Politicians in NYC support rent control for high-income individuals under the guise of assisting the middle class

A new bill being quietly advocated by Manhattan state Sen. Liz Krueger and Assemblywoman Linda Rosenthal is offering rent control for wealthy individuals under the guise of protecting middle-class New Yorkers.

This bill specifically targets approximately 100 co-op buildings in the city that are situated on land owned by someone else; typically, these “ground leases” are renegotiated every few decades.

The proposed legislation seeks to modify these contracts retroactively by placing limits on rent increases for the land, ensuring lease renewals, and granting the coop the ability to intervene if the landowner decides to sell the property.

This benefits affluent Manhattan residents whose high-end apartments could fetch over $1 million on the market.

Notable beneficiaries of this bill include corporate lawyer Jonathan Karen and real estate investor Adam Flatto, who have previously donated to Krueger and Rosenthal. Sen. Brad Hoylman-Sigal, who pushed the bill through a committee, also stands to benefit from it.

Karen owns three co-op apartments in a Billionaires Row building, while Flatto’s firm could maintain lower costs at its condo spaces while charging high rents to its retail tenants.

Krueger and Rosenthal primarily represent wealthy co-op owners in the city, who are the main influencers behind this bill.

In an attempt to gain support from progressives, they claim the bill is based on the Good Cause Eviction measure, which aims to protect working-class individuals, not the wealthy.

Critics argue that the proposal may not hold up in court due to violations of the Constitution’s Contracts and Takings clauses.

If the bill passes, it sends a message that the Legislature is willing to alter private contracts for the benefit of a select few wealthy individuals, potentially deterring future business in New York.

Governor Hochul may veto the bill, and it is advised that leadership in the Legislature rejects it before it reaches her desk.