NYC Rent Guidelines Board revotes to lower proposed hikes for 2-year leases

NYC rent board narrows possible hikes for stabilized apartments

The Rent Guidelines Board shortened the range of proposed rent increases for more than one million stabilized units after tenant pressure, but landlords say it's still not enough. FOX 5 NY’s Meredith Gorman has the latest.

NEW YORK CITY - New York City’s Rent Guidelines Board revoted on Tuesday morning to alter its proposed rent hikes for some people living in rent-stabilized apartments.

The board met in a rare, but quick, additional meeting to reconsider the preliminary vote to raise rents on about one million rent-stabilized apartments in the city. 

By the numbers:

The nine-member board decided to vote on a range of rent increases of 1.75%-4.75% for 1-year leases and lowered the increase to between 3.75%-7.75% for 2-year leases, which is down from the original 4.75%-7.75% rent hike range.

The vote to decrease the range ahead of the final vote was partly brought on by pressure from tenants. Board chair Doug Apple mentioned at the start of the meeting that tenants said their incomes aren't keeping pace with the rising cost of living.

What they're saying:

But some landlords think the proposed rent increase rate is still not enough to cover expenses for them, saying that the board's own data shows landlords need at least a 6.7% rent hike to even stay financially stable right now. 

One landlord of a building with four mostly rent-controlled units said he is in the "red" on profits starting at the beginning of the year and he wants the city to address the expenses on owners, rather than pitting landlords and tenants against each another.

"That rate doesn't even match inflation, let alone the other costs that the city is raising, and so again, I call on the mayor, I call on our city council, I call on our state legislature and governor, ‘if you would like to see lower rents, please lower our expenses,'" says landlord, Isaac Rabinovitch.

The other side:

Meanwhile, tenants are calling for a rent freeze, saying no rent increase would work for them – and that the ranges are still too high. An analysis by the Community Service Society found rent freeze would save New Yorkers in rent-controlled units an average of about $600 a month. 

"The vast majority of the city is tenants; 70% of New Yorkers are tenants," says Charlie Dulik, rent-stabilized tenant and director of Organizing at Housing Conservation Coordinators. "A much smaller number are landlords. Landlord profits, according to the Rent Guidelines Board data, are up 12.1% this year, up over 10% last year. That means that most rent-stabilized landlords, who are by and large quite large corporate landlords, are doing all right. For the landlords who aren't, small landlords who are struggling, there are a number of city programs available." 

What's next:

The board's final vote will be held on June 27. Any approved changes will apply to leases starting on or after Oct. 1.