Democratic Assembly Passes Pro-Tenant Legislation
In a potentially huge set-back to New York City landlords, the New York State Assembly passed a new package of legislation yesterday that strengthen’s rent regulation across the state and gives more authority to the pro-tenant New York City Council. According to The Times, the new rules would “essentially return to regulation tens of thousands…
In a potentially huge set-back to New York City landlords, the New York State Assembly passed a new package of legislation yesterday that strengthen’s rent regulation across the state and gives more authority to the pro-tenant New York City Council. According to The Times, the new rules would “essentially return to regulation tens of thousands of units that were converted to market rate in recent years” and reduce the amount a landlord is allowed to increase the rent upon a vacancy from 20 percent to 10 percent. It’s a matter of fairness, said Jonathan L. Bing, an assemblyman who represents the Upper East Side. We’re trying to give people a way to live out their lives in the neighborhoods they’ve been calling home for decades. On the other side of the coin: This is going to be very devastating, said Joseph Strasburg, president of the Rent Stabilization Association, a group that represents landlords and real estate agents in the city. New York City is the last big city in the country that has any strong form of rent regulation. And at a time when we have an economic recession, when rents are actually going down, this will put another nail in the coffin. In our opinion, the government should spend more time and resources making sure landlords adequately maintain their buildings and abide by the legal terms of their leases with tenants and less time trying to fight the laws of supply and demand. After all, rents are already coming down anyway.
Assembly Passes Rent-Regulation Revisions [NY Times]
Photo by Bobble
Oh, one other thing…
… for “commercial” properties which are considered 5 units and up (basically any 5+ unit brownstone), banks generally give mortgages based on roughly 9x the rent roll.
If people pay double or triple the rent roll for a property that is their choice. But what they pay or it shouldn’t have anything to do with what they are allowed to charge. It is their property/business, they should be able to set the price not the government or anyone else.
“And The WHAT – you are wrong no decent property ever went for 3x the RR – the historical standard for virtually all of the 20th century was 6XRR in outer boros (+ above 110st) and 8-10xRR in Manhattan.”
FSRG I’m a Licensed Real Estate Broker! That is one aspect that the Assheads forget!
3X Rent roll was very common in the bad ole days of NYC. You had to have some big balls to buy Apartment building swhen people was Dealing Drugs out of them, rents was not being collected and Building services was neglected. In the 70’s and 80’s no one would pay over 3X rent roll because they was buying the headache of that building.
Lets look at some of those Manhattan Neighborhoods shall we..
The 80’s up to Harlem on was very very bad in the 80’s, YEAH THERE!!!!!! People could not walk around Central park because they would get mugged!
You know what’s funny? I realized on the ENY thread that most of you (Assheads) are from out of town but you speak like you was born and raised here.. I realized not to argue with the “out of town” retard set, just let them bang on their helmets and be happy with the stupid crap they spew forth.
The What
Someday this war is gonna end…
IB;
I’m almost starting to believe that the best route to take is to let things run their course. Folks wanted a messiah for president? Let’s see how they feel in a couple of years, as he and the Democrats continue to run trillion-dollar deficits and print out worthless money to pay off favored constituents. Now that the Democrats are fully in charge in Albany, watch them drive the “rich” to NJ and Connecticut with his tax increases.
Sometimes you need a Jimmy Carter-like period to provide some clarity.
Query whether forcing landlords to rent an otherwise vacant apartment at a loss constitues an unconstitutional taking of private property.
Is What for real? Hey What, you grow up in the Bronx in the 70s? Or did you just read an article in the NYT once?
What said “If you have a problem maintaing a building, you should sell it ASAP. No one forces people to become Landlords.”
I am referring to the people who own buildings, and have owned them, for decades. Like my grandmother. Her rents pay the utilities, taxes, etc. If she is forced to roll back rents, or limit increases her Social Security check might not be enough to cover. She raises rents as her expenses increase. So she should sell the building she’s owned for close to 60 years because some asshat like you think rents are to high? Bullsh!t.
And What, why don’t you step out from behind the moniker and be straight with people. You grew up in suburban Cleveland and managed to inherit a rent controlled apartment from some aunt where you and your receding hairline pony tail hang out and complain about your lack of success while doing f-all about your station in life, eh?
We should start a Brownstoner “Get Out the Vote” effort.
Every local politician involved in this BS should be targeted and voted out of office.
The worst part of the legislation is the reduction in the vacancy allowance. Ignoring the morons like SG2 and Tishman who overpayed for rent-stabilized housing, even the conservetive operators who buy based on CURRENT Rent Rolls need the vacancy allowance to provide any hope of true upside and to justify continued investment in their properties. By lowering the vacancy allowance you effectively incentivise running buildings in to the ground.
Especially when you consider that there is no morally justifiable reason to force private LL to offer apartments at below market-rate prices – I concede that controlling the increases on existing tenants may have socially redeamable value.
And The WHAT – you are wrong no decent property ever went for 3x the RR – the historical standard for virtually all of the 20th century was 6XRR in outer boros (+ above 110st) and 8-10xRR in Manhattan.
Hey What,
The government gave the banks no restrictions on what to do with the TARP money. Of course the bankers skimmed it.
Under pressure, Bush opened the floodgate and now Obama has carte blanche to let the borrowing and spending really rip.
It’s the perfect storm and I agree with you. We’re screwed.
Got that right, lechacal.