Progressive Manhattan lawmakers again push ‘rent – Latest News
Two progressive Manhattan state lawmakers are back to pushing “rent control for the rich” to benefit residents of “Billionaire’s Row.”
State Sen. Liz Krueger and Assemblywoman Linda Rosenthal tried to sneak this into law final yr, shedding out solely after we known as out the injustice.
Once again, their proposal applies to roughly 100 co-op buildings, primarily in Manhattan, that sit on land another person owns; these “ground leases” are renegotiated each 20 to 30 years and normally end in a rent reset for shareholders.
Right now, an arbitration course of kicks in when ground homeowners and co-ops can’t agree on a rent reset after the ground lease expires — all as per the unique contracts.
The Krueger-Rosenthal invoice, narrowly accepted 10-9 final month by the state Senate Judiciary Committee, would unconstitutionally rewrite these personal contracts to restrict land-rent hikes to three% or the Consumer Price Index (whichever is larger).
It would additionally guarantee lease renewals on the similar phrases for up to 30 years and grant co-op boards proper of first refusal if the landowner opts to sell the parcel.
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As ideological cowl, the invoice would additionally pressure some outer-borough models in land-lease co-op buildings back below the rent legal guidelines — many years after they left when the building went co-op.
Except that this could pressure some homeowners to dig up rent data — from as long as 46 years in the past — that the law didn’t require them to keep.
The two Manhattan progressives are plainly trying to curry favor with a few rich constituents who’d see the worth of their models skyrocket.
Never thoughts the horrific precedent this could set because the Legislature tears up present contracts by overriding the phrases of settlement.
Even if the law finally received tossed as unconstitutional, it might poison New York’s business climate by proving that the Legislature holds contract rights in full contempt.
If Senate and Assembly leaders don’t quash this insanity, Gov. Hochul ought to tee up her veto pen.
