I've taken time to respond to Jordan Kushner's post. This is a moderate
length post with many links. It is for those who have a serious interest in
the issue of rent control. Rent control is an idea that's time has passed.
1. Rent control still exists in New York City. As pointed out by fellow
list members. If you need further confirmation see
http://www.comptroller.nyc.ny.us/bureaus/press/rentcontrol.htm It is the
testimony of the Deputy City Comptroller on the virtues of rent control.
2. Jordan's own writing. " A large group of middle class renters" Why
should the taxpayers of NYC subsidize these "middle class renters".
Property taxes are based on value. Value is based on income. Income is
based on rent.
3. I find it interesting that in New York City you can "will" your tenancy
to some one. I wish I could will what I pay for food today, to my
grandkids 50 years from now. Just kind of fix the price forever. That sure
would make paying for my great grandkids school a whole lot easier. I am
sure the folks at Cub will understand.
4. Abuse, fraud, mismanagement. By the highest officials in the city.
Sounds like a bad idea.
5. Loopholes for landlords to get rid of rent controlled units. Moving into
a unit to force the renter out. Or "destroying the building". There has
to be something wrong with a system that would encourage owners to destroy
their property. I would say it borders on madness.
6. Why not study NYC. It is the place where rent control has been practiced
the longest.
7. Rent control Drives people out of the apartment building business.
It drives rents up. See Cato Institute's study. Exec summary is just a few
paragraphs
www.cato.org/pubs/pas/pa-274.html
It lowers vacancy rates. See cato sight and Check out the "Economic
Journal" Article. It was prepared by a couple of members of the Cornell
University Econ Department www.people.cornell.edu/pages/kb40/rentcontol.pdf
you will need Adobe's acrobat to view. Most PC's have it preloaded or it's
free to down load. Don't worry about virus'.
In every situation where rent control was in place then abolished, great
things have happened. Check out an article in the "Economist" Magazine.
It describes post rent control Boston and Cambridge (Home to Harvard). They
saw dramatic improvements of property. Tax collections shoot up.
Gentrification started stabilizing troubled neighborhoods. Check it out at
www.acpub.duke.edu/~tkw2/econ-51/Rentcontrol.html
According to a survey of economists of the American Economic Association,
93% agreed with this. " A ceiling on rent reduces quality and quantity of
housing available" Check out this study. It is by the National
Multihousing Council. www.nmhc.org/media/rentcontrol/highcost/body/html
It is backed up by a Rand Corporation study. It indicates the following.
- Building of new units decreases in rent controlled cities.
-Investment and maintenance of Rent controlled buildings drops off
dramatically. Is that what we need in
Minneapolis?
- As stated earlier, tax receipts drop off.
- Some one has to administer the program. In Santa Monica California in
1996, 28,000 units were
"administered" ( not managed) for $4,000,000 What a waste. In
Minnesota we could build 66 units with
that every year.
I will take any ones request for more information on this off list. The
real problem with our housing is multi-faceted. If the policy makers of
this city, county, region, state wish to ease this crisis, we must get
serious about some key issues that landlords and builders face.
Craig Miller
Former Fultonite
[EMAIL PROTECTED]
>The critics of rent control conveneniently confuse the good concept with
>specific examples of poor practices.
>
>The usual example of how it supposedly does not work is New York city. The
>problem with rent control in New York City is that it was mostly ended a
>long time ago. (I forget the specific years). What happened was that the
>real estate interests got enough power to get rid of it - except for a
large
>group of middle class renters who depended on it and were able to preserve
>it to some degree. In a couple of steps, rental units were placed back on
>the open market, except for those who were already living in rent control
>units or their immediate families who get the unit passed under rent
>control. The result was that people who were already renting units when
the
>program was phased out could continue to have affordable rents. This did
>protect many people with limited incomes, as well as preserving huge
>bargains for some affluent people. (A most high profile example - in the
>late 70s and 80s, the mayor, Ed Koch, held onto his rent controlled
>apartment in Greenwich Village even though he had a mansion for an official
>residence). Several loopholes provided other ways for landlords to get rid
>of rent controlled units besides by a tenant moving out, such as moving
into
>the unit themselves or destroying the building. The latter loophole
>encourage the elimination of affordable units, thereby further driving up
>the prices of non-rent controlled units.
>
>Meanwhile, anyone who does not have a rent-controlled apartment, had to
>compete for the normally very low number of vacancies on the open market.
>Anyone who does not have a high income has choices of doubling or trippling
>up with others in small spaces, living in substandard housing or a
>high-crime area, moving outside the city, or going homeless.
>
>In summary, the problem with rent control in New York is that it is very
>limited and very poorly designed. It should not be used as an argument
>against rent control in Minneapolis.
>
>A solution to the housing crisis in Minneapolis should include rent control
>. It just needs to be carefully and fairly planned, and combined with
>programs and resources to increase the overall supply of housing.
>
>Jordan Kushner
>Ward 8
>
>_______________________________________________
>Minneapolis Issues Forum - Minnesota E-Democracy
>Post messages to: [EMAIL PROTECTED]
>Subscribe, Unsubscribe, Digest option, and more:
>http://e-democracy.org/mpls
>
_______________________________________________
Minneapolis Issues Forum - Minnesota E-Democracy
Post messages to: [EMAIL PROTECTED]
Subscribe, Unsubscribe, Digest option, and more:
http://e-democracy.org/mpls
