Cuomo Signs 'Historic' Rent Regulation Reforms Into Law

[Cynic]

A rent reform package that will dramatically alter the New York housing landscape became law Friday despite efforts from the real estate to prompt an eleventh-hour reversal.

The legislation — dubbed the Housing Stability and Tenant Protection Act of 2019 — was introduced to the New York Senate floor Friday, after lawmakers reached an agreement on the details of the legislation earlier in the week.


The bill, which supporters say will protect tenants from unscrupulous landlords, passed 36 to 26, and Gov. Andrew Cuomo says he has signed it. He said earlier this week that he plans to sign what the legislature agrees to, despite direct, last-minute lobbying from some of New York's biggest landlords. "I'm confident the measure passed today is the strongest possible set of reforms that the legislature was able to pass and are a major step forward for tenants across New York," Cuomo said in a statement. "As the former Secretary of Housing and Urban Development under President Clinton, I know full well the importance of affordable housing and with the existing rent laws set to expire tomorrow, I have immediately signed this bill into law — avoiding the chaos and uncertainty that a lapse in these protections would have caused for millions of New Yorkers."

Senate Majority Leader Andrea Stewart-Cousins said the Senate Democratic majority had made a commitment to help pass the “strongest tenant protections” in history. “The legislation we passed today achieves that commitment and will help millions of New Yorkers throughout our state," she said. The new regulations, which have been anticipated for months now, sparked an outcry from a number of real estate heavyweights.

Under new rules, the vacancy bonus — a provision that has allowed landlords to increase rents by as much as 20% when a unit became vacant — will be eliminated. Landlords who provided a preferential rent — meaning a rent lower than they can legally charge — will not be allowed to hike the rents to the full price when leases are renewed.

The Major Capital Improvement and Individual Apartment Improvements programs, which have allowed landlords to pass on the costs of building improvements in rent, have been significantly curtailed. MCI increases will now be capped at 2%, reduced from 6%, and will be eliminated after 30 years. IAIs will be capped at $15K in a 15-year period, and landlords will only be allowed to make three improvements at a maximum during that time.

“For decades, our communities have lost hundreds of thousands of rent regulated units, but with this legislation, we are putting power back in the hands of tenants,” state Sen. Zellnor Myrie said. Many real estate players have slammed the legislation, arguing that it will harm their ability to run their businesses and reduce the city’s housing affordability — not improve it.

“I think the New York legislature has been hijacked [and] they don’t even know it,” Nelson Management Group President Robert Nelson told Bisnow Wednesday as details of the new law were released. Brokers have warned it will further slow the investment sales market. The community banks have felt the impact, with New York Community Bank, Signature Bank and Dime Community Bank having together lost $2.5B in market capitalization over the last few months, The Real Deal reports.

https://www.bisnow.com/new-york/news/commercial-real-estate/rent-regulations-99455

 

[Domingo Halliburton]

Banks and lenders like NYC but as ive gotten older ive grown to hate landlords. Such a scummy business at the end of the day.

 

[dora_da_destroyer]

Well, get ready to pay those high rents for even crappier apartments

 

[☑︎#VoteDemocrat]

rent control doesn't work apparently...

 

[Meta Reign]

Well, get ready to pay those high rents for even crappier apartments

Exactly, all that will happen now is that newly built apartments will have extremely high introductory prices now.

Such passive aggressive action. Tenants unions need to arise and force down the prices and bank values of these building by collectively witholding rent. I'm talking MASS squating until banks are forced to make like 60% cuts to the values of these properties and forcefully refinance until it's comfortable for both tenant and landlord to make payments.

People need to stop being scared of this system and ashamed of their poverty. Embrace it as a collective and shut this city down.

 

[Wargames]

Exactly, all that will happen now is that newly built apartments will have extremely high introductory prices now.

Such passive aggressive action. Tenants unions need to arise and force down the prices and bank values of these building by collectively witholding rent. I'm talking MASS squating until banks are forced to make like 60% cuts to the values of these properties and forcefully refinance until it's comfortable for both tenant and landlord to make payments.

People need to stop being scared of this system and ashamed of their poverty. Embrace it as a collective and shut this city down.

Actually they can’t a ton of them already agreed to rent control apartments with Deblasio for the city to agree to up zoning. They are stuck making affordable apartments

 

[North of Death]

Banks and lenders like NYC but as ive gotten older ive grown to hate landlords. Such a scummy business at the end of the day.

But a necessary business that I myself partake in...Either get fukked or do the fukking so to speak

 

[Domingo Halliburton]

But a necessary business that I myself partake in...Either get fukked or do the fukking so to speak

I mean i participate in it as well to an extent from the lender side.

 

[North of Death]

I mean i participate in it as well to an extent from the lender side.

Yea, I get it, shyt sucks to pay rent...But as a landlord myself I am learning that people spend there money on stupid shyt and usually rent is the last thing they think about paying...Yes there are shytty landlords but for the most part I believe if people just pay there rent on time and communicate well ahead if shyt is late then everything would be copacetic.

 

[Scholar]

This is a major victory. It will slow down the pushing out of working people

Legal incentives and rent bonuses landlord got for kicking out rent regulated tenants are now gone. Great news for families in gentrifying neighborhoods. This shows what can happen if folks get out vote and ensure their party has all chambers of gov and can pass legislation

 

[afterlife2009]

 

[BigMoneyGrip]

This is a major victory. It will slow down the pushing out of working people

Legal incentives and rent bonuses landlord got for kicking out rent regulated tenants are now gone. Great news for families in gentrifying neighborhoods. This shows what can happen if folks get out vote and ensure their party has all chambers of gov and can pass legislation

Basically and it will keep NYC’s working class tax base in the city that’s folk working for the board of Ed, NYPD, Corrections, MTA etc...

These slim lord Jews are the worst.. they owe the city millions is taxes and fines.. I wish the city would just snatch their property from them.. nothing but a bunch of leeches

 

[Meta Reign]

Y'all make no sense.

The rent in NYC is ALREADY way too much. It needs to go down, not be just be slowed down.

How are you going to cheer legislation that literally does nothing for people who are struggling, RIGHT NOW?

 

[JLova]

rent control doesn't work apparently...

They do not. Thry brouht them to Toronto. Rents have gone up considerably because landlords bake the lack of increases into the upfront costs. It’s not landlords job to provide affordable housing. It’s the gotdamn government.

People think landlords are made of money and lump the scummy ones with those just trying to make a BIT of money. This is capitalism in its purest form. But now the gov is putting a cap on what you can charge? Is there a cap on the costs associated to purchasing and upkeeping rental property?

 

[Domingo Halliburton]

Yea, I get it, shyt sucks to pay rent...But as a landlord myself I am learning that people spend there money on stupid shyt and usually rent is the last thing they think about paying...Yes there are shytty landlords but for the most part I believe if people just pay there rent on time and communicate well ahead if shyt is late then everything would be copacetic.

In a more enlightened future hopefully you are one of the first ones the future Mao executes.

The problem is there's a bunch of mini Sterlings and Trumps out there that need reeled in.