Rent Guidelines Board votes in favor of increases on apartments, freeze on hotels

Board voted .5 percent to 2.75 percent increase for 1-year leases and a 1.5 to 3.75 percent hike for 2-year leases

New York /
May.May 07, 2019 08:59 PM
(Credit: iStock)

(Credit: iStock)

In a preliminary vote on Tuesday, the Rent Guidelines Board recommended a .5 to 2.75 percent increase for one-year leases and a 1.5 to 3.75 percent hike for two-year leases for both rent-stabilized apartments and lofts.

The members voted 5 to 4 in favor of this proposal, put forward by chair David Reiss, which included a 10 percent allowance for sublets but didn’t call for a vacancy bonus. For hotels, tenant representative Sheila Garcia’s proposal of no increase passed 6 to 3. While tenant advocates seated in the Cooper Union auditorium cheered for that decision, the voting results from Reiss’ proposal elicited shouts of “shame!”

The landlord representatives on the board — Patti Stone, an attorney with Rosenberg & Estis, and Scott Walsh, a Forest City alum — voted against both winning proposals, having pushed for increases of 3 percent for hotel units and hikes of 3.75 percent to 5.75 percent for one-year apartment leases and 4.75 to 6.75 percent for two-year leases. Amid unrelenting shouts from the audience, Stone also proposed the addition of a 10 to 15 percent vacancy allowance if the state ends up eliminating such bonuses, as some expect will happen before the end of this legislative session. The RGB hasn’t included a vacancy rent bump since the late 1990s, when the state implemented its own ranging from 5 to 20 percent.

“We live in a capitalist society, where people go into business to make a profit, not break even,” Stone said. “Owners have been under-compensated.”

The board also voted down a proposal from tenant representatives, which included a rent rollback ranging from .5 (which is a decrease) to 0 percent on one-year leases and a 0 to 1 percent increase on two-year leases.

“This is a renters city,” Garcia said. “We are in full awareness that we are living in a housing crisis.”

The preliminary vote comes as the state legislature mulls various proposals to reform rent-regulation laws, including the elimination of various programs that allow landlords to increase rents when apartments are vacated and renovated. At an RGB hearing last month, the Real Estate Board of New York argued that the board should increase rents by 7.5 percent in order to make up for the drop in funding streams that would result from changes proposed by the state.

The final RGB vote is slated for June 25.


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”
Douglas Elliman CEO Dottie Herman on FOX
Elliman CEO: ‘People are afraid to walk in NYC’
Elliman CEO: ‘People are afraid to walk in NYC’
Village Preservation executive director Andrew Berman (iStock, Village Preservation)
Manhattan CB2 votes against Soho/Noho rezoning
Manhattan CB2 votes against Soho/Noho rezoning
Soho’s zoning madness, such as artists-only lofts and a ban on ground-floor retail, may finally change with a proposed rezoning.
The shopping district that banned retail: Soho’s incoherent zoning
The shopping district that banned retail: Soho’s incoherent zoning
Gov. Andrew Cuomo (Getty, iStock)
Cuomo vows to speed rent relief after pressure from Schumer
Cuomo vows to speed rent relief after pressure from Schumer
Eric Adams (Getty, iStock)
City program could supplement state rent relief — if next mayor signs off
City program could supplement state rent relief — if next mayor signs off
arrow_forward_ios

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

Loading...