New York's Mayor, Bill de Blasio, has a proposal to address the city's rising rents, especially in the rent-stabilized markets, reports NY Daily News. Will this be the answer his constituents are hoping for?
NYC, Worst Rental Market
We all know that New York City is one of the worst cities for renters, as reported here on Realty Today, citing a study from the National Assocition of Realtors of 70 metropolitan areas from 2009-2014 research data. In the report, New York got the highest rent increase (50.7%) observed since 2009.
Even a study by StreetEasy cited by AMNewYork reveals that as much as 60% of an average New Yorker's income is alloted on rent alone. With a median monthly rent of $2,700, as noted by the New York Post, renters would not just be burdened paying their rents or saving up for a deposit, they will also be short with some of their basic needs!
Mayor de Blasio's Proposal
Mayor de Blasio exclusively told NY Daily News the key points in his proposal to the State Legislature. Existing rent regulations will expire on June 15. "Rent is the No. 1 expense for New Yorkers. Unless we change the status quo, tens of thousands of hardworking families will be pushed out of their homes," Mayor de Blasio told NY Daily News.
Here are the key points of the Mayor's proposal to the lawmakers:
1. No More Monthly Threshold
Mayor de Blasio wants to terminate a law that "allows landlords to charge a tenant market rates once a rent-regulated unit passes a monthly threshold" which is now set at $2,500. Without this, "the city's stock of affordable apartments remains permanently regulated," notes the news site.
2. No More Vacancy Bonus
Another rule must also be put to an end which "allows landlords to automatically hike a unit's rent by 20% each time a tenant moves out."
3. Restrictions on Rent surcharges
With the current law, a landlord may permanently increase the rent for major improvements done on the property.
The mayor proposed that instead of being permanent, it should be changed to temporary and spread out over a decade, adding that rents should go back "to original levels after that," notes the news site.
These reforms will still need to be passed by the state legislature which is a critical part because there are many areas wherein "New York Gov. Andrew Cuomo's and de Blasio's political agendas don't overlap", Realtor.com writes. Aside from that, Realtor.com believes that the legislature itself may not be "concerned with tenants' rights as New York City politicians."
Reactions From Various Parties
While some New Yorkers are very happy with the proposal, not everyone is enthusiastic about it. NY Daily News interviewed a few of them and their reactions are different. "We've never had a mayor of New York stand meaningfully with the tenants of this city, and de Blasio's done that now," said Mike McKee. Mckee is a veteran housing advocate and treasurer of the New York Tenants Political Action Committee, notes the site.
"The current rent regulations have worked well in terms of injecting needed capital for landlords to improve buildings," Frank Ricci, director of government relations for the Rent Stabilization Association said.
Which side are you on?
