QUESTION
What are the trends between rent stabilized units built before and after 1974?
1:06:28
·
3 min
The Department of Housing Preservation and Development (HPD) is beginning analysis on trends between rent stabilized units built before and after 1974, but a comprehensive comparison is not yet available.
- Rent stabilization covers about 1,000,000 units in NYC, with 780,000 built before 1974 and approximately 190,000 built after.
- The 1974 date is significant due to it marking the inclusion of units under the Emergency Tenant Protection Act.
- Units subject to rent stabilization vary, including those by virtue of being older buildings with 6 or more units or participation in affordable housing programs.
- Tax benefit programs, particularly J51, also play a role in obligating rent stabilization for receiving benefits.
Pierina Ana Sanchez
1:06:28
Are there any observable trends that you can share at this time between rent stabilized units that are rent stabilized built before 1974 and post 1974?
Elyzabeth Gaumer
1:06:40
So we've only, again, started to sort of do the next layer of analysis in this.
1:06:45
We haven't done a tremendous amount of work in pre 1974 versus post 74.
1:06:51
What I can give is some context and then always open to whatever analytic questions, if particular, you're interested in.
1:07:00
So for those of you that are not so fluent in rent stabilization, as a reminder, rent stabilization covers about a 1,000,000 units in New York City.
1:07:11
This is separate from rent control, which is very different, older form of rent regulation.
1:07:17
And 1974 is a very important date in rent stabilization.
1:07:20
Right?
1:07:20
The million units are a very diverse group.
1:07:22
They cover a lot of different cohorts of buildings that were built under different programs, they're subject to rent stabilization for various reasons, right, etcetera.
1:07:33
It's very, very diverse group of that million units.
1:07:36
1974 is important because that sort of is is often used as a proxy for original rent stabilized units.
1:07:43
That were statutorily part of rent stabilization under the Emergency Tenant Production Act of 1974.
1:07:50
There's our date, 74.
1:07:53
And that is still a very, very large share of that 1,000,000 units.
1:07:57
It's about 780,000 of the 1,000,000 or so rent stabilized units.
1:08:03
Are built before 1974.
1:08:06
But the one thing that I will say to that is that and that means that about a a 180, 190,000 were built after 74.
1:08:17
Because of the nature and sort of the layered rent stabilization statutes.
1:08:23
It's important to note that we have units that are subject to rent stabilization or by virtue of being older buildings, 6 or more units.
1:08:32
But the other way that units opt in or become subject to rent stabilization primarily is through either tax benefit programs or participation in affordable housing program.
1:08:43
Right, where our regulatory agreements require them to be red stabilized.
1:08:47
So when we talk about 1974, those older buildings just a reminder that many of those are also part of an affordable housing program.
1:08:56
Right?
1:08:57
Our preservation work is almost conclusively in older rent stabilized buildings that sort of overlap with that, and also tax benefit programs, particularly J51.
1:09:07
Right, which we know is in discussion right now.
1:09:11
But J51 also would obligate rent stabilization and change for receiving those benefits.
1:09:16
And that tax benefit program also ex almost exclusively served older rent stabilized buildings.
1:09:23
So Just a reminder that 74 is an important marker in many ways, but is not really a very complete look at what types of units are subject to unstabilization or why.
Pierina Ana Sanchez
1:09:35
Yeah.