Happy Tuesday and Welcome to another edition Rent free; This week’s stories include:
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Andrew cuoo’s extremely hypocritical attacks on Zohran Mamdani while living in a rented apartment.
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A non -profit -seeking small home builder’s court victory over the great powers of the Georgian city houses.
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Why Blackstone buys a home actually.
Andrew Cumo did New York’s lease control more favorable to the rich. He now goes after Zohran Mamdani to live in a rented apartment.
Personal attacks in New York’s General Mayor are close to home.
In the last few days, Cuano has repeatedly attacked Mamdani, who has already abandoned him as a Democratic chairman for living in a rented apartment, despite earning a convenient $ 140,000 as New York Assembly.
“It’s an abuse of the system,” said Cumo video, which said X. He proposed a new Zohran law on Sunday to remove higher -income people from rental stabilized apartments. His proposal will require that only tenants who are at least 30 percent of their revenue can be taken over by the lease stabilized units.
The Mamdani campaign withdrew that Cumoo is only dirty. Mamdani himself said New York editorial office February He and his wife plan to leave them $ 2,300 a month of rented apartment.
Cumoo rightly points out that most of the approximately 1 million rental stabilized units in New York have no income restrictions where maximum rent and rental increases are restricted by the Board of City Lease Guidelines.
As Rent free Last year, the law allowed millionaires with second houses in Hampton legally rented apartments for hundreds of dollars a month in Manhattan. Detailed Wall Street Journal Analyzing a few years ago, it was found that tenants in the richer parts of the city received the highest hire discounts.
Critics have long said that this lack of testing is only more evidence of how poorly designed the New York Lease Stabilization Act.
Nevertheless, Cumoo is attacking Mamdani for benefits from leasing stabilization when he, as governor in 2019, signed reforms, which led to the New York Lease Stabilization Act much more favorable to rich tenants.
Until 2019 The owners had a couple of ways they could “eliminate” expensive rental joint units.
Occupied lease stable units could be eliminated if the legal rental fees rise above a certain threshold and the tenant’s income was $ 200,000 or more. Free units could also be removed from lease stabilization if legal rent prices have risen above a certain limit. This lease limit 2019 Was $ 2,774.76.
(Mamdani and his wife’s total income are likely to pass them over that revenue limit, although it will take several years to increase the lease until the lease is eliminated to eliminate the cancellation.)
Although these two provisions were not full, direct inspection measures were intended to allow landlords to take market rent for tenants who earned high income and / or could afford to rent a higher price.
2019 The Law on Housing Stability and the Renovation Protection, signed by Cumo by law, has removed both of these opportunities to eliminate rental stable units from price control.
So now, no matter how high income is increasing or how much legal rental rental rent is increasing, a rental stabilized apartment can never be increased by market rates.
2019 The law also made a long list of other reforms restricting the ability of owners to increase lease after vacant space, transfer the costs of building repairs and individual apartments or even deprive them of their property from the rental market.
The result was a dramatic reduction in the value of the rental stabilized buildings, the constant increase in buildings, which cannot legally charge taxes to cover operating costs and increase freely rented apartments where legal rent cannot cover the necessary maintenance.
Mamdani uses rental stabilization and offers to make it difficult when freezing the allowable rent increases. (In June, the Lease Guideline Board allowed the rent to increase the rent by 3 % one year and 4.5 % for the lease agreement.)
However, the “Zohran Law” proposed by Cumo would also make it much harder for the owners of the residential owners, as the stabilization of the rent is further restricted on behalf of justice.
Requiring free rental units to enter low -income New Yorkers, restricting the pool of tenants who could rent the leased stabilized owners. They may also have to spend time checking the applicants’ income.
Additional friction would certainly mean that more units would be free longer.
It is noteworthy that Cumoo does not offer liberalizing reforms to allow the motor owner to charge him a fairer market rate than his apartment.
Ideally, New York Candidates for Mayor Candidates to facilitate (or even perfectly eliminate) lease control laws that create a slow growing housing crisis. Instead, the main candidates change ideas on how to worsen the system.
The size of the rules of Georgia’s judge is irrelevant
Last Thursday, a Georgian judge made a decision for a non -profit Tiny House Hand Up, which challenged the Calhoun city refusing to allow them to build small houses, which will be sold to low -income people.
Tiny House Hand Up was planning to build up to 40 small cottages from 540 to 600 square feet on land, which was donated to it. However, the city rejected non -profit organization’s plans, referring to local zoning restrictions that require a single family home to be at least 1150 square feet.
2021 Tiny House filed a lawsuit with Calhoun with the help of the Institute of Justice. They argued that the minimum size of the city houses was not public and therefore violated the proper protection of the process of the Georgian Constitution.
“These houses are like all the other homes of one family. They are just smaller. What the city did was fundamentally unfounded,” says Joseph Gay, a lawyer at the Institute of Justice, who heard the case in the case.
Calhoun’s lawyers said the “tiny house hand” had no reason to go to court because he could still seek a special type of zoning type that would allow smaller homes.
In court, Gay challenged the idea that the zoning would have allowed his clients to continue his project. He also notes that the city has made it clear before the lawsuit that it will not confirm the changes in zoning necessary to allow smaller homes.
Those contradictory arguments of the city prompted the Gordon District Higher Court Judge to hear the Tiny House Hand Up case.
At a hearing last Thursday, the Judge of the High Court of Gordon District helped Tiny House. From the bench’s decision, the judge blocked the city to execute his minimum home restrictions on a non -profit organization.
Gay says this decision will allow its clients to continue their project when a written order is issued.
Actually Blackstone is good
Institutional investors such as Blackstone have become the latest Boogemen accusations of high housing costs. Critics on the right and left claim that they raise prices and convert their future housing used by the owner into rental units. Congress made suggestions to charge your home buying business from existence.
In a new piece City magazineJudge Grock says the Blackstone and its subsidiary’s invitation home had a positive impact on the home market by stabilizing prices after the great downturn and improving the possibilities of tenants and future home buyers. Writes GLOCK:
When Blackstone and Invitation Homes have been in a single family housing market, the housing and price disaster got into the most important concerns of the country. These firms, along with other buyers, helped stabilize the collapsed market at a time when many others could not or did not. Although critics were broken by an invitation to buy a home during the closure of the market, these were exactly the qualities that, if left free, would have been broken and dragged throughout the surroundings. A recent analysis shows that an invitation spent an average of $ 39,000 for renovation per home – investment that helped to preserve the value of the surrounding home assets.
Many criticized Blackstone and an invitation to force people to rent a home instead of buying them. However, since 2016 Blackstone offered tenants the opportunity to buy homes they rented according to their desired mortgage rates. About a quarter of the tenants who have stopped renting from Blackstone, have become homeowners similar to the percentage of other private capital companies invested in housing.
At the same time, it is unclear why the home is bought only to rent them is so bad. As one recent study has shown, giving tenants to the surroundings of one family has reduced racial and income separation. In other words, Blackstone helps to make many malignant suburbs a variety of racial and social and economic.
Read it all here.
Quick links
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More evidence that construction costs do not provide housing prices in the most planned markets.
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Real estate site A real deal Includes the nightmare of real estate owner Michael Geylik. One city department ordered him to carry out the repair of his lease building, while also prevents the other city department stating that the repair is an attempt to harass his tenants.
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According to the new analysis of the Harvard Joint Housing Study Center, one of three older households is a difficulty of spending, meaning they spend more than 30 percent of their home revenue.
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Wall Street Journal messages For a slow Big Tech billion investment in affordable housing in the bay area. Rules of Permit and Sophisticated Land Use Conspiracy Slow down the efforts of a technology giant, says The magazine;
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Proponents of the Massachusetts Lease Control are organized by the voting bulletin initiative, which would allow areas to adopt a lease control policy in 2026. In the state vote.
The Post Andrew Cumo offers the Zohran Act to remedy the dishonesty of the lease signed by Cumo, first appeared at Hase.com.