Sheldon Silver Kicks Off The Latest Rent Regulation War

Silver at a news conference yesterday (AP Photo/Mike Groll).

Last month we said it was time to talk about rent control, and now things are starting to get serious. Sheldon Silver and the Assembly Democrats yesterday fired the first shot in what could be an epic battle for the fate of rent control in New York State. The current rent regulations expire on June 15.

Democrats and Governor Cuomo tried to extend and expand the existing rent regulations during the budget debate, but eventually scrapped the idea when it became clear that Senate Leader Dean Skelos was not having it. So instead yesterday the Dems attached measures to expand the protections (and leave them in effect for five more years) to a suburban and upstate property-tax-cap plan.

The bill would end vacancy decontrol (which lets landlords deregulate vacant apartments whose rents exceed $2,000) and would alter luxury decontrol so owners can't deregulate apartments until the tenant's income exceeds $300,000 and the rent is $3,000 (right now those numbers are $175,000 and $2,000, respectively). It would also limit rent increases for new tenants to 10 percent, down from 20 percent.

It is highly unlikely that the a similar bill would pass in the Senate, so in many ways this salvo was an attempt to get the very-popular-at-the-moment Cuomo into the game. "We need him to join us and use his clout to bring together the relevant stakeholders to make it happen," Silver said yesterday. For his part, Cuomo is rumored to be working on his own deal with concessions to both side of the argument.

With the legislature taking a two-and-a-half week break starting Thursday—they get back to Albany May 2—expect to hear more about this!

Contact the author of this article or email tips@gothamist.com with further questions, comments or tips.

By Garth Johnston in News on April 12, 2011 5:46 PM

Comments [rss]

NYC Renters' Alliance

This is a disaster for market rate renters.

Basically: those who are lucky and often rich get to hang on to their good apartments, while the rest of us (who often move to NYC for new jobs) get to fight over the scraps.

Support Housing Equality now -- join the NYC Renters' Alliance for Housing Choice

nycrenters at gmail or look for us on facebook

Bernie_Geotz_Squirrel_Luv

This is good news, this means the $2,100 a month studio in my building get's back on rent stabilization protection. Or, I hope so, even luxury buildings are rent stabilized.

BottomlessChips

Rent control is one of the most backwards policies our government has ever created. I can't believe people still advocate for it. Frauds. Suck ups. Grow a pair.

cmdrogogov

Can you back any of that up with a reasonable discussion? Or are you just going to sit there and spout random disconnected conservative talking points in the vague hope of it looking like a cohesive argument to the uninformed and ignorant?

BottomlessChips

What more is there to say? It's economic law. I can't explain economic law as well as the text books do.

Rent controls are price ceilings. Price ceilings create shortages as the market is no longer determining the value of a product/good/service. Price is what drives capitalism. If you're going to interfere with the market's ability to determine the price, you'll get (with rent control) black markets, lack of upkeep on the property which can lead to rats, health issues, crime, bed bugs, etc.

Some politicians live in this fairy tale world where they think rent control is a great program for the poor. Championing causes for the lower class no matter what the facts say otherwise...a true "progressive" pillar.

LazyNanny

Well of course. Did anyone expect anything else from $helly, except to emerge from his coffin with an ever increasing appetite for blood and money to be slaked?

rodelpodel

Rent control is criminal and if the govt. didn't just have carte blanche to do whatever the hell they wanted it would be recognized as illegal.

It was one thing if they would lower Real Estate taxes along with raised dereg numbers but of course they wont. This city is living off the backs of broke building owners who are all heading for foreclosure. its ridiculous.

Its the one place the govt can tax without people fighting back, because people naturally assume that someone who owns a building must be rich, so screw him. But a building is a business like any other, its a portfolio of lease with income and expenses and bills to pay, etc..

BangBangBoogie

Rent control is not criminal. It's a regulation. Federal and local governments regulate many types of industry. In some cases the regulations are there to keep people from getting ripped off - to make sure the public is being given a fair shake.

cmdrogogov

Awww, diddums. All those poor millionaire "broke" building owners.

assieg

owning a building has little to do with being a millionaire, one can certainly became a millionaire by owning a building, but owning a building does not a millionaire make.

Its a business like any other, you invest and hope to get a return, and because of rent control there is very little return.

your argument is dumb and ill informed.

unretrofiedforu

You seem to be 'dumb and ill informed'.

Do you own a multi-family building on that scale? Better yet, have you ever dealt with that type of real estate in NYC no less? Are you aware of the daily dealings of such a position in society? There's more to it than just 'collecting rent' and 'paying taxes'.

assieg

yes, that is why i am very well informed.

unretrofiedforu

Then I shouldn't need to explain to you that the issue is more complicated than that correct?

That a 'business model' can not function if the proper variables are not in place and its obvious the issue is more than a few people not paying market value and 'greedy' landowners that try to pretend they're not sitting on good assets.

assieg

Certainly. But Rent Control and the outrageous property taxes are what makes owning property in NYC very difficult. I get that people need places to live, I am only referring to the issue from the landlords point of view.

Essentially, a building is a business like any other, there are operating expenses, utilities, payroll, etc.. and then there is rental income. And while all expenses rise annually, and real estate taxes are rising on average by 25% this June, income only rises on average by a single digit if at all.

So your expenses rise, the govt doesn't allow you raise your prices to cover the increase. Like a bakery that raises prices when the price of milk rises. If you are in real estate you aren't allowed to do that.

so is there more involved? yes. Is it hard to explain? no.