There's a last patch of Loisaida (the Spanish name for the Lower East Side of Manhattan) – between the Bowery and Columbia Streets, and between the major arteries of Delancey and Houston Streets – which decades ago used to be a Puerto Rican enclave.

Now, on top of the exodus of Hispanics caused by the increasing deregulation of stabilized rents, the small Latino-owned businesses are evaporating like drops of dew in the sun, with the pressure of astronomical rents imposed overnight. In present-day Loisaida, bars and restaurants spring up, serving young students and professionals, most of whom are white.

Walking through this zone, “For Rent” signs can be seen in the windows of several shuttered Latino businesses, like the Rodríguez Restaurant on Essex Street, which recently pulled down its metal gate for the last time after more than 20 years of serving the neighborhood. The Rodríguez Restaurant had its rent raised by over $6,000, according to neighbors. After a number of conversations with business people and residents of the neighborhood, the conclusion is: Within a few years there will be no Hispanic businesses left in Loisaida.

“The displacement is now affecting the small businesses; the bodegas, barber shops, small stores and laundries cannot pay the rents that are being demanded,” said José Rivera, president of United Businesses of the Clinton Street Area.

Three years ago, Rivera found himself obliged to close his driving school on that street because of rent increases. On Clinton Street alone, more than 10 establishments have recently closed, and their former premises are still not rented.

“It's simple – they just can't pay the rent,” stated Rivera.

Several Latino business people, who wished to remain anonymous because they have lived in the area for decades, said that in the next few months they would shut down their businesses and leave the neighborhood.

Commercial rents are totally unregulated in New York City, which leaves small businesses utterly at the mercy of their landlords.

“Rents, for now, depend on the landlords' good will, and on their understanding that a certain business is good for the community,” said Councilmember Rosie Méndez (D-NY), whose district includes this area.

According to census data published by New York City Department of City Planning, between 1990 and 2000, the area's population of 30,000 stopped being overwhelmingly Hispanic. While Hispanics in 1990 represented over 39 percent of the population – compared with 34 percent Asians and 19 percent of whites – they were represented only 31 percent, in 2000, with Asians in the majority at 40 percent and whites at a stable 19 percent.

Displaced Latino businesses

“It looks like we're working to make the landlords rich,” said Isidoro Bautista, a Clinton Street bodega owner whose landlord raised his rent by more than $5,000 two months ago, which forced him to close his business. “I told him, I don't sell drugs, and I'm too old to sell them now,” he added.

The businesses that appear able to respond to the demands for higher rents are bars and restaurants, which operate at night and contribute nothing to the community.

“A store closes here, and tomorrow there's a bar there. A store closes over there, and another bar goes in,” said Ramón Trinidad, a waiter at a Dominican restaurant on Rivington Street. “You've got to be prepared for the business to close, and you'll have to look for work.”

Many blame the city government. “The city supports them because it does not regulate rents. You can have a lease set at $10 and the landlord can raise it to a $1,000,” said Bautista.

The city council passed a resolution in April, asking the state to allow the city to regulate its own rents, but Albany has so far said nothing, even though there are such bills in each chamber of the legislature.

“If we can get in control of rents, perhaps we could include commercial renters in our regulation,” said Méndez. “But given the way the real estate market works now, not even that would work at this moment.”

For the moment, many people experience the painful effects of the Latino commercial exodus from Loisaida as a force of nature. Others, like Rivera, are seeking change by meeting with the area's two council representatives, Rosie Méndez and Alan Gerson (D-NY), to push for measures that could help them negotiate with the landlords.

“We cleaned this barrio up. We are from here,” said Rivera.

Attempts by this newspaper to speak with some of the landlords who rent to Hispanic businesses were unsuccessful.

Loisaida in numbers

* According to the 2000 Census, about 30,843 people live in this area 52 percent of whom were foreign-born.

* 25 percent of the population immigrated less than 10 years ago.

* 9,731 Latinos live in Loisaida and they represent 31 percent of the population. In 1999, the percentage was 39 percent.

* Whites total 6,054 (19 percent). In 1999, there were 19 percent.

* 11,316 inhabitants are Asian (36 percent). In 1999, it was 32 percent.

* There are 12,473 apartment units, of which 10,705 (85.8 percent) are rented, and 1,259 (10 percent) are owned.

(Sources: NYC Dept. of City Planning, and Census 2000)