Landlords Push for Changes Amid Housing Crisis in NYC
As New York City contends with ongoing issues related to homelessness and affordable housing, landlords of rent-stabilized apartments are urging Mayor Zoran Mamdani to modify a state law they believe is keeping many units off the market.
Their call for a relaxation of restrictions on approximately 1 million rent-stabilized apartments follows a new $1.86 billion agreement between the Mamdani administration and the city’s hotel sector to provide emergency shelters for homeless families over the next three years.
However, Ann Korczak, head of the New York Small Property Owners Association, believes the mayor is overlooking much more affordable solutions to the crisis staring him “right in the face.”
She argues that the limits imposed by the Housing Stability and Tenant Protection Act of 2019, which cap rent increases, hinder landlords from performing necessary repairs and upgrades when tenants vacate.
Korczak claimed that due to these restrictions, thousands of apartments remain empty and unavailable for new tenants.
“This law has taken away the financial means for owners to renovate and update their apartments when longtime tenants leave,” said Korczak, who manages two buildings in Manhattan.
“The cap really impacts housing supply,” she continued. “The state passed a law that makes it hard, if not impossible, to invest in these units.”
According to the New York City Housing Vacancy Survey, it’s projected that 26,310 rent-stabilized units will no longer be accessible in 2023.
Critics have labeled these empty apartments as “zombies” or implying that they are being warehoused.
Last fall, small property owners initiated a lawsuit, contending that state-imposed rent caps on vacant units are rendering it economically impractical to lease them out.
However, given the current political landscape, landlords are likely to encounter resistance in pro-tenant councils dominated by Democrats, particularly when proposing rent increases even for maintenance purposes. Democratic Governor Kathy Hochul is also facing re-election this fall.
Mamdani, for his part, advocates for a rent freeze on those 1 million rent-stabilized units as housing prices remain tight across the city.
The mayor, who previously served in the state legislature representing Queens, will appoint members to the Rent Guidelines Committee that will determine the rent for these apartments.
Korczak expressed her disappointment with a critical audit addressing the city’s expenditure on hotel shelters during the migrant crisis, notably a no-bid contract worth $432 million awarded to DocGo.
“The mayor ought to lobby the governor and his former colleagues in Albany to revisit the Housing Stability and Tenant Protection Act of 2019. He should advocate for a relaxation of the strict economic restrictions that are resulting in over 50,000 rent-stabilized apartments going vacant,” she stated.
“After three months in office, the mayor hasn’t presented any concrete housing plans to tackle the long-standing affordable housing crisis,” Korczak added. “Instead, it seems to be a mix of catchy slogans, headlines, and proposals that seem to favor bigger investors over those of smaller, minority-property owners.”
No immediate comments have been provided from the mayor’s office.
