"With the state's rent regulations set to sunset in June, the Assembly's Democratic majority is firing an opening shot in what is typically a high-profile legislative fight over the future of New York City's approximately 1 million rent-stabilized apartments," according to an article by Eliot Brown in today's edition of The Wall Street Journal.

"Assembly Speaker Sheldon Silver, whose chamber is allied with advocates for greater rent regulation, is vowing not to extend a recently expired tax break popular with developers unless it is tied to a substantial strengthening of the rent laws," the article said.

The important tax break is known as "421-A" and it expired in December.

It abates property taxes on new residential development and is credited with spurring construction on thousands of new apartments.

"I just fundamentally believe we shouldn't be extending a tax break for big developers without making sure we are strengthening protections for the tenants who live in their buildings," Mr. Silver said in a statement.

"The gambit by the Democrats," the article continued, "comes as they face a year when they will likely be forced to cut popular social programs given budget gaps. They are seeking to boost the strength of their political hand on the rent-regulation issue, a top priority for the liberal conference. A spokesman for the Senate Republican majority, which traditionally has been allied with - and supported financially by - the real estate industry, declined to comment."

The Assembly Democrats this year aim to at least maintain their ground, if not make gains that curtail landlords' ability to deregulate apartments, the article said.

Under current law, the lowest monthly rent at which a landlord can convert a vacant regulated apartment to market rate is $2,000 a month. Democrats are trying to raise that amount, which has stayed the same for nearly two decades.

Without linking 421-A to rent rules, the article said, "the Democrats would be in a weak position given that the sunset of rent regulations would allow landlords to dramatically raise rents on stabilized apartments. It's unclear whether the real estate industry would ultimately be willing to trade an extension of rent regulations for the 421-A tax break.

For now, the leaders of the two top industry groups - the Real Estate Board of New York and the Rent Stabilization Association - say they are against a deal that ties the tax break with an extension of rent regulations.

Steven Spinola, president of the Real Estate Board, said he is considering endorsing a temporary extension of the tax break that would expire in June.

Regardless of whether the play works, going forward Assembly Democrats say they plan to link other pieces of legislation sought by Senate Republicans to the rent regulation extension.

"It would be my expectation that we are going to ask the conference to tie whatever is left" to a rent rule extension, says Vito Lopez, chairman of the Assembly's housing committee.

Landlords acknowledge that the likelihood of a complete elimination of rent rules is low given their popularity.