NEW YORK—New York state has been losing over 10,000 rent-regulated apartments each year since 2000, and with the current rent laws set to expire in June, it may be losing many more. A report titled “The New Housing Emergency,” released by the Community Service Society of New York, reveals the loopholes landlords have been using to deregulate apartments.
Apartments with monthly rents over $2,000 can be destabilized upon vacancy. This includes apartments that have had their monthly rent raised to $2,000 during the period of vacancy.
According to the report, there is a “vacancy allowance,” which will allow the landlord to increase monthly rent by 20 percent upon vacancy. There is also a “vacancy bonus” that varies depending on how many years ago the last vacancy was. Monthly rent can also be raised by $1 for every $40 spent on individual apartment improvements or every $84 spent on building improvements.
Assemblyman Vito Lopez, the Housing Committee chairman, illustrated the magnitude of these numbers with an example: “So if you pay $1,500 a month and the apartment is vacated twice, it goes to $1800, $2100, and then it’s out of rent protections.”
Landlords can implement these increases without any reporting. The number of deregulated apartments is not required to be reported either.
According to the Community Service Society (CSS), the Housing and Community Renewal agency does not actively regulate the expenses required to raise rent; cases are only investigated if tenants who move in after the apartment has been deregulated complain.
David Jones, president of the CSS, said that about a third of New Yorkers are in the low- to middle-income category and rely on rent-regulated apartments for affordable housing.
“This issue is so critical. We’re starting to see the problems. … Working New Yorkers with low or moderate incomes are just keeping their heads above the water, just being in a position where they don’t become homeless,” Jones said. “Anything we can do at this point to make sure those New Yorkers maintain their housing at a reasonable rate is going to be critical not only for them and their families, but for the very fabric of the state.”
The state Assembly is proposing a bill that would not only extend the current rent laws, but also expand them to close many loopholes of the current regulations. The changes include raising the individual apartment improvement minimum from $40 to $60 per $1 rent increase, and cutting the maximum rent increase percentage after vacancy by half. The bill also proposes a cap on rent increases, as well as bringing apartments that were deregulated due to vacancy decontrol in 2007 back under rent regulation.
“We are anticipating that we will have success,” said Assembly Speaker Sheldon Silver. “I have spoken to my Senate counterparts, and we have spoken to the governor repeatedly, and we are confident that the governor will join us in making a priority about making an enhancement to rent regulation as we go forward.”
“We are anticipating that we will have success,” Assembly Speaker Silver said. “I have spoken to my Senate counterparts and we have spoken to the Governor repeatedly, and we are confident that the Governor will join us in making a priority about making an enhancement to rent regulation as we go forward.”
Apartments with monthly rents over $2,000 can be destabilized upon vacancy. This includes apartments that have had their monthly rent raised to $2,000 during the period of vacancy.
According to the report, there is a “vacancy allowance,” which will allow the landlord to increase monthly rent by 20 percent upon vacancy. There is also a “vacancy bonus” that varies depending on how many years ago the last vacancy was. Monthly rent can also be raised by $1 for every $40 spent on individual apartment improvements or every $84 spent on building improvements.
Assemblyman Vito Lopez, the Housing Committee chairman, illustrated the magnitude of these numbers with an example: “So if you pay $1,500 a month and the apartment is vacated twice, it goes to $1800, $2100, and then it’s out of rent protections.”
Landlords can implement these increases without any reporting. The number of deregulated apartments is not required to be reported either.
According to the Community Service Society (CSS), the Housing and Community Renewal agency does not actively regulate the expenses required to raise rent; cases are only investigated if tenants who move in after the apartment has been deregulated complain.
David Jones, president of the CSS, said that about a third of New Yorkers are in the low- to middle-income category and rely on rent-regulated apartments for affordable housing.
“This issue is so critical. We’re starting to see the problems. … Working New Yorkers with low or moderate incomes are just keeping their heads above the water, just being in a position where they don’t become homeless,” Jones said. “Anything we can do at this point to make sure those New Yorkers maintain their housing at a reasonable rate is going to be critical not only for them and their families, but for the very fabric of the state.”
The state Assembly is proposing a bill that would not only extend the current rent laws, but also expand them to close many loopholes of the current regulations. The changes include raising the individual apartment improvement minimum from $40 to $60 per $1 rent increase, and cutting the maximum rent increase percentage after vacancy by half. The bill also proposes a cap on rent increases, as well as bringing apartments that were deregulated due to vacancy decontrol in 2007 back under rent regulation.
“We are anticipating that we will have success,” said Assembly Speaker Sheldon Silver. “I have spoken to my Senate counterparts, and we have spoken to the governor repeatedly, and we are confident that the governor will join us in making a priority about making an enhancement to rent regulation as we go forward.”
“We are anticipating that we will have success,” Assembly Speaker Silver said. “I have spoken to my Senate counterparts and we have spoken to the Governor repeatedly, and we are confident that the Governor will join us in making a priority about making an enhancement to rent regulation as we go forward.”
