Proposed legislation in New York state seeks to curb property rights and enact a statewide rent cap.
New York state is part of a growing number of states and localities looking to unfavorable housing policies, undoubtedly spurred in part by the pandemic’s lingering harm to housing affordability. Enter New York’s S.3082, which seeks to prohibit eviction “without a good cause.”
Though the legislation has a catchy title, the law itself disregards the reality of rental housing operations and defies the very real need for unit repair and renovation (76 percent of New York apartment buildings were built before 1980). That’s because under the so-called “good cause” bill, housing providers would be unable to take possession of units solely for the purpose of transforming or upgrading units.
Further, the bill deems any rent increase of more than 3 percent or 1.5 times than the regional inflation rate, whichever is higher, as “unreasonable.” Housing providers could seek approval from the courts, but the cost of counsel is another added expense with no guarantee of a favorable ruling. Instead, buildings would continue to age and housing providers would be unable to properly maintain properties.
The bill essentially equates to a statewide rent cap and would severely harm existing housing and investment into new housing. It would also subject lease termination to court review and interfere with housing providers' ability to nonrenew leases for valid business reasons. Importantly, it also applies to all rental housing except owner-occupied 1-4 unit properties.
Bills like S.3082 place unnecessary burdens on the industry and will lead to less housing as existing units age out of the market and new construction grinds to a halt – exacerbating the nation’s housing affordability crisis. The National Apartment Association (NAA) and our affiliate partner, the Community Housing Improvement Program (CHIP) of New York City, remain staunchly opposed to rent control in any form and unnecessary “good cause” eviction legislation. We continue to battle adverse policies and will continue to provide updates on the threats facing the industry.