Roughly a quarter of the rent-regulated units in properties owned by small owners are kept vacant as they’re uneconomical to rent.
While Mamdani has proposed freezing rents or the income that property owners generate, he has no control over expenses, explained Ann Korchak, head of the Small Property Owners of New York Inc., a group that represents small owners, including many family-owned businesses that own apartment properties in the city. She noted that expenses have been increasing, squeezing owners’ ability to invest in improvements, which would further impact small property owners.
Mamdani has proposed having the city build 200,000 apartment units over the next 10 years. He has also proposed that the city assume control of properties in cases where landlords fail to meet maintenance obligations, according to his campaign statements.
To pay for his plans, he’s proposing an increase in the city’s corporate tax rate to 11.5% from 8.85% and a 2% income tax surcharge on personal income greater than $1 million annually.
Source: NYC Mayoral Proposals Raise Concerns for Rent-Regulated Commercial Real Estate
