Down To The Wire - Rent Control Laws Expire Next Saturday (Albany: condos, co-ops)
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.
My guess is the Democratic controlled administration will steamroll landlords in favor of tenants and somehow find a way to throw blame at Trump.
Maybe, but then again that this process is going on down to the wire suggests the newly empowered uber liberal democrat majority in Albany is having problems.
My guess is Cuomo and maybe even Heastie are playing games behind the scenes.
Cuomo of course has always relied heavily on the RE lobby for money. But so do many other democrats in Albany. The governor may also be looking at the larger picture. If state screws landlords the RE lobby/industry isn't just going to roll over and take it quietly. Even a wounded tiger can kill, and real estate will have a wealth of weapons in their arsenal to deploy. People think life for tenants is bad now ought to stick around and wait.....
If this continues or worsens NYC (and much of NYS if things go democrats way) will start backsliding right back to the 1980s and 1970s if not before. If banks won't lend at reasonable rates, LLs wont have access to capital to build and or maintain their properties.
In parts of Manhattan there are stabilized tenants paying FAR below market rate for their apartments. They will fight tooth and nail to keep this benefit, even if it is at the expense of others. This system needs to be phased out in a humane fashion.
the whole system stinks .. i am both a landlord of stabilized apartments and a tenant in a stabilized apartment .. stabilization is nothing like the idea it was supposed to be ...
all it did was make my tenants family members as i am stuck with them and their kids forever .... if someone can't afford the rent then they should not be living where they are , plain and simple . rent stabilization is not and never was supposed to be any form of affordable or low income housing .
So does this new law apply to existing rent stabilized properties? Seems unfair to suddenly tell a building owner who bought at a price that factored in projected vacancy increases and deregulation to suddenly have that revenue removed
So does this new law apply to existing rent stabilized properties? Seems unfair to suddenly tell a building owner who bought at a price that factored in projected vacancy increases and deregulation to suddenly have that revenue removed
Projected vacancy increases and projected deregulation are not "revenue" that gets "removed". They are just meaningless theoretical projections. That's life. **** happens. Things don't always play out as planned.
Look at what the changes in the federal tax code did to all the people who bought real estate projecting big deductions for mortgage interest and local taxes even for second homes. Poof.
Projected vacancy increases and projected deregulation are ... meaningless theoretical projections.
Quite the opposite, an investor buying a building with tenants does so with financial models conforming to existing laws. You can't just all of a sudden say, "sorry, you can't increase rent after you make the renovations you budgeted for".
This will end up in court
Don't forget, real estate is private property, forcing price controls on that private property has to meet certain tests of fairness
Quite the opposite, an investor buying a building with tenants does so with financial models conforming to existing laws. You can't just all of a sudden say, "sorry, you can't increase rent after you make the renovations you budgeted for".
This will end up in court
Don't forget, real estate is private property, forcing price controls on that private property has to meet certain tests of fairness
Landlords of all shapes and sizes have hauled NYC/NYS into court over rent control laws and lost. That being said it isn't over until it's over.
Property owners were told rent control laws would be temporary. This new law finally puts into fact what many knew was practice; things will be permanent instead of expiring every four years.
Next there was no whiff of "affordable" housing as intent when RS/RC was created, now that seems to be baked into the cake. Worse it only affects owners of buildings built prior to 1974 unless owners entered into some other agreement (tax abatements, affordable housing zoning, etc....).
Court challenges aside can see some immediate effects:
Financing for RS buildings is going to be difficult and or expensive to obtain now that rent rolls will be permanently kept low. Capping MCI and other improvement increases means things just won't pencil out, so LL's won't bother.
Small and even some middle sized landlords are going to take a hit and be pushed out. People are going to sell to large investors and or the already big NYC real estate families. Since the only way now to get rid of RS seems to be demolishing the building, look for more deals where assembling lots for a larger building to get done.
Making preferential leases the new actual rent means LL's just aren't going to offer then any longer.
Removing vacancy bonus means year to year rent increases will be larger. Maybe not while Sam The Eagle's hand picked liberal progressive RGB is in place, but he won't be mayor forever.
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.
