New York Governor Andrew Cuomo signed the grandly titled “The Housing Stability and Tenant Protection Act of 2019” into law last week. Its extensive amendments to the earlier law passed with lopsided majorities in both the state Senate and Assembly after progressive lobbyists stormed the legislative beaches in Albany. They pitched their campaign as a fight between good and evil—between rich landlords and strapped tenants. They emphasized the precarious position of some tenants facing eviction, but ignored the huge windfalls given to those fortunate tenants who occupy stabilized units that rent for only a fraction of their market value.
The implicit economic assumption behind the reforms was that the protection of tenants under the Act would result in a simple wealth transfer from rich (or undeserving) landlords to poor (or deserving) tenants, with no collateral consequences to the quality of housing stock or the rate of new investment in rent-stabilized units.More