We Need Rent Hikes To Keep Buildings In Good Shape, Landlords Say

NEW YORK — Rent reforms aimed at protecting New York City tenants would make it tougher to keep the city's housing stock in good shape, landlords argue.

Tenant advocates and Democratic state lawmakers are pushing for changes to the state's rent laws that would further restrict when and how much landlords could hike rents in certain apartments amid concerns about housing affordability.

But small-time building owners say changing the laws would make it harder for them to pay for repairs and renovations that keep apartments up to snuff for tenants.

"For us to invest in these buildings and create good quality of life conditions for our tenants, we need these programs to continue," said Chris Athineos, who owns nine Brooklyn buildings containing about 150 apartments.

Athineos was among about 15 landlords and contractors who addressed reporters near City Hall Thursday morning ahead of a state Assembly hearing on rent reforms. Changes to the state rent laws governing the nearly 1 million rent-stabilized apartments in New York City will likely become one of the most contentious issues in Albany before the current rules expire in June.

Some of the reforms that advocates are pushing would restrict rent hikes related to tenant turnover so-called major capital improvements.

Current law allows landlords to hike prices in rent-stabilized apartments after making fixes that benefit all tenants, such as work on boilers, windows or roofs. Advocates and lawmakers want to end those increases because they pass on the costs of repairs to tenants for years to come.

Landlords can also increase rents in rent-stabilized homes as much as 20% when a new tenant moves in and jack the price up to market rate when the rent hits a certain threshold. Advocates say those provisions give landlords an incentive to push out longtime tenants so they can profit from new ones.

But landlords argue the current laws give them the financial resources to make needed fixes in their buildings and spruce up apartments when tenants leave.

The proposals in Albany "would make it very, very difficult for me to maintain my building and also to make the needed repairs," said Stephanie Kirnon, the owner of a 25-unit building in The Bronx.

Rent increases for major capital improvements don't account for the debt service landlords pay when they borrow money for the work or the cost of help from engineers and consultants, Athineos said. Landlords' investments also benefit local contractors whom building owners hire to do the work, he said.

Richard Martinez, a contractor, said he won't be able to keep his employees working if lawmakers don't take a "responsible" approach to the rent laws.

"It’s very important that the state legislators consider (the) side effect of changing these laws and how it’s going to affect me," Martinez said. "... We don't want to go back to the '70s."

Kirnon said she wants to pass her building on to her grandchildren. But if the proposed reforms get through the Legislature, she said, "I really do not know what I would do. Maybe I may have to sell."