Departing State Senator Brian Kavanagh Gets Failing Grade from Real Estate Industry

State Senator Brian Kavanagh’s tenure as New York’s housing chair is ending with a legacy of rent-law controversy and a deepening affordability crisis.

By: AXL Media

Published: Mar 10, 2026, 6:28 AM EDT

Source: The Real Deal

The 2019 Rent Law Controversy

Kavanagh’s term was headlined by the Housing Stability and Tenant Protection Act (HSTPA) of 2019. While celebrated by tenant advocates as a historic win, the industry views the law as a primary driver of the current housing deterioration.

Renovation Stagnation: The law initially capped Individual Apartment Improvements (IAI) at a $15,000 limit over 15 years, a figure critics called "preposterous."

Vacant Unit Surge: Industry estimates suggest approximately 50,000 rent-stabilized units sit vacant because owners cannot recoup the high cost of mandated lead abatement and modernizations under current rent caps.

Banking Fallout: The collapse of Signature Bank in 2023 and the near-failure of New York Community Bank in 2024 were linked in part to "toxic" rent-stabilized loan portfolios devalued by the 2019 legislation.

A Record of Missed Opportunities