The Caisse and its American partner Blackstone are in the sights of New York tenants who are fighting to avoid an increase in their rent.
For several years, the fight of the tenants of this huge complex of Soviet-style brown buildings has been similar to that of David against Goliath, recalls former city councilor, Dan Garodnick, who fought in the 2000s to reach a ceiling. the rents.
“For a long time, there was a lot of uncertainty for tenants. But we won a battle to keep rents more affordable. The little one is often beaten by the big banks and real estate groups, but our group was not only organized, but also loud and passionate, ”he recalled in an interview with The newspaper.
But a few years later, a new fight looms. Blackstone and Ivanhoé Cambridge (IC) want to deregulate several hundred apartments under an agreement with New York City signed during the purchase in 2015. This would pave the way for a considerable increase in rents.
IC had previously been criticized for similar tactics in Montreal, having bought the Rockhill residential complex which it finally divested in 2019.
On the other hand, the Stuyvesant Town Tenants Association – Peter Cooper Village has taken legal action against the landlords. She wants to ensure compliance with the 2019 law adopted by the State of New York which limits the increase in rents. The court must therefore determine whether the law takes precedence over the agreement with the owners.
“Many tenants are afraid, because if we lose our case, some will see rent increases of 5% per year and after that there will be no limit”, worries Susan Steinberg, president of the Association.
His concern stems from the fact that rents are already extremely high, very close to market price. Even though they are regulated, the cheapest apartments (one bedroom) are available at $ 3,100 per month and they can go up to $ 6,900 (three bedrooms).
“Blackstone says we are rich! But this is not true. During the pandemic, some lost their apartments, many have to share their rent with roommates. People love to stay here, but if there are too big increases, I know some who will have to leave ”, believes Mr.me Steinberg.
In this case, even if it has signed an agreement with the owners, the City of New York is on the side of the tenants in their battle. And the outcome remains uncertain.
“The law has long been in favor of homeowners and we have corrected the situation. Now the tenants have more rights. This keeps rents permanently regulated. We had our battle, this is different, but I know they will win their case because it is fair, ”said Dan Garodnick.
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