According to one estimate, North Brooklyn residents saved at least $6.4 million due to the disruption through decreased rents and landlord concessions.
But tenant advocates say that past attempts to decrease rent protections have been disastrous for residents.
"This is a historic opportunity for New York City," said Adriene L. Holder, a lawyer and board member representing tenants who voted in favor of a failed proposal to decrease rent by 1.75percentt on one-year leases and 3.5percentt on two-year leases.
Landowners decide both the timing of conversion and the capital intensity when facing a population externality that decreases urban rents.
Might my landlord have an obligation to provide an antenna that receives the free television stations, or hook me into cable for reception at no charge, or perhaps decrease my rent for loss of services?... Janice Jaffee, Manhattan.
Over a longer period, however, urban adjustments cancel out this inequality: (1) in the center, rent level rises because of higher demand, inducing investment in additional housing and increasing city density; (2) on the outskirts, housing demand decreases until rent level decreases and compensates for higher transportation expenditures.
To model employment taxes that fund unemployment or retirement benefits, the earnings denoted w2 in the model could be reinterpreted as the income-term flow welfare of leisure or informal work (there should then be constant rather than decreasing returns, or perhaps rents could accrue directly to individuals).
Hence, a smaller τ maximizes the welfare any individual indexed by i obtains from a unit of labor, a portion ω i of the per capita rents that decreasing returns allow after K and labor are paid their marginal productivity, and income ρ K i drawn from factors that are perfectly elastically supplied, hence immune from tax incidence.
"With the increase to 30percentt of units and 40 years' duration," said Timothy Hollister, a Hartford lawyer who specializes in affordable housing law, "you are decreasing the amount of rent and reducing the amount realized from sales.
"Investors today are very hesitant to make a mistake by underwriting improvement, decreasing vacancy or increasing rent," said Scott A. Singer, the executive vice president of the Singer & Bassuk Organization, a New York company that arranges financing for transactions.
