Pols target upgrade rent hikes

ALBANY — In a move they say will protect tenants, two state lawmakers have introduced legislation that would prohibit rent increases tied to major capital improvements.

The bill from Sen. Michael Gianaris (D-Queens) and Assemblyman Brian Barnwell (D-Queens) would give landlords tax credits to offset costs of major upgrades.

“Too many tenants are priced out of their homes because of (major capital improvements) whose only improvement seems to be the landlord's bottom line,” Gianaris said.

Under the Major Capital Improvements program, owners who install new things like boilers to rent-stabilized or -controlled apartments can hike rents up to 6% a year to recoup the costs.

But critics note rises remain in place after owners recoup the costs of the project.

Barnwell said the program has led to hundreds of millions of dollars in hikes that ultimately push out middleto low-income tenants.

The Rent Stabilization Association, which represents landlords, vehemently opposes the bill, spokesman Frank Ricci said. “It's ridiculous,” Ricci said. “The only way to preserve the existing housing is to keep putting money back in and rehabbing,” he said.

Tax credits offer no guarantees landlords will recoup their improvement payouts, he added.