Sun Set, Sun Rise on Rent Regulations

Michael McKee, treasurer of TenantsPAC, at the CRDC’s April 18 general meeting. | Photo by Donathan Salkaln

BY DONATHAN SALKALN (CRDC Executive Committee member) | As the sun sets on June 15 and the New York City’s rent laws expire, there is much optimism that not only millions of renters in the city, but also those upstate and on Long Island, will wake-up on June 16 to the good news that the State will protect them from being tossed out to the street.

With the 2018 election result of a Democratic majority in both the NYS Assembly and Senate, pent-up rent grievances have materialized into many proposed laws in closing landlord loopholes that allow rent gouging, evictions, and the lack of tenant protections—across the city as well as the state.

At the April 18 general meeting of the Chelsea Reform Democratic Club (CRDC), held at Hudson Guild’s Elliott Center (441 W. 26th St.), Michael McKee, treasurer of TenantsPAC, gave the group a schooling of the proposed rent laws now on the doorstep of Albany’s State Capital Building. (McKee has been a life-long housing warrior, with 40+ years of fighting for tenants’ rights. His past battles have been within groups that include NYS Tenants & Neighbors Coalition (founder), Metropolitan Council on Housing, and Peoples Housing Network (he has also served on the NYS Assembly Committee on Housing).

McKee also offered his opinions on the killed NYC “Pied-a-Terre” tax bill, Hudson Yards, Airbnb, and Mayor de Blasio’s controversial zoning changes in the name of affordable housing, and future plans for rent reform. The program was directed by Judy Richheimer, President, CRDC.

McKee’s battle cry: “We need to close the loopholes inserted in the rent laws over the last 25 years+, starting with vacancy decontrol, which has caused us to lose 400,000 to 450,000 apartments in NYC and 50,000 in the suburb counties. Our bill would not only appeal vacancy decontrol. It would re-regulate 98% of the apartments that have been deregulated in the past 25 years. It would bring back about 450,000 market-rate apartments that are now without any rent and eviction protections.”

The proposed laws before the State Senate and Assembly, McKee noted, “include extending rent regulations to buildings of six and fewer units, and also expanding optional rent regulations to upstate and to Long Island. There are about 600,000 apartments in NYC in buildings of six or fewer units that are not controlled by rent stabilization.” This is important, McKee said, “as arbitrary eviction is common… Just last week, the municipalities of Hudson, Kingston, and Newburgh passed resolutions calling for statewide rent stabilization.”

McKee supplied the assembled guests a list of proposed laws that not only renews, but also reforms, the Emergency Tenant Protection Act of 1974:

–Reform “Preferential Rent” (S2845/A4349) (Krueger/Cymbrowitz): Requires that preferential rent leases last for the duration of the tenancy.

–End “Vacancy Decontrol” (S2591/A1198) (Stewart-Cousins/Rosenthal): Repeals vacancy decontrol and re-regulates deregulated apartments that rent for less under $5,000 in NYC and $3,500 in suburbs.

—Eliminate the “Vacancy Bonus” (S185/A2351) (Serrano/Pichardo): Eliminates the 20% bonus on “legal rent” landlords may add to legal rent when an apartment changes hands.

–Eliminate Rent Hikes Caused by Major Capital Improvements (S3693/A6322) (Gianaris/Barnwell): Eliminates landlords’ ability to pass the cost of necessary building repairs onto renters.

–Stop Harassment and Deregulation Caused by Individual Apartment Improvement Increases (S3770/A06465) (Kavanagh/Richardson): When apartments are vacant, landlords often make cosmetic repairs in order to raise the rent and reach the deregulation threshold. This bill would eliminate that.

–Reform the Four Year Rule (S4169/A5251) (Myrie/Dinowitz): While tenants in rent stabilized apartments are able to challenge rent increases, thanks to the “four year rule,” they are limited in their ability to fight older, but often fraudulent, “legal” rents.

–Expand the Emergency Tenant Protection Act  (S5040/A7046) (Breslin/Cahill): Only New York City and the surrounding counties can opt into rent regulation. This is not fair. Localities should decide for themselves whether or not they want to opt into a system to protect tenants. This bill gives all places in New York State the option to decide for themselves.

–Good Cause Eviction (S2892/A5030) (Salazar/Hunter): Gives every tenant in New York State the right to a renewal lease with fair terms from the landlord. Tenants may still be evicted for “good cause.”

–Rent Control Relief (S299/A167) (Benjamin/Rosenthal): Brings “rent control” increases in line with “rent stabilization” increases.

In gauging the possible passage of the rent laws McKee opined, “On Planet Albany, you take nothing for granted. Just because we have a Democratic majority doesn’t mean we get what we want. We have to work for it. We have very powerful enemies that have a lot of money,” he noted, referring to Real Estate Board of NY (REBNY). “Never forget” McKee said, “that their money comes rents that we pay!”

McKee urged everyone to join him for “Rent Lobby Day” in Albany on May 14 (info to sign up at end of article). McKee offered the group his personal opinions of the current state of New York City, which is amidst a spiral of losing affordable housing:

–On the “Pied-a-Terre” tax: The city’s housing stock is attracting the international elite in buying second and third homes in Manhattan as a way to invest, and even money-launder cash. “This was a tax that was a done deal,” McKee said, adding, “It was in the budget to the 11th hour. Then REBNY hired NYS Assembly Speaker Carl Heastie’s college roommate—and all of a sudden, it’s off the table!

–On Mayor de Blasio’s Mandatory Inclusionary Housing and Zoning Plan: “I find it absolutely absurd.” McKee said, “that we are subsidizing the creation of market-rate housing with our tax dollars, that include subsidizing people who don’t live here and are just parking money from foreign countries. The city rezoning marginal areas for new development of market rate housing should stop. No matter what you do it is going to stimulate gentrification and displacement. No tax dollars should go to anything other than permanent low income and moderate income housing.”

–On Hudson Yards: “We’ve created a suburban mall for the rich on the West side of Manhattan. We paid through the nose for it,” McKee said, explaining that Hudson Yards financed in part through the EB-3 Program meant for the poor also called the called the Cash for Visas Program. “Gerrymander a map so they could incorporate public housing projects on the Upper West Side and in Harlem in order to call it a distressed area is nothing short of scandal.”

On Airbnb: “Airbnb is planning a public offering and New York City is its biggest market and their overwhelming majority of their profits from New York City comes from illegal rentals and illegal hotels. Everyone knows the Airbnb Dream Bill was written by Airbnb. They are describing it as a state wide bill when in fact it only applies to New York City.

–On Future Plans of Rent Reform: “We want to completely redesign the whole system next year. There are a lot of things, like tax-subsidized buildings, where the rent stabilization is temporary. There’s also nonprofit owners like hospitals and universities that have carte blanche. They can evict people at will.”

After decades of pushing back the erosion of New York’s renter rights along with the continual rent increases, Michael McKee is now pushing forward with progressive demands. The ebb tide has finally changed in Albany, and McKee is leading the way! Join the crusade to Albany on May 14th! Sign up for the bus trip by clicking here, or call Tenants & Neighbors at 212-608-4320, or Met Council on Housing at 212-979-6238.

 

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