Rent regulation: Difference between revisions

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The classic objective is to limit the price that would result from the market, where an [https://en.wikipedia.org/wiki/Inequality_of_bargaining_power inequality of bargaining power] between [https://en.wikipedia.org/wiki/Landlord landlords] and [https://en.wikipedia.org/wiki/Leasehold_estate tenants] produces continually escalating prices without any stable [https://en.wikipedia.org/wiki/Market_equilibrium market equilibrium]."<br/> - Wikipedia, "Rent regulation." 

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1) Control of permitted rent change for a current tenant:  

a) fixed. (rare, but exists e.g. in old New York City rent control on some remaining buildings). 

b) fixed increase per year

c) change based on objective metric such as CPI (consumer price index) 

d) change based on political/regulatory decision, e.g. municipal Rent Board decision.<br/> ''[when permitted rent change is adjustable this way, and/or it is unregulated upon vacancy, the system is sometimes called 'modern' or 'second-generation' rent controls.]''

   d) change based on political/regulatory decision, e.g. municipal Rent Board decision.<br/> ''   [when permitted rent change is adjustable this way, and/or it is unregulated upon vacancy, the system is sometimes called 'modern' or 'second-generation' rent controls.]''

e) possibly (and typically), other changes are permitted by landlord petition or e.g. to "pass through" expenses such as tax increase or renovation costs.

2) Control of permitted rent change during change of tenant

a) same as within a tenant's tenure, in one of the ways above.<br/> '' [sometimes referred to as 'strong' rent control]. ''

b) unregulated, i.e. "resets to market rate," aka there is ''vacancy decontrol. ''

3) Regulation of which and when units may fall under or exist price regulation. Price regulation may apply: 

a) Only to units built before a certain date; and/or

b) Only to units in buildings that reach a certain age (see "Deferred rent stabilization" below).  ''[This is uncommon (unknown?) in practice but often proposed].''

c) Only to units in buildings above a certain size. 

d) not when a building is allowed to exit regulation for specified reasons, possibly including: 

e) owner move-in. (as permitted by the "[[Ellis Act]]" in California). 

   e) owner move-in. (as permitted by the "[[Ellis_Act|Ellis Act]]" in California). 

f) conversion of unit from rental to ownership housing

i. "condo conversion" - from rental apartment to owned apartment. See also [[Condomium]]

      i. "condo conversion" - from rental apartment to owned apartment. See also [[Condomium|Condomium]]

ii. Conversion to "[[Tenancy in Common]]" (TIC) unit, i.e. shared ownership.  

      ii. Conversion to "[[Tenancy_in_Common|Tenancy in Common]]" (TIC) unit, i.e. shared ownership.  

g) when unit rent increases above a certain point. (called "luxury decontrol" in NYC rent stablization law). 

i. Condemnation (?) 

ii. Demolition

iii. Lndlord buy-out of tenant.