New York Rent-Law Agreement Reached -- New Deal Protects All But The Wealthiest

ALBANY, N.Y. - Rent-control laws that allow millions of New Yorkers to enjoy below-market rents expired at midnight, but not before a deal was struck to placate anxious tenants and force wealthy renters to pay more.

Lawmakers said they would send the Legislature a bill today that extends the rent-regulation system, with modifications, for six more years. A vote was expected today.

The plan would continue rent protections for all but the wealthiest among the 2.7 million people in 1.1 million rent-regulated apartments, most of them in New York City.

"Thank God," said Marie Cimino, 83, of suburban Mount Vernon, who lives in a $400 rent-controlled apartment without a lease and could have been among the first affected by decontrol. "Now I think I can live here the rest of my days."

As tenants vacate regulated apartments, landlords hoped they could begin charging whatever rent the market would bear. Instead, the deal would let them raise rents 20 percent if the previous lease lasted for at least two years, and more if rent was held down by a lack of turnover for many years.

Rent could go up an additional $100 a month if the newly vacated apartment rented for $300 a month or less.

"I think it's a very fair proposal," a beaming Gov. George Pataki told reporters. "I think this is one of those rare occasions where everyone can claim victory."

Succession rights to the rent-regulated apartment for spouses, relatives and domestic partners would be limited to one generation. There had previously been no limit.

Also, apartments that rent for more than $2,000 a month would be deregulated for tenants earning more than $175,000 a year. A previous crackdown had applied to tenants earning more than $250,000 for two consecutive years.

One well-heeled Manhattanite on the Upper West Side pays about $900 a month for seven rooms with crystal chandeliers and a view of Central Park. In the same building, singer Carly Simon was paying just over $3,000 a month for 11 rooms until her apartment was deregulated last year. Now the building manager says it could fetch $15,000 a month on the open market.

State Senate Majority Leader Joseph Bruno, the Republican who created a maelstrom among tenant groups by vowing to end rent regulations, said the deal moves the state closer to total deregulation.

Rent-control supporters said the compromise would protect New York City's middle class and prevent the city from being home to only the very rich and the very poor.