Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Chapter 47 Property Law
Chapter 47, Article 8A Rent Control Prohibition
ARTICLE 8A
RENT CONTROL PROHIBITION
Section
47-8A-1. Rent control prohibition.
A. No political subdivision or any home rule municipality shall enact an ordinance or resolution that controls or would have the effect of controlling rental rates for privately owned real property.
B. This section does not impair the right of a state agency, county or municipality to otherwise manage or control its property.
C. The provisions of Subsection A of this section do not apply to privately owned real property for which benefits or funding have been provided under contract by federal, state or local governments or a governmental instrumentality for the express purpose of providing reduced rents to low- or moderate-income tenants.
I just overheard that because many banks are demanding as much as 20% down-payments for new mortgages it's going to make it impossible for many people to get a mortgage. Hence, rentals will be more in demand. That could mean (to some brokers and owners) that this is the time to send rent rates through the roof--ESPECIALLY given that rent control is prohibited (no thanks to the Apartment Association of New Mexico).
Exactly. If rents are set artificially too low, then prospective landlords and homebuilders have less reason to build additional supply. Thus, rent control makes for housing shortages (and sprawl).
Besides, with "key money" and other under-the-table approaches standard fare in rent-controlled areas, it's not like rent control does much except allow very limited instances of lucky individuals getting cheap rent at the expense of those ready-and-able to pay market rates having to go without (or commute from further away than they'd like).
I lived in Cambridge, Mass., during its rent-control "emergency law," which ran from 1969 until voted out by state referendum in 1994.
It was an Ayn Rand nightmare. The units were rent-controlled, not the tenants, so of course landlords preferred well-off tenants. Most units were 1-2 person apartments. Landlords with small holdings couldn't move a relative into their own property. I personally bought a tiny condo that was under a restriction that anyone could live in it at RC prices *except* the owner. I got hauled into court over this.
People were able to devote their lives to Chinese interpretive dance or something if they got an RC unit. The Prince of Denmark kept an RC unit near Harvard. The Cambridge mayor, a Harvard Law grad, lived in EC for 25 years and, when it ended, voiced shock at how expensive housing really was.
As I said then, I say now, affordable housing is an issue. Rent control is not an answer. (And I lived in an RC apartment for five years, a ridiculous deal- the best apartment I'll ever have in a great location with free parking two blocks from Harvard Square. I always thought, what a scam, but I'm benefiting. I certainly didn't think I was entitled to this, although I heard a lot of whining, "But rent shouldn't be more than ___, otherwise I couldn't work as a massage therapist!")
Rent control is stupid... plain and simple. It doesn't do what it is supposed to do. Glad NM has enough sense to outlaw it.
If you are concerned about the plight of people at the low end of the socio-economic spectrum, it would make more sense to come at it from a different angle.
Good point. I had to put 10% when I bought my house.
10% is not 20%. For a $200,000 home we're talking about the difference between $20,000 and $40,000 (10% vs 20%), and I can't see how middle class home buyers are going to easily find an additional $20,000 for down payment. It's going to make rents soar and less people will be able to purchase homes.
10% is not 20%. For a $200,000 home we're talking about the difference between $20,000 and $40,000 (10% vs 20%), and I can't see how middle class home buyers are going to easily find an additional $20,000 for down payment. It's going to make rents soar and less people will be able to purchase homes.
One of the primary causes of the current financial mess in this country is because the feds decided in the 90's that everyone should be able to buy a house, and allowed banks and other companies to give mortgages to folks who had to pay very little down. This enabled people who could not really afford the homes to buy them, leading to the high default rates we've been experiencing.
Yes, less people will be able to purchase homes, but IMO that's a good thing from the standpoint of financial solvency for the country. We can certainly argue whether the feds have over-reacted with some of their new loan regulations. But folks used to save their money for years and years until they could afford a larger down payment and they'll need to start doing that again.
10% is not 20%. For a $200,000 home we're talking about the difference between $20,000 and $40,000 (10% vs 20%), and I can't see how middle class home buyers are going to easily find an additional $20,000 for down payment. It's going to make rents soar and less people will be able to purchase homes.
There are mortgage programs in which a person can put down less money to purchase a home, there are FHA 3.5% programs still. If you are concerned about your ability to purchase a place talk to a mortgage broker about what is feasible for your situation and what you need to do to qualify.
As a landlord, who did save to buy a home I would not be happy at all if someone told me that it was now to be a rent controlled property because someone else wasn't financially responsible enough to save to buy their own property.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
