RS Tenants Facing Possible Largest Rent Hikes Since BdeB Became Mayor

[BugsyPal]

Originally Posted by Sactown4

Aren't 421 apartments typically done through the lottery?
I have seen stabilized units in the $4,000+ range, but I assumed them to be the exception, rather than the norm.

Depends upon if the building is new construction or took advantage of 421 in past for say building upgrades or whatever.


If existing tenants/units are in a building then rents become RS for duration of the tax abatement or whatever other contractual terms.


There is actually a good number of RS apartments (not new lottery/affordable) units with rents north of $2k or even $3k per month thanks to LL taking 421 tax abatement.

[BugsyPal]

Originally Posted by Javawood

A $20 increase in my rent is still better than a $200 increase that my friend saw with market rate. 1.25% vs nearly 10% for last years change. Real hit will be if they actually change the law. Still waiting.

Vote by RGB normally happens late in the day or even early evening. This after last minute dramatics from both sides (it is a public hearing IIRC). Probably won't know the numbers until around or even after 6PM or so.

[Javawood]

Originally Posted by BugsyPal

Vote by RGB normally happens late in the day or even early evening. This after last minute dramatics from both sides (it is a public hearing IIRC). Probably won't know the numbers until around or even after 6PM or so.

Yup yup. While I can't attend, and really I only go to my CB meetings sparingly, I'll be watching what happens.

[Wakanda18]

Originally Posted by mathjak107

you are talking to a small landlord , who is involved with stabilized apartments .

the last 15 years we owned 9 rent stabilized apartments in the 200 central park south building . rents were break even . we bought them for cents on the dollar but my feeling was we were dealing wth baby boomers who would be looking to retire .we figured when that pay check stopped they would want to relocate to a more affordable area .

so we offered 100k to buy out the leases and so far 7 out of the 9 took it. we sold the apartments for a incredible profit . we had 2 left that were not interested .

so one is at a slight loss and could be positive with the next increase and one is already at a slight profit . so both together are pretty much break even .

we have both up for sale to investor groups for 50 cents on the dollar . we could give them away and the profits on the others would still be insanely high . i think we paid about 15- 20 cents on the dollar , maybe less at the time as it was a package with other interests too . .

so for a group who wants to wait it out they too can see healthy returns even though the rents are break even .

9 rent stabilized buildings is considered a small landlord? You are a financial investor with those assets.

I was talking about a landlord with one property, not an investor. Just bought a property live in as well or just got a good deal on it. Not a savvy investor who is able to offer tenant buyouts. My father was one of those, he just stumbled on buying a property in the early 90s, a Jewish man asked if he wanted to buy the building casually as he lived on the same street. He became a landlord by chance

[mathjak107]

Not buildings , I said we owned 9 stabilized co- op apartments by central park

[BugsyPal]

Tons of drama over a whole bunch of nothing. Pretty much same puny increases as last year.


1.5 for one year
2.5 for two year


https://www.nytimes.com/2018/06/26/n...increases.html