A 67-year-old woman will continue to reside in a two-bedroom New York City apartment at the rate of $100 a month, after a housing court ruling recognizing her adoption by the former tenant one month before he died.
The woman, who previously lived in another unit in the same building, befriended the aging resident. She went from neighbor to live-in caretaker before acquiring power of attorney, and then being legally adopted as the man’s daughter, according to a news report.
Now, neighbors say she’s running a yoga center and renting out rooms on Airbnb at $50 a night.
Landlords estimate the current market rent for the unit at $1,800. The original tenant remained in the apartment for decades. Earlier this year, New York’s Division of Housing and Community Renewal granted succession rights to the woman after nearly ten years of legal battles. That gives her the right to stay in the rent-controlled apartment for the rest of her life.
The property owners, however, have had enough, and placed the building they’ve owned for 38 years on the market, according to the report.
It’s difficult to understand the increasing popularity of rent control or rent stabilization measures, given that no other private businesses — doctors, hospitals, health insurance companies, utility companies, cell phone providers, grocers — are under the same burden to cap their profits indefinitely so that consumers can stretch their dollars. The reason may be simple demographics. Tenants make up as much as 40% of urban populations, and political candidates win votes by promising lower rents.
Several states, including California, Washington and Illinois are looking at relaxing prohibitions against local rent-control ordinances. Political promises aside, cities that have these measures in place are proving that rent control is not a cure-all for affordability.
A new study conducted by Stanford University indicates that both affordability and inventory suffer in cities with strict rent-control ordinances. Focusing on San Francisco, researchers discovered housing supply there dropped by 15%, causing a 5.1% city-wide rent increase. The group suggests that government subsidies would prove a more effective means to achieve affordability than regulating private landlords.
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Disclaimer: The information provided in this post is not intended to be construed as legal advice, nor should it be considered a substitute for obtaining individual legal counsel or consulting your local, state, federal or provincial tenancy laws.