Former Rent Guidelines chair proposes end of vacancy decontrol

In a memo, Marvin Markus comes up with new "marked-to-market" plan

New York /
May.May 18, 2015 09:00 AM

With only 27 days left until the 421a tax abatement and rent regulation laws expire on June 15, former Rent Guidelines Board chair Marvin Markus has inked a memo with some big ideas.

Markus, who served as chair for 13 years and is now a managing director at Goldman Sachs, called for the end of vacancy decontrol, Capital New York reported.

Markus proposed a “marked-to-market” system, under which all vacated apartments would be turned into market-rate apartments but would be subject to the rent-controlled annual increases for the duration of a lease. Landlords would support such a plan, while tenant advocates — who would like to see vacancy decontrol scrapped altogether and 421a eliminated — wouldn’t be too pleased.

Markus’ proposal, according to the memo, would eliminate preferential rent, a legal measure under which landlords can charge more than the market rate.

Eliminating preferential rents, vacancy allowances, IAIs and deregulation will remove a costly bureaucratic system which has bogged down the NYS Homes and Community Renewal, the State agency that administers the rent stabilization system, as well as Housing Courts,” Markus wrote in his memo. “It will free up both money and time for owners to focus on maintaining and running their buildings, which is a benefit for not only the owner but also the tenants who reside in these buildings. If a vacancy ‘marked-to-market’ approach was adopted, the issue of affordability is still a factor.” [Marvin Markus’ memo] and [Capital NY] — Claire Moses

 
 

Related Articles

arrow_forward_ios
John Catsimatidis and 670 Pacific Street (Getty, StreetEasy)
Catsimatidis notches win for landlords in 421a suit; tenants vow to appeal
Catsimatidis notches win for landlords in 421a suit; tenants vow to appeal
Brookfield Properties CEO Brian Kingston and New York City’s Housing Commissioner Louise Carroll (Brookfield, NYC Housing Preservation & Development)
Brookfield suit aims to crack the code of 421a
Brookfield suit aims to crack the code of 421a
Vornado's Steve Roth and a rendering of 93-30 93rd Street (Getty, JLL)
Vornado looks to sell Rego Park development site for $85M
Vornado looks to sell Rego Park development site for $85M
Gary LaBarbera, Sen. Salazar and Sen. Gianaris (Getty)
Real estate winners and losers of the legislative session
Real estate winners and losers of the legislative session
REBNY's James Whelan, Sen. Brad Hoylman and Assemblymember Emily Gallagher (Getty, Whelan via Anuja Shakya)
Bill to audit 421a gets hearing as pols put subsidy in crosshairs
Bill to audit 421a gets hearing as pols put subsidy in crosshairs
HRI executive director Aaron Carr and 700 West 192nd Street (Google Maps, Facebook)
Brooklyn, Manhattan tenants sue landlords over alleged 421a abuse
Brooklyn, Manhattan tenants sue landlords over alleged 421a abuse
1209 Dekalb Avenue in Brooklyn. (iStock, Kutnicki Bernstein Architects)
Industry suffers setback in 421a class action suit
Industry suffers setback in 421a class action suit
New York Attorney General Letitia James and 63-36 99th Street in Rego Park (Getty; StreetEasy)
“Not on my watch”: AG Tish James fines developers who violated 421a
“Not on my watch”: AG Tish James fines developers who violated 421a
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...