“Overregulation is a constant challenge,” says NAA's Nicole Upano in our latest podcast. Tune in to hear all about the bill's implications.
Nicole Upano, AVP of Housing, Policy & Regulatory Affairs, NAA. Image courtesy of NAA
Seeking to protect New York residents’ rights, housing advocates are pushing for New York State to pass a “good cause” eviction law this year. The bill would cap annual rent increases at 3 percent or 150 percent of the consumer price index, whichever is higher. This is only one of the most controversial elements of the proposed bill that is worrying both multifamily operators and apartment associations.
The bill is meant to stop evictions without good cause and prohibit steep rent increases, but real estate management companies and landlords have expressed concerns that, if passed, the law would in fact hinder necessary repairs and upgrades on protected apartments, limit new development and, ultimately, further exacerbate the affordable housing crisis.
READ ALSO: A Deep Dive into Growing Rent Control Laws, Proposals
For many in the multifamily industry, “good cause” eviction laws are just rent control by another name. In November, St. Paul, Minn., passed the most stringent rent control legislation in the U.S., and the effects of the law are already being felt. Some developers are walking away, abandoning their planned and prospective projects, while investors are looking to reduce their footprints and avoiding investments. California, Florida, Arizona, New Jersey, Ohio and several other states have also introduced some forms of rent control laws, and the NAA is closely monitoring their impact on multifamily operators.
“Overregulation…is probably one of the biggest factors for why housing providers get out of the business because it just contributes to their business no longer being viable,” Nicole Upano, AVP, housing, policy & regulatory affairs at the National Apartment Association, told Multi-Housing News Senior Editor Laura Calugar in the latest podcast from our quarterly series.
Here’s a sample of the topics Upano covers:
- What the bill includes (1:02)
- Controversial elements (3:46)
- Effects of overregulation on housing stock (5:40)
- Other states considering rent control laws (8:56)
- NAA’s policy priorities (11:06)
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