Winds of Change
Much has been made about the 18 pieces of legislation which hit the City Council docket last week- and for good reason. With the rent stabilization laws set to expire in June 2019, many staples of rent stabilization laws of years past are now at risk of becoming extinct. Not only will the potential passage of laws alter the way landlords of buildings with a heavily rent-regulated tenant base conduct business post June 2019, it will also send the industry into a tailspin between now and June 2019. With the Democrats having their largest majority in the State Senate since 1912, the real estate industry is expected to be thrown into a state of disarray over the upcoming months. Here are just a few of the potential changes coming our way once the new vote takes place in June 2019:
- Ending Vacancy Deregulation (Bill A433 in the Assembly & S3482 in the Senate): This bill would repeal the provision that removes apartments from rent stabilization or rent control when such apartments are vacated and could be rented for $2,700 per month or more
- Elimination of Vacancy Bonuses & Increases (Bill A9815 in the Assembly & S1593 in the Senate): This bill would repeal the ability of a landlord to obtain a 20% increase in rent upon vacancy of a rent-regulated apartment
- Elimination of Preferential Rents (Bill A6285 in the Assembly & S6527 in the Senate): This bill would prohibit an owner from adjusting the amount of preferential rent upon the renewal of a lease- only upon a tenant's vacancy would the owner be able to remove the preferential rate.
Needless to say, the passage of any of the above bills will certainly result in a chaotic period for landlords.
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