Results tagged “rentregulation”

Yes, it's that time again, when the Rent Guidelines Board will decide by how much they will raise rents for rent-stabilized apartments in the city. The board held its final meeting at Cooper Union yesterday (they are usually noisy), and the Daily News reports it "has adopted preliminary guidelines of hiking rents 2% to 4.5% for one-year renewals and 4% to 7.5% for two-year renewals that start on or after Oct. 1."

The state's highest court, the Court of Appeals, will hear arguments between Stuyvesant Town owner Tishman Speyer and Stuy Town tenants. The NY Times reports that Tishman and BlackRock Realty were given permission to appeal a ruling that said it wrongfully raised rents at the huge complex. Tishman bought the rent-regulated complex for $5.4 billion, hoping to profit on market-rate rents, but an appellate division found the rent increases shouldn't have happened since it was receiving tax breaks associated with rent-regulated properties. City Councilman Daniel Garodnick thinks the tenants will win in the end, "This is a landlord-tenant dispute that hinges on basic principles of fairness to taxpayers and fairness to tenants. We look forward to a speedy hearing and resolution by the state’s highest court." If the tenants succeed, Tishman will have to pay a rumored $200 million in back rent, and other landlords around the city who took advantage of the tax breaks may also have to pay back rent to their tenants.

As landlords and tenants await what happens next regarding the ruling that found Stuyvesant Town rents were wrongfully raised while its owner received tax breaks, the NY Times looks at how the real estate industry is nervous. The J-51 tax break program was "meant to encourage building renovations," and after significant renovations, landlords "are allowed to pass along a portion of the renovation costs to the tenants’ rent. As a result, landlords can raise rents that exceed or approach the $2,000 deregulation threshold." In the case of Stuyvesant Town, it's argued rents went up too much (the Observer has some examples). Right now, the ruling has been stayed, but a court must decide whether to let Stuy Town owner Tishman Speyer appeal; if upheld, the Times reports, "Industry officials say the decision could affect as many as 80,000 apartments in the city, trigger widespread defaults on loans, eliminate construction jobs and reduce property tax revenues for the city." Tenants' advocates, though, say the real estate industry is exaggerating.

Developer Tishman-Speyer was granted a stay that pauses a ruling which found it wrongfully raised rents at Stuyvesant Town and Peter Cooper Village. Tishman bought the rent-regulated complex for $5.4 billion, hoping to profit on market-rate rents, but a state appeals courts found the rent increases shouldn't have happened since it was receiving tax breaks associated with rent-regulated properties. The Observer reports, "Rather than immediately re-regulate the 4,000-plus apartments in Stuyvesant Town that have been converted to market rents since 1993, as the appellate court’s decision would require, the stay calls for Tishman to calculate how much money it would owe in back rent to market-rate tenants and put that money in an escrow account." A lawyer for Stuy Town tenants says that Tishman could owe tenants $200 million and the ruling affects many other landlords who got tax breaks for property improvements and then deregulated apartment.

Yesterday, the state appeals court ruled that developer Tishman Speyer "had wrongfully raised rents and deregulated thousands of apartments after receiving special tax breaks," the NY Times reports.

Yesterday the State Assembly passed legislation that would scale back increases on rent-regulated apartments statewide, returning to regulation tens of thousands of units that were converted to market rate in recent years. According to the Times, the bill would also lower to 10 percent, from 20 percent, the amount a landlord can raise the rent after an apartment's been vacated; limit the owner's ability to recover a rent-regulated apartment for personal use; and increase fines for landlords who harass their tenants to try and drive them away.

The NY Times reports analysis of Stuyvesant Town/Peter Cooper Village finances shows revenues for the huge complex dropped last year. And that's in spite of Stuyvesant Town owner Tishman Speyer converting 560 rent-regulated units into market-rate units!