Even on the eve of the elections of 2018 the concept of a universal control rents was considered in new York if not a pipe dream, a very distant future. But in the elections the idea was immediately voiced by many politicians. Now, it has been described as the short term.
Cynthia Nixon, Jumaane Williams and Julia Salazar, raised during the election debates 2018 control rents, voiced this idea in different ways, creating conflicting ideas about how it can be done. But in the Wake of the debate, the Alliance for housing, the coalition of activist groups advocating the protection of the rights of tenants, have developed a specific legal concept, consisting of seven bills. Moreover, the concept does not assume radical changes in the system of rental housing, some draft laws have already been introduced in the state legislature, and even earlier it was made in the Assembly. This is a bill on the reform of existing laws on the stabilization of the rent by the termination of control over job, except for the bonus position, providing a reduced rent during the lease term and changes in rent control. Each of them was re-submitted to the Legislature at this session.
As stated on the official website of the Housing Alliance (an organization of new Yorkers who rent housing), in 2019 the duration of the framework system for the protection of the state of new York, known as the rent stabilization expires, which gives the tenants time to strengthen and expand their rights. The state has the option to cancel the anti-tenant provisions that encourage the loss of rented accommodation, regulated rents, and to expand our system of rent stabilization to cover all new York renters.
Offered:
- To remove geographical restrictions in the Law on the protection from emergencies (ETPA), which allow local municipalities to choose the stabilization of rents in the event of an emergency on the local housing market;
- to adopt a new law on eviction «for cause» to grant tenants rights tenants in small buildings and in the industrial communities of the house;
- Monitoring of completion of job: job Monitoring allows homeowners to constantly cancel the control over the apartments when the rent reaches 2 733 dollars a month, and the current tenant leaves the apartment;
- To make a reduced rent constant;
- To cancel the bonus for the vacancy;
- To eliminate the constant rent increases caused by a dramatic overhaul.
The lifting of rent control: currently in new York there are two systems of rent regulation. Rent stabilization, which affect the majority of tenants, regulated rent control and the rent that applies to approximately 40 000 people. In the framework of the «Maximum base rent» for the control of rent the tenants with an annual face rent increases of 7.5%, much higher than annual adjustments for tenants, stable rent. Our current system is confusing and arbitrary. This bill will increase the control over the rent in accordance with the standard increase in rent.
The lawyer on housing issues in Society legal aid Ellen Davidson (one of the authors of the draft law on eviction for cause, which supports state Senator Salazar) explains the City and State of NY, that, «despite some concerns with the legislation, in fact, protection measures are not so extreme. The bill would not completely prohibit rent increases above 1.5 percent. Landlords can protect the increase for certain reasons, for example if their own costs have increased, say, due to the increase in property taxes or maintenance costs. What we are really trying to stop, we see it all across the state — you have long-term tenants living in the building, and the landlord wants to clean it so others could enter… «.
Vice President for research in legal the Manhattan Institute Howard Husock criticizes the idea control. He believes that the law of eviction for cause will do more harm than good: «I don’t think you need a Nobel prize in Economics to understand that this can have a very detrimental not only to potential new housing supply, but also for the highest and best use of our existing housing. Rent control in new York has actually aggravated the housing crisis because, in part, led to low turnover among tenants, which gives beginners the limited choice of place of residence».
Dmitry Stasyuk
Real Estate Broker Associate at Evans Real Estate
Also critical to the plans for the invasion of politics into the economy is the real estate expert in new York from Evans Real Estate Dmitry Stasiuk: «As shown by examples in many countries, the attempt of the authorities to dictate market pricing often leads to imbalance, manipulation and eventually to crisis. The imposition of restrictions on the rent increase, which now offer some policies that can lead to serious negative consequences. Violated the basic principle of open economy, when the free market balances supply and demand. Maintenance of such restrictions will lead to the fact that to rent an apartment will become much more complicated. Will deteriorate the quality of housing owners will not be profitable to make repairs and maintain homes in good condition. This will also reduce investments in new housing construction, and this decrease in budget revenues and job cuts. We hope that these populist proposals will remain at the level of conversation and slogans for the voters.»
