New York State Rent Control Update
January 31, 2022
As CREFC previously covered, New York’s legislature is considering “good cause eviction bills” to implement statewide rent control. Click here for CREFC’s summary of the bills. Assembly Bill A5573 and NY Senate Bill S3082 would cap New York multifamily landlords’ ability to raise rents at 3% or 1.5 times the annual percentage change in the Consumer Price Index (6.8% as of 11/30/21), whichever is greater.
Governor Silent on Bill
New York Governor Kathy Hochul (D-NY) is a critical voice in whether rent control will make its way into law, but so far she has declined to weigh in on the specific bill. On January 15, Hochul allowed the state’s long standing eviction moratorium to expire. The moratorium had been in effect since March 2020.
Importantly for the bill’s opponents, it is not currently in the Governor’s Budget, which is a feature of the New York legislative process and a fast track for many bills. Hochul’s budget does address housing concerns and proposes a $25 billion housing plan to create and preserve 100,000 affordable homes over five years.
Even absent an appearance in the budget, the bill could still advance as the legislature has the opportunity to make counter-offers to the budget, which require the Governor’s approval. A standalone bill could also advance.
The 2022 Governor’s race may affect the rent control bill’s fate, as well. While the field is far from set, Hochul has drawn challengers from the moderate and progressive wings of the party. Notably, Attorney General Letitia James’s withdrawal from the race removes a key obstacle for the incumbent. Still, moderate Congressman Tom Suozzi’s (D-NY-03) entry in the race could give progressives leverage to recruit a challenger or pressure Hochul to support their priorities. The primary is June 28, 2022.