In response to recent headlines surrounding proposed legislation that would allow New York City to seize buildings from so-called “bad landlords,” Lev Mavashev, Founder and Principal of Alpha Realty and one of the city’s most active multifamily investment sales brokers, is raising serious concerns about the real-world implications of such policies.
“The intention may be to protect tenants,” said Mavashev, “but the execution risks doing the exact opposite.”
The Core Problem With Punitive Policy
Mavashev points to a fundamental issue: policy proposals that penalize ownership without addressing the underlying economics of operating multifamily housing in New York City.
“Let’s be clear — the New York City Housing Authority is already one of the most challenged operators of housing in the country. Transferring more buildings into public control does not solve the problem. In many cases, it risks taking assets from struggling conditions into even worse ones.”
The NYC multifamily market has already been under significant pressure following years of regulatory tightening, rising operating costs, and limited rent growth. As a result, many landlords have pulled back on capital improvements and reinvestment — not due to lack of willingness, but lack of economic incentive.
“When you remove the upside, you remove the motivation to invest,” Mavashev explained. “We’re seeing it play out in real time. Owners are hesitant to put money into their buildings because the return profile no longer justifies the risk.”
This dynamic has contributed to a growing number of under-maintained properties and, in some cases, vacant units that remain offline due to the inability to recoup renovation costs — a trend widely discussed across the industry.
The Path Forward: Incentives, Not Penalties
Mavashev argues that the path forward is not punitive policy, but incentive-driven reform.
“If the goal is better housing for tenants, then the solution is simple: create policies that encourage landlords to reinvest in their assets. Align incentives. Promote responsible ownership. Encourage capital to flow back into the housing stock.”
He emphasizes that New York City’s multifamily sector has historically demonstrated resilience, adapting through economic cycles, regulatory changes, and market disruptions.
“New York doesn’t need more headlines — it needs thoughtful, economically sound policy. Because at the end of the day, if owners are not investing, buildings deteriorate. And when buildings deteriorate, tenants are the ones who ultimately suffer.”
Lev Mavashev is a leading NYC multifamily expert and Founder and Principal of Alpha Realty. He has brokered over $3 billion in transactions and is widely recognized as a leading authority in New York City investment sales.