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The landlords are revolting, the New York Post reported. Two powerful landlord groups are hammering out a new lawsuit that they hope will overturn rent rules signed by Gov. Cuomo that make it much harder for owners to raise apartment rents. The Rent Stabilization Association and the Community Housing Improvement Program have tapped law firm Mayer Brown to file their case in a New York federal court by mid-July, sources told The Post.
Moments before the Rent Guidelines Board's final vote on rent increases, two camps prepared for the tense hearing, The Real Deal reported. In a final vote, the RGB recommended a 1.5 percent increase for one-year leases and 2.5 percent hike for two-year leases for both rent-stabilized apartments and lofts, with a 39 percent permissible increase for decontrolled units. The RGB also approved a proposal to keep rent increases on hotels and SROs flat, with no vacancy bonus. The measure passed seven to two.
Lawmakers just re-wrote the rulebook for rent regulation in New York State, National Real Estate Investor reported. "It will affect values," says Shimon Shkury, president of Ariel Property Advisors, a commercial real estate advisory firm. "We are re-evaluating many buildings-re-evaluating what it is reasonable for investors to expect." Nearly one million apartments are affected by the new laws, which makes it much more difficult to substantially raise rents for rent-regulated units.
June 15, 2019 may come to be remembered as doomsday by the New York City real estate community, Real Estate Weekly reported. Seemingly overnight and without much forewarning, lawmakers passed pro-tenant bills and sweeping regulations governing rent stabilized units. Nearly every mechanism used by building owners to deregulate units are now null and void.
New York's slow multifamily market has continued into the spring, according to Ariel Property Advisors, The Real Deal reported. The market saw a total of 28 deals across 35 buildings worth $636 million in April. This was a 6 percent drop in transaction volume, a 42 percent drop in building volume and a 34 percent drop in dollar volume compared to the trailing six-month averages from October to March.
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