By:  Benyamin Davidsons

Two large landlord advocacy groups in New York City are looking into joining forces.

As reported by Crain’s NY, the Community Housing Improvement Program, which represents over 400,000 rent-stabilized rental properties across the five boroughs, would unite with the Rent Stabilization Association, which represents 25,000 rental property owners.  The resulting organization would be a single more-influential real estate trade association powerhouse.  For over five decades,  the CHIP and RSA have both been working throughout NYC.  Their goals and priorities have often times been aligned, and they even shared some of their board members.  Shared causes for the duo have included fighting against NY’s 2019 rent law.

The two groups  had filed a lawsuit against the law which made drastic changes to NYS’s rules for rent-regulated apartments. That lawsuit was recently dismissed for  a third time, with the U.S. Supreme Court throwing out the case.

It was actually that 2019 law which propelled the two groups to seek a potential unification.  Last summer, the Real Deal had first reported a possible merger, saying the two groups were working on making a deal which would include combining their memberships and lobbying efforts. The Real Deal has reported that Joseph Strasburg will step down as president of the Rent Stabilization Association, after 30 years, but he will probably still stay on as a consultant for the group.

The new group, to be named the New York Apartment Association, would be jointly headed by a new leader– with two options in the works.  Per The Real Deal, one candidate being considered is Staten Island City Council member Joe Borelli.  The Republican politician, who has served as minority leader of the City Council, commented to Crain’s denying that he would be named to head the group, but saying the role is a crucial position.  “Landlords seem to need all the help they can get,” Borelli said.  The other candidate named for the role is Adolfo Carrión, NYC’s Department of Housing Preservation and Development Commissioner.

Back in December, the Real Deal had reported that without financial help, CHIP may become insolvent.  The report by PKF O’Connor Davies for RSA said that CHIP spent $10.1 million in the 30 months ending in June 30, but only took in $8.4 million, and that it may no longer exist in six months.  In that time frame, CHIP’s reported income included a $655,000 infusion from RSA, without which CHIP would have been “nearly insolvent,” the report says.

CHIP Executive Director Jay Martin told the Real Deal that the group has always been a small operation that has worked “hand to mouth.” He said the group’s troubled finances are a result of a conscious

decision to wind down operations and fundraising.  There is significant overlap between the two organizations’ boards and membership, and having members pay dues to two separate organizations was becoming increasingly difficult, said Martin.  “I wish it would  have happened sooner, frankly,” Martin previously said of the merger. “The industry probably would have been in a better position if this happened before 2019.”

A potential merger of the two landlord groups would help both groups to come closer to reaching their goals and create a united representation for owners of rent-regulated buildings.

RSA members are expected to vote next month on the proposed merger with CHIP.  CHIP has already approved the merger, per The Real Deal.