New Rent Protections for Tenants

Yesterday's Landmark Deal (https://www.nytimes.com/2019/06/11/nyregion/rent-p...) is of obviously huge significance to building owners and tenants alike.

There are a variety of factors which we are reviewing in connection with this situation and I am fairly certain many of this forum's members are awaiting further clarification -- whether the deal as is passes, whether Cuomo will sign off on it, and whether DiBlasio will have enough time to pay attention to what's happening in this fair city to be bothered focusing on something other than Iowa and wasting his energies there rather than wasting them here.

In short, the deal is a good thing on some level for tenants, as it implements long-term protections rather than protections with a built-in expiration date, and there are other aspects of it which similarly protect tenants (revision to MCI regulations and limits on vacancy bonus factors) but there are other aspects of the package that will favor landlords (the omission of the "good cause" eviction rule is a boon).While this package hasn't yet passed -- Cuomo says he'll sign whatever passes assuming it's even reasonably fair -- this shows some measure of progress. For people that rent this is a step forward, but I think this is a compromise that also favors landlords and leaves much of the auditing/investigation to the City (eg HPD.DHCR) and that is overall, a good thing as it will likely spur further incentive programs to developers and owners who want to recoup and maximize savings as they work to maintain their properties.

The one factor this doesn't mention is that many smaller landlords will feel the pinch because this package in theory pits the tenant against larger ownership entities. Mom and Pop owners who have one or two properties will not be in the same position to roll with the changes, so to speak, that will larger, huge corporate entities. How this will pan out is anyone's guess, but it seems that we'll have to wait until the next step -- a vote and approval -- occurs so we can see the final product and make further determination at that time.

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