With only 27 days left until the 421a tax abatement and rent regulation laws expire on June 15, former Rent Guidelines Board chair Marvin Markus has inked a memo with some big ideas.
Markus, who served as chair for 13 years and is now a managing director at Goldman Sachs, called for the end of vacancy decontrol, Capital New York reported.
Markus proposed a “marked-to-market” system, under which all vacated apartments would be turned into market-rate apartments but would be subject to the rent-controlled annual increases for the duration of a lease. Landlords would support such a plan, while tenant advocates — who would like to see vacancy decontrol scrapped altogether and 421a eliminated — wouldn’t be too pleased.
Markus’ proposal, according to the memo, would eliminate preferential rent, a legal measure under which landlords can charge more than the market rate.