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2:34You're listening to Bloomberg Business Week with Carol Masser and Tim Stenevek on Bloomberg Radio. Well, housing is an issue all over the country. We know this. There's not enough of it. It's too expensive because there's not enough of it. And politicians at the national level only have so much control thanks to local zoning laws and the reality of local politics. So what is a city to do? New Rochelle, just outside of New York City, is trying to buck the trend and build homes. We're joined by the mayor, Yadira Ramos Herbert. She's a Democrat of New Rochelle. She joins us here in the Bloomberg Interactive Brokers Studio.

3:12We should note that the city of New Rochelle has received funding as part of the Bloomberg Philanthropies Mayor's Challenge, and the mayor has participated in various Bloomberg Philanthropies programs. Mayor Ramos Herbert, thanks for being here. Thank you for having me. As we've been discussing, we know the U.S. housing supply and affordability really remains a prominent issue for so many Americans who are looking to find a place to live. Tell us a bit more about what you're doing in the city of New Rochelle, which, of course, we know is only about 17 miles away from where we're sitting right now in midtown Manhattan.

3:43What are you all doing to address some of these concerns? Absolutely. So back in 2015, New Rochelle set up what we now call the New Rochelle model, a form based zone code. Essentially, the city council in partnership with RXR and working with residents really sat down and took a look at where can we build and what do we need to do to streamline processes, to sort of front load some of the environmental reviews and processes so that when developers come in, they can be approved in as little as 90 days, break ground, and essentially start leasing out in three years. 90 days. I mean, that's like a different language than we're used to, if we're talking about development.

4:21Just contextualize that for us. How long would it typically take if you weren't able to fast track this? I mean, it would be, I guess, anywhere from five to ten years, if anything. But within the last ten years. This is days and not years. Wow, exactly, exactly. You mentioned RXR. Yep. Talk a little bit about public-private partnerships here and how you view as mayor the need to partner with for-profit companies in order to get this done. Absolutely. It's been a key to what's allowed it to be successful. Those resources allow us to invest in our community without raising property taxes. We worked with the community here.

4:54What do you want to see in New Rochelle? And through our public-private partnership, we've enhanced plazas. We've brought murals. We've increased EV charging stations. We've bought a black box theater right to our main street. We're opening parklets. And so really working together, providing assurances to developers, everybody essentially wins. Never mind that rents are actually holding steady and actually decrease the median rent in 2020 to 2023 at a rate that's unheard of in the region. So what have been some of the challenges? Of course, this isn't something I imagine had to have been easy to accomplish.

5:23So what were some of the challenges that you all experienced as you were trying to deliver a world, an area, a city in which things are a bit more affordable? Sure. I mean, what's really wonderful is when this started, I wasn't on the city council. I was a mom of two kids. So I was the resident sort of being like, I want to see stuff in the downtown. I want to know what's going on. I think change is hard. Right. And right now I kind of call it like our teenage years, you know, where two thirds of our buildings have been approved. We've authorized 11 ,000 units, 11 ,000 kitchen table moments and about two thirds have been authorized and leasing up.

5:52And so there's construction and there's noise. And maybe with the right turn you make for coffee, you have to make a left and wait a few more minutes at the light. But it's staying engaged with the community and reminding them there are little tangible assets in our downtown that did not exist six years ago. Never mind, again, contributing to the housing and other investments we've made surrounding the downtown. What have been the politics of this? Because when we talk about zoning and we talk about the idea of building more dense and affordable housing or just more housing, people, I guess I could rephrase this, people love to complain that housing is too expensive.

6:23But then when it comes to actually building that housing, if it's put up to a vote, they strike it down. Not in my neighborhood. They don't want it. Well, it depends on where you live because that has to do with zoning. And that might not actually be up to you in certain parts of New York City. It's not necessarily up to us. And we've to know. We've seen that play out, but politically, this stuff can get really charged. What do they think of it? Absolutely. I mean, it's the form-based zone coding essentially allows the city council, the elected officials to set the scaffolding and sort of pinpoint where and then hands off.

6:54The professional staff actually close the deal. We have a council manager form of government. So our city manager, our commissioner of development, we have an industrial development agency that really work out the nuances, the financial elements of it, and the projects are authorized. So again, when you decide to build in New Rochelle, there's assurances. You don't have to worry about a project being voted down the way maybe other regions, municipalities do. If you fit the specs that we have already identified, again, the council working with the staff and the community, you have an assurance that you're going to be able to lease up within two to three years of breaking ground.

7:23So you mentioned that you spent a lot of time talking to the community, engaging with the community to see what they'd like to see reflected in the area. What are some of the things that they've been interested to see? Green space, of course, more space for kids to play, more dogs are a big hit. And so dog runs and opportunities for dogs to have space to kind of stretch their legs, I guess, leaving the apartment. We are a huge lover of the art. So as I mentioned, we have a black box theater that's going to open the first half of 2026. And we've added murals to the community. But the downtown development has also served as a catalyst for other parts of development.

7:55So we have a project called The Link. We're taking three lanes of a Robert Moses kind of project and making it a linear park, connecting parts of our farther out of our downtown to the actual downtown proper. We just approved a project, Pratt Landing is what we call it. It's going to give waterfront access in addition to a community asset in an armory, 99 condos, 100 apartment buildings and a hotel. And we're revitalizing our train station. In three to five years, we'll be the only station in Westchester where with one seat, you can go to Grand Central or Penn. And so this development has allowed us to really respond to resident needs, concerns and what they want to see in a really holistic way.

8:30So we like talking to mayors because everybody who listens and watches our program knows that. It's where the rubber meets the road when it comes to actually getting stuff done and really being accountable each and every day to the people you serve because you see them out. You are there with them on that. I'm wondering specifically about transportation and in an environment where you you talked about, OK, well, if there is more density, if there is more housing, you might have to wait more when you take a right turn to get your coffee because the traffic has increased. Do we live in a world where we can realistically think that we could improve mass transit in small towns?

9:07Or have we shown that as a country, we just cannot make those investments? I mean, look at California's high-speed rail and the failure that I think many people would say we saw there. So New Rochelle already has the privilege of being the second busiest line on the New Havens lines, second only to Grand Central, believe it or not. And the majority of our buildings are actually being built around this transit-oriented development. We're also a hub to nine bus lines, county and city bus lines. So you can get to the Bronx or Yonkers right from the same transit center. And our development allowed us to invest in some micro mobility options.

9:37We have something called the circuit, which is an electric shuttle. You can call it like you call Uber. Absolutely free. It takes you to various parts of the city. We're a scooter nation as well. So micro mobility. And we're investing in bike lanes. The link will actually add bike lanes and connectivity in another way. So I think based on our foundation, but also the way we've been able to expand, we are addressing transportation in a green way. That's interesting to hear that, like on a micro-mobility level, in addition to changing the way traffic patterns are. We're speaking with Yadira Ramos-Herbert, the Democratic mayor of New Rochelle, joining us here in the Bloomberg Interactive Brokers Studio.

10:08As I mentioned, housing is probably one thing that Democrats and Republicans at the national level can agree on, needs to be addressed. Their way of doing that doesn't necessarily fall in line with one another. They don't see eye to eye. We heard from J.D. Vance at the vice presidential debate last year, talking about opening up federal land, for example, to build more housing. What is your advice to leaders around the country? Because you've been able to do this successfully as ways that other communities can do this. I mean, I think some of the models that can be borrowed from it, streamlined processes.

10:40What are the pain points? Every municipality knows - You're essentially saying get rid of regulation. Streamline processes. And I'm saying get rid of regulation. How do you do that without getting rid of regulation? How do you make sure that environmental review, that you're not going to kill the sea turtles or whatever if you build here so we did conduct an environmental review back in 2015 and with in partnership with rxr so it's not that we're getting rid of it we're just front loading that process so that you have a sense already of if you choose to develop in this site what are some of the issues what's the investment you're going to have to make to meet those kind of codes so i think that's one we looked at a lot of underutilized sites some of our sites were like old parking lots that were not being used that were in bad shape, you know, former schools that were closed, but the structure was still there.

11:21And so you, every municipal leader knows their community. They know their corners where they could be a little bit more energy and lights on. And that, but that in combination with streamlining processes, I think will allow some, some positive results for this on the housing front. So I want to go back to your earlier question, just about what types of advice. I mean, I know you mentioned like some of the things that you all are working on, but I would say, you know, more logistically, what type of advice would you give to other parts of the nation? because not everywhere is like New Rochelle, of course.

11:47We were talking about LA. We could talk about New York City here in Manhattan, Midtown. Sure. What is some advice that people can really take away here? I still stand by it. You know your corners. You know your blocks. You know the underutilized sites. You know where maybe it's like their business hasn't grown there. It's been empty. There's lack of density. And I know it's tricky to say Midtown Manhattan, right, if you're going to use that specifically. I appreciate where we are. But every leader knows every corner. I know every corner, every block, and where to think about that. And so really thinking about what can be catalyzed.

12:17And again, we all know our own zoning and processes, really being honest and holistically reviewing that, I think will allow different communities to catalyze and also add housing in a way that helps to address the crisis that we're facing. You have a law degree. Yes. You're a litigator. Yes. In a previous life or currently, is this a job that you can do while you're mayor? Yes, that's a great question. I would not be able to do it at the same pace that I did when I was a new lawyer. I was also an associate dean at Columbia Law School prior to becoming mayor. But I actually am looking to do a little bit of practice on the side.

12:52So it raises the question about your own future and how you think about your own political path forward. What's next for you? I don't think about my political path forward right now. The job is to make sure all 11 ,000 units, homes, kitchen table moments are catalyzed. It's to make sure the link launches. It's to see the Pratt landing project, the waterfront project. And we also started something called the Vanguard Initiative. We are investing$2.25 million in small businesses. I want to turn on those lights on every one of those first floors in my downtown. That's my mission. That's the only thing I'm focused on right now.

13:22You don't think at all about a bigger platform? I love the portfolio that New Rochelle has given me, and that's really why I want to finish the job. And to think otherwise would take my distraction. When do you think the job will be finished? That's a great question. I mean, the link, you know, maybe I think within, I would argue within five to seven, we will see a significant transformative change in the downtown that can be measured through sales tax revenue and other initiatives and incentives coming to life. Yadira Ramos-Herbert. She's the Democratic mayor of New Rochelle. She joins us here in the Bloomberg Interactive Broker Studio.

13:55Thanks so much for joining us this afternoon.

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