Washington, D.C. - Congresswoman Elise Stefanik co-led a letter with Congresswoman Nicole Malliotakis (R-NY) and the New York Congressional Delegation requesting that New York State Governor Kathy Hochul veto the recently-passed State Senate and Assembly bills, A.4047B / S.2943B and A.6216B / S.2980C that would devastate the housing market. These bills seek to circumvent New York State Court of Appeals precedent and significantly expand retroactivity for landlord liability in a handout to trial lawyers.
In the letter, the lawmakers state, “While this matter may seem narrow in scope, making this policy retroactive will have a wide-ranging and immediate impact on the residential real estate industry, housing stock, the regional banking sector, and the broader economy while “benefitting” mostly affluent tenants predominantly in core Manhattan neighborhoods. This legislation would enable class action lawyers and professional activists to challenge the rent levels of regulated apartments that have already undergone years of litigation and administrative orders, including periods of deregulation when tenants agreed to higher rent levels.”
Stefanik contends that if Hochul signs the legislation, the economic consequences will be severe because New York will inevitably rely on Washington to safeguard depositors and shore up the economy as the far-reaching repercussions of this legislation unfold throughout the state and the region.
“These bills do not generate new housing or make housing more affordable to either economically distressed tenants or any new entrants to the rental market. Your veto would avoid the inevitable economic chaos and requests for federal assistance that this legislation would provoke. We strongly urge you to veto this legislation in order to cause further damage to the state’s housing supply and market,” the lawmakers state.
Read the full letter here.