilitate growth and innovation in the higher education sector, including setting strategic goals, implementing additional approaches to spur applications and enrollment, addressing costs and financial aid gaps, and considering partnerships to keep up with innovation.

Report

Higher Education in New York: Evaluating Competitiveness and Identifying Challenges

KRVC - Thursday, March 14th - Join us for a Evening of Live Music

 

We are thrilled to host

the Allen Gogarty Trio

at Downey's Bar and Grill

next Thursday,

March 14th 7pm

free and open to the public

food and drink will be served

but seating is limited

please make a reservation

email TracyKRVC@gmail.com

Check out the redesigned 4Bronx Project page on our website - 505BX.org

and follow all the great work that we are doing

@4BronxProject

Galentine's Party at a Bronx shelter

6000 Easter eggs arrived

Small Business Spotlight

Our current Gallery 505 Exhibit is up until March 29th

Artist Noel Hefele's

DAYLIGHTING TIBBETTS EN PLEIN AIR

Gallery Hours are 2-4pm on Fridays

Watch the video below for more info:

Look forward to seeing you! 505BX.org

PUBLIC ADVOCATE CALLS FOR FUNDING SERVICES ON AND OFF RIKERS AMID ONGOING EFFORT TO CLOSE THE COMPLEX

 

New York City Public Advocate Jumaane D. Williams argued for an investment in critical services as part of the effort to close Rikers Island. Addressing a hearing of the City Council Committee on Criminal Justice, he spoke in favor of mental health supportive programs and facilities as a means of improving safety and preventing recidivism. 

In opening, the Public Advocate criticized a lack of prioritization by the administration in moving to close Rikers, saying  "... It just appears that there is no real want or belief that we should close Rikers by 2027, and I think we have to at least have to get on the same page and have a plan to how to do it. Omitting it altogether is not a good move and it wouldn't be the first time the administration just skips over a law that the Council has passed.”

After noting the dangers posed to people on both sides of the bars at Rikers, the Public Advocate emphasized the need to fund, not cut, programming for incarcerated people, arguing that previous cuts by the administration have been harmful while expressing hope for the future. “While I am very heartened to see that Mayor Adams just announced $14 million in funding for DOC to increase programming initiatives for people in custody—including trauma-informed programming, transition planning, and transportation and supplemental education services—I still have some concerns about DOC’s ability to deliver that programming themselves. Still, it is a step in the right direction, and I look forward to working with the administration and the City Council to ensure that the city delivers high-quality programming to people in custody and complies with all city laws.”

Public Advocate Williams stated in closing that “Rikers Island is the largest mental health services provider in NYC, probably one of the largest in North America,” and both expressed gratitude for new hospital-based housing units opened by the administration and a need to continue this kind of investment to ultimately close Rikers and better serve New Yorkers. 

Read the Public Advocate’s full statement as delivered at the hearing below. 

STATEMENT OF PUBLIC ADVOCATE JUMAANE D. WILLIAMS

TO THE NEW YORK CITY COUNCIL COMMITTEE ON CRIMINAL JUSTICE

MARCH 8, 2024

Good morning,

My name is Jumaane D. Williams and I am the Public Advocate for the City of New York. I would like to thank Chair Nurse and the members of the Committee on Criminal Justice for holding this hearing.

First, I just wanted to make mention that when we heard conversation about the budget, it didn’t seem to include funding or a plan to actually close the jail, and I heard comments and issues around particularly capital funding, which makes some sense, my concern has been that –combined with things I’ve heard the administration say before, it just appears that there is no real want or belief that we should close Rikers by 2027, and I think we have to at least have to get on the same page and have a plan to how to do it. Omitting it altogether is not a good move and it wouldn't be the first time the administration just skips over a law that the Council has passed. So I’m hoping that it will be reconsidered as the conversations move forward.

The existence of Rikers right now does not make anyone—the people incarcerated there, the people who work there, corrections officers ,and residents of New York —safer. So I have always been very concerned about the violence inside our city’s jails, both against incarcerated people and correction officers and staff, however, New York City is not on track to close Rikers by 2027. As I mentioned, that is something we should at least agree upon. It’s one thing to try to execute a plan that doesn't work out, it’s another thing to say we’re not going to do the plan or present another one. Recidivism is a challenge for correction systems across the country. We should all acknowledge New York City’s high cost of living and competitive job market. It is especially difficult for those who have been justice-involved to stay out of jail.

Still, Mayor Adams last year eliminated programs that would help those who are incarcerated get jobs, find housing, receive mental health and substance use treatment, and reconnect with their families after their release to save $17 million. Subsequently, despite a promise from DOC that programming would not be lessened in either quality or frequency after being moved in-house, during the first four months of fiscal year 24, the number of group-based programming offered dropped by 29 percent and one-on-one sessions dropped by over 30 percent when compared to the first months of FY23.

While I am very heartened to see that Mayor Adams just announced $14 million in funding for DOC to increase programming initiatives for people in custody—including trauma-informed programming, transition planning, and transportation and supplemental education services—I still have some concerns about DOC’s ability to deliver that programming themselves. Still, it is a step in the right direction, and I look forward to working with the administration and the City Council to ensure that the city delivers high-quality programming to people in custody and complies with all city laws. The city should also be investing in pre-trial non-carceral services and also post-trial services and alternatives to incarceration, so fewer people enter Rikers Island in the first place and people have a better ability to assimilate into society when they leave.

Court backlogs and slow processing of cases also contributes to the rising population—detainees spent an average of 115 days in the jails last year, that is four times the national average. I’m hoping we all work on getting some speedy trials and getting folks out of there. Across the city’s jails, 86.6 percent of people are just waiting for their cases to conclude, and their sentences ultimately may require less jail time than what they served waiting for those cases to resolve. We must ensure that cases and trials are being processed in a timely manner. There is data that also shows the longer someone is on Rikers, the more likely they may be involved in something violent. 

In 2021, it cost $1 million for every two people incarcerated at Rikers Island—one of the most expensive jail systems in the country—yet the conditions in the jails remain abysmal. Being incarcerated takes a significant toll on a person’s physical and mental health, and many people on Rikers Island have complex health needs that require specialized care, particularly mental health. There is a significant shortage of health staff, often with one healthcare professional making rounds in multiple units. Rikers Island is the largest mental health services provider in NYC, probably one of the largest in North America.

This week, Mayor Adams announced that the city construct outposted therapeutic housing units at NYC Health + Hospitals/Woodhull and North Central Bronx, and that it has started constructing a 104-bed unit at NYC Health + Hospitals/Bellevue, so that incarcerated people in need of care do not have to travel back and forth for treatment. These units are for people with medical, mental health, and substance-use needs, and I applaud this investment in care for some of our most vulnerable New Yorkers. 

My hope is that this is a direction that we can begin to go in, make sure people have the care they need, getting people, less people in Rikers, getting people what they need in Rikers and having more ability to get them out on the right path hopefully we can all work on that together. Thank you for the opportunity to speak. 

Corporate Insider Sentenced to 60 Months in Prison for Conspiring With Long Island Boiler Room to Pump and Dump Stock on Elderly Investors

 

Illegal Stock Promotion and Manipulation Scheme Cost Victims Millions of Dollars

In federal court in Central Islip, Michael Watts, a former registered broker who participated in a criminal conspiracy to promote and manipulate the price of shares in Hydrocarb Energy Corp. and other companies, was sentenced by United States District Judge Joanna Seybert to 60 months’ imprisonment for conspiracy to commit securities fraud, securities fraud, conspiracy to commit wire fraud, money laundering conspiracy and money laundering.  At an earlier proceeding, the Court ordered Watts to pay more than $560,000 in forfeiture and $4,430,354.03 in restitution.  Watts was convicted by a federal jury in October 2019 following a three-week trial.

Breon Peace, United States Attorney for the Eastern District of New York, announced the sentence.

“Michael Watts and his co-conspirators lined their pockets with the lifetime savings of hard-working folks across the country with ruinous results,” stated United States Attorney Peace.  “This sentence holds Watts accountable for the economic harm he intentionally inflicted on the victims, many of them senior citizens living on a fixed income, and should serve as a warning to others like him that there will be consequences for crimes of greed.” 

Mr. Peace thanked the Federal Bureau of Investigation, New York Field Office, for its hard work and dedication in leading the investigation and expressed his appreciation to the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority, Inc., Criminal Prosecution Assistance Group (FINRA CPAG), for their cooperation and assistance.

From 2014 to 2016, Watts and others working with a Melville, New York-based boiler room artificially inflated the price and trading volume of Hydrocarb stock.  They did so through an illegal cold call campaign that used lies and high-pressure sales tactics to lure victims, including the elderly and the vulnerable, into purchasing stock.  Watts, who was one of the largest shareholders in Hydrocarb and therefore knew that the business was in a downward spiral, also used the boiler room to dump more than $2 million of Hydrocarb shares that he owned or controlled on unsuspecting investors in the months leading to the company’s April 2016 bankruptcy.  The conspiracy’s market manipulation fraudulently inflated the stock price of Hydrocarb and four other companies by more than $147 million. 

All 16 defendants charged in this case have been convicted.  Among those who have been sentenced, Jeffrey Chartier, Ronald Hardy and Brian Heepke each received 10 years’ imprisonment; Dennis Verderosa received six years; Lawrence Isen received five years; McArthur Jean received four years; Paul Ewer received three years; and Emin Cohen received two years.

Juan Orlando Hernández, Former President of Honduras, Convicted in Manhattan Federal Court of Conspiring to Import Cocaine into the United States and Related Firearms Offenses

 

Hernández Conspired with Some of the Largest Drug Traffickers in the World to Transport Tons of Cocaine through Honduras to the United States

A federal jury convicted Juan Orlando Hernández, also known as JOH, 55, of Honduras, on all three counts in the indictment, which included cocaine-importation and weapons offenses. Hernández is scheduled to be sentenced on June 26.

“Juan Orlando Hernández abused his position as President of Honduras to operate the country as a narco-state where violent drug traffickers were allowed to operate with virtual impunity, and the people of Honduras and the United States were forced to suffer the consequences,” said Attorney General Merrick B. Garland. “As today’s conviction demonstrates, the Justice Department is disrupting the entire ecosystem of drug trafficking networks that harm the American people, no matter how far or how high we must go.”

“When the leader of Honduras and the leader of the Sinaloa Cartel work hand-in-hand to send deadly drugs into American communities, both deserve to be held accountable in the United States,” said Administrator Anne Milgram of the Drug Enforcement Administration (DEA). “This case should send a clear message that no one is above the law or beyond our reach.”

“Juan Orlando Hernández had every opportunity to be a force for good in his native Honduras. Instead, he chose to abuse his office and country for his own personal gain and partnered with some of the largest and most violent drug trafficking organizations in the world to transport tons of cocaine to the United States,” said U.S. Attorney Damian Williams for the Southern District of New York. “It is my sincere hope that this conviction sends a message to all corrupt politicians who would consider a similar path: choose differently. My office will stop at nothing to investigate and prosecute those responsible for sending poison to this community, no matter their status or political power.”

According to court documents, from at least in or about 2004, up to and including in or about 2022, Hernández, the former two-term president of Honduras and former president of the Honduran National Congress, was at the center of one of the largest and most violent drug-trafficking conspiracies in the world. Hernández abused his position and authority in Honduras to facilitate the importation of tons of cocaine into the United States. In exchange, Hernández received millions of dollars in drug money from some of the largest and most violent drug-trafficking organizations in Honduras, Mexico, and elsewhere, and used those bribes to fuel his rise in Honduran politics.

Throughout his time in office, Hernández publicly promoted legislation and the efforts he purported to undertake in support of anti-narcotics measures in Honduras. At the same time, he protected and enriched the drug traffickers in his inner circle and those who provided him with cocaine-fueled bribes that allowed him to obtain and stay in power in Honduras. For example, Hernández selectively upheld extraditions by using his executive power to support extraditions to the United States of certain drug traffickers who threatened his grip on power, and promising drug traffickers who paid him and followed his instructions that they would remain in Honduras. In addition, Hernández and his co-conspirators abused Honduran institutions, including the Honduran National Police and Honduran Army, to protect and grow their conspiracy. Among other things, members of the conspiracy used heavily armed Honduran National Police officers to protect their cocaine loads as they transited through Honduras. Members of the conspiracy also turned to violence and murder to protect and grow their drug trafficking enterprise, attacking and murdering rival traffickers and those who threatened their grip on the Honduran cocaine trade.   

Several of Hernández’s co-conspirators have already been convicted and sentenced in connection with this investigation. Among others, Hernández’s brother, Juan Antonio Hernández Alvarado, also known as Tony Hernández, was convicted after trial in October 2019 and sentenced to life in prison, and Geovanny Fuentes Ramirez, a violent cocaine trafficker who met with Hernández on multiple occasions to discuss their drug trafficking partnership, was convicted after trial in March 2021, and sentenced to life in prison. More recently, Juan Carlos Bonilla Valladares, also known as El Tigre, the former chief of the Honduran National Police, pleaded guilty to his participation in the cocaine importation conspiracy and is scheduled to be sentenced on June 25, and Mauricio Hernández Pineda, a former member of the Honduran National Police and Hernández’s cousin, pleaded guilty to his participation in the cocaine importation conspiracy and is scheduled to be sentenced on May 2.

In total, Hernández and his co-conspirators trafficked over more than 400 tons of U.S.-bound cocaine through Honduras during Hernández’s tenure in the Honduran government.

Hernández was convicted of three counts: (i) conspiring to import cocaine into the United States, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison; (ii) using and carrying machineguns and destructive devices during, and possessing machineguns in furtherance of, the cocaine-importation conspiracy, which carries a mandatory consecutive prison term of 30 years; and (iii) conspiring to use and carry machineguns and destructive devices during, and possessing machineguns in furtherance of, the cocaine-importation conspiracy, which carries a maximum sentence of life in prison.

The DEA’s Special Operations Division Bilateral Investigations Unit, Organized Crime Drug Enforcement Task Forces (OCDETF) New York Strike Force, and Tegucigalpa Country Office are investigating the case. The Justice Department’s Office of International Affairs provided valuable assistance in securing his arrest and extradition. The Justice Department thanked the Government of Honduras for extraditing Hernández to the United States.

Mount Vernon Man Sentenced To 50 Years In Prison For His Enticement Of A Minor

 

Damian Williams, the United States Attorney for the Southern District of New York, announced that LELAND ROBINSON was sentenced to 50 years in prison by U.S. District Judge Kenneth M. Karas for his enticement of a 14-year-old minor to engage in sexual activity.  ROBINSON was convicted of enticement of a minor following a week-long jury trial in July 2023. 

U.S. Attorney Damian Williams said: “Leland Robinson’s crime is the nightmare of every parent of a child who uses a smartphone.  Robinson met his victim on a social media application and then traveled to Connecticut, where he sexually assaulted the child outside the child’s home.  I encourage parents and caregivers to have conversations with their children about the dangers of communicating online with strangers.  We will continue to use every tool available to law enforcement to prosecute and punish those who seek to exploit our children.”

According to court documents and the evidence presented in the trial of ROBINSON:

In or about February 2019, ROBINSON, who was 31 years old but posing as a high school student, met a 14-year-old boy (“Victim-1”) on a social media application.  ROBINSON sent Victim-1 sexually explicit images and videos of himself and requested the same from Victim-1.  In the fall of 2019, ROBINSON agreed to provide Victim-1 with a JUUL if Victim-1 would engage in sex with ROBINSON.  On multiple occasions in September and October 2019, ROBINSON traveled to Victim-1’s home in Connecticut.  On October 24, 2019, ROBINSON returned to Victim-1’s house and sexually assaulted him in the yard outside his house.

In imposing the sentence, Judge Karas said: “People should understand that when they prey on kids, they will pay the price.”

In addition to the prison term, ROBINSON, 35, of Mount Vernon, New York, was sentenced to 15 years of supervised release.     

Mr. Williams praised the efforts of the Federal Bureau of Investigation, the New Canaan Police Department, and the Greensboro Police Department in Greensboro, North Carolina, in connection with this investigation.                 

Governor Hochul Announces $1.35 Million Available to Protect New York Forests

 

Funding Available Through Forest Conservation Easements for Land Trust Grant Program

Investment Galvanizes Partnership to Protect New York’s Forests and Advance Governor’s Conservation Goals

Governor Kathy Hochul announced $1.35 million is now available to protect New York’s forestlands. The Forest Conservation Easements for Land Trusts Grant Program enables eligible, accredited land trusts to apply for up to $350,000 to purchase conservation easements on forested land in New York State for the purpose of protecting these lands and realizing their numerous economic and environmental benefits.

“Investments in forest conservation move New York closer to our bold goal of protecting 30 percent of the state’s lands and water by 2030, which in turn protects wildlife habitat, preserves biodiversity, protects air and water quality, and helps combat the impacts of climate change,” Governor Hochul said. “Supporting these public-private partnerships is crucial to protecting essential forest habitat and advancing our open space protection goals.”

The Forest Conservation Easements for Land Trusts (FCELT) grants help increase the pace of forest land conservation to protect the vital ecosystem services that forests provide, including helping combat climate change. The grants are administered by the Land Trust Alliance in coordination with the State Department of Environmental Conservation (DEC). Funding for the grant program is provided by the State’s Environmental Protection Fund (EPF), a critical resource for environmental programs such as land acquisition, farmland protection, invasive species prevention and eradication, recreation access, water quality improvement, and environmental justice projects. The Governors FY 2025 Executive Budget maintains EPF funding at $400 million, the highest level of funding in the program's history.

Department of Environmental Conservation Commissioner Basil Seggos said, “Protecting New York’s forests is central to achieving our climate goals, and safeguarding air and water quality, and this $1.35 million investment by the Governor will provide direct support to land trusts as we advance partnerships to achieve our forest conservation goals. We encourage all eligible land trusts to apply and advance the states land protection strategies."

Only land trusts accredited by the Land Trust Accreditation Commission may apply. A 25-percent match is required. Interested applicants must submit an overview of their proposed project by May 10, 2024, as part of the pre-application process. Submitting a full application is by invitation only and those invited to do so will be notified by June 14, 2024. Projects selected for FCELT grants should further goals and/or strategies identified in the New York State Open Space Plan, the New York State Wildlife Action Plan, the New York State Forest Action Plan, and/or other local, regional, or statewide land protection plans. Complete details about this grant opportunity can be found on the FCELT webpage.

About the Land Trust Alliance

Founded in 1982, the Land Trust Alliance is a national land conservation organization that works to save the places people need and love by strengthening land conservation across America. The Alliance represents more than 950-member land trusts and their 6.4 million supporters nationwide. The Alliance is based in Washington, D.C., and operates several regional offices. Visit the Land Trust Alliance website for more information.

City Planning Shares Draft Zoning Plan for Midtown South

 

 

Vision for Nearly 4,000 New Homes, including 1,000 Income-Restricted Homes Plan Would Open Door to Mixed-Use Development and Conversions, Bolster Vital Businesses and Jobs 

Builds on Six Months of In-Person and Online Community Input Scoping Meeting to Take Place April 18

New York Department of City Planning (DCP) Director Dan Garodnick announced the release of the draft zoning plan for Midtown South, the next step toward a formal land use proposal from the city. Building on six months of community feedback, the draft plan envisions a 24/7 mixed-use neighborhood across 42 Manhattan blocks where housing today is not permitted. 

 

“This centrally-located, transit-rich area should be one of the most exciting, vibrant areas of the city, but outdated zoning is holding it back. Thanks to this community-focused planning approach, the future of Midtown South is looking bright,” said Department of City Planning Director Dan Garodnick. 

 

Centrally located in Manhattan with easy access to transit and amenities, the area of Midtown South – covering four quadrants between 23^rd and 40^th Streets and 5^th and 8^th Avenues – is home to over 7,000 businesses and 135,000 jobs. While the neighborhood has a strong economic base, it faces challenges including shifting work patterns, office and retail vacancies, an aging building stock and decades-old zoning rules that preclude the creation of new housing and limit opportunities for New Yorkers to live close to their jobs. 

 

The Midtown South Mixed-Use (MSMX) Draft Zoning Plan 

The MSMX draft zoning plan seeks to address these challenges by permitting new housing, mapping Mandatory Inclusionary Housing requirements for permanently income-restricted homes, allowing for live-work opportunities, and adopting flexible residential conversion rules. With these changes, the Midtown South Mixed-Use Plan could create nearly 4,000 new homes, of which between 800 and 1,110 would be income-restricted. 

 

To achieve these goals, the draft zoning plan envisions high-density, mixed-use zoning districts that allow not only manufacturing but also commercial and residential uses. This would allow for a range of uses that create much-needed new housing in this central, transit-accessible neighborhood while continuing to enable manufacturing-focused industries. The plan will also craft urban design rules that make sure new developments reflect the existing, beloved loft character of the neighborhood.  

These goals and strategies will continue to be refined over the coming months, as the public continues to weigh in with its vision for the area, and as DCP collaborates with stakeholders and partners to refine Midtown South. The draft zoning plan precedes the start of environmental review, which itself precedes the formal ULURP process for an eventual rezoning. DCP will continue to gather input from New Yorkers throughout these stages about how best to create a vibrant, mixed-use neighborhood, using both zoning and non-zoning tools. 

 

Impact of City of Yes initiatives 

Additional income-restricted housing could be created in this neighborhood through City of Yes for Housing Opportunity, a citywide plan to address New York City’s housing shortage. City of Yes for Housing Opportunity proposes Universal Affordability Preference in medium- and high-density districts like Midtown South that would let buildings add about 20% more housing if those additional homes are permanently affordable. The Adams Administration also continues to advocate in Albany for additional tools to unlock much-needed housing in Midtown South and across New York, including tax incentive programs for new mixed-income development and for office conversions, and for the State to lift the arbitrary and outdated “FAR cap” on residential density that caps the allowable residential square footage in New York City at 12 times the lot area. 

 

Alongside residential development, the Midtown South Mixed-Use Plan prioritizes job-generating uses in office, wholesale, manufacturing, and creative sectors. To make it easier for businesses to locate and expand in the area, DCP will align this plan with City of Yes for Economic Opportunity, which the City Planning Commission voted to approve on Wednesday, March 6, and now heads to the City Council for consideration. Finally, as part of MSMX, DCP will work with its partner agencies to improve the public realm and address quality of life concerns. 

 

Planning Process 

The MSMX draft zoning plan was based on community input through ongoing public engagement events beginning in October 2023, including a kickoff meeting, seven stakeholder roundtables with residents, business owners, local groups, non-profit organizations and social service providers, one-on-one conversations between New Yorkers and staff, and online tools like an interactive map and survey. 

 

“The Midtown South Mixed-Use Plan is a visionary step towards revitalizing the Garment District,” said Barbara A. Blair, president of the Garment District Alliance. “In addition to furthering our district’s transformation into a 24/7 neighborhood, this plan addresses the challenges impacting our community – principally, the critical need for housing – and we look forward to our continued work with the Department of City Planning to bring it to fruition.” 

 

“For Midtown South to flourish in the future, it’s imperative that antiquated zoning rules be updated to allow a more vibrant mix of commercial, manufacturing, and residential uses—particularly affordable housing. We look forward to supporting the Department of City Planning's community-centered approach to developing a formal rezoning proposal, and working with our neighborhood stakeholders to cultivate a more prosperous Midtown South that benefits all New Yorkers, whether they come here to live, work, or visit,” said James Mettham, President of the Flatiron NoMad Partnership. 

 

Following the release of this draft zoning plan, DCP will conduct environmental review on the proposal. On Thursday, April 18, DCP will hold a scoping meeting, where the public can weigh in on the issues to be studied in the environmental review. DCP will continue to share the draft approach and gather feedback from New Yorkers over the coming months before starting the formal public review process by the end of 2024.  

 

To sign up for the scoping meeting or to learn more about the Midtown South Mixed-Use Plan,  

visit www.MidtownSouthPlan.nyc. 

 

Department of City Planning 

The Department of City Planning (DCP) plans for the strategic growth and development of the City through ground-up planning with communities, the development of land use policies and zoning regulations applicable citywide, and its contribution to the preparation of the City’s 10-year Capital Strategy. DCP promotes housing production and affordability, fosters economic development and coordinated investments in infrastructure and services, and supports resilient, sustainable communities across the five boroughs for a more equitable New York City. 

 

In addition, DCP supports the City Planning Commission in its annual review of approximately 450 land use applications for a variety of discretionary approvals. The Department also assists both government agencies and the public by advising on strategic and capital planning and providing policy analysis, technical assistance and data relating to housing, transportation, community facilities, demography, zoning, urban design, waterfront areas and public open space.