The new energetic City Council Speaker Corey Johnson, fondly known as “CoJo” by colleagues, may turn into Stephen King’s rabid dog, Cujo, for the real estate industry.
At his love-fest swearing-in on Sunday at the Fashion Institute of Technology in Chelsea, the new speaker says rent regulations for stores may be on the agenda.
“Yes, we are considering that,” Johnson told The Post after the ceremony.
During his address, Johnson said, “Mom and pop businesses can’t compete with deep-pocketed chains,” and referred to neighborhoods with “empty storefronts.”
He also added, “Small business owners should be given a chance to succeed without getting evicted from their storefronts.”
While on the radar for the Council, commercial rent regulations can’t happen without legislation being passed in Albany, explained Joseph Strasburg, president of the Rent Stabilization Association, whose members often have stores at the base of their buildings — and that income balances regulated apartment rents which don’t always pay the bills.
“If you want to send a message that this is not a place to do business, this is what you do,” Strasburg said. “You kill the golden goose, and no one will want to invest.”
Similarly, Dan Margulies, with the Associated Builders and Owners of Greater New York, said, “Obviously, rent regulations haven’t eased the housing shortage and commercial rent control won’t stop Amazon from disrupting retail. We look forward to working with the Speaker on more practical and effective solutions to the City’s problems.”
Speaker Johnson is, however, aligned with the real estate industry in recognizing that good paying jobs and affordable housing is critical.
John Banks, president of the Real Estate Board of New York, said, “We are eager to engage in a dialogue on these important public policy initiatives,” that include “housing to meet demand at all income levels in every neighborhood.”
But apartment building owners won’t necessarily be smiling about other items on his agenda.
Along with new store regulations, the Speaker is pushing to continue apartment regulations, as he says, “The affordability crisis that grips our city threatens the very existence of our neighborhoods. New Yorkers who have lived in the same community their entire lives, now find themselves priced out, unable to afford their rent or even their groceries.”
To that end, Johnson insisted, “The City Council will renew rent stabilization and rent control in New York City. We will press Albany to close the loopholes allowing landlords to deregulate thousands of apartments every year.”