Rent-regulated landlords could get battered with new city assessment

Preliminary building assessments rose by 10.8% on average this year

TRD New York /
Feb.February 04, 2016 08:44 AM

Landlords of rent-stabilized apartments will see their property tax payments rise significantly in the coming year, while rental income will stay put.

Preliminary tax assessments on apartment buildings rose by an average of 10.8 percent citywide, the largest increase in 20 years. While tax rates won’t change, tax payments will nonetheless rise, straining the finances of the owners of buildings with rent-stabilized units, the Wall Street Journal reported.

“It definitely takes a toll on landlords,” Michael Weissman of Most Reliable Management, a firm that represents rent-stabilized landlords in Brooklyn, told the Journal.

The city’s Rent Guidelines Board is enforcing a freeze on rent-stabilized rents in the city this year.

The Rent Stabilization Association’s Aaron Sirulnick, told the Journal the increases represented “a continual crisis.”

“We support affordable housing, but it is virtually impossible to keep up with the expense side when the revenue is capped at zero percent,” he told the paper.

City officials defended the increase, citing market forces and playing down the severity of landlords’ financial straits.

“The roll simply reflects the growing real-estate market and construction activities,” Jacques Jiha, the city’s Commissioner of Finance, said in a statement.

State law requires that the city phase assessment increases over five years, with only 20 percent of any one increase charged in the first year.

“The data doesn’t bear out [landlords’] claims of poverty,” Rent Guidelines Board’s tenant rep Harvey Epstein told the Journal. “If there was any real proof that landlords were suffering, we would come up with a solution to protect those landlords,” he said. “Nobody wants to see wholesale foreclosures—it is bad for tenants.” [WSJ]Ariel Stulberg


Related Articles

arrow_forward_ios
Blackstone CEO Steven Schwartzman and Stuyvesant Town (Credit: Getty Images)

After authorities vowed review of Stuy Town deal, Blackstone changes course on vacancies

After authorities vowed review of Stuy Town deal, Blackstone changes course on vacancies
Tete-à-tete with TRD: How landlords are dealing with New York’s new rent laws

Tete-à-tete with TRD: How landlords are dealing with New York’s new rent laws

Tete-à-tete with TRD: How landlords are dealing with New York’s new rent laws
Real Capital Analytics data showed that New York’s multifamily market had a very slow July. (Credit: iStock)

New NYC rent law “beginning to shut down investment”

New NYC rent law “beginning to shut down investment”
(Credit: iStock)

No Covid break for big properties with unpaid taxes

No Covid break for big properties with unpaid taxes
After the rent law of 2019 passed, multifamily market values plummeted. But tax assessments are unchanged (Credit: iStock)

Rent law dented property values – but not tax assessments

Rent law dented property values – but not tax assessments
Mayor Bill de Blasio (Photo by William Farrington-Pool/Getty Images)

Who made de Blasio’s real estate reopening council — and who didn’t

Who made de Blasio’s real estate reopening council — and who didn’t
Photo illustration of Governor Andrew Cuomo (Credit: Cuomo by Stefani Reynolds/Getty Images; iStock)

Escaping New York? Tax man is right behind you

Escaping New York? Tax man is right behind you
Mayor Bill de Blasio (Credit: Getty Images; iStock)

Bleeding cash, de Blasio outlines $2.7B in cuts, higher fines

Bleeding cash, de Blasio outlines $2.7B in cuts, higher fines
arrow_forward_ios

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

Loading...