New York City’s wealthiest real estate owners will be exposed: A new transparency law will expose the identities of ultra-private buyers
- The LLC Transparency Act, passed by the New York State Assembly in June, awaits a signature from Governor Kathy Hochul
- The primary purpose of the bill is to expose the owners of limited liability companies (LLCs) in the state
- LLCs are companies that buy real estate anonymously – and are used by very wealthy buyers and criminals
New York City’s wealthiest real estate owners could be exposed under a new bill expected to be signed into law later this year.
The LLC Transparency Act, passed by the New York State Assembly in June, is awaiting a signature from Governor Kathy Hochul.
The primary purpose of the bill is to expose the owners of limited liability companies (LLCs), which are companies incorporated and used to purchase real estate in the state.
Using an LLC to buy real estate makes the buyer anonymous, so wealthy individuals can use the loophole to keep their assets hidden from the public.
Experts warn that LLCs are also commonly used by criminals as a way to launder money. LLCs are also used by celebrities and other high-profile figures to keep their names out of the news.
New York City’s wealthiest real estate owners could be exposed under a new bill expected to be signed into law later this year
The LLC Transparency Act, passed by the New York State Assembly in June, awaits a signature from Governor Kathy Hochul
Anonymous corporate ownership has been on the rise since the 1990s and has contributed to countless problems.
“Anonymous shell companies are used to evade sanctions, evade taxes, fund terrorist organizations and organized crime, and launder money.”
If the bill became law, anonymous LLCs would be required to disclose their owners, creating a searchable public database.
Opponents of the bill, including realtors, are concerned that it would violate the privacy of property owners.
Others, however, believe that the $250 fine for non-compliance is not severe enough. This means that those who want to hide their identity behind an anonymous LLC will likely just pay the modest fine.
“I have serious doubts that the enforcement mechanism set out in the law will be sufficient,” Joshua Bromberg, attorney at the New York City-based firm of Kleinberg, Kaplan, Wolff & Cohen, told me. Axios.
It comes as rents in New York City hit a new all-time high last month averaging $5,588 per month — a 30 percent increase since 2019.
Average monthly rent is now up 9 percent from the same time last year, marking a new all-time high for the city.
Rents in New York reached a new high in July, averaging $5,588 per month
The average rent, $4,400 per month, and the average price per square foot of $84.74 also hit a new all-time high, a report from the states of Miller Samuel and Douglas Elliman.
The average price of a studio in Manhattan in July was $3,278 and a three-bedroom apartment was $10,673.
The larger, more expensive apartments have seen the biggest price increase since the pandemic disrupted the market.
Rents for studio apartments have risen by 19 percent since 2019, and average rents for three-bedroom apartments have risen by more than 36 percent.