June 17, 2019
Stroock Special Bulletin
By: James L. Bernard, Leonard Boxer, Brian Diamond, Ross F. Moskowitz, , Karen Scanna, Joshua Sohn, Claude Szyfer
On Friday night, Gov. Andrew Cuomo signed new, permanent rent regulation legislation that will reshape the real estate market in New York City and beyond.
New York’s previous rent regulation regime took into consideration market conditions in setting rent, and included provisions that permitted owners to recoup investments made in buildings or apartments by adjusting rent upwards, sometimes to market rate. Small and large owners could afford to maintain and improve their properties under these “exceptions” to the rent regulation system.
The new legislation repeals many of the exceptions landlords depended on, including provisions related to capital improvements and high tenant incomes.
But will the rent regulations be effective, or will they lower the quality of housing and deter construction of new rental properties?
Landlords who feel blindsided by the tenor of the new rules are also asking whether the regulations are constitutional – and considering all of their legal options.
The new rules clearly mark a profound overhaul of rent regulation in New York. Among other things, the new legislation:
The transactional and litigation lawyers in our national Real Estate Group are closely monitoring these and other regulatory developments, and we are available to address any related questions that may arise.
_______________________________________________
For More Information:
This article is for general information purposes only. It is not intended as legal advice, and you should not consider it as such.
June 17, 2019
Stroock Special Bulletin
By: James L. Bernard, Leonard Boxer, Brian Diamond, Ross F. Moskowitz, , Karen Scanna, Joshua Sohn, Claude Szyfer
On Friday night, Gov. Andrew Cuomo signed new, permanent rent regulation legislation that will reshape the real estate market in New York City and beyond.
New York’s previous rent regulation regime took into consideration market conditions in setting rent, and included provisions that permitted owners to recoup investments made in buildings or apartments by adjusting rent upwards, sometimes to market rate. Small and large owners could afford to maintain and improve their properties under these “exceptions” to the rent regulation system.
The new legislation repeals many of the exceptions landlords depended on, including provisions related to capital improvements and high tenant incomes.
But will the rent regulations be effective, or will they lower the quality of housing and deter construction of new rental properties?
Landlords who feel blindsided by the tenor of the new rules are also asking whether the regulations are constitutional – and considering all of their legal options.
The new rules clearly mark a profound overhaul of rent regulation in New York. Among other things, the new legislation:
The transactional and litigation lawyers in our national Real Estate Group are closely monitoring these and other regulatory developments, and we are available to address any related questions that may arise.
_______________________________________________
For More Information:
This article is for general information purposes only. It is not intended as legal advice, and you should not consider it as such.