The Rent Guidelines Board recommended increasing the rent on stabilized apartments in New York City, NY1 reported, but by a smaller amount than last year’s rise. Still, the decision was met by jeers from protestors during the vote. The decision approves rent growth of 1.75 percent to 4 percent for one-year lease renewals and rises of 3.5 percent to 6.75 percent on two-year leases. Last year the increases were 3.75 percent and 7.25 percent for one and two-year leases, respectively. [more]

From the April issue:

Mayor Michael Bloomberg

Despite a Supreme Court challenge Mayor Michael Bloomberg signed a bill to declare a formal state of emergency in New York City with regard to housing, allowing him to extend rent regulations for another three years, the New York Times reported.

The mayor cited a citywide residential vacancy rate of 3.5 percent as the reason for the extension, at a ceremony this week where he signed the bill. Legally, rent regulations must be terminated if a citywide vacancy rate higher than 5 percent exists. [more]

From left: Landlord James Harmon, Manhattan Sen. Liz Krueger, and Assembly member Linda Rosenthal

The U.S. Supreme Court’s interest in hearing a Manhattan-based civil case could tweak New York City rent-stabilization laws, NY1 reported.

The case of James Harmon, an Upper West Side landlord who owns a five-story townhouse on West 76th Street near Central Park, will challenge the constitutionality of these laws as he sees it: of having him subsidize tenants to live in his own home. Harmon told the New York Daily News in December it’s unfair for him to subsidize his long-time tenants when they can afford to pay market rates. [more]

Though courts on all levels have routinely upheld rent stabilization laws, and despite the fact that his own case has been dismissed by two state courts, James Harmon has caught the attention of the U.S. Supreme Court in his bid to fight the regulations. But according to the New York Law Journal, Harmon isn’t any more likely to win his case than previous challengers – even after the Supreme Court requested the city file a response explaining the courts’ aforementioned dismissals. [more]

From left: 90-36 149th Street and George Subraj of Zara Realty

Tenants at 90-36 149th Street in Jamaica, Queens, are suing landlord Zara Realty after they were charged lump sums for capital improvements made to their building, the New York Daily News reported.

Long-time tenants at the rent-stabilized building say they were charged the increase in one installment because the landlord wants to force out lower-income residents. Charges included $145 to replace windows that were broken during construction, according to tenants.

The suit says tenants were charged more upfront than the landlord was entitled to collect, and that repairs tenants should not have to pay for were billed to residents.
[more]

James Harmon, a former federal prosecutor who owns a townhouse on West 76th Street near Central Park, could be going before the U.S. Supreme Court to fight rent regulation.

The New York Times reported that Harmon has lost twice in lower courts, including in the Court of Appeals in Manhattan in September, but the Supreme Court has taken notice of the case and asked the city and state to file answers to Harmon’s petition to be heard.

Harmon, who lives on the parlor floor of the house and rents out the top floors as six one-bedroom apartments, claims that the rent laws are a “taking” of his property. [more]

REBNY head Stephen Spinola

From the December issue: The more than 12,000 members of the Real Estate Board of New York will soon be reaching for their checkbooks to send their annual dues to the influential trade group. And there’s no doubt many will be engaging in a yearly cost-benefit analysis of the nonprofit’s value.

Members pay more than $6 million per year in dues — which are supposed to be in on Jan. 1 — and the group takes in several million more through its annual gala and other income that make up its approximately $9 million annual budget.

The 115-year-old organization is the undisputed top real estate organization in the city, and presents a powerful and unified public front. But there are rumblings of discontent, partly because it operates with a lopsided distribution of power. For example, building owners and residential firms are contributing roughly the same amount of money to the organization, but owners outnumber residential brokers on the board 10 to 1. 

[more]

An Upper West Side landlord who owns a five-story brownstone on West 76th Street with six rental apartments has petitioned the U.S. Supreme Court to free him of rent stabilization laws, arguing that it’s unfair for him to have to subsidize tenants wealthy enough to pay market rates, the Daily News reported.
Three of James Harmon’s six units are occupied by tenants who pay 59 percent below market value, the News said. All three of them have lived in the building for more than 30 years.
“My family has carried the burden of this for 40 years and enough is enough,” Harmon said.
The U.S. Supreme Court has compelled the city to answer the petition by Jan. 4, 2012. [NYDN]

More New Jersey towns have rent-control rules than any other state in the country, but according to the Wall Street Journal many of those municipalities are moving to eradicate parts of the law.

Last week two cities, Hoboken and Bayonne, voted to soften rent-control rules, with the former limiting the amount tenants can recoup from past overcharges and the latter decontrolling apartments after tenants move out. The state’s controlled units typically have rent appreciations that correspond with the Consumer Price Index, or about 2 percent, per year. In recent years, nine towns have chosen to phase out the laws entirely. [more]