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I'll tell you something else people may not want to hear.
This new law puts a huge bulls eye mark on all those remaining five and six story small buildings that line avenues/main cross streets at least in Manhattan. Many of them are sitting on no small amount of air rights because they are actually shorter than what current zoning allows. Owners now have great incentive to sell to someone assembling lots for new development.
Next get ready for another wave of co-op/condo conversions just like back in the 1980's/1990's as owners of RS properties seek any way they can to get out of rent regulation laws.
More? Again just what happened in the 1970's through really rather recently, no one is going to build rental housing. Even with 421-a and other "low income/affordable" schemes things just won't pencil out. Worse landlords are looking at getting into bed with city/state for life in regards to rent regulations. They will never get out of it, and the children of original tenants children will still be in those units.
I think the history of rent regulation shows that the landlords, at least the big, politically powerful ones, DON'T want to get rid of rent regulation. The last thing they want is a flood of empty apartments hitting the market at the same time. They like them coming off regulation slowly, in a way that they don't push down rents.
I think the history of rent regulation shows that the landlords, at least the big, politically powerful ones, DON'T want to get rid of rent regulation. The last thing they want is a flood of empty apartments hitting the market at the same time. They like them coming off regulation slowly, in a way that they don't push down rents.
There wouldn't be a flood or any such thing.
Current RS tenants would still have leases, and some of them are under rent regulation via contact with city/state (421-a, affordable housing lotteries, etc..). Those units would remain under RS until either renewal, and or whatever tax/zoning agreement with government expires. For units where things were baked into the cake as "permanently" affordable obviously something would have to be worked out.
Study after study has reached same conclusion; real impact of ending RS would be felt in Manhattan below say 125th or 96th. Though today you may be able to throw entire island up to Washington Heights into the mix. In that borough except for those who have lived in units since God made dirt and spit, and or those new "affordable" low to moderate income units rents in many areas isn't that much off market rates.
OTOH in large parts of Bronx, Brooklyn and Queens LLs have huge problems finding tenants who are willing (or are able) to pay legal RS rents. Hence all those preferential leases.
Yes, rents in parts of outer boroughs are inching up, but further east you go there is going to be a natural limit to what people who earn are willing to pay. OTOH those who are low or even moderate income cannot afford all but the most dirt cheap rents.
Vacancy and or luxury decontrol was meant to address the very situation you outlined. If that is taken off the table there is going to be plenty of trouble.
as far as our co-ops we own with stabilized tenants the new rules would not effect us at all . we have no interest in renting when vacant , only selling and the capital improvement increases in the rent don't apply to co-op stabilized tenants , so not much there to change a thing
as far as our co-ops we own with stabilized tenants the new rules would not effect us at all . we have no interest in renting when vacant , only selling and the capital improvement increases in the rent don't apply to co-op stabilized tenants , so not much there to change a thing
condo conversions ??? why ? condo's did not fall under the same rules as co-op conversions which were rental buildings to start . condos are not rental buildings
What I don't understand is why are the rules the same across the board if the apartment is 500$ a month or $5000 a month? Maybe a tier system where apartments below $1000 have increases capped at 2-3% a year then apartments between $1000-$2000 have increases capped at 5-6% and $2000-$3000 apartments have increases capped at 8% a year and so forth. This sounds like a huge giveaway to the affluent and upwardly mobile in the name of "helping the poor".
condo conversions ??? why ? condo's did not fall under the same rules as co-op conversions which were rental buildings to start . condos are not rental buildings
For same reasons there was a wave of co-op conversions in the 1980's; new rent laws will make it impossible to make any money on a building full of RS tenants. What is more the laws are permanent so unless you will need a change in majority in both houses in Albany for any future changes, good luck with that.
Vacancy decontrol - Gone!
Vacancy bonus - Gone!
MCI Increases - Reduced to an amount they might as well be gone, *and* the SOBs rolled back any increases granted in past seven years.
I was struck by something: "High-income deregulation: If a tenant in a rent-stabilized unit earned over $200,000 a year in two consecutive years, the landlord could deregulate the unit. That will no longer be allowed."
So might there might be a push towards renting only to high income earners? If rent stabilization was meant to protect low income earners, the removal of the ceiling won't help any.
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