Ming Pao Daily Article May 3rd, 2004
(translated into Englsih)

Rent Deregulation Unbearable
Apartment Turnover Rates Dizzying
Tenants Rally in Appeal for Residency Rights Protection

Chinatown residents complain of the skyrocketing of rents in Chinatown and the Lower East Side. If rent control gets cancelled, monthly rent for a 1-bedroom can reach $1600 or more and a 2-bedroom will be hard to keep below $2400. Senior and low-income tenants wouldn't be able to afford the rent pressures and become vagrant or homeless. University Community Service Center (University Settlement?) Senior Housing Specialist Ms. P. J. Wong said that apartment turnover rates are high and the rent goes up 20% each time. New tenants also have to pay high renovation fees. Once the government stops regulating rents, Chinatown will become "sky-high rent city".

Tenants & Neighbors members and several hundred downtown tenant representatives rallied yesterday (May 2) afternoon outside State Assembly Speaker Silver's office located at 250 Broadway in Manhattan, requesting Silver and the State Assembly to take effective measures to set reasonable rent control laws to protect tenants' residency rights.

The demonstrators said that the State Assembly and Governor Pataki had in June last year extended the effective period of lease and eviction protection laws by 8 years to 2011. This law has undergone many revisions and added major benefits to the landlords, threatened tenants, and even possibly letting tenants lose their domiciles. And rent regulation laws will also expire in October this year. In other words, in 5 months, housing that is currently rent-stabilized will be able to follow market rates and rents will float freely. At the same time, rent subsidies for senior and low-income families will also be severely threatened, facing the risk of being eliminated or reduced.

Land's End One Tenant Association representatives Ms. Lee and Mr. Ng said that the association is mainly for the tenants on Clinton Street. Among some of the Clinton Street apartments, 87% are senior and low-income families receiving government subsidies. Losing the subsidies, or skyrocketing rents would make their life unbearable. There are still rent-controlled, affordable apartments in Chinatown and the Lower East Side. Monthly rents for these apartments are about $500 for a 1-bedroom and $800 for a 2-bedroom. If landlords are allowed to place the apartments into the market and let them follow the market, the rents would increase three-fold or more. That is to say, monthly rent for a 1-bedroom would reach $1600 and a 2-bedroom would reach $2400 or even $3000 or more. Many senior and low-income people make less than $1000 a month. It's utterly impossible for them to afford such exorbitant rents and they would truly become homeless.

University Community Service Center Senior Housing Specialist Ms. P. J. Wong and Chinatown tenant Mr. Leung said that rents in Chinatown are difficult to estimate based on bedroom count because the rent depends on the number of times the apartment has changed hands. Chinatown apartments change tenants very frequently. After a typical turnover, the rent will go up about 20%. And after the landlord has renovated the apartment unit, the tenant must pay 2.5% or more of the cost. In other words, if the landlord spends $4000 to renovate the apartment, the tenant will pay $100. Many landlords will prevaricate on the renovation costs to cheat tenants. Government should expeditiously standardize rents, preserve and set wholesome rent-control guidelines and protect the rights of ordinary tenants.

Silver's office's press secretary Justin Bernbach said that Silver has relentlessly made efforts to protect senior and low and medium-income tenants' rights. The problems now are with the State Senate and Governor Pataki. Silver will continue to communicate with State Republicans to gain rent control and protect tenants' residency rights.