Will Olympic bid kill rent regulation?

[MikeW]

There is a harmonic convergence occurring in the real estate world that may end up killing rent regulation. First the periodic renewal of the rent laws is occurring next year (which starts in five days). The renewal is always touch and go, and while over the years the anti-regulation forces have been strengthening, the pro-regulation forces have been weakening. This was demonstrated by the significant rollbacks of the rent laws in '97 and subsequent changes in the DHRC code. Nothing has stopped that trend from continuing. In fact some of the factors that allowed the laws to be renewed at all last time around are much smaller now. In any case this is the 'normal' state of affairs.

But now there is a new force on the horizon (or more accurately, the far west-side). The Olympics. This promises to be a huge feeding frenzy for a large number of powerful parties, who may normally stay on the sidelines in the rent law renewal battles. These include commercial developers, unions, sports teams (after all, the Jets will get the stadium after the Olympics), convention and tourism businesses, and many more. What is the one of the main local factors standing in their way? Regulated tenants in Hell's Kitchen. These are the people that have been making the biggest noise, and have the greatest legal ability to slow the project down. What would be the easiest way to get rid of these people? Kill the rent laws.

The Olympic decision is five years away. If the rent laws die next June, every regulated tenant would lose the protection of their existing leases withing two years of that. The developers could buy the buildings, empty them of their now free-market, unprotected tenants, and demolish them, thereby both clearing the land for development and clearing out their most vocal opponents.

So will this added pressure in one neighborhood be enough to end rent regulation?