Rent stablization condo....yea or nay? - Posted by MRM

Posted by Frank Chin on November 05, 2002 at 07:20:21:

Hi MRM:

Make sure its under “rent stabilization” rather than “rent control”, a much more draconian law. The 35 year date you cited is borderline as tenants already under “rent control” at the time is grandfathered. “Rent stabilization” came into being in the early 1970’s, around 1972 as I recall.

One of the exceptions allowed under rent stabilization law is for the owner to take over to live in the unit himself, and evict the tenant. But convincing a judge to evict a old sick tenant from his home is another matter, especially if he lives there his whole life.

You may be out of luck if its rent control, as far as eviction is concerned.

Yes his daughter can move in under her succession rights, at the same rent. But the good news is, under recent reforms in the law, when she moves, it moves up to market rent, even if its a relative…

Then, there are speculaors out there who’ll buy the unit for a fraction of the price, and wait the tenant out.

I recall a post on the legal board recently where a “rent stabilized” tenant’s son asked if its OK for his mom to ask for a payment to leave and move to FL. One person replied (beleive a Mr. Buster) that its in bad taste. I’m sure your dad would jump at a $20,000 payment if asked, and would not consider it extortion.

Frank Chin

Rent stablization condo…yea or nay? - Posted by MRM

Posted by MRM on November 04, 2002 at 13:48:42:

My father owns a condo in NYC. Beautiful 2 bedroom high rise. Aprox FMV 100k. He owns it outright. I think he took it for nothing 20 years ago for a debt owed. The problem is it rent controlled and the old man living there isn’t going anywhere. Monthly fee actually are larger than the rent. The man has lived there for 35 years and has been offered 20k to leave.

My father has fallen a tough times and guess who has been paying into the negative cashflow situation. Yeah, me. He really has no choice and I will give him something for it. You may say why do that, but he would let me keep paying the fees and let it go rather than give it to me for nothing.

Another issue is ‘succession rights’ where his daughter can take over if he dies, if she can prove she lived there as a child. CRAZY…!

Anyway any ideas? Should I have him quit claim it me and hold out for it? Would I be then be able to say I want to live there? No judge will evict an old man out of his home or 35 years. I want to do something with this thing.

MRM