Advocacy group calls for end to vacancy rent spikes

Law allows 20 percent increases

New York /
May.May 18, 2016 11:00 AM

Tenant advocates are urging lawmakers to repeal what they call the “eviction bonus,” rent increases allowed when apartments are vacant.

Under state law, landlords can increase rent by up to 20 percent upon vacancy, though the city’s Rent Guidelines Board has recently kept these spikes down to record lows and down to zero for one-year leases. The Community Service Society of New York released a report on Tuesday arguing that the vacancy allowance leads to more stabilized apartments than annual rent increases.

Landlord groups, however, argue that the law provides necessary revenue to maintain their buildings, the New York Times reported. One landlord group, the Rent Stabilization Association, said the vacancy allowance typically increases rents by 10 percent. Since the Rent Guidelines Board is considering another rent freeze for one-year leases, landlords argue that the vacancy allowances will become even more crucial.

Tenant groups lobbied Albany on Tuesday to repeal the allowance, though a bill to do so has failed to make it through the state Assembly for several years, the newspaper reported. Some see the repeal as a way to give back to tenants as talks over the future of 421a — sometimes criticized as a giveaway to developers — continue. [NYT]Kathryn Brenzel


Related Articles

arrow_forward_ios
From left: Stonehenge NYC's Ofer Yardeni and UBS' Ralph Hamers along with 408 East 92nd Street (Getty, Stonehenge NYC, UBS, Google Maps)
Yardeni’s Stonehenge pays $115M for Upper East Side rental
Yardeni’s Stonehenge pays $115M for Upper East Side rental
a stalled construction site in New York
Expired 421a deadline jeopardizes 33K housing units
Expired 421a deadline jeopardizes 33K housing units
Housing Rights Initiative's Aaron Carr and Muss Development's Jason Muss
Judge reopens tenants’ 421a rent overcharge suit against Muss
Judge reopens tenants’ 421a rent overcharge suit against Muss
REBNY’s Basha Gerhards with 1727 Amsterdam Avenue and 806 Ninth Avenue
These projects survived the 421a apocalypse
These projects survived the 421a apocalypse
Kathy Hochul, Housing Construction
Hochul to localities: Build more housing or get out of the way
Hochul to localities: Build more housing or get out of the way
A photo illustration of The Real Deal's Kathryn Brenzel
Hochul’s real estate priorities for 2023
Hochul’s real estate priorities for 2023
What’s the Plan B for 421a?
What’s the Plan B for 421a?
What’s the Plan B for 421a?
Development, Multifamily Real Estate, REBNY
Rental housing pipeline shrinks 68% in 3 months
Rental housing pipeline shrinks 68% in 3 months
arrow_forward_ios

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

Loading...