The Real Deal New York

Mayor de Blasio on rent hike: not surprised, not happy

"I was trying to make very clear what I thought was the right way to go," he says
June 25, 2014 08:00AM

In response to the city Rent Guidelines Board’s historic approval of a 1 percent increase this year on rents for stabilized apartments, Mayor Bill de Blasio said he was disappointed.

“It was not a surprise to me that there would be a difference of opinion and we knew it would be a close vote either way you slice it,” the mayor said at a news conference yesterday. “But I was trying to make very clear what I thought was the right way to go.”

Like tenant advocates, de Blasio was in favor of a rent freeze. He appointed six of the nine members of the board, including Stephen Flax, who cast the critical vote for the rent hike. The vote was 5-to-4.

The mayor did not comment on whether he would replace any of the board members.

Others in the real estate industry were also unhappy with the outcome.

Frank Ricci, president of the Rent Stabilization Association, which represents landlords, described the historically low hike as “totally inadequate,” as The Real Deal reported. [NYDN] and [Crain’s]Mark Maurer

  • no-permits

    Deblasio is a bum.


    Why would any landlord spend any money to upkeep an apartment or building, where the increase in rent is not enough to cover his inflation, and means that down the road, not enough to cover costs?????

  • WannaBeLandlord

    If a tenant can’t meet that 1% increase they need to reevaluate the path their life is taking. That obligation can be met by lifting up a couch pillow and picking up change that fell out of one’s pocket.

    • noclist

      $10 for every $1000 in rent should be doable for everyone.

  • spectatator

    Rent stabilization has directly caused hundreds of thousands of rental apartments to be converted to coops and condos. This severe reduction in rental supply obviously increases market rents, hurting non-stabilized tenants.
    In the longer run, the unrealistic RGB low rent increases under De Blasio will also hurt rent stabilized tenants. Owners on the cusp of a profit (and there are many) will begin taking losses. This will force them to sell to large developers who are experts at emptying buildings, and spending huge sums of money on total building renovation to luxury condos.
    So the political and ideological motivations behind De Blasio’s machinations will eventually destroy the housing market for all types of tenants.