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All Forum Posts by: Andrzej Lipski

Andrzej Lipski has started 3 posts and replied 50 times.

Post: Rent control in Connecticut is coming for your property.

Andrzej LipskiPosted
  • Investor
  • Connecticut
  • Posts 50
  • Votes 24

Today is the day of the hearing.  You can still submit testimony online up until 10 AM EST.

You can register to speak here: https://zoom.us/webinar/regist...

You can write in testimony here: https://www.cga.ct.gov/HSG/tmy...

Housing Committee
PUBLIC HEARING AGENDA
Thursday, February 2, 2023
10:00 AM in Room 1D of the LOB and Zoom and YouTube Live

Watch live here https://www.youtube.com/@cga-h...

Quote from @Chris Mason:
Quote from @Adam Macias:

In short, interest rates will go up 2 more times. The first rate hike will be .25 points, the second another .25 points. After all the money The Fed printed the past 3 years, yeah they definitely need their money back.

Do I have any stats on this? No, just thought it'd be interesting to through out a prediction lol


 Thread is about mortgage rates, not the Fed rate. The fed influences mortgage rates, but does not set them. Case in point, the Fed just raised the Fed rate 0.25% today, and mortgage rates have fallen by about 0.2% on the exact same day. 


All very true. Fed only determines rates banks pay them for borrowing, and Fed has stopped buying assets from those very same institutions starting in Q1 2021. Also Fed actions are lagging by 3 to 4 quarters. But when Fed stopped buying MBS it impacted that fund which fell to a deep discount for the return on yield. But money supply continues to fall and there are no plans for them to start buying MBS or treasuries for all of 2023. So no fractional reserve and expansion of money.

It will all depend on how much demand there will be for credit when the housing market picks up in the next few months. If there is demand for mortgages but no new money then banks will not have a reason to keep rates low. Lending will get tighter and they will want a premium for that risk. But if demand is anemic then rates will stay low.

Post: Federal rent control?!

Andrzej LipskiPosted
  • Investor
  • Connecticut
  • Posts 50
  • Votes 24

I think that this is going to hurt a lot of good tenants that were kept below market because they paid on time and didn't cost the landlord money in constant repairs and complaints.

Post: Landlord or Tenant - who pays?

Andrzej LipskiPosted
  • Investor
  • Connecticut
  • Posts 50
  • Votes 24

What is stated in your lease agreement? Did you state that the tenant pays for any service calls?

Its always good to have a cheap handyman that you can call for those kind of issues first rather than calling a tradesperson that will charge you the full rate. This won't be the first time. Most of the time the issues are lack of experience being a new tenant and all.

Include a service call charge for each incident in the lease and more than likely they will learn how to figure out their own small problems.

I recommend looking at 1970s Germany's policy action after they exited the Breton Woods agreement. They were the only economy to pressure real interest rates up and not keep them negative.  The US Fed and several other economies didn't by the mid 70s and it resulted in a long protracted stagflation.

I'm assuming that many central banks have learned from the Germany control of their Lombard rate and they have communicated that guidance in many of their statements. That rates will stay elevated "for a long time".

I'm guessing that it means we will have a Fed rate above 5% for about 2-3 years. This will keep treasury rates up between 3.5% to 5%

Post: Rent control in Connecticut is coming for your property.

Andrzej LipskiPosted
  • Investor
  • Connecticut
  • Posts 50
  • Votes 24
Quote from @Rick Albert:

Coming from Los Angeles. Show studies that explain that every market that has enacted rent control actually made housing worse. For example show how much faster rents go up and how it limits supply. Oregon is a good example. They started rent control in 2019. From 2020-2021 rents doubled. Economist tracked San Francisco as well. 

Exactly.  And this negative impact doesn't just affect landlords and multifamily. Housing development slows down as there is no incentive for builders and or rehabbers to invest in destressed properties because of the lack of demand.  This slows sales of homes, less contractor demand.  Landlords become selective about the improvements and maintenance they put money towards. Electrical, plumbing, handyman work dries up.  Rent control depresses the economy as a whole.

This is a call to action for everyone, even if you aren't a landlord.  Your basic livelihood as a tradesperson or service provider to landlords is at risk.  Please choose to submit a testimonial for Thursday's hearing. https://r20.rs6.net/tn.jsp?f=0...

CTPOA needs your help.  Here are the bills that should be opposed the link to present video testimony or written testimony.  

Please take to time to at least provide written testimony. It only take 5 minutes and you can present the talking points as described here.

S.B. No. 909 (RAISED) AN ACT ESTABLISHING A RIGHT TO HOUSING

Link to Bill: https://www.cga.ct.gov/2023/TOB/S/PDF/2023SB-00909-R00-SB.PDF

This Bill established a committee to discuss making housing a human right. The committee is comprised of all Tenant Advocates and ZERO Housing Providers or Real Estate Professions!

For the process to be valid, there needs to be equal input from both sides of the equation or you will get a biased result. We oppose any structure that is not balanced and therefore either make the composition of the committee balanced or kill this proposal.

5. S.B. 907 (RAISED) AN ACT CONCERNING FAIR RENT COMMISSIONS.

Link to Bill: https://www.cga.ct.gov/2023/TOB/S/PDF/2023SB-00907-R00-SB.PDF

This Bill forces cities with a population of 10,000 or more to create a Fair Rent Commission by July 1, 2023 where the current law says towns with 25,000 or more. This will create an undue hardship on these small towns and the legislation that went into effect last session hasn't been fully deployed and already we see several issues with the Bill that passed last session.

1. Every commissions must be balanced with equal representation between landlords and tenants. The city of New Haven has a lopsided commission favoring tenants, this needs to be into placed into the statute that there's equal representation so decisions will be fair.

2. The time-frames need to be much quicker from notice to decisions. Everyday that there is not a decision is another day the landlord can't get his rent increase and wait times for hearings in many cases has been months.

3. There needs to be some minimum threshold for bringing an action before the Fair Rent Commission, some monetary standard like a rent increase exceeding the Fair Market Rental values. Otherwise this becomes a tool for tenants to bash landlords with. The current term for hearing eligibility "Egregious Increase" is too vague.

6. S.B. No. 906 (RAISED) AN ACT CONCERNING HOUSING PROTECTIONS

FOR VICTIMS OF FAMILY VIOLENCE.

Link to Bill: https://www.cga.ct.gov/2023/TOB/S/PDF/2023SB-00906-R00-SB.PDF

While we agree that victims of Family Violence need help, it can't be at the expense of a housing provider. We need clarification that this Bill does not allow a tenant claiming to be a victim of family violence not to comply with their lease terms. In essence, they need to pay their rent, not create any disturbances in the property to impact the other occupants and not violate their lease and use the premises for illegal purposes.

Also the Bill does not specify a time-frame to declare oneself a victim. As written one could have been a victim years ago and now decide to being this to their current landlord and exercise the privileges the Bill is providing, this needs to be clarified. If these conditions are not met, we oppose this bill as being an undue burden on the housing provider

Quote from @Steve Batista:

I was at a CTREIA meeting last week and they did bring up and already wrote a lengthy note to my local rep.   I have just signed up for ZOOM hearing as well and thank you for sharing. 


 Thanks. I'm going to keep this thread updated with any changes

Post: Federal rent control?!

Andrzej LipskiPosted
  • Investor
  • Connecticut
  • Posts 50
  • Votes 24
Quote from @J. Mitchell Bernier:

However, if it did it would only apply to landlords with loans that are federally backed (FHA, USDA, Freddie Mac, SBA, etc). If your loan is just a standard bank loan, then they couldn't touch you regarding rent control.

I wonder if this would include all the assigned mortgages that people are Sub2ing?

The public hearing will be on February 2nd, 2023. 

You can register to speak here: https://zoom.us/webinar/regist...

You can write in testimony here: https://www.cga.ct.gov/HSG/tmy...

Housing Committee
PUBLIC HEARING AGENDA
Thursday, February 2, 2023
10:00 AM in Room 1D of the LOB and Zoom and YouTube Live

BILLS FOR REVIEW
1. H.B. No. 6555 (RAISED) AN ACT ESTABLISHING A COMMISSION ON
HOMELESSNESS.
2. H.B. No. 6554 (RAISED) AN ACT APPROPRIATING FUNDS FOR CERTAIN
HOMELESSNESS RESPONSE PROGRAMS.
3. S.B. No. 909 (RAISED) AN ACT ESTABLISHING A RIGHT TO HOUSING.
4. S.B. No. 908 (RAISED) AN ACT CONCERNING THE HOUSING TRUST FUND.
5. S.B. No. 907 (RAISED) AN ACT CONCERNING FAIR RENT COMMISSIONS.
6. S.B. No. 906 (RAISED) AN ACT CONCERNING HOUSING PROTECTIONS
FOR VICTIMS OF FAMILY VIOLENCE.

https://www.cga.ct.gov/2023/hs...