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Housing Uproar directed at wrong Party

The annual meeting held by the Rent Guidelines Board at Cooper Union over renewal increases for regulated housing brought the expected split between landlords and tenants. With fuel costs going through the roof this year and the city doing nothing in providing tax relief, landlords argued that operating costs have skyrocketed.

A recent report stated that costs rose 7.8% last year due to a 22.8% rise in fuel, as well as out of control real estate taxes. With no relief projected to building owners in the city's budget, landlords want to remove a 2-year renewal option and make a 1-year renewal at least an 8% increase.

This led to a bru-ha-ha where tenants argued they are being forced out of their homes risking homelessness. Tenants want a rent freeze (no increase) for their renewal option.

What is a renter to do?

First, we have to get an understanding on what regulated housing is and what it does to the housing market in New York. Other states don't have regulated housing and a person can comfortably get a comfortable 900 square feet of space for say... $850 (Jersey City). Unfortunately, in New York City, government tries to do more than it should for its residents and the interference drives the market up to levels that are not affordable to the middle class.

Right now, with rent stabilization and the few remaining rent control apartments, market value apartments range anywhere from $500 to $1500 higher than what New York City market should be if rent regulation was removed all together. The longer we keep rent regulation in place, the worse it's going to get between the stabilized rent average and the market rate average.

The Rent Guidelines Board also reported the average income for residents living in rent stabilized units remains at about $32,000 annually. An income like that would make anyone argue that the cost of rent is out of control and something needs to be done to provide relief both to the tenants and the landlords in New York City, especially Manhattan.

The Republican view on housing is the way to solve the problem. Unfortunately, Republicans do not do a good job getting a clear message across. Elected officials in New York City government is predominantly Democrat, so it would take a serious revolution to elect Republicans to at least 33% representation.

To fight the Democrats indifference to the housing crisis:

  • 1) Call your local City Councilor and demand a reduction in Real Estate Taxes. In 2002, Mayor Bloomberg wanted a 25% increase to RE Taxes and got 18.5% approved by the council. It's time to reverse the increase. Throw away the $400 rebate offer that is given to private homeowners. Repeal the 18.5% increase and go further by reducing the taxes even more.

  • 2) To pay for the tax cut, City government should sell housing it controls. First, by offering to sell apartments to the tenants. An ownership society is the direction NYC should go in providing people a piece of the American dream. Second, government housing should be placed up for bid to private investors who will manage these buildings. A deal should be struck where jobs are provided to the residents first, with an option to work towards owning their home.

  • 3) Throw away the unincorporated tax that double taxes small businesses. Many of the apartment buildings with regulated housing have commercial space on their ground floor for small business owners. All of these business owners face the same struggles individuals face with high real estate taxes and utility costs and many are double taxed if they are a private business owners.

  • 4) Finally, the State Legislature must vote to remove regulated housing and give control back to the building owners. Then, New York City could set up lease standards and minimal protections that would prevent landlords from taking full advantage of individuals, but would not regulate how landlords offer housing.

    • If you believe greed is involved when it comes to housing, look no further than your local government. The greed is with your elected officials in City Government, not necessarily the landlords. The overwhelming majority of landlords run their property to make a respectable profit, something that you or I would do if we ran a business. Unfortunately, government makes it harder and harder for anyone to live comfortably in New York City.

    by Daniel Peterson, Wednesday, May. 10 | Permalink



    Removing rent stabilization will only cause a mass exodus of renters to Jersey and older workers to Florida. Apartments, once de-stabilized , have the rents hiked WAY up & are rented to mistresses of Russian Mafia and South American druglords. Not taxpayers! The only ones that can afford "free market" in Manhattan are rich foreigners and Wall Streeters. Face it, people from all over the world want to live in Manhattan. Where does that leave nurses, firemen, policemen? Not in Manhattan? Who's coming to the rescue with the next terrorist attack in Manhattan? The rescue workers, teachers, workers, can not afford to live in Manhattan. Wake up!

    by Joyce Snyder , Friday, Jun. 9

    Posted by Joyce Snyder
    Friday, Jun. 9 - 2:25 PM




    When Massachussetts removed rent regulation, people didn't flee that state. When Illinois removed rent regulation, Chicago didn't turn into a Detroit.

    In 2003, I signed a lease to a studio apartment in the East Village for $875 p/mo and guess what? My apartment isn't regulated. It is possible to provide available housing at reasonable rents that are not under government regulations.

    A friend of mine living in Jersey City, has a 900 sf apartment for $850 p/mo. Funny that the rent should be so little since there is no form of rent control there and we hear NJ has property tax issues like NY.

    There are no more rent stabilized units available. Housing today is either created for New Yorkers making less than $35K a year or you're stuck with inflated market rates where you need to make more than $80K.

    Where does that leave someone like me who is in the $35K-$80K bracket? Where does that leave the people you mention, the nurses, fire fighters and civil service workers?

    If New York finally removed rent control and rent stabilization, we won't get the Jersey City $850 a month apartments, but the "market rates" will decrease considerably. And if the city got out of the housing business and left it to the private sector, it could cut the real estate tax down to acceptable rates, which would help provide affordable 1 BR and 2 BR for New Yorkers.

    Even the New York Times, at one time at least, was for finally getting rid of rent regulation. It's old and antequated and time to be put to sleep.

    by danielnyc , Friday, Jun. 9

    Posted by danielnyc
    Friday, Jun. 9 - 11:22 PM