City saw net gain of 4,000 rent stabilized units last year, but there’s a catch

7,468 regulated units were lost, RGB report shows

TRD New York /
May.May 17, 2019 01:00 PM
More than 4,000 apartments were lost due to vacancy decontrol (Credit: iStock)

More than 4,000 apartments were lost due to vacancy decontrol (Credit: iStock)

The city saw a net gain of rent stabilized units last year, though a majority of those apartments will lose their protected status once certain tax breaks expire.

In a new report released by the city’s Rent Guidelines Board on Thursday, 11,845 apartments were newly stabilized in 2018, while 7,468 were lost. This made for a net gain of 4,377, Politico reported.

A majority — 80 percent — of the new units were created through the 421a property tax break, meaning they can be deregulated once the benefits expire.

According to the report, 4,628 apartments were lost due to vacancy decontrol, which allows landlords to deregulate units once units are vacated and rent has reached the $2,774 threshold.

Earlier this month, in a preliminary vote, the RGB voted in favor of rent increases of .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. A final vote will be held in June.

Meanwhile, lawmakers in Albany are discussing a series of changes to the rent regulation law, which expires June 15. The Daily News reported that these proposed changes might end up in an end-of-session omnibus bill known as a “Big Ugly.” [Politico] — Kathryn Brenzel

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