City considering another rent freeze

This would be the second time in the city's history

TRD New York /
May.May 04, 2016 08:41 AM

After last year’s historic rent freeze, another may be on its way.

The city’s Rent Guidelines Board voted 5-4 on Tuesday night to consider freezing rents for more than 1 million rent-stabilized tenants. In addition to a freeze, the board will weigh a few other options, including a 2 percent cap on increases for one-year lease renewals, and a .5 to 3.5 percent increase for two-year leases. The freeze would go into effect Oct. 1.

For some tenants at the meeting, the proposed freeze didn’t go far enough. Hundreds of tenants called for a 4 percent rent rollback, while landlord members of the board supported a 4 percent increase.

The board is slated to vote on the possible rent changes June 27, the Wall Street Journal reported.

In April, the board published a study that claimed landlords’ cost to operate rentals actually fell over a 12-month period, due largely to a mild winter and low fuel costs. It’s the first time that’s happened since 1969, the board said.

Forest City Ratner’s Scott Walsh, representing building owners, criticized the study and said costs were actually up about 3.5 percent.

In June 2015, the board voted for the first time ever to freeze rents for stabilized apartments. The decision was touted by Mayor Bill de Blasio, but landlords argued it would hurt their bottomline.

Following the rent freeze, some investors shied away from stabilized properties. But not Stonehenge Partners CEO Ofer Yardeni — he’s apparently all about rent regulation[WSJ] — Kathryn Brenzel


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”
Keith Gelb and Bill Walton with 63 and 67 Wall Street (Rockpoint, Google Maps)

Rockpoint Group settles alleged rent-stabilization violations for $5M

Rockpoint Group settles alleged rent-stabilization violations for $5M
A U.S. District judge has given tenants a seat at the table in the legal challenges to New York’s rent law, defying attorneys representing landlords. (iStock)

Tenants get seat at table for legal challenges to rent law

Tenants get seat at table for legal challenges to rent law
Calamity and Kabbage: Accountants riff on PPP madness

Calamity and Kabbage: Accountants riff on PPP madness

Calamity and Kabbage: Accountants riff on PPP madness
City Council member Keith Powers (Getty)

Pol, biz groups: Suspend rent tax, extend outdoor dining

Pol, biz groups: Suspend rent tax, extend outdoor dining
Joseph Strasburg (Photo by Jeffersons Siegel)

Landlord leader opens up on rent law

Landlord leader opens up on rent law
arrow_forward_ios

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

Loading...