No Deal on Rent Regs as Midnight Deadline Approaches

The state Senate introduced last-minute legislation laying out its position on expiring rent regulation laws in recent days, but the Senate and Assembly have yet to come to an agreement with the regulations set to lapse tonight at midnight.

“It’s expiring today, and I don’t think there’s an agreement on it,” state Sen. John Bonacic, a Republican, told reporters this afternoon.

Some Assembly Democrats were also pessimistic about reaching a deal, with Assembly Speaker Carl Heastie quickly shooting down controversial elements of the Republicans’ proposal. But Assembly Housing Chair Keith Wright said that hopefully “productive conversations” can start now that the Republicans have staked out a position.  

“At least there’s some kind of position that they’ve taken in the eleventh hour,” Wright, a Manhattan Democrat, told City & State on Monday. “Hopefully we can have some productive discussions today up until midnight.”

Assembly Democrats have pushed not only to extend the laws, but to strengthen them and include more tenant protections.

Senate Republicans introduced a bill on June 12 that is similar to the current rent regulation laws, but included language that could be construed as favorable to landlords, including mandatory verification of income and residency of tenants in rent-regulated units.

Republicans say their proposal, which features an eight-year extension of the regulations, would offer more stability and predictability for tenants as well as other benefits, including establishing the state’s existing tenant protection unit in law. Other elements of their proposal would freeze rents for senior citizens, the disabled and low-income tenants. 

“It also is pro-tenant in that it increases fines against landlords who harass tenants,” state Sen. Cathy Young, who chairs the Senate Housing Committee, said Monday. “It also codifies the TPU, which is something that tenants wanted. In addition it provides accountability, because it would, like every other program the state oversees, have a verification for income, because it’s in the law that people in rent-regulated apartments need to meet certain income limits and also it has to be the primary residence of the people living there."

Wright introduced a separate bill this weekend to extend the rent regulations for two days in case an agreement is not reached before midnight. The short-term extension would last through the scheduled end of the legislative session on Wednesday.

Young declined to comment when asked about the possibility of a two-day extension, focusing instead on her conference’s legislation that she expects to pass the Senate today. But she suggested that there was still time to reach a deal.

“I think everybody is willing to talk and everybody in our conference understands the need for affordable housing, and we’re big supporters of that,” she insisted. “But at the same time, we feel that we’ve put together an excellent plan so I believe that’s one we’ll be passing today.”

Gov. Andrew Cuomo recently proposed linking the Education Investment Tax Credit, a bill supported by Senate Republicans as well as some Democrats, and stronger rent regulation laws that is a top priority for Assembly Democrats.  

The linkage has not gained much traction on either side, but Wright refused to say whether the EITC is the reason a rent regulation deal has not yet been reached.

“I think we’ve bended an awful lot,” Wright said. “Rent regulations are nothing to play with. People are scared. We’re talking about well over 2 million people that are affected by rent regulations—including myself.”

Meanwhile, Senate Republicans introduced a new version of the Education Investment Tax Credit today that addresses differences with the governor’s version. State Sen. Simcha Felder, a champion of the bill, said that the new version would increase the income threshold to $110,000, up from $60,000, for families to qualify for the $500 credit.

“I’m hoping this will raise the income level to allow middle income families, because that’s the purpose of the tax credit,” Felder said. “What’s new about it is it allows middle income families to benefit from the credit as well.”