The Real Deal New York

Millionaire tenants hold on to rent-stabilized apartments

Landlords filed 8,185 petitions to deregulate units from 2011 to 2013: report
April 30, 2014 06:16PM

What do a polo-playing multimillionaire, former tobacco executive and surgeon have in common? All three are among the tens of thousands of deep-pocketed tenants who currently occupy rent-stabilized housing in Manhattan’s poshest zip codes.

Many of these tenants snagged their below-market rentals decades ago, and as of 2010 an estimated 22,642 rent-stabilized households had incomes that exceeded $199,000, according to census data cited by DNainfo. Of those, roughly 2,300 households had incomes of more than $500,000, the news site reported.

“It’s ridiculous,” Carol Kellermann, president of good-government group Citizens Budget Commission, told DNAinfo. “It’s not making affordable apartments available to low-income people.”

Under state law, the Division of Housing and Community Renewal will deregulate a rent-controlled or rent-stabilized apartment if the landlord proves a tenant’s annual income exceeded $200,000 for two consecutive years and the rent was above $2,500 per month. Landlords have tried aggressively to pursue the luxury decontrol procedure in recent years, filing 8,185 petitions from Jan. 2011 to Dec. 2013.

Still, deregulation is a polarizing issue in Albany, with tenant advocates opposed to losing any rent-regulated units while landlords often look to get rid of them in hopes of cashing in on a hot real estate market, according to the news site. [DNAinfo]Julie Strickland

  • Common Sense

    There should be no limit of rent rate. The “And” should be taken out of this law. Further, if you make more than $200k in any year you should pay market rates like the rest of us.

  • Sh!t My Tenants Say

    “Millionaires are able to hold onto RS apartments with hundred dollar rents.” should be the title, and would be much more interesting article. Most people do not even realize who these laws are really protecting, and politicians play them like fools. There is your REAL story,

    • JB

      Because the politicians live in subsidized units too. They claim their government salary which is below $200,000, but nothing is ever said about the hundreds of thousands dollar of campaign contributions that pay for dinners, hotels and vacations that are supposed to be partially reimbursed by the politician but rarely are….

  • WannaBeLandlord

    Someone needs to subsidize their winter vacations to the sixth burough (Miami)

  • determine if they deserve it

    so TEST the tenancy – make them pony up their documents that market rate tenants give up without objection or rudeness

  • noclist

    I think the limit was raised to 250k last time Albany voted to continue it.

    • sickening

      It was RAISED?
      What about landlords who don’t make any money on their buildings and are paying out of pocket to support these apartments?

      What was the justification for raising it? They had to maintain their classic car or pay the maintenance fees on their investment property in Battery Park City?

      PLEASE end succession rights. It is sick that they raised it so they feel that 250k is still poor and needs affordable housing protection?