Monday, June 23, 2008

Cost Of NYC Rent Regulations (cont.)

I initially estimated lost real estate tax revenues of $1 billion. When you factor in other lost tax revenues including income tax (federal, state and local), mortgage recording taxes and transfer taxes this estimate increases to $1.8 billion per year. If this amount can be leveraged by four dollars for every one dollar invested, this would create a $9 billion pool of capital that could be made available every year for the construction of affordable and workforce housing.

The issue with respect to rent regulations is whether the current system is the most effective way of creating and maintaining affordable housing in New York City. Given the large sums of money involved, it is worth a hard look.

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