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Landlord Finally Free to Live in His Own Home

After battling in court since 2003, this family is finally able to turn their 60 room apartment building into one gigantic home for themselves. Of course, the beneficiaries of the rent-controlled apartments don’t believe the owner’s family should have the right to live in their own building. New York Post – VILLAGE TENANTS ‘HOUSE BROKEN’ The Court of Appeals found that Alistair and Catherine Economakis can go ahead with eviction proceedings against their low-income tenants at 47 E. 3rd St., as long as they plan to use their apartments for themselves. “We’re all working people, your typical, moderate-income working people. For them to want to kick us out so they can have a luxury mansion – it’s ethically and morally unconscionable. I don’t know what other word to use,” said David Pultz, 56, who’s lived in the building for the past 30 years. Pultz said he pays $625 a month for his one-bedroom apartment, and is concerned that if he gets booted, he’ll have to leave the city. (that’s about 1/4 -1/3 the market rate for that neighborhood) “At a time of a really grave housing shortage, it’s a matter of serious concern that an owner can be permitted to obtain 15 apartments for his own use,” he said, adding that in the rest of the state, owners can’t claim more than two apartments for themselves. As I described in Rent Control Part 3, rent control creates this type of class tensions between the property owners and the “entitled” class tenants. It seems completely silly that the landlord has to go to such extremes to get out of the burdens of rent control, but can you blame him? Compared to buying a new home, it probably cost him next to nothing in lost revenue to evict the tenants. Here is […]

Somin: Causes of the Defeat of Prop 98

Ilya Somin at Volokh – Causes of the Defeat of Proposition 98 There were two major causes of Prop 98’s defeat. One was the sponsors’ mistake in combining the popular cause of restricting eminent domain with a far less popular phaseout of rent control. The second and more unusual cause of 98’s defeat was the presence of Proposition 99 on the ballot. If you are interested in this, please check out Ilya Somin’s extensive writings on Proposition 98 and 99 at The Volokh Conspiracy.

“Cockamamie” Neighborhood Zones

Thanks to loyal reader, DBM for the tip on the photo link. David Weigel – Highway to the Neighborhood Zones refers to DCist – Police to Seal Off D.C. Neighborhoods The Examiner has the scoop on a controversial new program announced today that would create so-called “Neighborhood Safety Zones” which would serve to partially seal off certain parts of the city. D.C. Police would set-up checkpoints in targeted areas, demand to see ID and refuse admittance to people who don’t live there, work there or have a “legitimate reason” to be there. Shelley Broderick, president of the D.C.-area American Civil Liberties Union and the dean of the University of the District of Columbia’s law school, said the plan was “cockamamie.” “I think they tried this in Russia and it failed,” she said. Good luck opening a business and bringing jobs to those areas if customers have to pass through a checkpoint every time they enter the zone. I can’t see things getting any better in these neighborhood zones. Almost sounds like an exclusive luxury community. If they want their neighborhood sealed off, they could buy the streets from the district, build a wall, and hire their own private security. But, I assume it’s not a luxury community and they can’t afford their security.

Somin: Prop 99 Worse Than Nothing

Ilya Somin at Volokh: Why California’s Proposition 99 is a Lot Worse than Nothing Yesterday’s California returns show that Proposition 98 – the referendum initiative that would have imposed real restrictions on eminent domain and also phased out rent control – has been overwhelmingly defeated by a 61% to 39% margin. The rival Proposition 99 – an initiative sponsored by local governments and other pro-condemnation interests that only pretends to protect property rights – passed easily by 62 to 38.

Carroll Gardens, Choose Only One: Setback or Height Restriction?

NY Times – Carroll Gardens: The Big Front Yards That Rob the Streets Although the yards serve as leafy margins to the streets, creating ample open space between the rows of brownstones arrayed on either side, they also put those streets into the “wide” category for zoning purposes. This means developers can build structures on those streets that are taller than would otherwise be allowed. In recent months, some local residents, with one eye on all the construction, have been objecting to this rule. Carroll Gardens, Brooklyn NIMBYs will do anything to stop development in their neighborhood. The buildings are set back so far from the street with gardens, yet they don’t want to allow taller buildings in their neighborhood, claiming the streets cant handle it. In my opinion, either allow taller buildings or end the setback requirements. Otherwise, your NIMBY selfishness is just too much.

Roads: US vs Europe

Pick Your Road: The U.S. vs. Europe, by Bryan Caplan In the U.S., we have low gas taxes, low car taxes, few tolls, strict zoning that leads developers to provide lots of free parking, low speed limits, lots of traffic enforcement, and lots of congestion. In Europe (France and Germany specifically), they have high gas taxes, high car taxes, lots of tolls, almost no free parking, high speed limits (often none at all), little traffic enforcement, and very little congestion. I’ve never driven in Europe, but I can’t imagine enduring city driving in the European cities I’ve been to. Those drivers are nuts! But, I’d venture to say that costs of driving in Europe are closer to reflecting the true costs, as opposed to the US’ tax, build with Pork, then neglect highway systems to spend on other pet projects system. The US socializes and subsidizes auto-transportation, while Europe socializes and penalizes. I imagine the European systems is closer to resembling a free-market transportation system than the US. But, we’ll probably never know for sure…

Somin: Prop 98 Likely to Fail, 99 to Pass

Ilya Somin at Volokh: Polls on California Eminent Domain Ballot Initiatives Show Prop 98 Likely to Fail and Prop 99 Likely to Pass: In a recent Field Poll cited in the article, Proposition 98 was losing by 43 to 33 percent among “likely voters,” while Proposition 99 was ahead by 48 to 30 percent. A slightly earlier poll conducted by the Public Policy Institute of California has similar results. If, as is likely, Proposition 98 is defeated, it will probably be a result of the combination of the sponsors’ tactical error in combining the popular anti-eminent domain measure with a far less popular phaseout of rent control (a mistake I criticized in one of my earlier posts), combined with the presence of the deceptive Prop 99 on the ballot. The latter probably led voters to believe that they could protect property rights against takings without simultaneously attacking rent control. Keep your fingers crossed….

Thank you Lynne Kiesling

Yesterday, Lynne Kiesling of Northwestern University encouraged readers of her popular economics blog, Knowledge Problem to visit Market Urbanism. The link generated the highest day of traffic to date. I hope visitors find Market Urbanism interesting and return often. Thank you for visiting Market Urbanism. Adam

Happy 125th, Chicago’s L

Stephen Smith at rationalitate picked up on a Wired article and posted Thomas Edison builds the first el: today is 125th anniversary of the debut of Thomas Edison’s elevated electric railway demonstration in Chicago. The project was financed with $2 million in private funds, through the newly-incorporated Electric Railway Company. It’s enough to make you nostalgic for the days when the government wasn’t so involved in transportation and regulating land use, and that it was actually possible for the market to come up with transportation solutions We’ve come along way in destroying transit by government over-spending since the good ol’ days…. photo by flickr user harshilshah

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