With a move that would affect many Billionaires’ Row owners, New York’s real estate is on edge as Gov. Kathy Hochul nears the deadline to decide on the LLC Transparency Act. The bill, hotly debated among various groups including housing advocates, unions, lawyers, and developers, aims to bring more transparency to property ownership. This act would go beyond the upcoming federal law, revealing the names of property owners in a public database, unlike the federal law that keeps this information private within law enforcement circles.
Approximately 12% of NYC properties, and a staggering 37% in Manhattan, are owned by LLCs. Supporters of the bill argue that it’s crucial for shedding light on issues like money laundering, wage theft, and landlord abuses. However, real estate brokers, particularly those dealing with wealthy international clients, express concerns about the bill. They believe it could deter international buyers from investing in the city’s properties. Celebrities and other high-profile property owners prefer to remain anonymous and have legitimate safety concerns in having their address known to the public, many luxury real estate owners opt to purchase under an LLC name, often for the sake of privacy.
The decision rests with Governor Hochul, who remains tight-lipped about her intentions. The fate of this bill will be unveiled as the clock ticks towards midnight on December 31st.
What will she decide? We keep you up to date.