BALCONY - Business and Labor Coalition of New York

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February 3rd, 2009



The measures have been rejected repeatedly by GOP

by Rick Karlin

The Democrats in control of both houses of the state Legislature are starting to flex their muscles, and one of the first examples may affect laws governing rent control in New York City.

Assembly Democrats on Monday overwhelmingly passed a series of bills designed to strengthen the city’s unique rent control laws. One such measure would increase to $240,000 from $175,000 the annual income threshold at which a tenant’s rent can be de-controlled. Another piece of legislation would reduce the amount a landlord could raise the rent on a vacated apartment from 20 percent to 10 percent of the previous rent.

While Assembly Democrats have long favored such measures, in the past they would routinely be shot down by Senate Republicans. But the month-old Democratic control of that chamber means some of those measures may finally end up on Gov. David Paterson’s desk.

“We’re not interested in one-house bills,” said Sen. Pedro Espada, D-Bronx, chairman of the Senate Housing Committee. Espada said the Senate would likely take up some at least some of the rent control measures passed in the Assembly later this month.

The prospect of tougher rent control laws is unwelcome news for the Rent Stabilization Association, which represents landlords. “It’s a major concern to us,” said Frank Ricci, the group’s director of government affairs.

Ricci said the sagging economy is creating more vacancies and lower prices, which obviates the need for more rent controls.

Those arguments were voiced on the Assembly floor Monday afternoon by Republicans. Suffolk County GOP Assemblyman Michael Fitzpatrick said rent control laws seem aimed to benefit affluent Manhattanites who live in high-rent buildings.

Democrats responded that many tenants in rent-controlled apartments are middle-class city workers such as teachers and police officers.

On both sides, the battle over rent control has consistently drawn enormous campaign contributions from real estate interests, which have given to both parties.