Predatory investors beware: City is watching rent-regulated properties

New bill will create "Speculation Watch List"

TRD New York /
Nov.November 30, 2017 05:30 PM

The City Council on Thursday unanimously voted on the “Predatory Equity Bill,” which will create a watch list of rent-regulated buildings where tenants are potentially vulnerable to investors who may want to kick them out.

The legislation requires the Department of Housing Preservation and Development to compile a “Speculation Watch List” of rent-regulated properties with sales prices that are unusually high in comparison to similar sales in the area. City officials feel that such transactions could hint that investors seek to raise rents in the buildings by displacing current tenants.

HPD will complete the list within the next 10 months and update it quarterly.

The council also passed a duo of tenant harassment bills on Thursday. One changes the definition of harassment to include certain construction code violations, such as failure to fix hazardous conditions at a site. The other requires that certain developers get a certificate of no harassment before the Department of Buildings can issue a permit for renovation or demolition work at the property.

Earlier this year, The Real Deal took a look at the flurry of speculative buying in the Bronx from 2009 to 2016. A majority of the deals identified as speculative were rent stabilized. Council member Ritchie Torres introduced the “Predatory Equity Bill” in 2016.


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

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”

Some landlords say they plan to close the door to vacant apartments and wait for the laws to change (Credit: iStock)

Creative ways NYC landlords are getting around the new rent rules

Brokerage firms are strategizing ways to make up losses after the cost of application fees was capped at $20. (Credit: iStock)

Brokerages on rental application fee cap: “It hurts”

An example of roll-off waste management (Credit: YouTube, iStock)

Big building owners prevent city from dumping container-pickup in trash-collection reform

Alex Rodriguez (Photos by Guerin Blask)

A-Rod is coming for NYC and SoFla real estate

“I can talk about erections all day”: NAR tech consultant’s bizarre fireside chat

There will be 70 agents based at the new office (Credit: iStock)

Compass opens Long Island City office as new-development sales surge

arrow_forward_ios