In New York City, there is a growing crisis for rent-stabilized apartments, with thousands at risk of foreclosure as landlords default on mortgages. Data shows 176 rent-stabilized units have been foreclosed since 2022, a number expected to increase. Owners tend to abandon these units instead of renting them due to financial losses exacerbated by new rent regulation laws and rising interest rates. Tenant advocates worry this could lead to significant displacement as new ownership may not prioritize stabilized rents amidst ongoing housing market challenges.
"It's a bloodbath," said Sarah Saltzberg, co-owner of Bohemia Realty Group, who rents pre-war units in upper Manhattan.
"The owners are under water - that's why in the past year it keeps happening over and over," she said.
A lot of us might end up displaced - a new owner can come in and kick us all out," said Coco Portofe, 34, whose East Village rent-stabilized building is the subject of ongoing court proceedings.
Tenant advocacy groups and Democratic state legislators lobbied hard for these changes, arguing they were necessary to protect tenants against rent hikes and evictions.
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