Bills take aim at predatory equity

Tenants hold signs at a rally at City Hall, followed by a City Council hearing on legislation aimed at curbing the practice of predatory equity. (Photo by Sabina Mollot)

Tenants hold signs at a rally at City Hall, followed by a City Council hearing on legislation aimed at curbing the practice of predatory equity. (Photos by Sabina Mollot)

By Sabina Mollot

On Halloween, dozens of tenants holding spooky signs rallied at City Hall to bash landlords as vampires if they engage in predatory equity. The event was held prior to a City Council hearing on a package of bills that were aimed at stopping the blood-sucking practice.

Predatory equity is generally defined as when a landlord purchases a property with a high level of debt that could only be expected to be paid if the owner aggressively tries to get rid of rent-regulated tenants and replace them with higher paying ones. Tactics that could be considered aggressive by landlords include harassment via frivolous lawsuits, a lack of basic maintenance, illegal fees, constant buyout offers or construction that’s unsafe or seems gratuitously disruptive.

One of the City Council members pushing legislation, Dan Garodnick, gave the example of Stuyvesant Town’s sale to Tishman Speyer a decade ago as a prime example of predatory equity.

“This is when landlords overpay for buildings with the speculation that they will be able to deregulate units and drive out tenants,” he said. “You’re not making them enough money so they will try anything to get you out of there. This is harassment.”

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