Still no clarity on 421a or rent regulations expiring Monday. The Governor has suggested a short term extension of 421a to work out a long term compromise, and wants to link extension of rent regulations desired by Assembly Democrats with an Education Tax Credit sought by Senate Republicans…but no takers for the “Big Ugly” as of this morning. One report on Assembly supporters of rent regulations highlights their own negative experiences as regulated tenants, but fails to mention that as stabilized tenants they are voting for their personal benefit.
Omission was also a factor in a Community Service Society analysis of the latest Housing Vacancy Survey numbers on rent increases by neighborhood. With a 32 percent average increase citywide since 2002, rents leaped 90 percent in Central Harlem and 63 percent in Bedford Stuyvesant, according to the report. Rents actually declined, however, in the Canarsie section of Brooklyn, Bay Ridge, and the south shore of Staten Island, as the Daily News pointed out, and the CSS report final chart indicates these are areas with the fewest regulated units. Coincidence?
Taking advantage of rent growth in Bedford Stuyvesant, or building affordable housing, may be harder next year if NIMBYs manage to get expansion of the historic district designation. DNA Info says the Landmarks Commission has promised a vote.
With all the tumult over 421a proposals, the Furman Center at NYU this week proposed something completely different: a 100 percent tax abatement for existing buildings whose owners pledged to forego vacancy increases and individual apartment increases (but keep guideline renewals and MCIs) and only rent to tenants whose income is some (to be determined) multiple of the existing legal rent. The proposal itself notes that this would be a bad economic decision for an owner in an improving neighborhood with rapidly rising rents, but might work out well in a stable neighborhood with moderate increases over time.
The connection between rents and taxes was also emphasized this week by the launching of an online game “Inside the Rent” by the Citizens Housing and Planning Council, where players can pick a neighborhood, building type, apartment size, and rent level and see if they can build a profitable building. Hint: you can’t build a profitable two bedroom apartment anywhere for less than $3000 a month. Anyway the breakdown on taxes, land costs, construction costs, labor (union or non-union), etc. by neighborhood is interesting.
Finally, no links to coverage in the Post, News, or Times of Monday’s first hearing of the Rent Guidelines Board on rent increases for next year…because they didn’t cover it.