The American Spectator : Taxpayers, Meet Your New Tenants

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Taxpayers, Meet Your New Tenants

By William Tucker on 2.3.10 @ 6:09AM

Rent control and the U.S. Treasury -- a marriage made in Schumer heaven.

(Page 2 of 2)

So the role of being exploited will fall to the mortgage holders -- among them, CALPERS (the California pension plan), the Florida state pension plan and the Church of England. But the biggest stakeholders are Fannie Mae and Freddie Mac, who are in for $2 billion.

Within days, Senator Charles Schumer -- like all New York politicians an apostle of rent control -- was telling the 25,000 tenants, "We must ensure that whoever buys the properties is committed to maintaining them as haven for the middle class which it has always been" – i.e., the subsidies must continue. "The silver lining," Schumer told the crowd that gathered in front of Stuyvesant Town last Sunday, "is that the two largest creditors are Fannie Mae and Freddie Mac and we have some leverage over them."

And why not? After going through $111 billion of bailout money, what's another $2 billion?

It was Margaret Thatcher who said, "Socialism never works because you eventually run out of other people's money." In New York, this has definitely been true for the poor. Their landlords' money eventually ran out -- which is why the city ended up owning 100,000 abandoned apartments in poor neighborhoods. (Officials put decals in the windows to make it appear people were still living there.) The great advantage for affluent tenants, however, is that the money never seems to run out. First Met Life, then Tishman Speyer, and now the U.S. Treasury are always there to be endlessly exploited.

And, so, Mr. and Mrs. American Taxpayer, you're the new landlord! Welcome to your job of subsidizing 25,000 New York City rent-regulated tenants.

Page: < 12

topics:
Rent Control, Chuck Schumer, Fannie Mae

About the Author

William Tucker is the author of Terrestrial Energy: How Nuclear Power Will Lead the Green Revolution and End America's Energy Odyssey.

Letter to the Editor View all comments (34) | Leave a comment

Bill Hussein O'Stalin| 2.3.10 @ 7:17AM

Anyone who buys properties in areas where the rents are controlled gets what they deserve. Just another Bolshevik plot.

Melvin| 2.3.10 @ 8:02AM

This is exactly why many Citizens of New York and New Jersey are deserting those two vermin infested sinking ships.
Now they are moving to warmer environs down South and are unfortunately trying to turn many areas in North Carolina, and South Carolina into mini me versions of New York City and Hoboken. The term one recent New York City refugee put it, "You guys are so backward, and primitive down here."
One Dominica entrepreneur from New York City opened a restaurant, and I got to give the owner credit he remodeled an old former Golden Corral and made the old place look really nice, but stupid New Yorkers (City) being stupid New Yorkers didn't even give the place being open one month before Hispanics from New York City started shooting at patrons coming out of the
restaurant.
Maybe upstate New Yorkers are right in when they don't consider New York City being part of the state of New York.

Bruce| 2.3.10 @ 12:00PM

FYI, Melvin - the same goes for the Long Island area with regards to our attitude towards NYC. Unfortunately some of those same visigoths who are turning areas of the south into NYC suburbs have done the same by moving from Brooklyn and Queens to Long Island. The island is quickly becoming another suburb of the city, and because the Dems have killed our housing market - many of us older lifelong islanders can't sell our homes to get the hell out of here to God's country.

I go south on vacation (and recently bought property in expectation of the day..) BECAUSE I like things more "primitive." Friendly people, relaxed way of life, less guvmint intrusion.

sestamibi| 2.3.10 @ 1:41PM

Melvin, sometimes it works the other way too. I grew up in NY, but back in 1975 when the city was going under (remember "Ford to City: Drop Dead"?) I was living in the midwest and had a joust with a co-worker at the time. I firmly advocated letting them go bankrupt while she said "oh no, NY is the nation's cultural center, etc. etc. We can't have that happen". Little did she know. . .

PJ| 2.3.10 @ 5:14PM

Melvin, Bruce,
Those ex-NYCers have been invading Connecticut & Vermont for yrs. Think big-mouth Howard Dean, who's originally from NYC.

Bill Hussin O'Stalin| 2.3.10 @ 8:07AM

By the way, this particular default is now being used as the poster child for one million homeowners whose homes have fallen below 75% of the original value.

After looking at this default their reasoning is why shouldn't the average citizen walk away from a deal when they see wealthy corporations drop the bad paper on the taxpayer?

Susan| 2.3.10 @ 8:45AM

For those not in the know, many of these so-called "rent-controlled" apartments pay more than $2500 per month for a one bedroom. I know, I lived there once and was on the list for one after Tishman stopped leasing in late October. I received a call with an offer in early January and the rent for a classic (ie: unrenovated) one-bedroom under rent control was $2689.
Tishman has spent the last five years turning over apartments like I change my coffee filters. That has made the price for "rent-controlled" apartments more than that of market-rate" apartments. Whatever else is said, this little enclave is no longer for the middle class.

KyMouse| 2.3.10 @ 9:37AM

From the Small World Department: I used to visit a family in Scotland who had an elderly female neighbor. She had rented the cottage in back of her house to a young man who soon stopped paying rent -- and began finding ways to get into her house to help himself to groceries and anything else he wanted.

Since she had rented the cottage in order to help make her ends meet, she needed to find a trustworthy tenant. But under the law, she couldn't throw him out unless SHE found another place for him to live. Guess what: Every place she found for him was unacceptable to him for some reason or another. The last I heard, which was some years ago, he was still there.

Pauline| 2.3.10 @ 9:42AM

It's called rent stabilization, *not* rent control. Rent control was done away with in 1973. Do your homework since you don't even know what you're talking about. You clearly don't live in NYC or know anything about the rental landscape.

Otis my man!| 2.3.10 @ 9:52AM

Hey Pauline, give me a break. What a typical New York parochial response. Do you work for the NYC housing dept?

I was born in the Bronx. Tucker hasn't even told the half of it.

Zork (the) Hun| 2.5.10 @ 12:09PM

Even if I would not know about the New York rental market, I do know sleaze and newspeak when I see it.
Slapping a new name on something does not change its essence. Rent Stabilization code IS rent control. OK, it's on steroids, but it is still rent control.
I am just wondering.....
Would it be possible to pass an "Arrogance control law" aimed specifically to New Yorkers like you?

Hydraulic Tools| 2.3.10 @ 10:41AM

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Oldefarte| 2.3.10 @ 11:45AM

This is just another form of real estate socialism known as 'AFFORDABLE HOMES' [that is with the American taxpayer footing the bill]!!!!!

Appleby| 2.3.10 @ 12:40PM

We had the same thing here in Toronto when I first moved up here. Immigrants had to have a job and a bank account BEFORE they could rent an apartment, since it was impossible to get them out if they didn't live up to the contract. And the guy at the place that rented post boxes to the public told me that there were two ways to get a decent apartment in town: know someone who was moving out, and slipping "key money" (bribes) to the landlord. I got an apartment that was my definition of a slum, until rent control was loosened (in a socialist country government never lets go) and although the apartments here are tiny compared to anything I had back home, there are enough of them now so the complexes are offering deals to desirable tenants to encourage us to move in.

Oh, and we do have a nice socialist touch here in that it is illegal to refuse pets or charge extra for people that have them. In the States I paid $300+ deposit per pet for my cats.

KyMouse| 2.3.10 @ 2:08PM

I know what you mean, Appleby. I got the itch to live in New York for a couple of years back in the early 1980s, and a friend helped me get the Brooklyn apartment she was vacating. If it had been anywhere else, I wouldn't have dreamed of living in it -- a crummy studio apartment on the ground floor, with a window still broken from where someone had broken in and stolen my friend's rifle (she was an Olympic-caliber sharpshooter). When our landlady refused to pay the electric bill for the common areas, we tenants had to string Christmas lights in the windowless hall, so we could see where we were going. When the lights blinked on, we took a step...it was like playing "Mother, May I." Only not fun. Kinda spooky.

And since I had the ground floor front apartment, I was treated to the sight (and smell) of men urinating on the sidewalk outside. Feh.

the wise old bear| 2.6.10 @ 1:45PM

And all this time I thought the sight and smell of public urination was all part of the charm in progressive cities like New York and San Francisco. Right along with the defecation in public fountains and addicts barfing wherever.

Ginger Grant| 2.3.10 @ 5:39PM

Real estate socialism?

Let's get rid of the mortgage interest deduction and deduction for real estate taxes the same time we repeal the rent stabilisation laws.

It should not go both ways boys and girls!

landlord6| 2.4.10 @ 12:43PM

what does paying taxes on paid taxes have to do with you not paying market rent?????

the wise ol' bear| 2.6.10 @ 1:47PM

Just ignore it. More wealth envy, that's all.

Jane| 2.3.10 @ 5:55PM

Rent control rules still apply to tenants previous to the 1973 rent stabilization laws. Check NYC Rent Guidelines for rules.

paul| 2.3.10 @ 9:07PM

Stuvanst (st) is now in bankruptsey - up scale rents planned. I know about rent controlls in dallas during wwii - we were evicted every 6 months.

BHG| 2.3.10 @ 9:57PM

The French passed la loi Quillot in 1982 to regulate relations (rent control) between tenants and landlords. Result? Property owners recuperated their properties for "personal use.
Quillot, a socialist co-authored a book entitled Cent Ans d'Habit Social: une utopie réaliste (1989)Translation: A Hundred of Public Housing: A Realistic Utopia.
Odd that - all those public housing dwellers burning all those cars. One can only imagine the state of these new, publicly owned apartments after a few years. They are going to be rented by welfare recipients aka friends of Obama. Bankers?

MNL| 2.4.10 @ 2:28AM

Another result of the French Quillot law is over 125,000 empty flats just in Paris. The owners simply refuse to rent them out, tenants are too much bother, decoration costs are high, the added income tax is unwelcome. I rent out a room (cash only) in my place, but I will not accept a French lodger. All they do is cry, oh the great injustice of a small room and where's the state aid (CAF) . Plus they're lousy cooks. The best lodgers are the Japanese, by a mile.

Flipside| 2.4.10 @ 6:01AM

....Charles Rangel thanks you NY. suckers
http://www.nytimes.com/2008/07......html?_r=1

ww4cash| 2.5.10 @ 10:12AM

Welcome to Share the Wealth

コピースーパー| 2.5.10 @ 12:18PM

very helpfully!

shipley130| 2.5.10 @ 9:18PM

I was wondering about the statement that rent control no longer exists in NYC. Not that I take my information from shows like Sex In The City, but I recall an episode where it is mentioned that Carrie's apartment is rent controlled. Why would they put that in the script if not true? It would make the show look stupid. I wish blogs would take off comments that are untrue.

Ichabod83| 2.6.10 @ 10:22AM

As one bright economist used to say about rent control, "It's the best way to destroy a city, other than bombing."

Hilary| 2.7.10 @ 3:36AM

Everyone is entitled to food, shelter and medicine. Even poor people. If you don't like the idea of squatters, then I trust you support strengthening rental assistance programs for low-income citizens. You wouldn't prefer masses of homeless people, would you?

likwidshoe| 2.7.10 @ 5:05AM

Hilary: you're not entitled to anything other than the PURSUIT of those things.

You have no right to someone else's labor and time.

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