Council considers monitoring so-called predatory landlords

Three new bills aim to create watch list, track owner finances, and make foreclosure process easier for city

TRD New York /
Nov.November 01, 2016 11:10 AM

The New York City Council introduced three bills Monday that aim to provide greater protection to tenants at risk of being illegally evicted.

The three pieces of legislation target so-called predatory equity landlords, DNAinfo reported. The term refers to landlords who buy buildings at high prices in the hope they will earn back the money once the rent-stabilized or rent-controlled units are de-regulated. Advocates say tenants in these types of buildings are particularly vulnerable to being pushed out.

If these bills become law, the Department of Housing Preservation and Development would have to record and publish a watch list of building owners who have a history of engaging in practices associated with predatory equity landlords (a high debt-to-income ratio, high levels of turnover, tenant harassment, among others). A second bill would give greater credibility to tenants who live in buildings with high debt-to-income ratio if they allege harassment in Housing Court. The third bill would expand the city’s ability to foreclose and sell buildings where owners have incurred high numbers of unsatisfied building violations.

The bills were introduced by Council members Ben Kallos, Dan Garodnick, Jumaane Williams and Ritchie Torres.

The HPD opposes key elements of the proposed legislation.

“Not all owners who enter into overly optimistic or poor investments intend to, or do, disrupt the lives of tenants or engage in bad behavior. And even owners who intend to try to convert rent-regulated units to higher rents may stop short of engaging in harassment, neglect or other displacement tactics,” HPD’s Vito Mustaciuolo said at a recent City Council hearing.

He also said that tracking financial information of so-called predatory equity landlords would be a financial burden “and would be limited by data constraints, regulatory and jurisdictional complications, and the perils of predicting real estate markets in general.” [DNAinfo]Miriam Hall


Related Articles

arrow_forward_ios
Judge David Zuckerman (iStock)

Judge tosses landlords’ challenge to New York eviction limits

Judge tosses landlords’ challenge to New York eviction limits
(iStock)

With eviction moratorium set to expire, landlord-backed group raised more funds to help renters

With eviction moratorium set to expire, landlord-backed group raised more funds to help renters
National Apartment Association CEO Bob Pinnegar and Health and Human Services secretary Alex Azar (NAA; Getty)

Group representing 85K landlords joins suit to stop CDC eviction ban

Group representing 85K landlords joins suit to stop CDC eviction ban
Governor Andrew Cuomo (Getty; iStock)

Commercial evictions, foreclosures halted through October

Commercial evictions, foreclosures halted through October
President Donald Trump (Getty, iStock)

Evictions banned through December for most US tenants

Evictions banned through December for most US tenants
Governor Andrew Cuomo (iStock; Getty)

Rent woes had tenant hotline ringing off hook

Rent woes had tenant hotline ringing off hook
Commercial evictions are on ice — for now

Commercial evictions get green light, but only in name

Commercial evictions get green light, but only in name
Governor Andrew Cuomo (iStock; Cuomo by Stefani Reynolds/Getty Images)

End of eviction ban to unleash 14,000 warrants in NY

End of eviction ban to unleash 14,000 warrants in NY
arrow_forward_ios

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

Loading...