Amidst New York’s housing legislative vacuum, Newburgh struggles mightily to cast a vote in favor of rent stabilization.

The city would declare a local housing emergency and become the second upstate municipality to choose rent stabilization.

The city of Newburgh is about to implement rent stabilization by announcing a housing emergency. Newburgh will follow Kingston as the second upstate community to choose to participate in the state’s Emergency Tenant Protection Act, or ETPA, if they decide to do so at a meeting on Monday night.

For upstate tenant groups who have pushed municipalities to lower resident rent prices, the move would be a positive indication after the state Legislature failed to make significant progress on tackling housing affordability during the 2023 session. Earlier this year, the governor’s bold plan to create 800,000 new homes through a combination of housing laws and incentives fell short of expectations.The progressives’ “good cause” eviction measure, which would have capped rent hikes and regulated evictions, was likewise not enacted, so for the time being, municipalities will have to figure out housing on their own.

First implemented in 1974 for suburban counties outside of New York City, the state ETPA was extended to the entire state in 2019. It states that in the event that a housing emergency is declared by the leaders of the city and the vacancy rate is less than 5% of eligible units, the city may implement rent stabilization. Tenant stabilization would only be applicable to structures constructed before 1974 that had six or more units.

There were others who believed that the public hearing on December 11 made the need of adopting ETPA more apparent to the Newburgh City Council members. Daniel Atonna, the political coordinator for the pro-rent stabilization group For the Many, stated, “I think the vote is looking very, very positive based on how they appeared and what they said in a cautious way.” “I believe they observed the resounding public endorsement of the opt-in throughout the open hearing.”

The climax of a year’s worth of grassroots lobbying efforts by housing activists and tenants will take place on Monday. The city of Newburgh conducted a vacancy study in November and reported that, out of the 738 units evaluated, the vacancy rate was 3.93%. This falls under the ETPA’s 5% eligibility criteria. In addition, landlords are now required by a new law enacted this past weekend by Governor Kathy Hochul to react to vacancy surveys by assuming that a unit is occupied in the event that an owner does not answer. Landlords have previously dismissed vacancy studies for precisely that reason.

Numerous Newburgh tenants told the council during the meeting earlier this month that they were having trouble paying their rent and frequently turned to taking on multiple jobs or asking family members for help.

Tenant Rebecca Ziegler of Newburgh said she did not understand how someone with her relatively fortunate background—college educated, middle class, and white—could barely make ends meet because of rent.

“I am unable to

Ziegler told the City Council, “I can not afford to live in Newburgh because my monthly income, after taxes, is $2400. My rent is $1300, my car payment is about $400, and I pay Central Hudson the same amount as you do.” After everything is taken care of, I am lucky if I have $100 remaining.

“I am not doing good, and my neighbors are worse off than I am,” she continued.

After Newburgh’s vacancy research, the real estate industry became active. Residents received texts and phone calls with the subject line, “Higher Rents Could Come to Newburgh Tell Mayor Harvey and the City Council to Reject Rent Control.” At the public meeting last week, Rich Lanzarone, the executive director of the Hudson Valley Property Owners Association, also spoke in an effort to persuade the council not to sign up the ETPA.

Traditionally, landlords have maintained that limiting the cost of leases would worsen rather than improve the lives of renters. Renters claim that the money they save will not be available for unit upkeep and repairs.

If the city chooses to participate, Lanzarone said he intends to fight them by questioning their vacancy study—a strategy he tried in Kingston and is awaiting a decision from the state Appellate Court. He presented a 19-page report to the council during the hearing, explaining that they had inflated the number of eligible units in Newburgh by 84, which had caused the vacancy rate to decrease.

Traditionally, landlords have maintained that limiting the cost of leases would worsen rather than improve the lives of renters. Renters claim that the money they save will not be available for unit upkeep and repairs.

If the city chooses to participate, Lanzarone said he intends to fight them by questioning their vacancy study—a strategy he tried in Kingston and is awaiting a decision from the state Appellate Court. He presented a 19-page report to the council during the hearing, explaining that they had inflated the number of eligible units in Newburgh by 84, which had caused the vacancy rate to decrease.

According to accurate calculations, the vacancy rate is 6.35 percent, Lanzarone informed City & State. “I am not sure how they will handle it. After reading my 19-page analysis, they probably turned to their lawyers and asked, “How would a judge interpret this if we chose to ignore this and move on anyway?” We will find out, I suppose, next week.

He predicted that they would probably choose to join the ETPA given Newburgh’s history of enacting laws that are favorable to tenants, such as a municipal “good cause” eviction law that was eventually struck down in court in 2021.

Atonna referred to Newburgh’s report as “totally biased” and “absolutely unscientific,” and stated that he was not concerned about a potential legal challenge from landlords given the methods employed.

That can just be thrown out in court, in my opinion,” Atonna remarked. “I doubt that any judge will consider their case seriously.”

Tenants in Newburgh may be joined by other upstate cities in 2024 as they wait for a final ruling on rent control. While Albany obtained financing for a vacancy study as well, Poughkeepsie is working on one. Tenants in Ithaca and Rochester are also banding together in support of ETPA.