RGB approves biggest rent hikes since 2013, but landlords call increase “pathetically insufficient”

Regulated apartment rents will rise between 1.5 and 2.5% this year

TRD New York /
Jun.June 27, 2018 08:44 AM

Mayor Bill de Blasio (Credit: Pixabay, Anthony Quintano)

Even though it was the largest increase in rents on regulated apartments since 2013, landlords expressed deep disappointment with the Rent Guidelines Board’s Tuesday night vote.

The nine-person body, among the few proxies through which Mayor Bill de Blasio can directly impact rental rates, voted 5-4 to increase rents on stabilized one-year leases by 1.5 percent and two-year leases by 2.5 percent. The increase is slightly higher than last year, when rents rose 1.25 percent for one-year leases, and 2 percent for two-year leases.

The Rent Stabilization Association, which represents 25,000 owners of rent-stabilized apartments, issued a sharp rebuke following the ruling, calling the rent raises “pathetically insufficient.” In a report earlier this year, the RGB found that landlord costs of maintaining rent-stabilized buildings increased by 4.5 percent this year, largely due to a 16.4 percent increase in fuel costs. The RSA sought increases of 4.5 percent and 7.25 percent this year.

A spokesperson for the mayor said the board “fairly factored in the data” to make its decision, but rent stabilization remains a challenge of the administration, according to the Wall Street Journal. While rent increases have slowed under de Blasio, owners’ costs rose more than 11 percent in four years, while their taxes went up 25 percent.

Tenants and demonstrators who attended the meeting protested the increase, and called for a rent freeze, or even a reduction.

The rent rise will take effect in October. [WSJ] — David Jeans 


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”
(Getty, iStock)

Refinancings drove up home mortgage apps last week

Refinancings drove up home mortgage apps last week
40 East 72nd Street and Spiros and Antonia Milonas  (Getty; Google Maps)

Under water: Shipping magnate’s troubled UES condo is bankrupt

Under water: Shipping magnate’s troubled UES condo is bankrupt
U.S. home prices rose with Phoenix, Seattle and San Diego logging the biggest gains (iStock)

US home prices jump 5.2% in August

US home prices jump 5.2% in August
An estimated 12.8 million Americans would owe an average of $5,400 from missed payments (iStock)

Rent debt could reach $70B by year’s end: Moody’s

Rent debt could reach $70B by year’s end: Moody’s
New York Attorney General Letitia James and 63-36 99th Street in Rego Park (Getty; StreetEasy)

“Not on my watch”: AG Tish James fines developers who violated 421a

“Not on my watch”: AG Tish James fines developers who violated 421a
arrow_forward_ios

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

Loading...