Rent-controlled tenants to see 9.6% hike over next two years

There are 27,000 such apartments in the city

TRD New York /
Dec.December 31, 2015 10:33 AM

While rent-stabilized apartments will see no rent increases this year, another class of regulated units, those under rent control, will see rates climb as much as 9.6 percent over the next two years.

Owners of rent-controlled units – there are about 27,000 citywide, about 2 percent of rental stock – aren’t allowed to charge a rate higher than the Maximum Base Rent established by the state’s Division of Housing and Community Renewal.

That rate is recalculated every two years to adjust for changes in landlords’ costs, the New York Times reported.

Rent-stabilized units, in contrast, are regulated by the city’s Rent Guidelines Board, whose decisions can incorporate considerations such as affordability and tenants’ income. There are more than a million such units in the city. The board decided earlier this year that stabilized rents in the city wouldn’t increase at all in 2016 for one-year leases, and would increase by 2 percent for two-year leases.

Landlord groups defended the rent-controlled unit increase.

“What this illustrates is that when you stick to a formula that reflects the costs to owners, instead of playing politics, you come up with an increase,” the Rent Stabilization Association’s Jack Freund told the Times.

Tenants and their advocates, though decried it.

“Each and every day, my staff and I sit with seniors — 70-, 80-, 90-year-olds — who cannot afford to pay their rent,” Assembly member Linda Rosenthal told the Times. [NYT]Ariel Stulberg


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

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”

Some landlords say they plan to close the door to vacant apartments and wait for the laws to change (Credit: iStock)

Creative ways NYC landlords are getting around the new rent rules

Jay Martin, James Whelan and Joe Strasburg

Rent-pocalypse 2.0: Real estate industry reacts to tenant demands

Cases to challenge tenant residency have declined since June (Credit: iStock)

More rent-law fallout: Landlords back off “absentee” tenants

10 Hanover Square (Credit: Google Maps)

FiDi landlord violated rent stabilization regs for years: lawsuit

Here’s why landlords don’t hate California’s rent control bill

Cea Weaver (Credit: Elijah Stevens)

The tenant movement’s giant killer

arrow_forward_ios