New York State Assembly Passes Rent Regulation Bill

The New York State Assembly passed a bill Monday that would extend rent regulation laws set to expire on June 15th, reports Curbed NY. The laws restrict what landlords can charge tenants in New York City and its suburbs.

From the New York Times:

The bill in the Democratic-controlled Assembly would extend rent regulations until 2016. It would do away with vacancy decontrol, which lets landlords deregulate apartments when they become vacant and their rent exceeds $2,000. It would alter luxury decontrol, which lets owners deregulate apartments when the tenants' income exceeds $175,000 and the rent is at least $2,000. Those limits would rise to $300,000 and $3,000. The bill would also limit rent increases for new tenants to 10 percent, down from 20 percent.

The bill, however, is but the beginning of a tug-of-war between the Assembly and the Republican-held State Senate who is unlikely to pass the bill in its current form.

Governor Cuomo, who came out in support of extending some rent regulations in March, is looking to find a bill that would pass both the Assembly and the Senate by making some concessions to the powerful real estate lobby, which has given millions in campaign contributions to State Senate Republicans and Governor Cuomo, according to the Wall Street Journal. These measures would include "an extension of tax breaks for new developments and relief for landlords from a 2009 court decision that said they could not deregulate apartments while also taking advantage of a certain tax incentive", reports the Times.

Rent regulations, a notoriously divisive issue in New York, were noticeably absent from the budget deal Governor Cuomo struck with legislators in Albany a couple weeks ago.

Comments

[MikeyJaii]

05:58 PM on 04/12/2011

A bill been passed that is going to extremely hurt the lower poor class, lower the damn rent.

[suecpg]

05:15 PM on 04/12/2011

Since Gov. Cuomo has not come out strongly for strengthening the rent laws, let him know we need it NOW. Contact him via his website, http://www.governor.ny.gov/contact/GovernorContactForm.php, or call him at 518-474-8390.

Using vacancy destabilization, landlords remove empty apartments from rent regulation on the "honor system," as the state's housing agency pointed out. There's no oversight. Vacancy destabilization needs to be repealed for New York City and its suburbs to remain home to the people who keep the region functioning.

To work with others toward strengthening the rent laws, contact the Real Rent Reform Campaign (a coalition of some 40 groups): http://www.realrentreform.blogspot.com.

[calypsolouie]

02:27 PM on 04/12/2011

Time for NYC residents to start paying the true cost of their trailers. I always laugh when they make fun of those in the south who live in them and have more space and better living conditions than 90% of those living in the city

[jl4141]

02:34 PM on 04/12/2011

Then explain, please, why property owners, who bought apartment buildings whose prices were essentially set by the amount of rent payments they generated, should get a windfall from the pockets of tenants by having previously rent-regulated apartments deregulated.

Actually, don't bother. You can't.

[runnyc]

05:58 PM on 04/12/2011

From a moral perspective, the landlords, who invested in their properties, deserve a windfall more than the tenants who have been getting one, for the last 40+ years, via below market rent, for doing nothing.

From a practical perspective, I am happy to give the landlords the windfall if it means the rest of us can stop subsidizing rent regulation via our higher rents, and having to make-up for the minimal taxes rent regulated properties pay. Not to mention that eliminating rent stabilization would create a boon of property development so that NYC might finally get the kind of housing stock that virtually every other city in the country without rent regulation enjoys.

If you want to split the difference, I'd have no problem on a surtax on landlords' profits when they convert to free market rates. But regulated tenants aren't bringing anything to the table and don't deserve their continued windfall from any perspective.