Latest news with #RentGuidelinesBoard
New York Post
27-05-2025
- Business
- New York Post
NYC's Rent Guidelines Board walks back hike on stabilized apartments in rare revote
The Rent Guidelines Board on Tuesday scaled back its planned hikes on nearly 1 million rent-stabilized units — in a rare reversal that landlords said will leave New York City's aging buildings in disrepair. The board's re-vote shaved down the proposed range of increases for two-year leases to 3.75% to 7.75%, down from the minimum of 4.75% that it passed last month. Rent increases for one-year leases will stay the same at a range of 1.75% to 4.75%. Ann Korchak, president of the Small Property Owners of New York, said she had pushed for at least a 6.3% increase on rent-stabilized units. 'The RGB process is intended to be based on the math,' Korchak said, calling on the city to freeze property taxes and utility costs to help landlords stay afloat. 3 Landlords who own rent stabilized buildings want the government to help them out with other costs if the minimum rent increase is not at least 6.3 percent, Korchak said. Getty Images The nine-member board, which has greenlit 9% in rent increases over the last three years, will finalize the rates June 25. Mayor Eric Adams, who appointed most of the board's current members, had called the old proposed increase 'far too high' and urged balance. 'New Yorkers are hurting. I've been very clear we need a balance,' Hizzoner said at an unrelated press conference Tuesday. 3 Raucous protestors during the last Rent Guidelines Board meeting May 15. X/Brad Lander The Legal Aid Society slammed any increase as 'reckless,' arguing that landlords are already seeing strong returns. 3 Tenants rights groups think the rent increases are still too high and want to see a full rent freeze. Helayne Seidman 'In the weeks ahead, we urge the Board to listen to tenants, hear their concerns, and recognize how reckless it would be to raise rents on poor and working-class households in these unprecedented times,' the group said in a statement. The board has two owner representatives, two tenant representatives and five public members. Any approved hikes would affect rent-stabilized leases starting on or after Oct. 1.
Yahoo
27-05-2025
- Business
- Yahoo
RGB holds rare revote, cuts two-year lower limit
The Rent Guidelines Board, in a rare departure from its regularly scheduled programming, held a revote on preliminary ranges for rent-stabilized leases — a crucial gauge for the final adjustments. The board reaffirmed the range for one-year leases it greenlit last month but voted to cut the lower range for two-year leases by one percentage point to 3.75 percent from 4.75 percent. The preliminary ranges are now 1.75 percent to 4.75 percent for one-year leases and 3.75 to 7.75 percent for two-year leases. The vote passed 5-3. One member of the nine-person board was absent, NY1 reported. The change was rooted in a clerical error, sources told The Real Deal and RGB Chair Doug Apple confirmed. Apple misstated the proposed range published to the RGB's website when he spoke at last month's meeting. He was competing against tenant chants for a 'rent freeze.' 'When Doug said the range out loud, it was incorrect,' a source who requested anonymity said. 'Everyone on the board and in and around the board knew this.' The members decided a do-over would be best from a legal standpoint. 'What we did in April is what we did in April, and what we did today was the right thing to give us more flexibility in the range,' Apple said. The switch-up comes as the RGB vote has become a political flashpoint in the mayoral election. Mayor Eric Adams, fighting to keep his seat after a protracted legal scandal, is a small landlord who has historically advised the board to strike a balance between landlord and tenant interests. After a swatch of his Democratic challengers called for a rent freeze, he tweaked his tune. On the heels of the preliminary vote, he called the 7.75 percent upper range for two-year leases 'far too high of a burden for tenants.' After the Tuesday revote, sources pointed to an emerging 'narrative' that the number had been adjusted down to align with the mayor's stance. It should be noted, however, that the board tweaked the lower number, not the upper that Adams flagged. A spokesperson for the mayor's office said, 'if [Adams] had instructed the board to hold a vote, please note that the Rent Guidelines Board is an independent body.' At a press conference Tuesday, Adams said something to that effect while noting that the ranges weren't quite where they should be. 'The ranges that we put out, this independent board put out, was outside of the scope that we believe [in] — New Yorkers are hurting,' Adams said. He went on to advocate for a balanced approach and noted he'd be holding a town hall for small landlords who were struggling. The hiccup at last month's RGB hearing illustrates the increasingly disruptive tenant protests during these proceedings. Though no one stormed the stage, as a renter-aligned group did during the 2023 preliminary vote, Apple did struggle to be heard over a chorus of tenant chants. At some points, he and other board members seemed distracted by the din. When asked, however, Apple did not say the noise was a problem. 'It's a democracy, right?' Apple said. 'People can come and they can protest.' 'It was chaotic and loud, as usual,' Ann Korchak, who heads the Small Property Owners of New York, said of this year's preliminary vote. 'The board, with such an important job, should be able to conduct its business.' The minor adjustment did nothing to quell the tensions of landlords or tenants, both of whom claim a final vote within the proposed ranges will be nothing short of disastrous. Tenant advocates say New Yorkers burdened by the soaring cost of living and economic uncertainty can't afford higher rents. The Legal Aid Society, said the board in its Tuesday vote had 'miss[ed] yet another opportunity to adopt a full rent freeze.' Landlords, many of whom cannot maintain buildings with inflation-lagging rent increases, decried the cut to the lower range. SPONY, individually, called on the city to freeze property taxes, water and sewer rates and 'other government-driven costs' to help owners stay afloat. Rent board eyes up to 4.75% hike as landlords, tenants despair 'They're pushing the eject button': Related unloads monster rent-stabilized portfolio for $192M — another loss RGB calls for 6.3% hike on rent-regulated leases. Landlords: Please! This article originally appeared on The Real Deal. Click here to read the full story.
Yahoo
27-05-2025
- Business
- Yahoo
NYC's Rent Guidelines Board, in unusual move, lowers proposed increases as mayoral election heats up
New York City's Rent Guidelines Board lowered the range of potential rent increases for some 2 million New Yorkers in an unusual redo vote on Tuesday — a move that comes as the issue of freezing rents has taken center stage in the contentious mayoral race. The board reduced the proposed range of increases for rent-stabilized tenants with two-year leases to a span of 3.75% to 7.75%, down from the 4.75% minimum they passed last month. One-year leases remain unchanged with a range of 1.75% to 4.75%. The nine-member panel of mayoral appointees voted 5-3, with one absence. Tuesday's do-over was an anomaly, as the board typically has a single preliminary vote to decide ranges that are later solidified at a final vote. It comes after outrage from both tenants and landlords, who respectively argue that rents should be frozen or ratcheted up. The two sides repeated their criticisms Tuesday following the vote. Board chair Doug Apple cited an 'additional review of evidence' as reason for the reconsideration, though tenant member Adán Soltren challenged that, saying public members already thought the range should have been lower. The issue of a rent freeze has gained momentum ahead of next month's Democratic mayoral primary, with several candidates supporting at least a one-year pause. Left-leaning contestant Zohran Mamdani has promised to implement a four-year freeze by appointing tenant-sympathetic board members if elected. Mayor Eric Adams previously described the 7.75% upper end of the preliminary range as 'far too unreasonable of a burden for tenants.' Adams has stopped short of backing a rent freeze, while frontrunner former Gov. Andrew Cuomo has dismissed the idea as a 'politically convenient posture.' Last year, the board approved final hikes of 2.75% for one-year leases and 5.25% for two-year leases. The final vote is scheduled for June 27, with any changes taking effect Oct. 1.
Yahoo
27-05-2025
- Business
- Yahoo
NYC's Rent Guidelines Board, in unusual move, lowers proposed increases as mayoral election heats up
New York City's Rent Guidelines Board lowered the range of potential rent increases for some 2 million New Yorkers in an unusual redo vote on Tuesday — a move that comes as the issue of freezing rents has taken center stage in the contentious mayoral race. The board reduced the proposed range of increases for rent-stabilized tenants with two-year leases to a span of 3.75% to 7.75%, down from the 4.75% minimum they passed last month. One-year leases remain unchanged with a range of 1.75% to 4.75%. The nine-member panel of mayoral appointees voted 5-3, with one absence. Tuesday's do-over was an anomaly, as the board typically has a single preliminary vote to decide ranges that are later solidified at a final vote. It comes after outrage from both tenants and landlords, who respectively argue that rents should be frozen or ratcheted up. The two sides repeated their criticisms Tuesday following the vote. Board chair Doug Apple cited an 'additional review of evidence' as reason for the reconsideration, though tenant member Adán Soltren challenged that, saying public members already thought the range should have been lower. The issue of a rent freeze has gained momentum ahead of next month's Democratic mayoral primary, with several candidates supporting at least a one-year pause. Left-leaning contestant Zohran Mamdani has promised to implement a four-year freeze by appointing tenant-sympathetic board members if elected. Mayor Eric Adams previously described the 7.75% upper end of the preliminary range as 'far too unreasonable of a burden for tenants.' Adams has stopped short of backing a rent freeze, while frontrunner former Gov. Andrew Cuomo has dismissed the idea as a 'politically convenient posture.' Last year, the board approved final hikes of 2.75% for one-year leases and 5.25% for two-year leases. The final vote is scheduled for June 27, with any changes taking effect Oct. 1.
New York Post
24-05-2025
- Business
- New York Post
Tax lien sales by NYC threaten to worsen the affordable housing crisis
Alarm bells are only just starting to ring about a huge threat to the city's housing stock: the growing crisis of older rent-regulated apartment buildings, especially the smaller ones largely owned by 'mom and pop' landlords. Pre-1974 rent-stabilized units, mainly in the outer boroughs, now house about 1.7 million New Yorkers, but many of theses buildings are in deep financial distress water: The rental income doesn't cover their ongoing expenses, or soon won't if the Rent Guidelines Board keeps holding increases to below the rate that those expenses are rising. A good number of landlords have only made ends meet by delaying payments on property taxes and/or water and sewer bills, and city Department of Finance efforts to collect on that debt stand poised to trigger a wave of foreclosures likely to spark a disastrous downward spiral. After putting tax-lien sales on hold early in the pandemic, the department was set to hold the first one in years on May 20, only to postpone it to June 3 as it began to realize how bad things may be. In these sales, the city gets cash upfront while the lien purchasers gain rights to collect on the debt; they can start charging high interest rates plus penalties. Owners struggling to pay that, along with all their other bills, wind up deferring even vital building maintenance; some eventually just walk away, abandoning the property and all its debts; others lose the building to foreclosure. Tenants suffer as everything falls into disrepair, and can suffer more if the building winds up owned by unscrupulous and predatory speculators. Meanwhile, the entire structure can deteriorate so badly that full repairs start to cost more than replacing the whole building. As Sean Campion of the Citizens Budget Commission noted in testimony to the Rent Guidelines Board last week, market prices for these pre-'74 buildings are now falling as the net income (rents minus expenses) collapses. This crisis is exacerbated by destructive city and state housing actions — costly climate-change and sanitation mandates, rents never collected after the COVID 'eviction moratorium,' units the landlord has to stop renting because the 2019 state Housing Stability and Tenant Protection Act makes it impossible to finance renovations after a longterm tenant finally leaves . . . Plus, Housing Court is so clogged that even open-and-shut eviction cases take forever. None of this gets mentioned as Democratic mayoral wannabes debate the city's housing crisis; these landlords, many of them minority and/or immigrants, just don't carry the political heft of the professional 'tenant advocates.' The CBC's Campion warned the RGB that continues to OK below-inflation rent increases will only accelerate the crisis; other reasonable moves pushed by a landlords group, the Small Property Owners of New York, include: Fix Housing Court so deadbeat tenants aren't living rent-free for years while awaiting eviction hearings. Amend state housing laws that limit owners' ability to upgrade apartments. Expand existing and create new targeted emergency-rental-assistance programs. Cap property taxes and other costs equivalent to the caps that the Rent Guidelines Board puts on rent increases for stabilized apartments. The Finance Department would also be wise to put off any lien sales for months at least, not just two weeks, because it's now guaranteed to trigger a slow apocalypse for this vital housing stock. If something doesn't break soon, New York is on track to lose a huge chunk of its affordable apartments.
