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The changes could have repercussions far beyond the regulated rents market, said Garrett Derderian, general manager of market badysis for CORE, a real estate brokerage firm. Since the new protections will further prevent proponents from increasing the price of regulated apartments and converting them to market-rate units, a narrower offer will result in an increase in the price of unregulated apartments.
"People in the middle – below the market rate, but unprotected – their rents, in percentage, will experience the largest increases," he said.
Rents have been rising since last fall, partly because of the weak auction market and the glut of new luxury condos in Manhattan, and recent tax law changes affecting homeowners, "said Jonathan Miller, president of Miller Samuel, the real estate appraisal company.
In the Mott Haven section of the Bronx, where development is booming, the median rent charged in April was $ 2,250 a month, up 15% from the same period in 2017, according to the StreetEasy website.
Rafael Cestero, former commissioner of the city's Housing Preservation and Development Department, said many of the new changes were needed, but he also worried about whether legislators had struck the right balance.
The new rules are permanent, unlike the old rules renewable every two or three years. Mr Cestero asked if there would be a political will to readjust incentives if buildings started to deteriorate.
"It's not like we're going to wake up the next morning and the Bronx is going to burn again," said Cestero, now president of Community Preservation Corporation, a non-profit affordable housing lender. "We will wait and see."
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