The Wall Street Journal - 13.03.2020

(C. Jardin) #1

THE WALL STREET JOURNAL. ** Friday, March 13, 2020 |A9B


GREATERNEWYORKWATCH


NEW YORK STATE


Public Campaign


Finance Law Halted


A state judge on Thursday in-
validated New York state’s new
system of public campaign fi-
nancing, which was set to take
effect after the 2022 elections.
State Supreme Court Justice
Ralph Boniello ruled that state
lawmakers acted improperly last
year when they tasked a sepa-
rate commission with setting up
the details of public financing
and other changes to the state
election needed to implement it.
The commission recommended
reducing the allowed contribution
limits to statewide candidates by


more than half and matching do-
nations of $250 or less to candi-
dates for any state office.
Gov. Andrew Cuomo and Dem-
ocrats who control the state leg-
islature created the commission
in April, and said its recommenda-
tions would have the force of law
unless lawmakers amended or re-
jected them. They didn’t. Judge
Boniello wrote that this was an
“improper and unconstitutional
delegation of legislative authority.”
Spokespeople for Mr. Cuomo
and Democratic lawmakers
didn’t respond to requests for
comment. Jay Jacobs, a member
of the commission, said he ex-
pects the ruling will be over-
turned on appeal.
—Jimmy Vielkind

SANITATION

City Proposes New
Way to Pick Up Trash

Some newly constructed
apartment buildings in New York
City will be required to store
trash in specific containers in an
effort to limit the number of
trash piles on sidewalks, accord-
ing to a proposal from the city’s
sanitation department.
All new buildings with 150
apartments or more will be re-
quired to submit a plan to the
Department of Sanitation as to
how they would manage garbage,
the rule says. The plan must in-
clude an estimate of how much
trash the building will generate

and show that its garbage could
be stored indoors if necessary.
Without alleyways, New York
City trash pickup is relegated to
streets. The citywill hold a hear-
ing on the rule and the city council
would vote before it could be
signed by the mayor.
The sanitation department
also proposed this week a pilot
program that would place sealed
containers for trash and recycla-
bles directly on streets, officials
said. Businesses can apply for
the “Clean Curbs” pilot program,
a partnership with the Depart-
ment of Transportation, in the
spring, with some getting spe-
cially designed trash bins that
are enclosed and rodent-proof.
—Katie Honan

NEW JERSEY

Federal Judge Blocks
Donor-Disclosure Law

A federal judge permanently
halted a recent New Jersey law
requiring increased political-do-
nor disclosure.
U.S. District Judge Brian Mar-
tinotti signed an order agreed to
by the state attorney general,
who was defending the law, and
one of the groups suing to stop
it called the Illinois Opportunity
Project. The measure required
political organizations and some
nonprofits to disclose all spend-
ing over $3,000, up from $1,600.
It also mandated that contribu-
tors giving more than $10,

would be disclosed.
Along with the Illinois group, the
American Civil Liberties Union and
Americans for Prosperity, a think
tank founded by the Koch brothers,
also sought to put a stop to the
law, which was signed by Demo-
cratic Gov. Phil Murphy in June.
The groups argued the law runs
afoul of the Constitution and could
lead to a chill on First Amendment
rights by deterring potential contri-
butions to organizations.
The state said the measure
simply aimed at uncovering who
was “pulling the strings” in poli-
tics. The judge’s order didn’t ad-
dress why the state changed its
position. A message was left
with the attorney general’s office.
—Associated Press

until June, when the tax bene-
fit expires, according to a
landmark 2012 court settle-
ment with the tenants.
The tenants suing Black-
stone say the new rent laws
passed last year no longer al-
low these units to be deregu-
lated, even after the J-
credit expires.
Ms. Friedman said Black-
stone wouldn’t increase rents
more than what is allowed by
the city’s rent-stabilization

law until the court decides the
case, and that its affordability
agreement for other apart-
ments would remain effective.
“Our commitment to preserve
5,000 units of affordable hous-
ing stands,” she said.
The new lawsuit at Stuyve-
sant Town is the latest sign
that New York’s new rent laws
are changing the balance of
power between landlords and
tenants. The real-estate indus-
try, once known for its strong

lobbying and political clout in
New York’s state and city gov-
ernment, has more to lose this
year, as the New York state
Senate’s Judiciary Committee
considers a bill that would
bring rent control to nearly
every apartment unit in the
state.
Tim Collins, the lawyer rep-
resenting the tenants, said
rent stabilization laws exist to
protect all tenants, not just
low-income ones, from price
gouging, as well as to prevent
landlords from taking advan-
tage of New York’s housing
shortage.
“The owners are upset
about having their investment-
backed expectations dis-
rupted,” Mr. Collins said. “The
law does not perfectly protect
investment-backed expecta-
tions.”
Former city Councilman
Dan Garodnick, the current
president of the Riverside Park
Conservancy and a lifelong
Stuyvesant Town resident,
helped negotiate Blackstone’s
deal with the city in 2015. He
said the fight over the maxi-
mum-allowed annual rent in-
crease can mean the difference
between a family that can
keep their home and a family
that has to leave.
“This is the middle class of
New York. They are not the
poorest and they are not the
richest, and that does not
mean that they do not strug-
gle,” Mr. Garodnick said.

The Stuyvesant Town litiga-
tion could potentially affect
some 6,000 apartments at
Stuyvesant Town not covered
by Blackstone’s affordability
deal with the city, as well as
thousands of other apartments
citywide that are rent-stabi-
lized under a city property-tax
credit called J-51.
More than half of Stuyve-
sant Town is covered by this
tax credit. It requires rent sta-
bilization of these apartments

settlement.
After Blackstone and a
partner bought the complex in
2015, the new owners reached
a deal with the city to keep
rents limited at 5,000 of the
apartments for the next 20
years and set guidelines for
how the other units would be
treated, in addition to adher-
ingtootherrulesfromapre-
vious court settlement.
“The litigation filed on be-
half of the complex’s highest-
income tenants seeks to invali-
date a court-ordered
agreement, and indefinitely ex-
tend rent control for residents
paying over $4,000 a month,”
said Jennifer Friedman, a
Blackstone spokesperson.
Blackstone estimates the
tenants affected by the lawsuit
have incomes of $262,000 a
year on average. Under the
previous rent laws, tenants
making more than $200,000 a
year for two consecutive years
could have their apartments
deregulated, but that measure
was removed by the state Leg-
islature last year.

New York state’s new rent-
regulation law is reopening a
rift between some tenants at
New York City’s largest rental
complex and its majority
owner, the giant real-estate in-
vestorBlackstone GroupInc.
At issue is whether the new
law should apply to thousands
of the highest-paying renters
at Stuyvesant Town and Peter
Cooper Village, which has
more than 11,000 apartments
overall on Manhattan’s East
Side.
The tenants association
said the new rent law means
their annual increases should
remain much lower than what
Blackstone would otherwise
charge them, according to a
lawsuit filed in a Manhattan
state Supreme Court last
week.
Blackstone said the tenants
bringing the suit represent the
wealthiest residents at the
complex who already acknowl-
edged their units would be de-
regulated in a previous court


BYWILLPARKER


StuyTown Owners,


Tenants Clash


Over Rent Law


The Stuyvesant Town-Peter Cooper Village complex, shown two years ago, has more than 11,000 units.

JOHN MOORE/GETTY IMAGES

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