The New York State Legislature has reached a compromise on a new housing bill that would, among other things, reform eviction standards and increase tax breaks for landlords. Most notably, this would include a version of a “good cause eviction” standard that would make it harder for landlords to remove tenants, as well as a new version of the 421a property tax break. Neither landlords or tenant advocacy groups were happy with the compromise, but there are enough concessions to both that it seems reasonably likely to pass.
What is in This Housing Deal?
The first major part of the deal is a watered-down version of the “good cause eviction” standard that tenant advocates have sought, which places limits on the ability of landlords to evict tenants based on their inability to pay increased rent. The second part of the bill replaces the now-expired 421a property tax break, now called 485x, which could provide up to a 40-year property tax exemption for certain development projects. The deal also would increase the cap on improvements to rent-stabilized apartments, and would reduce population density standards for New York City.
What is the Purpose of the Deal?
The new housing deal is intended to address concerns from both tenant advocacy groups and landlords, who have seen increasing issues due to higher housing prices and ever growing rent. The “good cause eviction” standard is intended to make it harder for landlords to evict a tenant without cause, while also placing limits on how high a landlord can raise the rent upon the renewal or expiration of a lease. The tax break is meant to encourage the construction of new housing, while taking pressure off landlords from high property taxes.
What Do Landlords Think of the Deal?
Landlords are not happy with even the watered down version of the good cause eviction standard, as they say it may lead to “perpetual tenancy,” where it could become impossible to remove a tenant that does not want to leave. They are happier with the ability to increase the amount they can charge for rent stabilized-apartments, and seem mostly pleased with the proposed 485x tax credit. However, they are still concerned about good cause eviction standards forcing them to keep tenants in apartments they would otherwise be able to remove.
What Do Tenants Think of the Deal?
Tenant advocacy groups were overall displeased with the version of the good cause eviction standard that has been negotiated in the housing deal. While it is better than nothing, they see it as being lackluster compared to the original proposed version, which would have placed stricter limits on landlords trying to increase rents on existing tenants. The potential increases on rent-stabilized apartments are also disconcerting, as those apartments remain some of the few ways for people to obtain affordable housing in places like New York City.
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