New York Lawmakers Call for Action Against Predatory Equity

Lawmakers say predatory equity is an all-too-common practice in New York City. 

Property owners take on more debt than can be supported by existing tenants.  They then try to force out residents paying stabilized rent so they can hike up prices for new tenants.  City Councilman Dan Garodnick says this kind of behavior's gone too far.

"There are people who live in squalor because the owner of the building is not doing basic repairs," he said.  "And the communities suffer because we've had to provide extra services to repair and maintain delapidated properties."

Garodnick says a coalition of lawmakers and advocacy groups hopes to end this practice.  He says they're encouraging lenders and government agencies to avoid any deals that could put affordable housing at risk.  They're also developing legislation to provide more protection for tenants.