Rent Guidelines Board votes for historically low rent increase

One-year leases to see 1 percent hike, two-year leases to jump 2.75 percent

TRD New York /
Jun.June 24, 2014 08:30 AM

New York City’s Rent Guidelines Board voted to lift rents for the city’s 1 million stabilized housing residents Monday evening, but  to do so with a historically low increase.

The board decided to raise rents for one-year leases by 1 percent and two-year leases by 2.75 percent, as Capital New York reported. The vote breakdown was 5-4 in favor of the hike and came down as hundreds of tenants packed a Cooper Union auditorium to demand a total rent freeze.

The increase, proposed by the board’s two owner representatives, was in line with what one public member said he wanted to propose. The measure was opposed by the board’s tenant representatives and two public members appointed by Mayor Bill de Blasio, who called for a rent freeze shortly before the vote.

“It’s quite striking that we’ve had a pattern in recent years of tenants being charged substantial increases while the actual cost to landlords did not increase anywhere near the same amount,” the mayor said during a traffic-related press conference in Queens yesterday. “So, in fact, there’s been a pattern of unfairness in the last few years.”

In 2013, the rent board OK’d a four percent hike for year-long leases. The bump up is the lowest increase since the Board was created about 50 years ago.

Nevertheless, Magda Cruz, a board member holdover from the Bloomberg years, gave a scathing indictment of the board’s process and accused her fellow members of pushing for a rent freeze because of political considerations and not actual data. She blamed her vote for a small increase on “extreme pressure” that she said pushed her to “compromise behind all economic fact.”

A formal proposal for a full rent freeze was never actually delivered, Capital New York reported, but chairwoman Rachel Godsil said she was prepared to present such a measure. Harvey Epstein and Sheilz Garcia, tenant members on the board, argued in favor of the freeze as well. [Capital New York]Julie Strickland


Related Articles

arrow_forward_ios
Blackstone CEO Steven Schwartzman and Stuyvesant Town (Credit: Getty Images)

After authorities vowed review of Stuy Town deal, Blackstone changes course on vacancies

After authorities vowed review of Stuy Town deal, Blackstone changes course on vacancies
Tete-à-tete with TRD: How landlords are dealing with New York’s new rent laws

Tete-à-tete with TRD: How landlords are dealing with New York’s new rent laws

Tete-à-tete with TRD: How landlords are dealing with New York’s new rent laws
Real Capital Analytics data showed that New York’s multifamily market had a very slow July. (Credit: iStock)

New NYC rent law “beginning to shut down investment”

New NYC rent law “beginning to shut down investment”
Joseph Strasburg (Photo by Jeffersons Siegel)

Landlord leader opens up on rent law

Landlord leader opens up on rent law
Adam Pincus

Inside the legal strategy to topple New York’s rent law

Inside the legal strategy to topple New York’s rent law
A year after the rent law upended the New York City rental market, tenant organizers face an uphill battle to cancel rent and keep the pressure on (iStock)

Scant progress for tenants in wake of rent-law win

Scant progress for tenants in wake of rent-law win
One year ago, the multifamily market was upended, and the financial impact is still being assessed. (iStock)

The rent law, one year later: “No upside, no opportunity”

The rent law, one year later: “No upside, no opportunity”
(iStock)

New Yorkers’ exodus could unravel rent regulation

New Yorkers’ exodus could unravel rent regulation
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...