Reforming Rent Regulation in the City of New York

 

ROBERT A. KATZ

Attorney-at-Law

c/o Collins, Dobkin & Miller, LLP

277 Broadway, Suite 1410

New York, NY  10007

Tel.: 212-587-2400, x 13

Fax:  212-587-2410

 

January 29, 2007

 

Hon. Eliot Spitzer

Governor, State of New York

State House

Albany, NY

 

Hon. Michael Bloomberg

Mayor, City of New York

City Hall

New York, NY

 

Re: Reforming Rent Regulation in the City of New York

 

Gentlemen:

 

  

In the Reform Regulation Act of 1997, the Pataki Administration elected to attempt to destroy rent regulation and the remedial effect of that act has gone a long way towards that objective.

 

It is time the pendulum swings back.  It is necessary for the pendulum to swing back.  As we go forward on the path of gentrification, New York City will not be able to house its most vulnerable citizens.  Gentrification and luxury housing now being the rule there is no housing for the working class in this City.

 

The Bloomberg administration’s attempt at affordable housing is a joke were its consequences not so serious.  The New York University Furman Study of 2006 clearly shows that we need housing for those that earn less than $25,000, which is our working class and working class poor.  Mayor Bloomberg’s affordable housing in no way reaches that issue.

 

We, in this City, face a crisis in housing in these terms.  We live today in the same comparable circumstances as we did when we realized that the Rockefeller Law of 1970/1971 had to be adjusted.  This was the reason that the Republican Wilson Administration passed the EPTA of 1974.

 

The only difference between those times and today is that the housing stock that housed the vulnerable tenants is now 33 years older and stands in a more substantially deteriorating condition since this feature of housing except for some nominal insignificant growth, for the most part, has not been replaced in the City.

 

It is time that the government recognize a simple proposition to the effect that land in the City of New York is a rare and most expensive commodity.  Consequently, housing of this nature can no longer be controlled by private wealth.  To the extent that shelter is a prominent fundamental right, it is time for the government to step in to do the following.  First, the government must foster a program of repair of our existing housing stock so as to the minimum hold status quo in existing housing to check deterioration.  Then the government has to regulate a building program reflective of our need for new housing in which the ordinary workman can live.

 

In practical terms, I am suggesting the following: (1) a recapture of all housing in co-op and condo in which the purchaser no longer lives; (2) it is time that the City and the State recognize that in New York City the wealthy rent convenience apartments which are not their primary residency.  To the extent that such apartments are rented here in the City of New York, it is time to impose a substantial tax upon such apartments in order to devolve a fund to utilize to build housing for the working man, which will be rented out at reasonable rates; (3) to the extent that landlords will be allowed to recapture apartments for their own personal use evictions, regulations must circumscribe such conduct to absolute need. Further, a landlord in that position ought to pay a tax to the City which would also enhance the fund described above.

 

Under our laws today, there are many landlords who fail to register apartments and make a business out of their self-deregulating of these apartments for the purpose of renting apartments to corporations and to bed & breakfasts for tourists. This must now be stopped. It is an abuse of our regulatory system, yet it goes on because the government looks the other way. It is time for the government through its various agencies to investigate this travesty on our housing and if a landlord is caught in the act here, it should be treated as a Class E felony.

 

Finally, I say to the Mayor and Governor that it is time to review all rent regulatory housing and that with expectation that such a review would take in excess of a year it would be prudent to impose a two-year moratorium on rent increases in all regulatory housing pending such examination.

 

I ask the Governor and the Mayor to take a look at these suggestions with an eye towards legislation and amendment of our existing law to reflect these needs now.

 

Respectfully yours,

 

 

Robert A. Katz

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