Gilbert: 'governments lose with extension of rent regs.'

Real Estate Weekly, June 19, 1991 by Therese Fitzgerald

Gilbert: |Governments lose with extension of rent regs'

"Incredibly ironic", said John Gilbert, president of the Rent Stabilization Association (RSA), upon last week's extension of rent regulation by the state legislature for another two years.

While New York State and City both pass budgets that contain layoffs, cuts in services, and closed parks and: Gilbert balked, "Wealthy New Yorkers are reaping a $100 million subsidy as a result of rent regulation."

After weeks of foot dragging, state lawmakers passed a bill to let stand the current regulation of some 1 million stabilized and controlled apartment units in New York City and some neighboring counties, despite cries from landlords that apartments with rents of more than $1,000 per month should be decontrolled.

While there reportedly was more talk this year of "luxury decontrol," legislators contended that $1,000 per month does not does not deem a tenant wealthy.

Usually, one of the last issues to be decided, rent regulations expire last weekend.

According to the Citizens Budget Commission, said Gilbert, the city could reap another $100 million in property taxes if these higher priced apartments were removed from regulation allowing landlords to charge market rent.

The legislative session is not over, said Gilbert, and landlords will continue to seek relief.

Senator Roy Goodman, one of the legislators that led the charge to extend, said: "With the approval of this bill, tenants can sleep soundly knowing that they will not be subject to wildly sky-rocketing rents."