The Real Deal New York

City Council moves to combat “predatory equity”

New bills would establish lender and landlord watch lists

June 09, 2016 01:00PM

p5.poster4City Council introduced a set of bills aimed at curbing the practice of buying rent-stabilized units at prices that advocates say only make sense if some tenants are ultimately replaced by higher-paying ones.

If passed, the bills would create a pair of watch lists – one for lenders, one for landlords – that would track real estate players’ involvement with such “predatory equity”-backed purchases.

The bill would also create a task force to determine criteria for inclusion on the lists, Politico reported.

Manhattan District 4 representative Daniel Garodnick helped form the Coalition Against Predatory Equity in 2014 to develop legislation around the issue. It included more than 40 elected officials.

On Wednesday, The Real Deal’s Will Parker appeared with affordable housing advocates on BRIC TV to discuss landlords’ efforts to “de-tenant” their multifamily buildings to boost their income. [Politico]Ariel Stulberg

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