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June 3, 2015- The Daily News reports that more than 100,000 rent-stabilized apartments will have the rent hiked 20% due to a loophole that allows vacant apartments to receive such hikes. This is one reason that gateway Plaza has vacant apartments. They are smoking out the low-rent-payers, then jacking up the rent 20% for the new suckers. The article states that Downtown will lose the most.
The article explains, “Under the current law, once a tenant moves out of a rent-regulated apartment, the landlord is allowed to jack up the monthly rent by 20%. That process is known as vacancy deregulation. Adding 20% to $2,100 bumps all 100,000 of those apartments out of the program, which cuts off at $2,500. Losing 100,000 relatively affordable apartments — roughly 10% of the city’s total number of rent-regulated apartments — would be a “disaster,” said Michael McKee, a veteran housing advocate and treasurer of the New York Tenants Political Action Committee. “New York City has never had a loose housing market, but it’s worse than it has ever been,” he said.”