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

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.

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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