July 2019 Update
The Effects and Contingency Plan Post 2019 Rent Laws

As the dust settles on last month's passage of the Housing Stability & Tenant Protection Act of 2019, landlords and all those involved in the NY real estate industry are grappling with how to adjust to this new reality.  Some are exploring whether the new mandate is feasible for the city as a whole.  Some items to keep in mind on a more macro perspective include:
  1. DECREASE IN REVENUE - Real Estate Property Taxes account for ~35% of the city budget.  With rents either staying frozen or decreasing how will the city be able to offset this loss of revenue growth?
  2. LACK OF LEADERSHIP - As of April 2019, the city had 14 major department head positions to fill and its mayor is exploring a job opportunity elsewhere.  How will the city be able to execute a successful repositioning of one of its most vital industries with a lack of governmental leadership?
  3. INCREASED SPENDING - NYC's swelling spending initiative sees no slow down in sight.  How does the city expend its plan and save for a potential revenue change?
What's clearly outlined behind the legislative text is that the government is posting an "Investment Moratorium" on its housing stock.  
Successfully navigating today's regulatory landscape requires successful collaboration with your tenants and a mastery of the new legislation.  If you are exploring value-add business strategies or defensive strategies on how to protect your asset, please reach out to STRATCO.
Please click here to obtain a summary sheet on the new legislation.
Helpful Links
  1. To view the official press release from NYS Assembly, click here 
  2. To view historical newsletters on STRATCO'S Thought Leadership, click here
  3. If you are part of an investment sales office, and request an office level presentation on the new law changes, click here
  4. To reach STRATCO regarding any other matter, click here
Disclosure of Services
STRATCO does not serve as an attorney and does not provide legal advice.   STRATCO functions as a management consultant on executing highly complex business strategies.  STRATCO functions as an intermediary with client's legal counsel in order to effectuate risk mitigation and regulatory compliance.

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