Rent stabilization has always been a controversial topic in New York. But in the last few months, the topic has dominated state media headlines, as tenants' rights advocates celebrate new rent reforms put in by Gov. Andrew Cuomo.
The tenant-friendly package of bills, known as “universal rent control,” drastically affects the assets and income of landlords for the majority of in the state that are either rent-stabilized or rent-controlled.
Now, landlords will no longer be able to utilize vacancy bonuses, a provision that once allowed landlords to increase rent by as much as 20% in between units. And individual apartment improvement (IAI) loopholes, which gave landlords the liberty to raise rent rates for the sake of “renovations,” are no more.
Advocates for universal rent control are ecstatic and claim that the package has leveled the playing field for tenants in the market. But real estate industry professionals and landlords, on the other hand, have called the reforms “too radical.” They say that the new regulations will make it difficult, if not impossible, for them to maintain upkeep on the buildings they own. Ultimately, they said that the changes will increase the cost of the market-rate because tenants won't have much incentive to move.
In the wake of these changes, the real estate industry has made one thing clear: it isn't going down without a fight. Real estate giants, The Rent Stabilization Association (RSA) and the Community Housing Improvement Program (CHIP), are planning on filing a lawsuit by the middle of July in New York court. They will argue that the laws are unconstitutional because they violate the Fifth Amendment, ultimately depriving landlords of the fair use of their property. There's been no word on if Gov. Cuomo will be a defendant.
Contact New York Real Estate Attorney Melvin Monachan Today
While this recent development is taking landlord/tenant disputes to another level, there are smaller disputes that need to be settled every day. In these cases, time is of the essence. At the Law Offices of Melvin Monachan, PLLC, we've helped people in this situation battle unfair evictions and keep their residencies. We can help you find a viable solution also. Contact us today by filling out a contact form or give us a call at (516) 714-5763.