Posted by Sir Loving on May 03, 1997 at 01:08:48:
One common misconception is that new tenants subsidize rent-regulated tenants. However, a family that has paid $200.00 a month for 50 years has paid roughly a quarter of a million dollars by now. It's really not fair, after they have paid so much, to pull the rug out from under them by changing the rent laws against them. Many of the 10 unit smaller buildings (worth about 25K in 1947 dollars) were paid for from the rents of these families and have been resold by their landlords. In fact, families who have been in these buildings for 50 or so years have paid for their buildings at least 10 times over. The reason they remain in these buildings is because their limited income is not high enough to move to better homes. Furthermore, if there were no laws, nothing would stop landlords from price gouging when everyone else is scrambling for a place to live. Housing for most people would easily become unaffordable. In earlier years, some landlords were even known to hoard and warehouse apartments just to drive prices even higher. The truth is that most landlords only care about their bottom line or (K-1 distributions) and it doesn't matter to them who gets hurt by even higher rents. In spite of the fact that many of these buildings are run down by now, their properties have commanded very high resale values.
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