The wave continues on

The wave of conversions from rental housing to condos continues throughout the city. Notwithstanding the softening in the residential real estate market, the number of plans filed with the attorney general is likely to continue due to landlord concerns about the future. There are several issues that are causing landlords to think about their long-term plans. These considerations include the often-stated goal of the mayor and the governor to preserve affordable rental housing. If the democrats capture the NYS senate in the Nov. elections, there is a strong possibility the Martin Act will be amended, making conversions more difficult. With democrats in control of the governorship and the legislature, luxury and vacancy decontrol would also likely end, market rate tenants would be given increased protection and possibly, a new form of rent regulations will be introduced. Over the years, N.Y.'s democratically-controlled state assembly introduced and even passed numerous bills designed to provide tenants with more rights. However, companion legislation has never gotten out of committee in the republican-controlled state senate, therefore no new laws made it to the governor for his signature. With governor Patterson's outspoken concern about preserving affordable housing and the republican's margin of control in the senate down to a handful, legislation of this type has a real possibility of being enacted. If this happens, landlords may be unable to convert buildings to condos, or find tenants have a greater control over the process, as well as lifetime protection as renters. Even market rate tenants could benefit, if the legislature decides to incorporate them into rent stabilization or enacts regulations limiting rent increases. Stuart Saft is a partner at Dewey & LeBoeuf LLP, New York, N.Y.