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Steven I. Jackson
142 Giles St.
Ithaca, N.Y. 14850
(607) 273-2149
July 5, 1989
To the Mayor and Members of Common Council:
It is my pleasure to deliver to you this Final Report from the Rental
Housing Task Force of the City of Ithaca. In sixteen meetings, beginning on
December 19th, 1988 and concluding on June 26th, 1989, the Task Force has
worked vigorously to respond to your request for recommendations to address
the critical needs of the two-thirds of our community's households who rent.
The Task Force, surveying a wide range of issues and concerns of
renters, focussed much of its attention on the crisis of affordability.
Relying on research by the planning staff, by INHS, and by myself and Valerie
MacDougall , most Task Force members came to recognize that rents have risen
much more rapidly than incomes in recent years, and that the trend appears to
be continuing, in spite of current vacancies in the Collegetown market. Most
Task Force members concluded that even if current signs of softness in the
housing market continue, the market is unlikely to bring rents down
substantially, and almost certainly not sufficiently to address the concerns
of those who are increasingly being priced out of Ithaca's housing market.
The Task Force concluded that without City action rental housing would
continue to present intolerable difficulties to those who presently rent and
to those who might wish to in the future.
This Report focusses, as did the Task Force in the end, on six
recommendations, detailed in Section A. Those recommendations include: the
creation of a permanent Rental Housing Commission; the adoption of a set of
principles to guide the development of a coherent Housing Policy; the
establishment of, and dedication of certain sources of revenue, to a Housing
Trust Fund; the establishment of a community rental registry; further
examination of a rent stabilization system; and speedy action on three sets of
recommendations.
The Task Force unanimously recommended the creation of a permanent
Rental Housing Commission; the only dissent on the recommendation was that by
Neal Howard to the specification that a majority of the membership should be
composed of tenants. In spite of that difference, the Task Force was united
in the view that beyond the formal membership of the Commission, it should be
charged by Council with involving interested groups in the community,
including particularly Cornell graduate students and senior citizens, in their
deliberations as much as possible.
The Task Force discussed numerous possibilities for City action which
would require City funds, ranging from revolving loan funds for security
deposits, to expanded subsidies for those below, at, or near the poverty line,
to assistance to programs such as the Mutual Housing program of INHS. The
Task Force is convinced that these and other actions will be necessary;
however, we have made no specific recommendations on these matters. Instead,
we have tried to address the more vexing question of where the funds with
1
which to attack the problems of renters should originate. In making these
recommendations we have been guided and greatly assisted by the report of Paul
Mazzarella and Kathe Evans, dated June 17, 1988, "Report on Housing Trust Fund
Revenue Sources. " The only dissent on revenue sources was that of Neal Howard
(with an abstention by Jean Rector) on the possibility of using the interest
from security deposits on rental units as a source for the Housing Trust Fund.
All other sources were unanimously recommended.
The most controversial question facing the Task Force was whether, in
the face of rents which seem to many to be escalating out of control , some
form of rent control would be desirable. As a result of our investigations
and discussion, the Task Force has recommended the establishment of a
community rental registry, as a mechanism for gathering systematic information
on rents in the City. In addition, the Task Force recommends further
examination of the options for a rent stabilization system in the City. To
both of these recommendations Neal Howard dissented, on the grounds that rent
stabilization has demonstrated negative effects, and that a rental registry is
a step in that dangerous direction. I also dissented from the recommendation
with respect to rent stabilization, believing that compelling evidence
demonstrates to the unbiased eye that rent stabilization would be desirable
for the City of Ithaca, that only the details of implementation remain to be
examined.
In spite of disagreements over rent stabilization, the Task Force did
agree unanimously that urgent action was required on three sets of
recommendations: the creation of the permanent Rental Housing Commission; the
adoption of the principles for guiding our Housing Policy; and the designation
of three sources of revenue for the Housing Trust Fund. In each case, tha
Task Force has recommended dates of completion for each of these tasks which
are realistic but ambitious. The community will watch the progress of your
action on these recommendations and judge the capacity of the City of Ithaca
to respond effectively to the affordable housing crisis by your ability to
meet the challenge of the deadlines which we have offered.
In addition to the recommendations we have made to Council , the Task
Force also decided formally to communicate both with the County Board of
Representatives and with the Chairman of Cornell University's Board of
Trustees on timely issues of direct relevance to the Task Force's work.
Copies of these communications are included in Section B of the Report.
Section C includes specific suggestions developed by the Working Groups
of the Task Force for additional actions which ought to be pursued. These
suggestions are forwarded for the consideration of both Council and the
permanent Rental Housing Commission; formally, these proposals were not voted
upon by the Task Force, merely forwarded for further consideration. Section D
consists of a listing of areas of concern and possible action developed by the
Task Force which ought to be sent to the permanent Rental Housing Commission
as a basis for their further discussions.
2
• Finally, Section E of the Report includes Neal Howard's letter of
dissent from the recommendations of the Task Force, his dissenting letter to
the Chairman of the Board of Cornell's Trustees, and my own dissent from the
Task Force's recommendation on rent stabilization.
I am pleased to send to you for your consideration this product of so
much dedicated labor by those who volunteered to serve on this Task Force. I
am frustrated that we were able to accomplish so little, in the face of so
much need. Yet, I trust that if Council begins by quickly acting on these
recommendations that we will have a solid basis for continuing and expanding
our efforts to address the needs of Ithaca's renters -- now and in the future.
Sincerely,
Steve Jackson
Chair, Rental Housing Task Force
P.S. Complete documentation to accompany this Report, including minutes of
all meetings, analyses and reports relied upon by the Task Force, and an
archive of information compiled by the Task Force, will be ready and delivered
within a week to ten days.
3
SECTION A:
RECOMMENDATIONS TO
COMMON COUNCIL
FROM THE
CITY OF ITHACA'S
RENTAL HOUSING TASK FORCE
4
•
I .
RENTAL HOUSING COMMISSION
The Rental Housing Task Force recommends the creation of a permanent Rental
Housing Commission by the City of Ithaca.
The Commission's responsibilities should include:
**advising Common Council on steps to be taken to improve the
accessibility, the affordability, and the quality of rental
housing in the City;
**advising Common Council on steps to be taken to achieve the goals of
the City of Ithaca's housing policy;
**advising both the Planning and Development Board and the Board of
Zoning Appeals concerning zoning changes and appeals for variances
and any potential impacts those changes or appeals might have on
rental housing affordability and availability;
**advising both the Building Department and the Planning Department on
the allocation of staff time to, and the design of programs for,
the improvement of rental housing conditions, and calling upon the
Directors of those Departments (or their designees) to appear as
necessary at the meetings of the Commission;
**serving as Trustee of the Housing Trust Fund, such that money can only
be appropriated from that fund with the approval of both Common
Council and the Rental Housing Commission;
**readying for implementation those recommendations of the Rental
Housing Task Force which call for further elaboration before
implementation;
**studying further those issues and proposals left to the Commission by
the Rental Housing Task Force and such other issues and proposals
as it may become necessary to examine.
The Commission's membership should include seven members, appointed by the
Mayor, under the following conditions:
**the members of Common Council from each Ward shall nominate to the
Mayor two residents of their Wards, at least one of whom is a
tenant, who are willing to serve on the Commission, from which
nominees the Mayor shall choose five members of the Commission;
**one member of the Commission shall be a landlord or property manager,
to be confirmed by Common Council;
**one member of the Commission shall be a member of Common Council, to
serve as a voting member and liaison;
**a majority of the membership shall always be composed of tenants in
the City of Ithaca;
**the regular terms of appointment shall be for three years for all
members other than the Common Council liaison, and these
appointments shall be made initially for one, two, and three year
terms, such that every year two seats will become vacant;
**the Common Council liaison shall serve for two years;
**the Chair and Vice-Chair will be elected annually by the Commission.
The Commission will be provided support from a professional housing planner
and clerical staff.
5
II .
HOUSING POLICY
The Rental Housing Task Force recommends that the city of Ithaca develop
housing policies based on the following guiding principles:
**Respond to the diverse needs of all areas of the City;
**Serve the full range of income groups that cannot afford unsubsidized
housing, including the homeless, the working poor, those on public
assistance, those of low and moderate incomes, and those with
special needs;
**Utilize third parties, including not-for-profit organizations,
Federal , State, and County agencies, housing authorities, private
developers, labor unions, and financial institutions, in producing
affordable housing;
**Produce housing so that its design and size are appropriate for the
community;
**Foster racial and economic integration in City-assisted housing
development;
**Ensure that housing built to be affordable remains affordable;
**Emphasize one-time capital grants, wherever possible, instead of on-
going rental subsidies;
**Recognize that the preservation of the affordable housing stock is at
least as critical as new production;
**Promote home ownership;
**In the case of rental buildings, promote tenant participation.
III .
HOUSING TRUST FUND
In the furtherance of this policy and its commitment to the adequate provision
for affordable housing, the Rental Housing Task Force recommends the creation
of a Housing Trust Fund, with the following sources of revenue:
**Developer impact fees, based on the demonstrated impact of particular
kinds of development on rents and housing prices in the City of
Ithaca, and, if possible, implemented flexibly enough to allow for
non-financial contributions where appropriate;
**City-owned parcels of land, either sold with the receipts placed in
the Trust Fund, or directly contributed to projects which result
in affordable housing;
**Real estate transfer tax of between 1% and 3%, including the
possibility of a sliding scale to exempt and/or reduce the impact
on sales of modestly priced single family homes;
**Interest on security deposits for rental units held in escrow;
**Repayment of Eddygate Apartments HODAG and Henry St. John UDAG;
**Grants from the State's Housing Trust Fund;
**Contribution from an expanded County room tax.
6
•
IV.
ESTABLISHMENT OF A COMMUNITY RENTAL REGISTRY
The Rental Housing Task Force recommends the establishment of a community
rental registry.
The Rental Housing Task Force further recommends that the permanent Rental
Housing Commission consult with Building Commissioner Datz, Neff Cassaburri,
Assistant Dean of Students at Cornell , and other interested parties to
determine how this might best be accomplished.
The Rental Housing Task Force specifically does not take a position as to
whether this registry should be maintained as a municipal responsibility or as
a private activity.
V.
RENT STABILIZATION
The Rental Housing Task Force recommends further examination of a rent
stabilization system in the City of Ithaca, modelled on the systems in place
in more than 200 cities nationwide, including more than 60 municipalities in
New York State outside New York City. Such a system should include the
following features:
**providing a fair rate of return to landlords;
**conditioning rent increases to adequate maintenance;
**providing for recovery of costs of capital improvements through rent
increases;
**exempting new construction;
**exempting properties with few units (the exact number to be determined
by the Rental Housing Commission) ;
**allowing for vacancy de-control ;
**implemented in the least costly manner possible.
The Rental Housing Task Force recommends that the permanent Rental Housing
Commission give the highest priority to the investigation of the feasible
options for rent stabilization available to the City, through discussions
within the community and with other cities which have experience with rent
stabilization systems.
7
VI.
PRIORITIES FOR ACTION
The Rental Housing Task Force makes five sets of recommendations to Common
Council , four of which are recommendations for action and one of which is a
recommendation for further examination. In addition, the Task Force has
forwarded to Council a series of specific suggestions which are the result of
Task Force working groups and discussions, yet which are not formally
recommended by the Task Force at this time. Finally, the Task Force forwards
to Council a list of additional areas of concern or potential solutions with
which the Task Force has barely dealt.
Among these numerous recommendations, suggestions, and ideas, there are three
specific sets of actions which the Task Force calls upon Common Council to act
upon as quickly as possible, with the date of expected completion indicated
with the listing of each priority item. The three items which require the
immediate attention of and action by Common Council are:
1. The establishment of a Permanent Rental Housing Commission, accompanied
by the allocation of staff time to that commission -- to be
completed by October, 1989.
2. The adoption of a set of guiding principles for developing future
housing policies -- to be completed simultaneously with the
establishment of the permanent Rental Housing Commission by October,
1989.
3. The creation of a Housing Trust Fund, and the allocation to that fund of
those recommended revenue sources and properties which are within the
power of the City of Ithaca, without State authorization, to allocate:
a) developer impact fees --to be completed by December, 1989;
b) City-owned parcels of land -- to be completed by December,
1989;
c) repayments from Eddygate HODAG and Henry St. John UDAG -- to be
completed by September, 1989.
Priorities for the remaining actions will have to be determined in
consultation with the permanent Rental Housing Commission.
8
SECTION B:
LETTERS
FROM
THE RENTAL HOUSING TASK FORCE
TO
TOMPKINS COUNTY AND CORNELL UNIVERSITY
ON TIMELY ISSUES
OF DIRECT RELEVANCE
TO THE SUPPLY OF
AFFORDABLE RENTAL HOUSING
9
June 12, 1989
Representative James Mason
Chairman, Tompkins County Board of Representatives
320 N. Tioga St.
Ithaca, New York 14850
Dear Representative Mason:
On behalf of the City of Ithaca's Rental Housing Task Force,
we write to urge you and the County Board to give serious
consideration to the channeling of funds from the County room tax
into programs for the homeless and for affordable housing.
Our Task Force, meeting since last December, has gathered
quite clear evidence of a substantial crisis in affordable housing
within the City of Ithaca and beyond. Rents pricing a substantial
number of working people out of the housing market, rents rising
more rapidly than incomes, and the very scarce supply of SROs and
low cost apartments of all sizes, are indicative of a serious and
far-reaching problem. It is clear that the solution of this
crisis, which surely affects much of the County as much as it does
the City, will require concerted action by the private sector and
the public sector, operating at all levels, including City, County,
State, and Federal programs. While public funds will play but one
part in the solution to our housing problems, there will clearly
need to be an increased commitment of public funds to meet our
housing needs, including, for example, investments in programs: to
encourage mutual housing and community land trusts: to meet
emergency needs of the homeless: to expand the number of subsidized
units available in the short-term: and to assist renters in
overcoming the obstacles posed by large security deposits.
The County Board of Representatives and the Chamber of
Commerce have done this community a service by introducing an
innovative and wholly appropriate mechanism for raising revenue
from those who visit our community and who rightly should shoulder
some of the financial burden of those programs in our community
which will restore and maintain the public health and well-being
of the permanent residents of this community. Programs for the
homeless and for affordable housing would seem a perfect fit for
an elaboration of the original room tax, to
10
provide "shelter to shelter" assistance, as those visiting our
hotels and motels would help provide aid to those who live in our
apartments and homes.
We understand that the Board is currently discussing the
nature of the request to be made to the State Legislature for
renewed authorization for the room tax. We urge the Board to seek
a higher rate than the present 2%, and to commit a substantial
portion of those new funds to programs for reinvestment in much
needed housing in our community.
Funds allocated from the tax might be directed to the Housing
Trust Fund of the City of Ithaca which we will be urging the City
to establish in our Final Report at the end of June. In our
Report, we will be recommending a range of sources for that fund
and would very much like to include possible allocations from the
room tax in our recommendations.
Our Task Force would be very happy to discuss these ideas
further with you and your associates as well as any other ideas
for potential collaboration between the City and the County in
tackling the pressing need for more affordable housing in our
community.
Thank you.
Sincerely,
Steven Jackson, Chair
Sean Killeen, Vice-Chair
cc: Board of Representatives EOC
Mayor Gutenberger Red Cross
Common Council Better Housing of T.C.
INHS Tompkins County Focus
Board of Realtors Human Services Coalition
IHA Mutual Housing Assoc.
Southside Community Center
11
Rental Housing Task Force
June 26, 1989
Mr. Stephen Weiss, Chairman
Cornell University Board of Trustees
Office of the Trustees
Day Hall
Cornell University
Ithaca, New York 14853
Dear Mr. Weiss:
The City of Ithaca's Rental Housing Task Force, appointed six months ago
by the Mayor, has been studying the rental housing situation in the Ithaca
community. Our report will soon be presented to Common Council and we expect
that a permanent Rental Housing Commission will be established to address the
urgency of the local situation and to act upon our recommendations.
A working committee of the current task force has met with officials
from both Cornell University and Ithaca College to discuss the impact of the
student and staff populations on the rental market in greater Ithaca. It is
clear to us that there is a serious shortage of affordable housing in our
city. It is also quite clear that the campus population does play a
significant part in the overall vacancy rate and in rental rates. Some say
that the presence of students in our housing markets drives the setting of
rates, as landlords look at what Cornell charges in its residence halls and
uses that to figure what students will be willing to pay for rental units
within our community. Studies conducted by members of our Task Force indicate
that rents in downtown Ithaca have increased by more than 100% in the past
decade, and by more than 10% in the past year.
We were encouraged to hear reports of your interest in establishing more
on-campus housing for Cornell students, and would be pleased to discuss these
plans further with you. However, we have grave concerns over the influence
that even on-campus costs have on the housing market in Ithaca. We urge you
to proceed to find ways to have Cornell provide more housing for its students
while, at the same time, keeping the costs for this housing at reasonable
rates.
12
Best wishes in your position as Chairman of the Board of Trustees. We
would hope to begin discussions with you in the near future as you set your
agenda and turn to the topic of housing as a priority concern for Cornell and
the City.
Sincerely,
Steve Jackson, Chair
Sean Killeen, Vice-Chair
cc: Mayor Gutenberger
Common Council
Members of Cornell University's Board of Trustees
John Burness, Cornell University
William Gurowitz, Cornell University
13
SECTION C:
SPECIFIC SUGGESTIONS
DEVELOPED BY
THE WORKING GROUPS
OF THE
RENTAL HOUSING TASK FORCE
TO BE
PURSUED FURTHER
BY THE
PERMANENT RENTAL HOUSING COMMISSION
14
I.
Zoning Changes to Encourage Affordable
Housing While Protecting Neighborhoods
(submitted by Sean Killeen and Laura Lewis)
**Press for deliberation on new zoning categories, such as R2C, which
would allow greater flexibility in the development of affordable
housing while respecting existing neighborhood structures. At the
same time, press for revision of R3a and R3b to also permit
greater flexibility.
**Urge that land currently designated P (public) be differentiated by
subcategories as with other zoning designations (P1, P2, P3) in
order to promote more efficient public use and benefit.
**Evaluate land within the City and outlying communities currently
holding tax exempt status within the framework of new or revised
zoning categories.
II.
Tenants' Rights. Model Leases. and
Mutual Responsibilities
(submitted by Valerie MacDougall and Sean Killeen)
**Urge Cooperative Extension's "Rent Smart" model lease be used locally
under spirit of consumer law insuring mutual fair play and
informed transaction.
**Make clearly evident that security deposit agreement is subsection of
lease.
**Produce a one page (modelled on the City's Recycling rules handout)
"Rules of Renting" which highlights:
privacy and limited rights of landlord access;
lease in force if property sold;
limits on security deposits;
emphasis on local laws, including Fair Housing, Recycling,
Smoking.
**Urge continuous monitoring and revision of booklets describing
tenants' rights by private interest groups like CPIRG or Community
Dispute Resolution Center.
**Provide guide to tenants on extensive prohibitions (pets, tuba-
playing, waterbeds, etc. ) and penalties for infractions; include
discussion of prohibitions which have legal basis and which are
merely whimsical?
**Require certificate of occupancy and emergency phone number to be
posted in main entrance hall of rental complex.
**Credit voucher for past positive behavior as tenant could be developed
as waiver mechanism for security deposit (modelled on concept
already used by utility companies) .
**ACC Cable, NY Telephone, and NYSEG security deposits could be used to
capitalize revolving security fund for utilities.
15
III .
Security Deposits
(submitted by Jean Rector and Sean Killeen)
**Equal treatment of all renters regarding security deposits on all
types of living units (rooms, apartments, etc. ) is objective often
determining minimal legal requirements; simplify and clarify range
of types of security deposits (space, key, trash can deposits,
etc. ) and range of options (1st month, last month, etc. ) .
**Uniform practice on security deposit interest.
**Portion of basic security deposit to be placed in revolving fund to
enable those of limited means to borrow from this start-up fund.
**Return of deposit within "reasonable time" to be locally defined as no
more than 30 days.
**Statement of repairs made must be provided to tenant by landlord if
security deposit charges are applied. Efforts at time of lease
signing, perhaps through video recording, should be made to
mutually agree on standards for judging condition in which unit
should be left.
IV.
Recommendations for Ithaca College
and Cornell University
(submitted by Neal Howard and Laura Lewis)
**The Office of Residence Life at Ithaca College should make it a
priority to deal with off-campus student life for the
approximately 2000 I .C. students who will live in the Ithaca
community each year. We recommend that the Office of Residence
Life clearly identify a staff member whose responsibility it will
be to develop programs which facilitate positive interaction
between community members and the off-campus student population.
A more organized student advisory board should be coordinated by
this person and together they could address student questions and
responsibilities concerning renting. Town meetings may also serve
to clear the air on issues of concern for area residents.
**Both Ithaca College and Cornell University can contribute resources to
improve the condition of affordable housing in the Ithaca
community whether it is through donations of land for housing
development or the encouragement of faculty research and
information sharing on topics such as funding sources for
affordable housing, identifying communities which have developed
low cost housing, increased involvement in existing programs such
as INHS.
16
**To provide more low and middle income housing in Ithaca, Ithaca
College and Cornell ought to be urged to donate a parcel of land
for new construction. Without the cost of the land, a developer
could build cheaper units with affordable rents. Since this land
was previously tax exempt, tax money would now be generated. The
City of Ithaca could use this new money for promoting affordable
housing either through: 1) direct subsidies to landlords and/or
tenants or 2) further development of affordable housing units.
[submitted solely by Neal Howard]
V.
Sweat Equity
(submitted by Paula Weiss)
**Work out procedures and regulations necessary to institute sweat
equity programs for housing.
**Building Code Regulations: interpret state and local law to allow
occupancy before house is complete, by drawing distinctions
between life safety and aesthetic issues.
**Financing: encourage loan programs that allow financing of sweat
equity construction.
**Guidelines: develop uniform guidelines for instituting a program that
developers or agencies who want to produce this housing option can
follow.
VI.
Transportation
(submitted by Paula Weiss)
**Recommend that the City (and County) adopt a policy of trying to
locate higher density affordable housing near the public
transportation lines and where infrastructure (water and sewer)
are or could become available.
17
VII.
Housing for Seniors
(submitted by Jean Rector)
**Encourage development of more apartments for seniors, most of which
should be subsidized (i.e. like McGraw and Titus) .
**Encourage development of more residential care facilities, such as
Ithacare.
**Change zoning (if necessary) to permit adult day care in private homes
and shared living residences (6 to 8 adults living together as
family) .
**City should require Cornell to inspect student apartments.
**City should inspect all living units more often than every three
years.
**Establish some type of transportation service for evening hours -- to
go to concerts, etc.
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SECTION D:
AREAS OF CONCERN
AND POSSIBLE ACTION
DEVELOPED BY
THE RENTAL HOUSING TASK FORCE
FOR FURTHER CONSIDERATION
BY THE
PERMANENT RENTAL HOUSING COMMISSION
19 •
At its meeting of March 27, 1989 [as recorded in the minutes of that
meeting] the Task Force undertook the task of putting proposals for action on
the table. After discussion, and contributions from all Task Force members,
the following not necessarily independent topics, ideas, and proposals had
been raised:
*relationship of Cornell and Ithaca College to housing
*funds for and creation of Housing Trust Fund
*enforcement
*need for a permanent board and staff
*developer impact fees
*rent control and/or rent registry
*recycling of housing
*loan programs for security deposits
*inter-municipal planning
*interest on security deposits returned to all renters
*posting of certificates of occupancy in lobby of apartments
*model leases and tenants' bill of rights
*expanding public assistance for subsidized housing
*mutual housing and/or community land trusts
*regulatory relief to encourage private developers to provide affordable
housing
*zoning changes which would provide neighborhood protection while
encouraging more housing
*providing more housing opportunities for those with disabilities
*need for more information about the costs and benefits of being a
landlord
*define affordable housing
*formation of a tenants association
*increase housing supply, building housing not shelter
*additional housing on the Cornell campus
*involving BOCES in efforts to build affordable housing
*innovative sources of funds, including diverting part of the tourism
room tax to housing, a rental housing tax assessment, a tax on
off-campus students by the university
*increasing the decentralization of landlords
*increasing public transportation to outlying areas where more
affordable housing is or could be located
*encouraging construction of diverse housing types
*encouraging sweat equity
*possible zoning changes to accommodate needs of elderly
*encourage volunteer built housing
*encouraging businesses to do something about affordable housing
After this discussion, various members raised the difficulty of having so many
issues to look into and so little time. It was proposed by the Chair that it
might be appropriate to approve at this time a motion indicating the Task
Force's conclusion that a permanent board of the City would be required. at a
minimum. to continue discussion and investigation of these topics raised by
the Task Force where the Task Force will not have the time to look into them.
On the motion of the Chair. it was unanimously agreed (Ijtel absent) that a
permanent board would be recommended to Council to deal with issues of
affordable housing and rental housing. [Underlining added]
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SECTION E:
DISSENTING VIEWS
OF
MEMBERS OF
THE
RENTAL HOUSING TASK FORCE
WITH RESPECT TO
THE RECOMMENDATIONS OF THE TASK FORCE
AND THE LETTERS SENT BY THE TASK FORCE
21
June 23 , 1989
City of Ithaca
Common Council .
108 E. Green St.
Ithaca, N.Y. 14850
Dear Council Members:
Enclosed please find my report on Rent Control and Rent
Stabilization as presented to my fellow Rental Housing Task Force
members. I think it is important that you read the substantial
evidence on the negative impact of any rent regulations on a
municipality. I am opposed to a rental registry for the City
because I see it as a "foot in the door" for future control.
As a manager of over 600 apartment units, I can assure you that
any plan for the City to control security deposits will result in
chaos. Also note that security deposits are now regulated by New
York State General Obligations Law (see enclosed) .
My recommendation for the membership of a permanent Rental
Housing Commission is a more varied committee: one Senior
Citizen, one tenant, one landlord, one common council person,
etc. I do not agree that the majority must always consist of
tenants. If a commission's purpose is to study the issues, more
involvement from community business people is essential .
I would be happy to answer any of your questions -- please feel
free to contact me.
Sincerely,
Neal Howard
NH:rd
Encl .
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June 23 , 1989
Stephen Weiss, President
Cornell University Board of Trustees
Ithaca, New York 14853
Dear Mr. Weiss:
As a member of the Rental Housing Task Force for the City of
Ithaca, I personally oppose the recommendations to you from our
committee that were voted on June 19, 1989 for the following
reasons.
First, I don't believe the vacancy rate in the City of Ithaca is
less than 2% -- my experience this year with managing over 100
apartments for various landlords shows the vacancy rate to be
closer to 5%, and that is the rate local banks use when
processing a commercial loan.
Secondly, I disagree with my fellow rental housing members that
rents have risen 13% over the past sixteen months. I have
enclosed my report to the committee, and on pages four and five I
discount the "study" that was made of apartments from the Ithaca
Journal .
And thirdly, I do not agree that Cornell should be urged to build
more units for its students. As I have cited in my report, there
is currently a glut of apartments on East Hill due to private
development.
My recommendation is University-owned land be donated to private
developers to build low and moderate income housing within the
city.
Please feel free to contact me should you have any questions.
Sincerely,
Neal Howard
427 N. Cayuga Street
Ithaca, N.Y. 14850
273-1669
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Steven I. Jackson
142 Giles St.
Ithaca, N.Y. 14850
(607) 273-2149
•
June 26, 1989
To the Mayor and Members of Common Council:
I write to dissent in a small , but significant, way from the
recommendation of the Rental Housing Task Force urging further examination of
a system of rent stabilization. I believe that it is time to acknowledge the
desirability of such a system as one part of a solution to our crisis of
affordable housing. I believe that it is time to mandate that the permanent
Rental Housing Commission find the most appropriate manner in which such a
system should be implemented in the City of Ithaca.
Ithaca's rents have climbed out of control , increasing by more than 100%
between 1978 and 1988. During this same period, incomes rose a little less
than 70% and price inflation rose a little more than 70%. The result has been
an increasing transfer of income from renters to landlords. In the past year,
rents have continued to rise, increasing by more than 10%, while inflation and
income growth have been much lower. With rents pricing larger and larger
segments of the population out of our market, a wide-ranging attack on the
problem of affordability is called for. It seems difficult to me to justify
City expenditures or contributions from others until we have moved towards
assuring ourselves that landlords and developers are not reaping super-
profits. Guaranteeing a reasonable rate of return to landlords, while
eliminating the possibility of outrageous rents at the expense of local
renters, is the sole object of a rental stabilization system.
Over 200 communities in the United States, and more than 60 in New York
State (outside New York City) , have adopted systems of rental regulation which
keep rents from escalating out of control . The main outlines of such a system
are clear: set a baseline based on existing rents; allow increases tied to
increases in the inflation rate; do not allow increases at all unless adequate
maintenance is certified; allow rent increases to capture the costs of capital
improvements; and allow for partial or complete decontrol of rents upon
vacancy. This basic system has been used and evaluated in so many different
settings that it is clear to me that its basic road-worthiness should not be
at issue. Details of its implementation should be.
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It is important to recognize that rent stabilization will not solve the
crisis of affordability; however, it will help us to keep it from getting
worse. It will also assure all of us that landlords are part of the solution
to our housing problems not part of the problem. If major landlords had not
opted for maximizing their rental income, rather than calculating their rents
based on their costs, rental regulation would not be necessary. But
speculation in rental housing has become pervasive, and rental regulation is
unavoidable as one small, but essential , piece of an attack on shelter poverty
which is both just and effective.
I therefore urge you to recommend that the permanent Rental Housing
Commission move expeditiously to recommend steps to Council for the seeking of
State authorization and local implementation of a system of rent stabilization
modelled on the State's Emergency Tenant Protection Act, but modified to meet
the needs of our local market.
Sincerely,
Steve Jackson
Chair, Rental Housing Task Force
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