Posted by Dottie on October 21, 1996 at 15:26:28:
The N.Y.Post published two strong letters under the heading of "A Bum Rap for Rent Stabilization" on their Letters to the Editor page of October 7,1996. I have contacted both the writers to make them part of my "concerned tenants" informal network and am quoting from one of the letters for your information:". . .the fact is that rent regulation has nothing to do with the lack of construction of new housing. Today any builder can build an apartment house and charge any rent he wants to. All he has to do is just not apply for tax breaks available for building rent-stabilized housing. But even under rent stabilization, when he rents his first apartments, he can charge only theRent Guildelines Board increases. So it is a fallacy to cite existing rent regulation as a cause of rhe lack of new apartment-house construction. But there is more to the story than that. Rent regulation quarantees the landlord a profit. If he is making less than 6 percent proft, he will be allowed an increase in rents to provide that profit. There is not other industry or business in NYC that has a guaranteed profit. Not only that, the 6 percent profit is more than he would make if he just stuck his money in the bank. Another fallacy is that rent regulation is casuing the deterioration of housing stock. If a landlord needs as new roof and installs one, he will get a Major Capital Improvement rent increase, which not only gets him his profit for simply taking care of his property, but it becomes a permanent part of the rent history affecting all further rent increases upon renewal of the lease.(written by Stanley Kalfus,President,Walden Terrace Tenants Association, Rego Park.
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