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Retreating from Areas of NYC Vulnerable to Flooding: Practicalities Legal Issues in Managed Coastal Retreat March 28, 2013 Columbia Law School FURMAN CENTER FOR REAL ESTATE & URBAN POLICY I New York University I FurmanCenter.org I @FurmanCenterNYU Vicki Been Boxer Family Professor of Law Director, NYU’s Furman Center for Real Estate and Urban Policy

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Page 1: Retreating from Areas of NYC Vulnerable to Flooding ... · Damage*from*Flooding* 58,528 94.1% Flooding#in#Basement#Only# 28,672 46.1% BasementFlooded(=2(Feet

Retreating from Areas of NYC Vulnerable to Flooding: Practicalities

Legal Issues in Managed Coastal Retreat March 28, 2013

Columbia Law School

FURMAN CENTER FOR REAL ESTATE & URBAN POLICY I New York University I FurmanCenter.org I @FurmanCenterNYU

Vicki Been Boxer Family Professor of Law

Director, NYU’s Furman Center for Real Estate and Urban Policy

Page 2: Retreating from Areas of NYC Vulnerable to Flooding ... · Damage*from*Flooding* 58,528 94.1% Flooding#in#Basement#Only# 28,672 46.1% BasementFlooded(=2(Feet

FURMAN CENTER FOR REAL ESTATE & URBAN POLICY I New York University I FurmanCenter.org I @FurmanCenterNYU

Superstorm  Sandy  Surge  Area  

Source:  FEMA  Modeling  Task  Force,  New  York  City  Department  of  City  Planning    

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The  Enormity  of  the  Challenge    

The  NYC  surge  area  contained:    •  24%  of  the  City’s  land  •  93,130  lots  (11%  of  total)  •  75,919  Buildings    •  302,303  ResidenQal  Units  (9%  of  total)  •  50%  of  the  net  addiQonal  building  capacity  of  the  Bloomberg  era  rezonings  

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How would the City implement a decision to retreat? n  Comprehensive plan for managed retreat n  Zoning resolution text and map changes n  Building Code revisions n  Amendments to the State and City Environmental

Quality Review Acts (or implementing documents) n  Revisions/coordination with state tidal wetland law,

city waterfront revitalization plan n  Purchase (buyout) and condemnation strategy n  Infrastructure and other investment decision

processes n  Storm water management plan n  New tools, such as regional resilience strategic plans

or scenario planning processes FURMAN CENTER FOR REAL ESTATE & URBAN POLICY I New York University I FurmanCenter.org I @FurmanCenterNYU

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Comprehensive Planning for Retreat

•  Block by block, lot by lot analysis of costs and benefits of rebuilding versus retreating n  Risks area faces n  Cost of immediate rebuilding n  Cost of long term protection n  Cost/feasibility of evacuation n  Benefits of rebuilding (property values, taxes,

economic activity, personal attachment to place) n  Cost of not rebuilding – maintenance, liability n  Coordination with Local Waterfront Revitalization

Plan n  Integration with infrastructure investment plans

FURMAN CENTER FOR REAL ESTATE & URBAN POLICY I New York University I FurmanCenter.org I @FurmanCenterNYU

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FURMAN CENTER FOR REAL ESTATE & URBAN POLICY I New York University I FurmanCenter.org I @FurmanCenterNYU

NYC  Hurricane  EvacuaQon  Zones  

In  Evacua)on  Zones  A,  B  &  C    270,000  Buildings    1,000,000  ResidenQal  Units  •  Zone  A:  182,616  •  Zone  B:  261,841  •  Zone  C:  580,399      

Source:  New  York  City  Office  of  Emergency  Management,  New  York  City  Department  of  City  Planning    

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Hurricane  Sandy  Surge  Extent  &  EvacuaQon  Zone  A  

   

FURMAN CENTER FOR REAL ESTATE & URBAN POLICY I New York University I FurmanCenter.org I @FurmanCenterNYU

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Zoning

n  Setback requirements, rolling or stationary (e.g. 50 feet from high tide line, water’s edge, evacuation zone borders)

n  Elevation requirement (above surge zone) n  Designated no build/rebuild zone

FURMAN CENTER FOR REAL ESTATE & URBAN POLICY I New York University I FurmanCenter.org I @FurmanCenterNYU

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Building Codes

n  Elevation requirements n  Basement/ground floor occupancy

restrictions n  Flood resilient materials n  Placement of critical mechanicals and fuel

supply n  Evacuation technology

FURMAN CENTER FOR REAL ESTATE & URBAN POLICY I New York University I FurmanCenter.org I @FurmanCenterNYU

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Decade of Construction of Buildings in Surge Area

1% 2% 3%

15% 15%

6%

13%

21%

6% 5% 4%

9%

0%

5%

10%

15%

20%

25%

Before 1900

1900s 1910s 1920s 1930s 1940s 1950s 1960s 1970s 1980s 1990s 2000s

FURMAN CENTER FOR REAL ESTATE & URBAN POLICY I New York University I FurmanCenter.org I @FurmanCenterNYU

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Environmental Quality Review: Potential Changes

n  Require lead agencies to consider retreat scenarios as alternatives to rebuilding proposals

n  Require lead agencies to consider how any proposed rebuilding would affect resilience

n  Require lead agencies to consider adaptation and mitigation measures for any proposed rebuilding

FURMAN CENTER FOR REAL ESTATE & URBAN POLICY I New York University I FurmanCenter.org I @FurmanCenterNYU

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Acquisition Strategy

n  Voluntary buyouts of land q  For cash, exchanges of land, sale/leaseback

for designated term of years or life of owner?

q  For individual lots or for entire neighborhoods (BLID concept)

q  At pre or post-Sandy values? q  With restrictions on redevelopment

imposed?

FURMAN CENTER FOR REAL ESTATE & URBAN POLICY I New York University I FurmanCenter.org I @FurmanCenterNYU

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Where will people retreat to?

FURMAN CENTER FOR REAL ESTATE & URBAN POLICY I New York University I FurmanCenter.org I @FurmanCenterNYU

Building  Type  

Housing  Units                                  in  Buildings  in                    

Surge  Area  

Share  of  All                  Units  in                              

Surge  Area  Single  Family   32,137   10.6%  

2-­‐4  Family     58,699   19.4%  

Condo   24,346   8.1%  

Co-­‐op   55,553   17.3%  

NYCHA   35,476   11.7%  

Other  Rental  Subsidies  (SHIP)   24,533   8.1%  

Rent  Stabilized   41,102   13.6%  

Market-­‐Rate  MulQfamily   25,603   8.5%  

Mixed  Used   4,854   1.6%  

Commercial/Other                  —    —  

Total   302,303   100.0%  

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Even if we just retreated from damaged homes – 62,230 claims

As  of  January  2,  2013          

Total  with  Damage   62,230  

Damage  without  Flooding   3,702   5.9%  

Damage  from  Flooding   58,528   94.1%  

Flooding  in  Basement  Only   28,672   46.1%  

Basement  Flooded  <  2  Feet   5,341   8.6%  

Basement  Flooded  >=  2  Feet   23,331   37.5%  

Flooding  in  Living  Area   29,856   48.0%  

Living  Area  Flooded  <  1  Foot   5,181   8.3%  

Living  Area  Flooded  1  -­‐  4  Feet   15,535   25.0%  

Living  Area  Flooded  >=  4  Feet   9,140   14.7%  

FURMAN CENTER FOR REAL ESTATE & URBAN POLICY I New York University I FurmanCenter.org I @FurmanCenterNYU

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Because so many affected are low income, special challenge of rehousing

Number  and  Income  of  FEMA  Registra)ons  by  Status  as  Owner  or  Renter  

As  of  February  15,  2013  

    Registrants  

    Owners   Renters  

Total  RegistraQons   67,802   84,279  

Share  of  Total     44.6%   55.4%  

   

Median  Income   $82,000     $18,000    

   

Income  between  $0  and  $15,000   16.6%   42.4%  

Income  between  $15,001  and  $30,000   13.3%   22.4%  

Income  between  $30,001  and  $60,000   24.6%   20.3%  

Income  between  $60,001  and  $90,000   18.9%   7.7%  

Income  >  $90,000   26.6%   7.1%  

   

Source:  FEMA,  2010  Decennial  Census,  American  Community  Survey      

FURMAN CENTER FOR REAL ESTATE & URBAN POLICY I New York University I FurmanCenter.org I @FurmanCenterNYU

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Existing housing stock is woefully inadequate to rehouse

Monthly  Rent  Level   Vacant  Units  Available  for  Rent  

Household  income  at  which  rent  would  be  30%

Net  Vacancy  Rate

All  Rental  Units     67,818 3.12%Less  than  $999   14,383 $39,960.00 2.06%$1,000  to  $1,  499   28,628 $59,960.00 3.87%$1,500  to  $1,999   12,254 $79,960.00 4.14%$2,000  or  more 12,553 $80,000.00 4.67%

Vacant  Rental  Units  and  Net  Vacancy  Rate  by  Monthly  Rent  Level,  NYC,  2011

Source:  U.S.  Bureau  of  the  Census,  2011  New  York  City  Housing  and  Vacancy  Survey.    

FURMAN CENTER FOR REAL ESTATE & URBAN POLICY I New York University I FurmanCenter.org I @FurmanCenterNYU

Thus, there are about 43,000 affordable rental units vacant for the approximately 108,000 households making less than $60,000 a year who filed FEMA claims for damage

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We’ve just scratched the surface

n  Relocation assistance n  Critical infrastructure requirements even if

there is a retreat because of network n  What to do with land? n  How to protect no-build areas from

pressures for development in the long run?

n  Etc. etc. etc.

FURMAN CENTER FOR REAL ESTATE & URBAN POLICY I New York University I FurmanCenter.org I @FurmanCenterNYU