Tightening rents and the reduction of safety net programs have led to a deterioration of affordable housing in New York City, particularly in older rent-stabilized apartments. Almost 1 million rent stabilized apartments exist, with most built before 1974 and concentrated in low-income neighborhoods. The 2019 Housing Stability and Tenant Protection Act negatively impacted cash flows, making it harder to manage rising expenses and perform necessary repairs. Concurrently, safety net programs like J-51 have diminished, further complicating the sustainability of affordable housing amidst rising operational costs.
The combination of tightening rents and diminished safety net programs has precipitated a slow but accelerating deterioration of this 'naturally occurring' affordable housing.
The 2019 Housing Stability and Tenant Protection Act put a tourniquet on the cash flows of lower-income buildings—eliminating rent increases on vacancies and sharply narrowing permitted increases for capital improvements.
This older housing is arguably the largest source of affordable housing in the city, with more than 780,000 apartments built before 1974, primarily in low and moderate-income communities.
Recent testimony by the Furman Center to the Rent Guidelines Board documented the challenges in operating aging buildings amidst rising expenses and insufficient safety net programs.
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