{"id":17724,"date":"2020-06-30T00:15:00","date_gmt":"2020-06-29T21:15:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/nycs-rent-stabilized-owners-need-tax-relief\/"},"modified":"2020-06-30T00:15:00","modified_gmt":"2020-06-29T21:15:00","slug":"nycs-rent-stabilized-owners-need-tax-relief","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/nycs-rent-stabilized-owners-need-tax-relief\/","title":{"rendered":"#NYC\u2019s rent-stabilized owners need tax relief"},"content":{"rendered":"

“#NYC\u2019s rent-stabilized owners need tax relief<\/strong>”<\/p>\n

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June 29, 2020 |<\/span> 5:15pm <\/p>\n

\n With property taxes due July 1, it should come as no shock to anyone that thousands of building owners will be unable to make their equivalent of rent payments on time. That doesn\u2019t bode well for a city already teetering on the brink of economic collapse.<\/p>\n

Not long into the novel-coronavirus outbreak, the New York City Office of Management and Budget said it was putting aside $180 million in anticipation of July 1 property-tax delinquencies. But officials didn\u2019t anticipate the length or economic severity of the pandemic. The real figure needed could be twice that amount.<\/p>\n

Landlords are in this predicament because there has been a 25 percent to 35 percent decline in rent collection since April, shortly after COVID-19 shut down the Big App<\/a>le. But small building owners \u2014 mom-and-pop operations, mostly immigrants and people of color \u2014 aren\u2019t getting rent from as much as 50 to 60 percent of their apartments.<\/p>\n

Take Lincoln Eccles. The son of Jamaican immigrants, he owns a 14-unit building in Crown Heights. He has been working on payment agreements with half of his tenants, and that doesn\u2019t include two apartments that haven\u2019t paid rent since 2018. The property taxes due today represent 60 percent of his rent rolls, revenue he simply doesn\u2019t have. Not to mention, Eccles is also grappling with a $9,000 emergency boiler repair.<\/p>\n

On average, property taxes account for nearly 40 percent of a building\u2019s rent stream. But government continues to ignore the dramatic decrease in residential and commercial rent revenue and its crushing financial impact on building owners like Eccles.<\/p>\n

Despite thousands more stories like that of Eccles, Mayor Bill de Blasio has his hand out this week, expecting landlords to pay their real-estate taxes on time, in full, or face harsh penalties. But here\u2019s the thing: Landlords can\u2019t pay their property taxes with rent revenue they don\u2019t have. Landlords aren\u2019t cash cows and the small owners, especially, aren\u2019t sitting atop hidden pots of gold.<\/p>\n

Last Thursday, some responsible members of the City Council tried to cut landlords a break by proposing legislation that would have dropped interest rates for delinquent property-tax payments to zero percent. But Hizzoner instructed his minions to text members during their meeting, warning that anything less than maintaining the existing 18 percent interest rate would bankrupt the city.<\/p>\n

Although the council ultimately voted to lower the interest rate to 7.5 percent \u2014 a step in the right direction \u2014 it is unconscionable to squeeze any penalties from landlords at a time like this. It also comes with a means-test caveat, which is kind of hypocritical, considering that fewer than two weeks ago, de Blasio instructed the rent board to implement a rent freeze for all tenants. That freeze came with no means test, no requirement of proof of economic hardship.<\/p>\n

Then, last Friday, the mayor tried to pressure Gov. Andrew Cuomo to extend the moratorium on evictions and give tenants a yearlong grace period to catch up on missed rent payments. New normal, same old de Blasio politics: prohibiting, deferring and cutting off the rent stream; not caring that landlords won\u2019t have the resources to repair, maintain and upgrade apartments and buildings, pay employees and meet additional costs of daily sanitizing efforts; oblivious that owners provide jobs to local residents and support neighborhood business.<\/p>\n

Property taxes last year accounted for nearly half of the city\u2019s revenue and fund essential services like public hospitals, education, sanitation and emergency response. Break the backs of owners, and they won\u2019t be able to contribute at all \u2014 a catastrophe.<\/p>\n

Here\u2019s what de Blasio can do immedia<\/a>tely to right the ship and prevent an economic crisis of titanic proportion:<\/p>\n

\u2022 issue an administrative order that extends July 1\u2019s tax deadline to Sept. 30;<\/p>\n

\u2022 instruct the City Council to create legislation that provides a one-year moratorium on interest-rate penalties on delinquent tax payments, the same grace period de Blasio is proposing for tenants to catch up on rent payments;<\/p>\n

\u2022 a freeze on property taxes at 2018-19 levels from Oct. 1, 2020 to Sept. 30, 2021, the same period that rents will be frozen on the city\u2019s 1 million rent-stabilized apartments, and<\/p>\n

\u2022 lobby Washington with mayors from around the country for federally funded rent vouchers.<\/p>\n

De Blasio\u2019s politics can\u2019t be a one-way street. He says tenants who can\u2019t pay the rent shouldn\u2019t be evicted, period. We say that landlords who can\u2019t pay their property taxes today shouldn\u2019t be penalized, period.<\/p>\n

Joseph Strasburg is president of the Rent Stabilization Association.<\/em>\n <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/div>\n

Source<\/a><\/span><\/p>\n

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