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      In Erdogan’s Turkey, a Building System Fatally Weakened by Corruption

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      The building began convulsing at 4:17 a.m. Firat Yayla was awake in bed, scrolling through videos on his phone. His mother was asleep down the hall.The region along Turkey’s border with Syria was known for earthquakes, but this apartment complex was new, built to withstand disaster. It was called Guclu Bahce, or Mighty Garden. Mr. Yayla’s own cousin had helped build it. He and his business partner had boasted that the complex could withstand even the most powerful tremor.So, as the earth heaved for more than a minute, Mr. Yayla, 21, and his 62-year-old mother, Sohret Guclu, a retired schoolteacher, remained inside.At that very moment, though, Mr. Yayla’s cousin, the developer, was leaping for safety from a second-story balcony.Sohret Guclu, a retired schoolteacher, was asleep in her home in Antakya, Turkey, when the quake hit.via Firat YaylaWhat Mr. Yayla and his mother had not known was that the system to ensure that buildings were safely constructed to code had been tainted by money and politics. That system prioritized speed over rules and technical expertise.A New York Times investigation found that a developer won zoning approval for the project after donating more than $200,000 to a local soccer club, where the mayor is an honorary president. Then, when residents raised alarms that the blueprints did not match what had been built, they received no satisfying reply from the local government. The building inspector said that, even after the project had failed its inspection, the developers used political influence to get the doors open.The apartment complex, in the southern Turkish city of Antakya, was a concrete and stone representation of a patronage system that has flourished under President Recep Tayyip Erdogan as he has propelled a construction boom across Turkey for the past two decades.Undeterred by warnings that the breakneck development lacked sufficient engineering oversight, officials in the capital, Ankara, gave local politicians more power to issue construction licenses for large projects without scrutiny from independent professionals.Basic suggestions never took off — that civil engineers should have to pass a certification exam, for instance.Rescue workers at the site of the collapsed Guclu Bahce building. About 65 people died there.Emin Ozmen for The New York TimesThat building spree turned middle-class landowners like the Guclus, for whom the Guclu Bahce complex was named, into developers and landlords. Mr. Erdogan, who will stand for re-election on May 14, used construction as a vessel for economic growth and a symbol of Turkey’s progress. Local politicians from all parties benefited from the jobs, housing and off-the-books payments that commonly flowed from it all.Mr. Erdogan’s office referred questions to the environmental ministry, which did not respond to requests for comment.The Feb. 6 earthquake revealed the shaky foundation on which so much growth was built. More than 50,000 people died as buildings toppled, crumbled or pancaked. Guclu Bahce, the mighty earthquake-proof complex, was among them. An estimated 65 people died there.“So many died because they were told that the safest place was inside, and they should not try to leave during an earthquake,” said Fatma Oguz, whose sister died in the collapse.For the Guclu family, several of whom lived in the building, the collapse created a fatal rift. Survivors have turned on each other amid a lawsuit, a criminal investigation and a bitter search for answers:Were the buildings doomed to fall by nature of a powerful earthquake? Or did someone cut corners? Who can be held accountable in a system in which blueprints cannot be trusted and nobody agrees on whether the building passed inspection? The inspector says somebody forged his signature. It is unclear if the final project was up to code, and the developers cannot agree on who actually built anything.As the building shook in February, Mr. Yayla called out to his mother to stay in her room and get on the floor next to her bed. He did the same. They would ride this out safely.Then came a fierce thud, and the columns holding up the bedroom ceiling snapped.‘Money From Our Friends’Family members say the land, covered in fig trees, had been theirs for three generations.By 2015, buildings were popping up all around, a testament to a Turkish economy that had been growing about 7 percent a year.Mehmet Guclu, a young developer with a civil engineering degree, approached his relatives with a plan. Look around, he told them. Somebody’s going to develop this parcel. Better to keep it in the family, to be landlords, to make money.“He convinced us that he’d build the most magnificent project in our family name,” said Yusuf Guclu, another cousin who lived in the complex. He said that Mehmet had promised to protect against the earthquakes everyone in the region knew to expect.Mehmet Guclu, then in his 30s, was a charismatic striver with a luxe aesthetic, known for incorporating sleek finishes and expensive materials like marble. He had already built some of the tallest buildings in Antakya.The extended family had dreamed of exactly this opportunity for years.The complex was to be a centerpiece of the community — five towers, complete with luxury apartments, retail shops, a pool and a high-end gym.Mehmet’s career had taken off quickly, in part because of Turkey’s low barriers to entry for civil engineering graduates. Unlike in the United States and United Kingdom, graduates in Turkey do not need to pass certification exams or complete on-the-job training to become an engineer. Architectural trade groups have called for such requirements for years.The Guclu Bahce complex in May 2020, before residents moved in. The development attracted doctors, teachers, judges and politicians, some of whom bought multiple properties as investments.Google Maps“University educates you. It doesn’t train you,” said Mustafa Erdik, an earthquake engineering professor at Bogazici University in Istanbul. “We have to bring in professional engineering.”Getting a project started often hinges on unwritten rules that can be as important as technical expertise. In this part of southern Turkey, for example, contractors have known for years that a donation to the local soccer club can move a project along, said Hikmet Cincin, the former head of the soccer club. Antakya’s mayor at the time, Lutfu Savas, serves as the club’s honorary president.After discussions with that mayor, Mehmet Guclu gave the club more than half a million lira, more than $200,000 at the time, according to a person involved in the construction process who spoke on condition of anonymity because of an ongoing investigation.Mr. Savas denied profiting from Guclu Bahce’s construction and said the donation had not been tied to the project. “If we ask for money from our friends,” he said of gifts to the soccer club, “it’s for the benefit of everyone.”He called himself an honest politician in a corrupt system. He said developers commonly made payments to circumvent bureaucratic approvals. Most build whatever they want and assume it will be approved, he said. He blamed Mr. Erdogan and his political party for fostering this culture.But Mr. Savas, himself a former member of Mr. Erdogan’s party, was adamant that was not the case with Guclu Bahce.Mr. Savas says he has little memory of the particulars. What is clear is that the project rolled along in the following years, and the foundation was laid in summer 2017.But the earth in that part of Turkey is not ideal for building, particularly in an earthquake zone, said Serkan Koc, a member of the Union of Chambers of Turkish Engineers and Architects.“These areas shouldn’t have been turned into construction zones,” he said. Soft soil, for example, will amplify an earthquake. Mr. Koc said Turkish environmental officials should have assessed the whole area before the building boom.“Although the ministry had the authority to inspect, they didn’t” he said. The environmental ministry did not respond to requests for comment.As Mr. Guclu’s new project moved forward, the only limitations seemed to be financial. Soon after the foundation was poured, his money dried up. He turned to a prominent developer, Servet Altas, to help see it through.Mr. Altas became the public face of the project. His initials, in red and blue, would later adorn the low wall ringing the complex.Sales PitchSohret Guclu had been eager for a steady income to supplement her modest state pension. So she swapped her land deeds for ownership of six apartments and a retail storefront.She had raised two boys in an old, crumbling apartment building. Her new home was to be a four-bedroom unit with an airy living room and kitchen — one of the largest in the complex.Guclu Bahce’s apartments were among the region’s most expensive, costing as much as $160,000. But Mr. Altas promised upscale amenities and unparalleled safety, former residents said.“If there were an earthquake right now, I would run inside,” Mr. Altas repeatedly said, recalled Ertugrul Sahbaz, a building manager for the complex.Guclu Bahce attracted doctors, teachers, judges and politicians. Songul Oguz and her husband bought a $117,000 apartment after a sales agent said that the building’s strong foundation and reinforced steel bars could withstand even a 10-magnitude earthquake, Ms. Oguz’s sister recalled. It would take 10 days for Ms. Oguz’s body to be pulled from the wreckage.Mr. Altas, wearing a plaid jacket and bow tie, joined government officials for a jubilant opening ceremony in late 2019. They smiled and posed with a pair of 10-foot gold scissors that were later recorded by Guinness World Records as the world’s largest. Mr. Altas thanked Mr. Guclu for his engineering work and his own son for working as one of the architects.Servet Altas, center, at a ribbon-cutting ceremony during the opening of the apartment complex.Mehmet Bayrak/Hatay-IhaFew have argued that these developers knowingly put people in deadly buildings. Mr. Guclu’s own family lived there, after all, as did Mr. Altas’s son. Turkey deemed Mr. Guclu a qualified engineer, and the local government — measured by the number of officials at the grand opening — supported the project.But the chest-thumping and fanfare were premature. The buildings failed a final inspection, according to court testimony. The nature of the violations is murky, but Ismail Ozturk, a building inspector, testified this year that his company had raised concerns with the local authorities.Mr. Ozturk testified that the contractors had leveraged “close connections” in the city government to overcome the failed inspection. The city mayor at the time, Ismail Kimyeci, who belongs to Mr. Erdogan’s party, denied any special treatment. He said the government’s final approval had been a formality. “The inspection firm plays the most important role here,” Mr. Kimyeci said.Mr. Ozturk’s signature does appear on a certification document. Through his lawyer, he said it had been forged.In a functioning system, there would be no ambiguity about who had approved a project. But Turkey’s system is built on ambiguity. The Erdogan government has, for decades, weakened independent, expert construction oversight and fought proposals to toughen standards.Turkey’s chamber of civil engineers, for example, has argued for years that experienced engineers are stretched too thin to adequately supervise construction projects. The group has called for every project to get a dedicated engineer. That idea, which could have slowed down construction, went nowhere. The Erdogan government sued the group in 2015, blocking it from issuing its own, stricter certifications for engineers.Lawmakers also privatized the building inspection process, sidelining Turkey’s engineering and architectural union. And while the government in 2019 eliminated a rule allowing contractors to pick their inspectors, mayors still hold power to push past potential issues.Guclu Bahce’s opening was delayed. Discrepancies existed between the blueprints and what was built, Mr. Ozturk said in testimony after the earthquake. Some former residents, too, said that they had picked up on such differences and sent a letter to the city raising concerns.One resident said the dispute centered on the very building in which Mr. Yayla slept the night of the earthquake — the first to collapse. The resident said that the building had featured an extra floor, a penthouse with a terrace that had not appeared in the plans.The resident, who spoke on condition of anonymity to avoid being dragged into a criminal and civil dispute, said he had helped broker a meeting between Mr. Altas and the city’s current mayor, Izzettin Yilmaz, to find a solution.Mr. Yilmaz, a member of Mr. Erdogan’s party, acknowledged in an interview that he had met with Mr. Altas. But he said the purpose was to tell the contractor that he was not interested in taking bribes. Gossip was swirling, he said, and he wanted to make things clear: “I told him: ‘No one requested a payment from you.’”Through his lawyer, though, Mr. Altas, denied meeting with the mayor. What’s more, Mr. Altas — who took credit at the opening ceremony for building the complex — now denies involvement with the construction or the planning. That was Mehmet Guclu’s responsibility, he said.Despite claiming no involvement, Mr. Altas said he was certain that the complex matched the blueprints.There is no indication in Mr. Ozturk’s testimony that anything was done to assess the design changes. Residents said the city promised to investigate, but they never heard back.Whether this discrepancy played any role in Guclu Bahce’s collapse and whether the inspection was adequate are among many questions being asked in the government’s criminal investigation and a family lawsuit.But the city ultimately awarded occupancy permits and residents finally moved into their apartments in 2021. Guclu Bahce sprang to life, with a health club, a home goods store and a chicken shop.For almost two years, nobody looked back or gave further thought to the construction process.Cries in the DarknessLying on the floor next to his bed, Firat Yayla thought immediately of his cousin’s assurances about the building’s sturdiness. His confidence lasted less than a minute, though, until he heard the sound of crumbling concrete.The wall next to him was caving in.As the 7.8-magnitude earthquake continued for about 90 seconds, the building fell sideways. Steel bars knifed out from the concrete, and he began slipping toward them.The lights went out, and Mr. Yayla was sure he was going to die.The next thing he registered was the sound of car alarms. His foot was wedged in a crack and he couldn’t move under the weight of a giant wall. He could barely breathe but managed to call into the darkness.“Mom!” he shouted. “Are you OK?”She called back. “Firat! Firat! Firat!”But her cries weakened, and then went quiet.“Please help me!” he shouted over and over.A resident helped free Mr. Yayla from the rubble. He survived without serious injuries. Mehmet Guclu survived his jump from the balcony with little more than an injured finger.Firat Yayla, 21, was rescued without serious injuries from the ruins of Guclu Bahce. His mother did not make it.Emin Ozmen for The New York TimesSohret Guclu died, along with more than five dozen other residents.Members of the Guclu family have sued the contractors and the inspection company, alleging construction flaws. Among those they accuse of wrongdoing is Mehmet Guclu, the cousin on whom they had pinned so many hopes.Sohret’s brother, Yusuf Guclu, said family members were angry at a system of back-scratching and favor-trading that had papered over potential problems.That system had worked in his family’s favor. The Guclus had lived the Turkish dream, converting their land into a cash cow thanks to a relative’s expertise and connections. Now, Yusuf’s sister was dead and his family was accepting donated clothing.“We’ve lost everything,” he said.Mr. Altas was arrested and jailed pending the outcome of the investigation. He has not been charged with a crime. Through his lawyer, he said he had only bankrolled the project.Mr. Ozturk, the inspector, has also been arrested but not charged. He denies signing off on the project.And, in a meeting with The Times, Mr. Guclu appeared shellshocked. He said he would consider speaking publicly about the building, the lawsuit and his family.But with a warrant out for his arrest, Mr. Guclu soon stopped returning messages.The last time he was in contact, he was working on a government construction project — part of Mr. Erdogan’s well-publicized plan to rebuild the region swiftly.The Guclu Bahce complex, which fell sideways, after the quake. Sergey Ponomarev for The New York TimesBeril Eski More

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      Gen Z Problems: Maxwell Frost Is Struggling to Rent an Apartment

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      Other young adults, who have poor credit history and are frustrated with expensive rental application fees, can relate to the housing troubles of the first Gen Zer elected to Congress.WASHINGTON — At 25, Representative-elect Maxwell Frost will be youngest member of Congress. He’s also in debt, after maxing out credit cards to win Florida’s 10th Congressional District seat.He said he was upfront about his bad credit when he applied for a one-bedroom apartment in Washington, D.C., where he now has to live part-time for at least the next two years. A broker, he said, told him that was fine. He paid a $50 application fee and then was denied the apartment because of his poor credit history.Mr. Frost, the first Gen Zer elected to Congress and a Democrat, took to Twitter in early December to voice his frustration: “This ain’t meant for people who don’t already have money.”While most other Gen Zers haven’t accrued campaign debt, Mr. Frost’s housing woes have generated a wide range of commiserating among Gen Z Twitter users who have short credit histories and less capital to afford expensive deposits and application fees.Mr. Frost said he also lost hundreds of dollars last year when he was searching for housing in his home district in Orlando.“Application fees are becoming a source of revenue for management companies,” Mr. Frost said in an interview. “We live in a world right now where you can run an extensive background check for $15, why are fees up to $200? Why do we use a credit score to determine if an applicant can pay rent when there’s so many things that hurt someone’s credit score?”The fees are the sour cherry on top of a brutal housing market: Last month, the typical asking rent in the United States was over $2,000, up from $1,850 in November 2021 and $1,600 in November 2020, according to data from Zillow. For Washington D.C., the typical asking rent was over $2,200 last month, a figure that’s been following the national trajectory.Some Gen Zers see no feasible way to get a place of their own: Nearly a third of people between the ages of 18 and 25 are living at home permanently, one recent report found.Raegan Loheide, 25, started looking for a new apartment with their partner and their current roommate last May. Mx. Loheide, a barista, was living in an apartment in Queens, but said their mental and physical health was deteriorating from a series of maintenance issues that their landlord refused to fix, including a roach infestation, holes in the ceiling, a lack of heat and a broken toilet.“We didn’t feel safe,” Mx. Loheide said.But in the months following, Mx. Loheide, their roommate and their partner applied to five apartments — spending hundreds of dollars on application fees — all of which they were rejected from.“The first rejection was because we didn’t have a third guarantor,” Mx. Loheide said. “I kept asking the brokers ‘why?’ but I barely ever got a real answer.”Eventually, Mx. Loheide felt they had no choice but to stay in their current apartment, even if it meant an emotional toll and more landlord troubles.“We couldn’t move,” Mx. Loheide said. “We kept expanding our budgets and scraping together more to afford to relocate, but what good is that if we can’t even get approved?”Why Landlords Care About Your CreditCredit is one of the tools property owners have to utilize to tell upfront if a tenant will be able to make their rent payments, said Jay Martin, the executive director of the Community Housing Improvement Program, a trade association for 4,000 property managers and owners in New York.“Property owners have a fiduciary duty to figure out that the applicants that they’re screening are going to be able to pay the rent that they are applying for, because they have mortgages that they’ll have to pay with the rent money that they are collecting,” Mr. Martin said.Mr. Martin added that the money from application fees “is not in any way a form of revenue for management companies, brokers or property owners.” The fee, Mr. Martin said, goes toward covering the cost of running the background checks, credit checks and other screening processes.Still, some tactics and motives have drawn criticism.Brokers also may encourage people who will likely get denied from an apartment application to apply anyway, for financial incentives or in hopes of raising their statistics on how many applicants they can bring in, said Felipe Ernst, a faculty member in Georgetown’s masters of real estate program and founder of a D.C.-based real estate development firm.While it can create more competition for an apartment and give a landlord more options to choose from, it can negatively impact potential renters who are already struggling since application fees, which can add up to hundreds of dollars, are almost always nonrefundable, he said.“It’s borderline unethical to put someone in the wringer, knowing that they won’t get approved,” Mr. Ernst said. “But at the same time, you need to have a realistic look on your finances. I don’t go to a Ferrari dealership if I can only buy a Honda.”Vipassana Vijayarangan could not live with her boyfriend as planned because her lack of credit disqualified her from renting an apartment with him.Todd Midler for The New York TimesSettling for a Room or a CouchFor people desperate to rent apartments, they are just searching high and low for somewhere to live.In 2018, Vipassana Vijayarangan had to move to D.C. on short notice for a new job. She stayed in an Airbnb until she had pay stubs for a rental application, and with her partner, she found a suitable two-bedroom apartment to apply to in Washington’s Capitol Hill neighborhood.“I told the agent in an email, ‘I’m very interested in this apartment, but I do not have any credit,’” Ms. Vijayarangan, 31, said. “When I lived in the U.S. on a student visa, I didn’t have — and was not allowed — to get a social security card. So it was impossible for me to even apply for the secured version of a credit card until I had work authorization.”Similar to Mr. Frost’s situation, the broker assured Ms. Vijayarangan that her lack of credit wouldn’t be a problem, but in the end, her application was denied.Ms. Vijayarangan, who now works as a data scientist in New York, eventually rented a room in a rowhouse from an immigrant landlord who understood her situation, she said. But, Ms. Vijayarangan and her partner, an American citizen who had a more established credit history, ended up living apart because he could get approved but she could not. “That could have been the first time that we were living together and building a life together,” she said. “We didn’t get to do that.”Mr. Frost is now the proxy for discouraged Gen Zers, but he is just the latest in the storied tradition of members of congress lamenting the process of finding a secondary residence in D.C. after being elected. Through the years, representatives and senators have opted to split a place with one another or even sleep in their offices to save money.In an interview last week, Representative Alexandria Ocasio-Cortez, Democrat of New York, said that she has previously “dealt with very similar issues.”In 2018, just after she was first elected and was set to be the youngest woman to serve in Congress, she told The Times, “I have three months without a salary before I’m a member of Congress. So, how do I get an apartment? Those little things are very real.”Similarly, Representative Mondaire Jones, Democrat of New York, said he also ran up debt when he first ran for office.“This place is not set up for people who are not independently wealthy,” Mr. Jones said. “People here don’t understand wealth inequality because they’ve not experienced it.”Mr. Frost has a budget of less than $2,000 a month. He’s looking for a studio apartment within walking distance of the U.S. Capitol since he does not intend to have a car or a driver to chauffeur him. His geographic hopes have restricted his apartment hunt to a few gentrifying neighborhoods.Unsure when he’ll finally secure a place to live, he plans to continue couch surfing for a few months to save money and find an apartment in one of his desired neighborhoods.“I was very close to taking out a loan, which would mean spending a lot of personal money to pay back the loan,” Mr. Frost said. “Rent problems are not just mine. There are millions of Americans that have these same problems.” More

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      Kyrsten Sinema’s Exit From the Democratic Party

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      More from our inbox:As History Shows, Incumbents Have the EdgeBlack HomeownershipAn Opera Fan’s DreamAlone, and FreeKyrsten Sinema, the Arizona senator, plans to keep her committee posts.Haiyun Jiang/The New York TimesTo the Editor:Re “Leaving Party, Sinema Rattles a Race in 2024” (front page, Dec. 10):Senator Kyrsten Sinema is being deceitful in justifying her decision to leave the Democratic Party in favor of being an independent. This isn’t a principled decision. It’s a self-serving and strategic move on her part.Ms. Sinema is unpopular with Democrats in her home state, many of whom feel betrayed by her failure to support the progressive agenda she led them to believe she was committed to. In fact, she’s been a self-absorbed political opportunist primarily serving special interests and not the good of average citizens whom she pretends to care so much about.She claims that she wants to escape the partisanship and extremism that afflicts Congress, creating a false equivalency between the two parties. Reality check: It’s only the Republican Party under the thumb of Donald Trump that has sunk into corruption, hyperpartisan conduct and extremism.Ms. Sinema has been an obstacle to even the most widely popular and beneficial legislation, playing games with the Senate leadership and trying to position herself as someone needing to be courted for her support again and again.If she cared half as much about the citizens she represents as she cares about her wardrobe styling and need for attention, she might be more credible in declaring herself an independent.T.R. JahnsHemet, Calif.To the Editor:Senator Kyrsten Sinema officially ditched the Democratic Party and announced that she has registered as an independent. The move wasn’t entirely a shocker, yet it was still a gut punch for Arizona Democrats who worked hard to send a Democrat to Washington.I understand that she is ditching the Democratic Party because she knows that she can’t win a primary as a Democrat. Her past behavior suggest she’s adept at ditching anyone or anything no longer useful to her.She began her public life as a Green Party activist. She ran for the State Legislature as an independent, which didn’t work. Her big break came when she became a Democrat. In that role she created all sorts of drama and attention-grabbing stunts such as her thumbs-down vote on raising the minimum wage for hardworking Americans.Her antics were guaranteed to garner attention and annoy. For example, Alexandria Ocasio-Cortez on Friday ripped into Ms. Sinema: “Not once in this long soliloquy does Sinema offer a single concrete value or policy she believes in. She lays out no goals for Arizonans, no vision, no commitments.”Kyrsten Sinema appears to be the wrong person at the wrong place at the wrong time.Richard A. FrenchPasadena, Calif.To the Editor:Kyrsten Sinema’s decision to go independent may be a healthy sign for U.S. politics. The Australian federal election in May saw a decline in the vote for both major parties, and a historic wave of votes for independents who were capable, professional women. Their presence is injecting new vigor and accountability into our Parliament.Ray EdmondsonKambah, AustraliaTo the Editor:The only politician more self-centered, selfish and self-aggrandizing than Kyrsten Sinema is Donald Trump.Michael K. CantwellDelray Beach, Fla.As History Shows, Incumbents Have the Edge Kriston Jae Bethel for The New York TimesTo the Editor:Re “Strong Election Showing Eases Democrats’ Fears of Biden ’24,” by Katie Glueck (Political Memo, front page, Nov. 28):A key reason that Democrats should support President Biden for re-election is that history shows that a sitting president has the best chance of winning. Several recent Democrats have run again despite low approval ratings halfway through their first terms, including Harry Truman in 1948, Bill Clinton in 1996 and Barack Obama in 2012. Each was re-elected.In contrast, incumbent presidents who voluntarily give up the White House or are subject to a primary challenge are almost always a political disaster for the party in power. L.B.J.’s 1968 decision not to run left the nation in political turmoil, resulting in a Nixon presidency that undermined Americans’ faith in government. Jimmy Carter faced a primary challenge from Ted Kennedy in 1980 and never recovered. George H.W. Bush was weakened by Pat Buchanan in 1992, then lost to Bill Clinton.In any event, America needs Mr. Biden to deal with a series of problems, including an increasingly authoritarian Republican Party, a delicate U.S. economy, Russia’s war on Ukraine and the growing climate crisis — problems that he has proved well qualified to address.As long as Mr. Biden remains healthy and able to perform as president, Democrats would be crazy to nominate anyone else.Paul BledsoeWashingtonThe writer is a lecturer at American University’s School of Public Affairs and served as a staff member for the Senate Finance Committee and Clinton White House.Black HomeownershipNearly 45 percent of Black households own their homes, compared with more than 74 percent of white households, a new report has found.Tony Cenicola/The New York TimesTo the Editor:Re “The Racial Gap Begins at the Mortgage Application” (Real Estate, Dec. 4):It’s encouraging to see The Times cover the continuing racial discrimination in homeownership. As your headline aptly states, our unacceptable disparities result from discrimination in every aspect of home buying for Black people — from loan approval to interest rates to home appraisals.In New Jersey, like across the U.S., this problem stubbornly persists. About four in 10 Black families in the state own their homes, compared with more than three-quarters of white families. High-income Black families are more likely to be denied a loan than low-income white applicants.Appraisal discrimination, one piece of the puzzle, is finally getting due attention in the Garden State with the Legislature poised to pass a bill to combat it early next year.If there’s one thing we’ve learned in the past few years, it’s that racism is baked into our policies. It’s time for the federal government, as well as states like New Jersey, to step up and design policies that root out ongoing barriers to homeownership and other drivers of wealth for Black and other households of color.Laura SullivanNewark, N.J.The writer is director of the economic justice program at the New Jersey Institute for Social Justice.An Opera Fan’s Dream Sinna Nasseri for The New York TimesTo the Editor:Re “Reviewing the Opera? Nah, I’m in It” (Arts, Dec. 8):I send my deepest gratitude to the critic Joshua Barone for the immersive and entertaining account of his experience as an extra in the Metropolitan Opera’s extravagant production of “Aida.”Some little kids dream of being an astronaut, a U.S. president, a famous movie star. But since first being brought to the opera at age 4 to see “Tosca,” and staying awake through its entirety, I’ve had the fantasy dream of somehow being on the Metropolitan Opera’s stage (or, alternately, in the orchestra pit).I’ve been a lifelong operagoer since then, and now, well past middle age, I found myself in a state of complete vicarious joy reading Mr. Barone’s “inside scoop.” Bravo!Jane Garfield FrankQueensAlone, and Free Ben WisemanTo the Editor:Re “I Live Alone. Really, I’m Not That Pathetic,” by Frank Bruni (Opinion, nytimes.com, Dec. 9):I am someone who grew up with seven siblings. My own “alone home,” for me, represents freedom and euphoria.To cope with societal expectations, we one-member households need to remember: The most important thing about living alone is that it’s not your job to worry about what other people think.Ted GallagherNew York More

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      A Times Square Hotel Was Set To Become Affordable Housing. Then the Union Stepped In.

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      At the height of the Covid-19 pandemic, the Paramount Hotel, sitting empty in Times Square, was on the verge of turning into a residential building, offering a rare opportunity to create affordable housing in Midtown Manhattan.A nonprofit was planning to convert the hotel into apartments for people facing homelessness. But after 18 months of negotiations, the plan collapsed this year when a powerful political player intervened: the Hotel and Gaming Trades Council, the union representing about 35,000 hotel and casino workers in New York and New Jersey.The union blocked the conversion, which threatened the jobs of the workers waiting to return to the 597-room hotel. Under the union’s contract, the deal could not proceed without its consent.The Paramount reopened as a hotel this fall, an illustration of how the union has wielded its outsized political power to steer economic development projects at a critical juncture in New York City’s recovery.The pandemic presented a devastating crisis for the city’s hotel workers, more than 90 percent of whom were laid off. But as the union has fought harder to protect them, its political muscle has also drawn the ire of hotel operators and housing advocates, who say the group’s interests can be at odds with broader economic goals.After the conversion failed, the Paramount reopened this fall, saving about 160 hotel jobs.Ahmed Gaber for The New York TimesThe union’s impact ripples throughout New York. It can block or facilitate the conversion of large hotels into housing and homeless shelters, a consequential role in a year when homelessness in the city reached a record high of about 64,000 people. The union pushed for the accelerated expansion of casinos, which could transform the neighborhoods of the winning bids. And it was a driving force behind a new hotel regulation that some officials warned could cost the city billions in tax revenue.The union’s influence stems from its loyal membership and its deep pockets, both of which it puts to strategic use in local elections. Its political strength has resulted in more leverage over hotel owners, leading to stronger contracts and higher wages for workers.In this year’s New York governor’s race, the union was the first major labor group to endorse Gov. Kathy Hochul, whose winning campaign received about $440,000 from groups tied to the union. The group was also an early backer of Eric Adams, whose mayoral campaign was managed by the union’s former political director.“H.T.C. is playing chess while everyone else is playing checkers,” said Chris Coffey, a Democratic political strategist, referring to the union’s more common name, the Hotel Trades Council. “They’re just operating on a higher playing field.”Origins of the union’s powerHistorically, the Hotel Trades Council avoided politics until its former president, Peter Ward, started a political operation around 2008.Mr. Ward and the union’s first political director, Neal Kwatra, built a database with information about where members lived and worshiped and the languages they spoke. This allowed the union to quickly deploy Spanish speakers, for instance, to canvass in Latino neighborhoods during campaigns.Candidates noticed when the Hotel Trades Council, a relatively small union, would send 100 members to a campaign event while larger unions would send only a handful, Mr. Kwatra said.The Aftermath of New York’s Midterms ElectionsWho’s at Fault?: As New York Democrats sought to spread blame for their dismal performance in the elections, a fair share was directed toward Mayor Eric Adams of New York City.Hochul’s New Challenges: Gov. Kathy Hochul managed to repel late momentum by Representative Lee Zeldin. Now she must govern over a fractured New York electorate.How Maloney Lost: Democrats won tough races across the country. But Sean Patrick Maloney, a party leader and a five-term congressman, lost his Hudson Valley seat. What happened?A Weak Link: If Democrats lose the House, they may have New York to blame. Republicans flipped four seats in the state, the most of any state in the country.To recruit members into political activism, the union hosted seminars explaining why success in local elections would lead to better job protections. Afterward, members voted to increase their dues to support the union’s political fights, building a robust fund for campaign contributions. Rich Maroko, the president of the Hotel Trades Council, said the union’s “first, second and third priority is our members.”Ahmed Gaber for The New York TimesThe Hotel Trades Council ranked among the top independent spenders in the election cycle of 2017, when all 26 City Council candidates endorsed by the union won. Some of these officials ended up on powerful land use and zoning committees, giving the union influence over important building decisions in New York.In a huge victory before the pandemic, the union fought the expansion of Airbnb in New York, successfully pressuring local officials to curb short-term rentals, which the union saw as a threat to hotel jobs.Mr. Ward stepped down in August 2020, making way for the union’s current president and longtime general counsel, Rich Maroko, who earned about $394,000 last year in total salary, according to federal filings.The union’s sway has continued to grow. Some hotel owners, speaking on the condition of anonymity, say they are fearful of crossing the union, which has a $22 million fund that can compensate workers during strikes. In an interview, Mr. Maroko pointed out that the hotel industry is particularly vulnerable to boycotts.“The customer has to walk through that picket line,” he said, “and then they have to try to get a good night’s rest while there are people chanting in front of the building.”The Hotel Trades Council’s contract is the strongest for hotel workers nationwide, labor experts say. In New York City, where the minimum wage is $15 an hour, housekeepers in the union earn about $37 an hour. Union members pay almost nothing for health care and can get up to 45 paid days off.During the pandemic, the union negotiated health care benefits for laid-off workers, suspended their union dues and offered $1,000 payments to the landlords of workers facing eviction.Along the way, the union has become known for its take-no-prisoners approach to politics, willing to ally with progressives or conservatives, with developers or nonprofits — as long as they support the union’s goals.“There may be no union which has more discrete asks of city government on behalf of its members,” said Mark Levine, the Manhattan borough president, who was endorsed by the union. “You can’t placate them with nice rhetoric. To be a partner with them, you really need to produce.”Political wins during the pandemicLast year, the union scored a victory it had sought for more than a decade, successfully lobbying city officials to require a special permit for any new hotel in New York City.The new regulation allows community members, including the union, to have a bigger say over which hotels get built. The move is expected to restrict the construction of new hotels, which are often nonunion and long viewed by the Hotel Trades Council as the biggest threat to its bargaining power.Budget officials warned that the regulation could cost the city billions in future tax revenue, and some developers and city planners criticized the rule as a political payback from Mayor Bill de Blasio in the waning months of his administration after the union endorsed his short-lived presidential campaign in 2019. Mr. de Blasio, who did not return a request for comment, has previously denied that the union influenced his position.In the next mayoral race, the union made a big early bet on Mr. Adams, spending more than $1 million from its super PAC to boost his campaign. Jason Ortiz, a consultant for the union, helped to manage a separate super PAC to support Mr. Adams that spent $6.9 million.Mr. Ortiz is now a lobbyist for the super PAC’s biggest contributor, Steven Cohen, the New York Mets owner who is expected to bid for a casino in Queens.The union, which shares many of the same lobbyists and consultants with gambling companies, will play an important role in the upcoming application process for casino licenses in the New York City area. State law requires that casinos enter “labor peace” agreements, effectively ensuring that new casino workers will be part of the union.A new threatDuring the pandemic, as tourism stalled, there was growing pressure to repurpose vacant hotels. With New York rents soaring, advocates pointed to hotel conversions as a relatively fast and inexpensive way to house low-income residents.But the union’s contract, which covers about 70 percent of hotels citywide, presented an obstacle. A hotel that is sold or repurposed must maintain the contract and keep its workers — or offer a severance package that often exceeds tens of millions of dollars, a steep cost that only for-profit developers can typically afford.A plan to convert a Best Western hotel in Chinatown into a homeless drop-in center was scuttled by city officials after the effort failed to win the union’s endorsement.Ahmed Gaber for The New York TimesEarlier this year, Housing Works, a social services nonprofit, planned to convert a vacant Best Western hotel in Chinatown into a homeless drop-in center. There was opposition from Chinatown residents, but city officials signed off on the deal. It was set to open in May.Right before then, however, the Hotel Trades Council learned of the plan and argued that it violated the union’s contract.Soon, the same city officials withdrew their support, said Charles King, the chief executive of Housing Works. He said they told him that Mr. Adams would not approve it without the union’s endorsement. Mr. King was stunned.“Clearly they have the mayor’s ear,” Mr. King said, “and he gave them the power to veto.”A spokesman for the mayor said the city “decided to re-evaluate this shelter capacity to an area with fewer services,” declining to comment on whether the union influenced the decision.The Chinatown hotel remains empty.An obstacle to affordable housingIn the spring of 2021, state legislators rallied behind a bill that would incentivize nonprofit groups to buy distressed hotels and convert them into affordable housing. They sought the Hotel Trades Council’s input early, recognizing that the group had the clout to push then-Gov. Andrew M. Cuomo to oppose the bill, according to people involved in the discussions.The union supported the conversions, but only if they targeted nonunion hotels outside Manhattan. Housing groups have said that, unlike large Midtown hotels, nonunion hotels are not ideal candidates for housing because they tend to be much smaller and inaccessible to public transit.As a compromise to gain the union’s support, the bill allowed the Hotel Trades Council to veto any conversions of union hotels.“While we certainly support the vision of finding shelters and supportive housing for the people that need it,” Mr. Maroko said, “our first, second and third priority is our members.”One housing advocate involved in the legislation, who spoke on the condition of anonymity, said she warned elected officials that the veto provision would diminish the law’s effectiveness.The law, which passed last year, came with $200 million for conversions. Housing experts criticized the legislation for not sufficiently loosening zoning restrictions, prompting another law this spring that made conversions easier.Still, no hotels have been converted under the new law.Now, with tourism rebounding, housing nonprofits say the window of opportunity has largely passed.“It’s not like hotel owners are clamoring to sell the way they were two years ago,” said Paul Woody, vice president of real estate at Project Renewal, a homeless services nonprofit.How the Paramount deal endedIn the fall of 2020, the owners of the Paramount Hotel began discussing a plan to sell the property at a discount to Breaking Ground, a nonprofit developer that wanted to turn it into rent-stabilized apartments for people facing homelessness.But as the deal neared the finish line, Breaking Ground failed to anticipate pushback from the Hotel Trades Council. In a series of meetings last year, the union said its obligation was to fight for every hotel job and it proposed a range of solutions, including keeping union employees as housekeepers for residents. Breaking Ground, however, said the cost was too high.The nonprofit even asked Mr. Ward, the union’s former president, to help facilitate the conversion. Mr. Ward said he agreed to call Mr. Maroko to gauge his interest in Breaking Ground’s severance offer.This spring, lobbying records show, union representatives met with Jessica Katz, Mr. Adams’s chief housing officer, and other officials about the Paramount. Soon after, Ms. Katz called Breaking Ground and said city officials would not be able to make the conversion happen, according to a person familiar with the conversation. A spokesman for the mayor said the city “cannot choose between creating the housing the city needs and bringing back our tourism economy,” declining to comment on whether the union swayed the decision on the Paramount.The failed conversion saved about 160 hotel jobs, and the Paramount reopened to guests in September.It was a relief for workers like Sheena Jobe-Davis, who lost her job there in March 2020 as a front-desk attendant. She temporarily worked at a nonunion Manhattan hotel, making $20 less per hour than at the Paramount. She was ecstatic to get her old job back.“It is something I prayed and prayed for daily,” she said. More

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      Truss Takes a Bold Economic Gamble. Will It Sink Her Government?

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      Three weeks into her term, Prime Minister Liz Truss’s financial plans have thrown the markets and Britain’s currency into chaos and put her future in peril.LONDON — Prime Minister Liz Truss of Britain campaigned as a tax cutter and champion of supply-side economics, and she won the race to replace her scandal-scarred predecessor, Boris Johnson. Now she has delivered that free-market agenda, and it may sink her government.Four days after Ms. Truss’s tax cuts and deregulatory plans stunned financial markets and threw the British pound into a tailspin, the prime minister’s political future looks increasingly precarious as well.Her Conservative Party is gripped by anxiety, with a new poll showing that the opposition Labour Party has taken a 17 percentage point lead over the Tories. It’s a treacherous place for a prime minister in only her third week on the job.Labour is seizing the moment to present itself as the party of fiscal responsibility. With some experts predicting the pound could tumble to parity with the dollar, economists and political analysts said the uncertainty over Britain’s economic path would continue to hang over the markets and Ms. Truss’s government.“It’s entirely possible she could be replaced before the next election,” said Tim Bale, a professor of politics at Queen Mary University of London, who is an expert on the Conservative Party. “It would be very, very difficult to conduct a full-blown leadership contest again, but I wouldn’t rule anything out.”That Ms. Truss should find herself in this predicament so soon after taking office attests to both the radical nature and awkward timing of her proposals. Cutting taxes at a time of near-double-digit inflation, when central banks in London and elsewhere are raising interest rates, was always going to mark Britain as an economic outlier.But the government compounded the shock last Friday when the chancellor of the Exchequer, Kwasi Kwarteng, unexpectedly announced that the government would also abolish the top income tax rate of 45 percent applied to those earning more than 150,000 pounds, or about $164,000, a year.And Mr. Kwarteng did not submit the package to the scrutiny a government budget normally receives, deepening fears that the tax cuts, without corresponding spending cuts, will blow a hole in Britain’s public finances.Cutting taxes at a time of near-double-digit inflation, when central banks in London and worldwide are raising interest rates, has made Britain an economic outlier.Carl Court/Getty ImagesOn Tuesday, the pound stabilized briefly against the dollar, as did 10-year rates on British government bonds, though both began to gyrate later in the day after a senior official at the Bank of England signaled an aggressive rise in interest rates.The International Monetary Fund, which bailed out Britain in 1976, added to the deepening sense of anxiety when it urged the British government to reconsider the tax cuts. In a statement, it said the cuts would exacerbate inequality and lead to fiscal policy and monetary policy working at “cross purposes.”Rising Inflation in BritainInflation Slows Slightly: Consumer prices are still rising at about the fastest pace in 40 years, despite a small drop to 9.9 percent in August.Interest Rates: On Sept. 22, the Bank of England raised its key rate by another half a percentage point, to 2.25 percent, as it tries to keep high inflation from becoming embedded in the nation’s economy.Energy Bills to Soar: Gas and electric charges for most British households are set to rise 80 percent this fall, further squeezing consumers and stoking inflation.Investor Worries: The financial markets have been grumbling with unease about Britain’s economic outlook. The government plan to freeze energy bills and cut taxes is not easing concerns.Already, the specter of higher interest rates was causing the housing market to seize up. Two major British mortgage lenders announced that they would stop offering new loans because of the market volatility. Higher rates will hurt hundreds of thousands of homeowners who need to refinance fixed-term mortgages — property owners, analysts noted, who are the bedrock of the Conservative Party.“It’s not like the U.S., where people are on 30-year mortgages,” said Jonathan Portes, a professor of economics and public policy at King’s College London.An estimated 63 percent of mortgage holders have either floating rate mortgages or loans that will expire in the next two years. And the steep decline of the pound means that interest rates will have to rise even further than they would have merely to curb inflation.Ms. Truss, he said, could have taken a more cautious approach: rolling out the supply-side measures first, like plans to untangle Britain’s cumbersome residential planning rules and build more housing, which are hurdles to economic growth. Then, when inflationary pressures had eased, the government could have cut taxes.But that was never in the cards, Professor Portes said, because Ms. Truss and Mr. Kwarteng are free-market evangelists who ardently believe that cutting taxes will reignite growth, and because they have little more than two years to turn around the economy before they face voters in a general election.“This is ‘shock and awe,’” he said. “Truss, Kwarteng, and the people around them think they had to act quickly. The longer they wait, the more the resistance will build up.”Kwasi Kwarteng, Britain’s chancellor of the Exchequer, announced tax cuts that some fear will blow a hole in Britain’s public finances.Clodagh Kilcoyne/ReutersDuring the campaign, Ms. Truss modeled herself on Margaret Thatcher, who also announced a series of free-market measures after taking office as prime minister and endured a turbulent couple of years. Unlike Ms. Truss, though, Thatcher worried about curbing inflation and shoring up public finances; she even raised some taxes during a recession in 1981 before reducing them in later years.But Thatcher came in after an election victory over an exhausted Labour government, which gave her more time to weather the downturn and for her deregulatory measures to take effect. She also got a lift after Britain vanquished Argentina in the Falklands War in 1982, which uncorked a surge of patriotism.“Thatcher was thinking in 1979 that I only need to give voters something they like by 1982,” said Charles Moore, a former editor of The Daily Telegraph who wrote a three-volume biography of the former prime minister. “Liz Truss hasn’t got this amount of time.”The better analogy to Ms. Truss, he said, is Ronald Reagan, with his emphasis on tax cuts and other supply-side policies, as well as his relative lack of concern for their effect on public deficits. Like Thatcher, Reagan weathered a recession before the United States began growing again in 1983. And like her, he had a cushion before he had to face voters.Ms. Truss, by contrast, has taken office after 12 years of Conservative-led governments, and three years into Mr. Johnson’s tenure. She will have to call an election by the beginning of 2025, at the latest. The Labour Party, which had been divided by Brexit and internal disputes, has been galvanized by the new government’s chaotic start, in particular Mr. Kwarteng’s plan to cut the top tax rate, which has allowed Labour to stake out a clear contrast on issues of economic equity.Speaking at the party’s annual conference in Liverpool on Tuesday, the Labour leader, Keir Starmer, declared that the Conservatives “say they do not believe in redistribution. But they do — from the poor to the rich.”Keir Starmer’s Labour Party is seizing the moment to present itself as the party of fiscal responsibility.Henry Nicholls/ReutersLabour’s lead of 17 percentage points in a new poll by the market research firm, YouGov, is the largest advantage it has had over the Conservatives in two decades. The Tories won the support of just 28 percent of those surveyed, raising questions about its ability to hold on to its existing seats, according to Professor Bale.That forbidding political landscape only adds to the challenge facing Ms. Truss. For the tax cuts to have one of their desired effects — which is to encourage businesses to invest more — economists said companies would need some reassurance that the policy is not going to be reversed by a new government in two years.“This is a very inexperienced government swinging for the fences in a situation where Labour is the strong favorite in the next election, if they don’t swing too far left,” said Kenneth S. Rogoff, a professor of economics at Harvard. “If one believes that the tax cuts are going to be reversed under Labour, and that there is a high chance of a Labour government, why would they influence long-term investment?”Britain, Professor Rogoff said, was also rowing against much greater forces in the global economy. After years of low inflation and extremely low interest rates, the flood of public spending because of the coronavirus pandemic has brought back the scourge of inflation and a shift toward higher rates.“The verdict will almost certainly be that governments borrowed too much and should have raised taxes on the wealthy more,” he said.In the short term, Ms. Truss is likely to find herself increasingly at odds with the Bank of England. The bank was already expected to raise rates at its next meeting in November. On Tuesday, its chief economist, Huw Pill, said the government’s new fiscal policies would require a “significant monetary policy response.”Adam S. Posen, an American economist who once served on the Bank of England’s monetary policy committee, said, “The government’s policies are not only outrageously irresponsible, but they don’t seem to understand that the bank has to respond to these policies by raising interest rates a lot.”The Bank of England, like many other banks worldwide, is expected to raise rates at its meeting next month.Andy Rain/EPA, via ShutterstockMr. Posen, who is the president of the Peterson Institute of International Economics, likened Britain’s loss of credibility in the markets to that of Britain and other European countries in the 1970s and Latin American countries in the 1980s. The best course, he said, would be for the government to reverse its fiscal policy, though he said Ms. Truss and Mr. Kwarteng seemed “willfully committed to it.”Certainly, they have given no indication that they plan to back down. On Tuesday, Mr. Kwarteng told bankers and asset managers that he was confident the government’s plan would work.After the turmoil that led to Mr. Johnson’s ouster in July, and the protracted contest to replace him, few in the Conservative Party have the stomach to move against Ms. Truss now. But analysts note that the new prime minister has a shallow reservoir of support among lawmakers. Barely a third of them voted for her in the final ballot against her primary opponent, Rishi Sunak, and she won the subsequent vote among party members by a closer margin than expected.Taking note of the new YouGov poll, Huw Merriman, a Conservative lawmaker, may have spoken for many of his colleagues when he said on Twitter, “Those of us who backed Rishi Sunak lost the contest, but this poll suggests that the victor is losing our voters with policies we warned against.”“For the good of our country, and the livelihoods of everyone in our country,” he added, “I still hope to be proven wrong.” More

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      How Paul LePage, Running to Lead Maine, Benefited From Florida Tax Breaks

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      Mr. LePage, a former governor who is seeking to reclaim the office, has along with his wife benefited from property tax breaks reserved for permanent Florida residents, public records show.As governor of Maine for two terms until 2019, Paul LePage, a Republican, gained a reputation as one of the pre-Trump era’s most unfiltered politicians.He said he wanted to tell President Barack Obama to “go to hell,” and told the N.A.A.C.P. to “kiss my butt.” He made racist comments about drug dealers who supposedly travel to Maine and “impregnate a young white girl before they leave.”Making a comeback attempt now against his successor, Gov. Janet Mills, a Democrat, Mr. LePage is focusing heavily in his campaign on a push to phase out Maine’s income tax. He argues that the change is needed to keep wealthy residents from moving to Florida for just long enough each year to take advantage of the Sunshine State’s tax breaks.But Mr. LePage and his wife, Ann LePage, who have owned property in Florida for over a decade, have themselves benefited from that state’s tax laws while living in the Maine governor’s mansion, and again as he campaigns to return to the job. From 2009 to 2015, and also from 2018 through the end of this year, the couple received property tax breaks reserved for permanent Florida residents, public records show.The properties in question, both in Ormond Beach, Fla., are a home that the LePages bought in 2008 and sold in 2017, and another that they purchased in 2018 and still own. For both homes, the couple have sought and received what is called a homestead exemption, which is meant to apply only to primary residences in Florida.The sum the couple saved over the years is relatively small: A little over $8,500, according to a New York Times analysis of public records.But this is not the first time the LePages have faced scrutiny over such a tax matter — in 2010, Florida officials fined Mrs. LePage $1,400 before rescinding the penalty — and Mr. LePage’s focus on taxes in the current campaign for governor could open him up to attacks from Democrats.Mr. LePage’s campaign defended the tax moves, saying that Mrs. LePage’s mother had used the Florida home as her primary residence from 2009 until her death in 2015, when the couple removed the first homestead exemption. Mrs. LePage’s mother had scleroderma, a chronic disease that causes hardening of the skin.“Mrs. LePage’s mother would visit Augusta, but due to her condition, she spent a large amount of time, especially in cooler fall, winter and spring periods, at that permanent residence” in Florida, said Brent Littlefield, a spokesman for Mr. LePage’s campaign. “Mrs. LePage also traveled there in winter months to care for her. Her mother kept that as her primary residence while she was alive.”The campaign did not comment on the second exemption held from 2018 through this year. Attempts to reach Mrs. LePage directly were unsuccessful.The State of the 2022 Midterm ElectionsWith the primaries over, both parties are shifting their focus to the general election on Nov. 8.Inflation Concerns Persist: In the six-month primary season that has just ended, several issues have risen and fallen, but nothing has dislodged inflation and the economy from the top of voters’ minds.Herschel Walker: The Republican Senate candidate in Georgia claimed his business donated 15 percent of its profits to charities. Three of the four groups named as recipients say they didn’t receive money.North Carolina Senate Race: Are Democrats about to get their hearts broken again? The contest between Cheri Beasley, a Democrat, and her G.O.P. opponent, Representative Ted Budd, seems close enough to raise their hopes.Echoing Trump: Six G.O.P. nominees for governor and the Senate in critical midterm states, all backed by former President Donald J. Trump, would not commit to accepting this year’s election results.At campaign events, Mr. LePage has spoken about the couple’s home in Florida, and has criticized a Maine law requiring residents who split their time between the two states — so-called snowbirds — to spend at least 183 days, or just over half a year, in Florida in order to pay the state’s lighter tax burden.“We go down to Naples, Fla., to raise money from Mainers because that’s where all the money is — and it’s unfortunate that they have to leave for six months and a day,” Mr. LePage said in Bangor last month. “I have no problem going to Florida. We go to Florida, we have a home in Florida, but it’s for January and February, not for six months and a day. It’s unfortunate that we have this crazy tax and this is what happens.”But while Mr. LePage said that he and his wife were in Florida for only a couple of months a year, they have painted a different picture for Florida’s tax collectors over the years.In his final months as governor, Mr. LePage told reporters in November 2018 that he had a home in Florida and planned to move there because the state had no income tax. But by that time, records show, he and his wife had already claimed a homestead exemption on their Ormond Beach property — indicating that Florida had been the primary residence of Maine’s governor and first lady since March 2018, when they bought the home.That assertion meant that the four-bedroom home, about 15 minutes from the Atlantic Ocean, was eligible for a Florida homestead exemption, which shaves $50,000 from the taxable value of qualified primary residences in the state.After leaving office in 2019 because of Maine’s prohibition on serving a third consecutive term, Mr. LePage obtained a Florida driver’s license and registered to vote in the state. Then, in February 2020, he said he was considering a bid for a third term, and when he announced his run last year he cited criticisms of Ms. Mills’s response to the pandemic. He switched his voter registration back to Maine in 2020 and publicized pictures of himself putting Maine license plates back on his car.The couple have rented a home in Edgecomb, Maine, since 2020, and Mr. LePage has been campaigning in the state for much of the past year. But it was not until this June that Ann LePage informed a property appraiser in Florida that she and her husband were no longer residents of that state, according to the county appraiser’s office. The tax break will stay in effect through the end of this year, according to an official in the appraiser’s office in Flagler County, Fla., which handled the matter.Jon Alper, a Florida lawyer who specializes in asset protection, said the circumstances of the LePages’ homestead exemption claims were “certainly atypical.”“It’s possible under the law, but usually if one spouse is in the house, they’re both in the house,” he said.Mr. LePage and his wife, Ann, in 2014. They have owned two homes in Florida, one bought in 2008 and sold in 2017, and another that they purchased in 2018 and still own.Robert F. Bukaty/Associated PressThe LePages have struggled with tax issues while toggling between the two states for more than a decade.In 2008, while Mr. LePage was mayor of Waterville, Maine, his wife bought a home in Ormond Beach, not far from the home they would buy a decade later in the same city. She claimed the Florida homestead exemption even though she was also claiming a homestead exemption on a house she owned in Waterville. Both states require homeowners to certify that a property is their main residence in order to qualify for the exemption.That misstep was reported in 2010, during Mr. LePage’s first campaign for governor. Florida tax officials originally fined Mrs. LePage $1,400 for misleading them about her residency status in the state, but they withdrew the penalty shortly after, citing an explanation from Mrs. LePage that her mother, Rita DeRosby, was living in the house. A seldom-used provision in the Florida tax code allows homeowners to claim a homestead exemption if a dependent is residing on the property.Months after Mrs. LePage was cleared of wrongdoing, Ms. DeRosby joined the family’s move into the Maine governor’s mansion, according to local reports. When Ms. DeRosby died in 2015, her obituary said that she had “spent the last eight years of her life residing” with her daughter and Mr. LePage.Mr. LePage’s campaign proposal to eliminate Maine’s state income tax has prompted criticism from some Democratic officials that local governments would be forced to raise property taxes to offset costs.While he was governor, Mr. LePage tried to eliminate Maine’s homestead exemption, a proposal that would have denied an estimated 213,000 Mainers benefits similar to those he enjoyed in Florida, according to an analysis by the left-leaning Maine Center for Economic Policy. More

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      Rent Board Votes for 3.25% Increase on One-Year Leases

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      Two million New Yorkers who live in rent-stabilized apartments will be affected by increases approved at a raucous meeting of the Rent Guidelines Board.Good morning. It’s Wednesday. We’ll look at rent increases that are on the way for two million New Yorkers. We’ll also catch up on the final debate between the Republicans running for governor.Seth Wenig/Associated PressTo the list of items that cost more in 2022 than in 2021, add rent in New York City.As expected in a year when other consumer staples like food and gasoline have surged, the panel that regulates rents in the city approved increases for tenants — 3.25 percent on one-year leases and 5 percent on two-year leases.Housing advocates had pressed for a rent freeze or even a rollback, while landlords had argued that buildings would inevitably deteriorate unless rental income kept pace with expenses. The increases cover about one million rent-stabilized homes, which account for about 28 percent of the city’s housing stock and 44 percent of the rentals.The rent board session was raucous, with audience members blowing whistles and shouting slogans like “housing is a human right.” When the board chairman, David Reiss, outlined the reasons for the increases, dozens of people stood up, turned their backs to him and chanted, drowning him out.The 5-to-4 vote was a setback for tenants, as Mayor Eric Adams acknowledged in a statement after the vote. He said the increases would “unfortunately be a burden to tenants at this difficult time — and that is disappointing.” But he also expressed sympathy for small landlords who he said “are at risk of bankruptcy because of years of no increases at all.”The vote by the board was the first since Adams took office, and as my colleague Mihir Zaveri writes, the board took a different approach than it had under Adams’s predecessor, Bill de Blasio. The highest annual increases during his time in City Hall were 1.5 percent on one-year leases and 2.75 percent on two-year leases.But with the average rent on a newly leased Manhattan apartment reaching $4,975 in May — up 22 percent from 2021, according to the real estate firm Douglas Elliman — the rent-stabilization system has become a crucial source of affordable housing. The median monthly rent for rent-stabilized apartments is $1,400, according to a recent city survey, compared with $1,845 for unregulated homes. And the median income for people living in rent-stabilized homes is about $47,000, compared with $62,960 in unregulated homes.The last time there was a significant increase — 4 percent on one-year leases and 7.75 percent on two-year leases — was in 2013, the last year de Blasio’s predecessor, Michael Bloomberg, was in office.But the board has allowed far higher increases in the past. In July 1980, at a time of high inflation and a gas crisis, the board sanctioned 17 percent increases on three-year leases on apartments where the landlord provided heat. For apartments where tenants provided heat, the figure was 9 percent.On Tuesday Adán Soltren, whom Adams appointed as one of two tenant representatives, voted against the increases. He called the decision to support them “unjust” and told his colleagues, “Your decision will result in millions of people suffering while corporations and investors continue to profit.”Christina Smyth, one of two board members representing landlords, called the increases inadequate. “We are risking the decay of rent-stabilized housing,” she said.WeatherExpect a chance of showers with temperatures near 70. At night, showers and thunderstorms are likely with temps in the mid-60s.ALTERNATE-SIDE PARKINGIn effect until July 4 (Independence Day).The latest Metro newsCharles Fox/The Philadelphia Inquirer, via Associated PressWildfires: The Mullica River fire in Wharton State Forest in South Jersey has burned about 13,500 acres, threatening to become the state’s largest fire in 15 years.New Jersey hoopers: Although New Jersey was home to some of basketball’s greats, historically it has struggled to escape New York’s shadow. But a wave of rising stars in boys’ basketball could shift the trend.Arts & CultureCurtains up, masks off: Broadway theaters will be allowed to drop their mask mandates starting July 1. The Broadway League described the new policy as “mask optional” and said it would be re-evaluated monthly.Best in show: The Westminster Kennel Club Dog Show is underway — not at Madison Square Garden but, for a second year, on the sunny grounds of a Gothic Revival mansion in Tarrytown, N.Y.The Stonewall uprising: The Stonewall National Monument Visitor Center, which will open in 2024 as the first in the national park system devoted to the gay rights movement, will commemorate the 1969 Stonewall uprising and its legacy.DiscoOasis: Roller skating is enjoying another flash of popularity. DiscOasis in Central Park sets itself apart from New York’s other rinks with production values and theatricality.Republican candidates for governor spar againPool photo by Brittainy NewmanIn an hour that turned increasingly contentious, the four Republicans running for governor of New York appeared together one last time, making their case before the primary next week.They spent much of the hour, broadcast on the conservative news channel Newsmax, playing to the Republican base, describing their devotion to former President Donald J. Trump and their disdain for Gov. Kathy Hochul, the incumbent Democrat they hope to replace.“Kathy Hochul is going to get fired,” declared Representative Lee Zeldin, a four-term congressman from Long Island who was chosen as the party’s designee at a convention in March. “I’m looking forward to removing her from this office.”Zeldin was flanked on the stage of the Kodak Center in Rochester, N.Y., by the three other Republicans who also want to run against Hochul — Rob Astorino, a former Westchester County executive; Andrew Giuliani, the son of former Mayor Rudolph Giuliani of New York City; and Harry Wilson, a corporate turnaround specialist who, as an official on President Barack Obama’s automotive task force, helped take General Motors in and out of bankruptcy.After about 40 relatively restrained minutes, the sniping intensified, with Giuliani calling Zeldin “a flip-flopper” and Zeldin saying Giuliani’s “claim to fame” was that the actor Chris Farley had mocked him on “Saturday Night Live” 30 years ago “for being,” Zeldin said, “an obnoxious kid.”As the candidates talked over each other, the moderator, Eric Bolling of Newsmax, tried to reassert control. “Gentlemen, I love the heat, I love the heat,” he said.Giuliani — who has said that he sees his father and Trump as models for the kind of governor he aspires to be — was making his first in-person debate appearance. In the first two Republican debates, hosted by stations in New York City, Giuliani, 36, took part from a separate location because he was unvaccinated. But on Tuesday, he was on the same stage.Talking about his time in the Trump administration, he said, “When I think about the work I did with President Trump in the White House, that’s the kind of change that we need in Albany.”Zeldin, who was once considered a moderate, has also been a Trump stalwart, though in a debate on Monday night he stopped short of saying the 2020 election had been stolen. On Tuesday in Rochester, he seemed more attentive to Trump’s signature policies, saying he believed that the former president’s border wall should be completed.Asked what they would do to reduce crime, Giuliani and Zeldin said they would fire Alvin Bragg, the Manhattan district attorney. Wilson said it was “unacceptable for New Yorkers to live on unsafe streets” and said that “an extended family member” had been killed recently “by someone out on cashless bail” — his term for a change in state bail law that Democrats in Albany pushed through in 2019 and Republicans want rolled back.Giuliani said that on his first day as governor, he would tell the leaders of the Assembly and the State Senate, both Democrats, that without a “full repeal” of the bail law, “I’m not funding anything in our upcoming budget negotiations.”Bolling asked the candidates about inflation, abortion and Medicaid fraud. Wilson promised deep reductions in property taxes and income taxes, as did the other candidates. And despite the recent racist massacre in Buffalo, none of the four supported any new gun control measures, with Zeldin saying the state’s gun laws “go too far as is.”METROPOLITAN diaryOverheardDear Diary:I was on the M104, and a woman was talking loudly on her phone. She was explaining to whomever she was talking to about how she had flirted with a guy to make her ex jealous.At one point, her voice became a mumble, and the man sitting across from her interrupted.“Excuse me, can you please raise your voice?” he said. “It sort of dropped and we couldn’t hear what happened.”The other passengers applauded.— Ivy ManskyIllustrated by Agnes Lee. Send submissions here and read more Metropolitan Diary here.Glad we could get together here. See you tomorrow. — J.B.P.S. Here’s today’s Mini Crossword and Spelling Bee. You can find all our puzzles here.Melissa Guerrero More

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      in Elections

      Meet South Korea’s Swing Voters: Young, Broke and Angry

      by

      Frustrated over housing prices, a lack of job opportunities and a widening income gap, the once-reliable voting bloc is undecided and will most likely elect the next president.SEOUL — When he was a college freshman in 2019, Jeong Hyun-min sometimes had less than $10 to cover meals for three days. That same year, a scandal erupted in South Korea that still roils him today.While Mr. Jeong was cleaning tables and serving drinks at beer halls just to make ends meet, the country’s justice minister and his wife were accused of pulling strings to help their daughter glide into medical school, even fabricating an award certificate.“I realized what people had been saying all along: Your chances in this country are determined by what kind of parents you have,” said Mr. Jeong, a political science major at Daejeon University. “Fairness is the key if politicians want our trust back.”On Wednesday, South Koreans will elect a new president and all eyes are on young people, whose disillusionment with the government has made this one of the most tightly fought races in recent memory. ​Frustrated over sky-high housing prices, a lack of job opportunities and a widening income gap, young people who were once considered reliably progressive voters are now seen as undecided and will most likely tip the balance in the election.Jeong Hyun-min, a political science major, works part time distributing textbooks in a high school in South Korea.  “Fairness is the key if politicians want our trust back,” he said.Woohae Cho for The New York TimesUnlike previous generations, these voters are not easily swayed by old political dynamics, such as regional allegiance, loyalty to political bosses, fear of North Korea or a desire to ease tension on the Korean Peninsula. Instead, they talk of economic despair​ and general frustration as their primary concerns, themes captured in popular movies and TV dramas like “Parasite” and “Squid Game.”Many have adopted a saying: “isaenggeul,” or “We can’t make it in this life.”“In the past, young South Koreans tended to vote progressive, but now they have become swing voters,” said Prof. Kim Hyung-joon, an election expert at Myongji University in Seoul. “To them, nothing matters as much as fairness and equal opportunity and which candidate ​will ​provide it.”Young people near Konkuk University in Seoul. Unlike previous generations, these voters are not easily swayed by old political dynamics.Woohae Cho for The New York TimesYoon Suk-yeol, the leading candidate from the opposition People Power Party, has won over voters in their 60s and older by pitching their preferred conservative agenda. He has championed a stronger alliance with the United States and even threatened “pre-emptive strikes” against North Korea.Mr. Yoon’s rival, Lee Jae-myung, the candidate representing President Moon Jae-in’s Democratic Party, remains popular among voters in their 40s and 50s. He has called for a diplomatic balance between the United States, South Korea’s security ally, and China, its biggest trading partner.Few of these issues have roused South Koreans in their 20s and 30s, who make up one-third of the eligible voters, as much as they did older voters. Rather, on top of their minds is an uncertain economic future.“We will be the first generation whose standard of living will be lower than our parents’,” said Kim Dong-min, 24, a student at Konkuk University Law School.Kim Dong-min, 24, studying in the library at Konkuk University Law School. “We will be the first generation whose standard of living will be lower than our parents’,” he said.Woohae Cho for The New York TimesIn the decades following the 1950-53 Korean War, most South Koreans were ​equally ​poor. Those who found success were often referred to as “a dragon rising from a humble ditch.”Middle-class dreams were plausible as the postwar economy roared, churning out jobs. Education functioned as a vehicle of upward mobility. Millions of people migrated to the Seoul metropolitan area, where the best schools and most of the country’s wealth was eventually concentrated.Getting a degree from an elite university and owning an apartment in Seoul became symbols of social mobility. But in recent decades, the economy slowed, and that old formula has broken down. In a survey last year, nearly 65 percent of the respondents in South Korea said they were skeptical that their children’s economic future would be better than their own.In Seoul, the average household must save its entire income for 18.5 years to ​afford to buy a home.Woohae Cho for The New York TimesA majority of ​respondents in their 20s and 30s said they no longer saw education as the great equalizer, as admission into top universities depended largely on whether parents could bankroll expensive private tutors.“How would you feel when you are struggling in a marathon and you see others cruising along in sports cars?” said Oh Byeong-ju, 23, a senior at Dongguk University in Seoul.In South Korea, where nearly three-quarters of household wealth is concentrated in real estate, no index illustrates widening inequality quite ​like housing prices. Young couples whose wealthy parents helped them buy apartments — a tradition in South Korea — saw their property value in Seoul nearly double under Mr. Moon.The average household, on the other hand, must save its entire income for 18.5 years in order to ​afford an apartment in the city, according to estimates by KB Kookmin Bank.“It has become impossible to buy an apartment in Seoul, even if you work and save for your entire life,” said Park Eun-hye, 27, who works at Youth Mungan, a civic group that provides affordable meals for poor youths. “Whatever the candidates say sounds unconvincing. Young people instead invest what little money ​we save in stocks and cryptocurrencies.”Oh Byeong-ju, 23, a senior at Dongguk University in Seoul, says, “How would you feel when you are struggling in a marathon and you see others cruising along in sports cars?” Woohae Cho for The New York TimesSouth Korea’s poverty rate and its income inequality are among the worst in wealthy countries, with youths facing some of the steepest challenges. Nearly one in every five South Koreans between the ages of 15 and 29 was effectively jobless as of January, according to government data. That is far higher than the national average, 13.1 percent.Upon his inauguration, Mr. Moon promised “equal opportunities” for everyone. “The process will be fair,” he said. “And the result will be righteous.”Many young people claim fairness and equal opportunity — or their versions of those values — have been eroded instead. They bristled when Mr. Moon’s government formed a joint ice hockey team with North Korea for the 2018 Winter Olympics, arguing that it was unfair to replace elite South Korean athletes with inferior North Korean players.Posters featuring portraits of presidential candidates in Seoul.Woohae Cho for The New York TimesAnd last year, after a scandal revealed officials had used their position to seek personal gain in the housing market, young voters helped deliver Mr. Moon’s government a crushing defeat in the Seoul mayoral election.Rival political parties have since rushed to appease South Korean youth. Lawmakers lowered the minimum voting age to 18 from 19 and the age limit for running for Parliament to 18 from 25. Mr. Lee and Mr. Yoon, the two leading presidential candidates, have both apologized and have applied different tactics to win votes.Mr. Yoon’s popularity soared among men in the 20s after he promised to abolish the Ministry of Gender Equality and Women and sidelined a campaign adviser who identified as a feminist. Anti-feminist sentiments are widespread among the young men.Park Eun-hye, 27, at Youth Mungan, a civic group that provides affordable meals for young people in Seoul.Woohae Cho for The New York TimesMr. Lee is more popular among women in their 20s, and he has promised to introduce harsher punishment for date rape and other sex crimes. He also campaigned to make companies reveal gender-wage gaps to their employees and to the public.But 20 percent to 30 percent of South Koreans in their 20s and 30s have said they may change their mind about their preferred candidate before they vote this week, according to surveys. “Our support shifts from one political party to another, issue by issue,” Mr. Jeong said. More