Spitzer Dribbles Out Rent Help
By Steven WishniaFrom the May 21, 2007 issue | Posted in Local | Email this article
By Steven Wishnia
Governor Eliot Spitzer has proposed raising the level at which vacant apartments are deregulated from the current $2,000 a month to $2,800. As modest as this move is, it would be the first pro-tenant change in the rent-stabilization laws to come out of Albany in more than 15 years.
The proposal would revise regulations enacted in 1993 and expanded in 1997 — despite loud protests from tenant groups — that let landlords deregulate vacant apartments where the rent is $2,000 a month or more. It would also apply to occupied rent-stabilized apartments above $2,000, which can be deregulated if the household income is more than $175,000 a year, or if the tenant fails to send the landlord the proper income-declaration forms.
Deregulation means more than just eliminating limits on the rent. It also removes the tenant protections provided by rent stabilization, which say that landlords have to renew your lease unless they have a legal cause not to.
Although tenant advocates have praised Spitzer’s proposal as the first positive thing to come out of Albany on the issue in years, it would only slow the erosion of rent controls, as inflation and the state’s nearly nonexistent enforcement of the law against illegal overcharges inexorably bring more and more apartments over the limit. The exact number of the city’s 1 million rent-stabilized apartments lost to deregulation is unknown, but between 1994 and 2005, 54,000 were reported to the state Division of Housing and Community Renewal. That number is a minimum, as it does not include apartments deregulated illegally or without being reported. In 2003, a study by Tenants and Neighbors estimated that 99,000 rent-stabilized apartments had been lost to high-rent deregulation, including 15,000 in 2002 alone.
The bill is also unlikely to make it through the Republican- controlled state Senate unless the current political alignments in Albany change dramatically or Spitzer can come up with a significant bargaining chip. Senate Majority Leader Joseph Bruno (R-Rensselaer) was the prime mover when the Legislature weakened rent regulations in 1997 and 2003. And despite pressure from tenant groups, Spitzer has opposed returning home rule over rent laws to the city; He has refused to endorse repealing the Urstadt Law, the 1971 state law that bans local governments from enacting stronger rent restrictions or tenant protections.
12 Responses to “Spitzer Dribbles Out Rent Help”
May 25th, 2007 at 8:09 am
Dear Steve,
They took my original posting off, no suprise. Anyway rent stabilization is a communist or at least socialist policy. There have been studies showing that in 1999 the average resident of manhattan who rents and is decontroled pays $300 more per bedroom then they would if there were no stabillization.
Stabilization only benifits the estabilished residents of new york. Being 23 and new to new york I pay nearly 75% of my after tax income to my rent becuase I do not have a stabilized apartment and I share it with 3 other people. Meanwhile there is a 75 year old lady next door who’s rent is $400 per month for the same size apartment. She lives there by herself when 4 people could legally live in it. Why does she deserve such a deal? Why should I pay more for her to pay less? How inefficent is that? Market efficencys work to everyones advatage. If her apartment was a 4 bedroom there would be 4 less people looking for a place to live and thus less demand, and landlords would not be able to charge as much.
FREE MARKETS WORK.
If the decontrolled residents were as vocal as the stabilized ones, there would be no stabililzation in manhattan.
May 29th, 2007 at 8:45 am
“The truth” sound jealous of senior citizens getting a break after decades of re-building neighborhoods once on the brink of desolation and living in the city. Go back to surburban Jersey!
May 30th, 2007 at 3:29 pm
I’m gonna try to show more respect to “the truth” than he did in his original post, but his understanding of the realities of housing in New York is as bad as his spelling.
His logic is like somebody complaining that they’re obscenely underpaid and they can get fired from their job any time—and saying the solution is to get rid of labor unions and minimum-wage laws.
Free markets work—to create the maximum profit for landowners. They don’t work to provide affordable housing. The normal market restrictions on prices—if something costs too much, you can choose to go without it—don’t apply when there’s a limited amount of land that’s accessible to jobs and transportation, when superheated real-estate speculation drives the cost of that land up exponentially, and when people have no choice but to pay high rents, leave the city, or be homeless.
Someone who just got here might want to learn some of the realities of New York’s history and politics—and not just spout ideological cliches from a right-wing economics textbook—before they go around whining “communist.” (And if it is communist, so what?)
The question about rent regulations isn’t “Why should I pay more so she can pay less?” It’s “Why should she pay more so you can pay more?”
May 30th, 2007 at 8:25 pm
To persons who like to argue:
if I had the same deal as the old lady next to me I may have the same logic as you. however it would just be a untrue ratinalzation of my situation. while there is limited amount of space in new york the solution cannot be to give people cheap rents which is an incentive to never leave. I know of several persons who use their city stabilized pad as a vacation home. however they would not do this if they paid a fair rent. including persons doing this and people like the old lady next door (who happens to be insane which I supect is from living in the same apt for 50 years and who’s rent is paid for by nyc and I doubt she contributed much to society) all moved out because they were only asked to pay what is a fair price for their housing there would be a great many more apartments on the market for rent and sale. more apartments on the market can only mean lower or more stable rents for everyone not just people who got here first. I don’t think that you would be willing to debate this point as it is self evedent. however the old lady not contributing is debateable. your idea that everyone would pay more cannot be true if you follow my above logic. what your really saying to me in your reply is that you should be protesting for better mass transit. I am all for it. please be advised new york is not the only city with a scarcity of land others such as san francisco and boston who do not have stablization have lower rents then in ny. there are considerable barriers to new development in those cits too. while rents in desirable neighboorhoods there are still high its nothing like new york. this is not because ny is the most desirable city but because new york has an inefficent system. I can go all day with this. what about the undesirable tenant landlord relationships created with stablization. landords in these citys are happy to have people pay their share. they strive for good service because there is no reason not to. however when the tenant pays a rediculous rent of course the landlord won’t give good service or trys to evict. what do you expect. afordable housing is a pipe dream for me at least no thanks to persons such as the lady next door. anyways rents are reasonable in queens and bay ridge both are a subway away. what’s wong with gentrification any way? usually the outcome is less crime better tourism shopping and more jobs. true some people who had the best deal ever which got taken away from them suffer, but what did they do to earn that? why should they have the deal in the first place? you should look into some econmists views on this issue especially on shadow markets. if my next post is on a pc and not a cell phone ill show you the link which is why my spelling is lousy by the way. all my arguments are for the better of all persons not just the lucky few.
May 30th, 2007 at 8:37 pm
sorry one more thought: marxism is basiclly what your saying. however nitche is more aproprate this is less a issue of money then power. most people with the ‘golden handcuffs’ of stablization would be better off today without it. who knows if those same persons left they could buy something and ownership could lead to a better deal then staying. historiclly we know this to be true in manhattan. so it all boils down in my opinion to a power struggle between people in the ‘golden handcuffs’ and persons who have made the decision to own smartly. I am well aware of ny history and also aware that purchasing apartments only 3 to 10 years ago was very reasonable. I am sure this post as well as the others will inflame you sensabilities and for this I am sorry. however please think about what is best not for you but for everyone.
June 2nd, 2007 at 10:36 am
Sorry but I’m not going to be so kind to “truth’ as he is in fact a rambling idiot. Landlords are in business to make money; the majority of them could care less about the tenants that occupy their properties. The issue of rent control has nothing to do with communism or Marxism; it’s a simple matter of age and economics’. I would agree with truth with regard to why he’s paying so much more than the women in the apartment next door because theoretically that makes no sense and rent control has gone awry but if that elderly woman’s apartment were across town or across the street and the building in question was 50 years older than the one where market value is being paid then that makes sense. The purpose of rent control is to prevent owners of property of sub-value from charging the same rent as owners of newer property at market value. The way most rent control ordinances work is that any landlord can raise the rent to market value if they want but first they have to bring that 50 year old property up to the same standard as the one across the street that’s 5 or 10 years old. They would have to replace the heating system and put in new circuit breakers and replace the plumbing and put in new doors, etc. etc. etc. And the problem that truth just doesn’t seem to fathom is that these landlords’s want to raise the rent without maintaining the property or putting anything back into it to actually increase the value. They want a free pass to raise rent automatically regardless of whether they’re maintaining the property or not. Most landlords don’t want to paint the apartment much less do anything else. So to truth I would say that if your stupid enough to pay 3 times the rent of your next door neighbor and accept the premise that its because of rent control… I would seriously advise you to read your ordinance and confirm the facts before you go off spouting your nonsense. “Object of rent control ordinances is to prevent exorbitant and oppressive rental increases in milieu where tenants have been deprived of freedom of contract by absence of competitive housing market. Central Towers Co. v. Borough of Ft. Lee, 160 N.J. Super. 546 (Law Div. 1978).”
June 2nd, 2007 at 11:01 am
Oh and one other issue that you might want to take into consideration is this, if any landlord can show that he’s not making a reasonable return on his investment can increase rents. The problem is that this landlord would have to open his or her books. That hasn’t happened for quite sometime truth. Truth be told, it rarely ever happens at all and the economists are usually silent on this issue. Further, crime has nothing to do with affordable housing; it has more to do with lack of employment, which at this stage is a national epidemic. And before you say a single word about the recent reports of unemployment being down 4.5% understand this. When someone’s unemployment benefits expire that person is removed from the roster as being unemployed. It doesn’t mean they have a job and what makes it worse is that this person is cut off from the resources to aid them in finding a job. So the decline in unemployment bears no relation to the status of employment in this country what so ever.
June 7th, 2007 at 10:05 am
Look, leave rent stabilization for old tenants, it would not be right to change the rent for somebody on fixed-income, but remove them for anyone able-bodied below the age of 60. It is scientifically proven that the removal of rent regulations for the rest would bring rents down. There are 1 million such apts in the City, ONE MILLION! If you think that does not distort the overall rent prices, I would like to take whatever drugs you are on.
I know people that are for rent regulations, they are the kind to point out how people that don’t believe there is global warming don’t want to listen to the overwhelming amount of scientific evidence proving it. Just apply the same logic to this issue and don’t be hypocrites.
June 8th, 2007 at 8:50 am
I love you rent me!
Static I am not going to comment on employement its not why I started here.
Static regarding the Emergency Tenant Protection act of 1978, its rediculus garbage of a law. Actually I should give credit to the author of it for it in my opinion is unconstitutional and yet has survived so long. Just because a law is passed does not make it correct.
My experiance has been that landlords give excellent service when the are compinsated properly for their apartments. When the landlord pays more to heat an apartment then he collects in rent services faulter.
Even if a landlord were to improve an apartment up to your “modern” standard (its a joke trying to do that with an occupied apartment). the tenant would not want to pay the increase or authurize the work. Imagine a housing court judge evecting a rent controlled tenant b/c the landlord did so much work to the apartment they could no longer pay. It just wont happen.
Your arguement on landlords opening their books is just wrong. Landlords are required to sumbit income and expense forms to NYC for property tax reasons. They are required to list their exact income and expenses, it is all public records too. This information is frequently used by the rent stabilization guidliness board.
You refer to somthing called “Hardship Rent Increase” where a landlord if losing money on his property could be allowed an increase. This provision was put in ETPA to just bearly make the law constitutional. I have never heard of it being used. Your expenses excluding mortgage would have to be higher then your income. Meaning the building would have to lose money. I am sure that if landlords could get more rent by openign their books they would.
June 8th, 2007 at 1:09 pm
I’m just so tired of hippies thinking they are right because some professor 30 years ago made a lot of sense to them, you know?
Get real everybody, just think of the value that would be unlocked and transferred throughout the city if you just removed half of the rent stabilized stock, imagine…it’s easy if you try.
June 8th, 2007 at 7:57 pm
Yo check it http://www.cato.org/pubs/pas/pa-274.html for da truth, in a fashion that is beyond my verbal capacity.

































May 23rd, 2007 at 11:21 am
This response is right-wing nonsense.
If you want to argue that any regulation of the rental-housing market is communist, you can. But at least be intellectually consistent and don’t lie. Spare us the horseshit about how decontrol would bring rents down. If it would, why have landlords spent decades pushing it, spent millions of dollars paying off politicians to weaken the rent laws? And rents are up dramatically in Boston–there are apartments where the rents have tripled over the last few years.
Removing rent stabilization would mean that landlords could kick people out whenever their lease expired. In buildings with deregulated apartments, we’ve already seen landlords charging current tenants more to renew their leases than they’re advertising the apartment for–apparently they’re betting that people would pay another couple hundred a month to avoid the hassle of moving.