Calling for a Rent Freeze
June 22, 2009
Last week, I told the New York City Rent Guidelines Board (RGB) that in a time of economic crisis, when New York’s middle class is struggling to keep its head above water, there should be no rent increases for tenants in rent-stabilized apartments.
Last year, the RGB approved astoundingly large rent increases on rent-stabilized tenants and slapped long-term tenants with an outrageous supplemental increase, as if it were singling out for special punishment those who have lived in their communities the longest.
This year, the RGB once again looks set to close its eyes to the current realities of living in New York, proposing to raise rents in the middle of the worst economic downturn since the Great Depression. What is more, the RGB is contemplating another round of supplemental increases on long-term tenants—apparently seeking to normalize this deeply unfair practice.
The simple fact is that tenants cannot afford a rent increase this year, and landlords cannot justify one. According to the RGB’s 2009 Income and Expense Survey, total landlord income grew by 6.5% from 2006 to 2007, while Net Operating Income (NOI) increased 9.3% during the same period. Adjusted for inflation, the NOI increase jumps to 17.2%. This big rise in landlords’ profit margins means that a rent increase on already-overburdened tenants would be deeply unfair. Landlords were granted a major rent increase last year—they did not need it then and they do not need any more now. The RGB ignored reality last year, and the fact that it looks set to raise rents again this year suggests that it is responding to political pressures, not to the facts. It tells us that the RGB needs to change.
I am co-sponsoring legislation with my colleague Assembly Member George Latimer (A.5282/S.5566-Duane) to bring much-needed reform to the RGB—requiring it to use fair and honest data in its deliberations; preventing landlords with serious violations from collecting rent increases; abolishing the need for lease renewals; and rebalancing the board so that mayoral appointees no longer hold all the power. The RGB must be independent and objective enough to make decisions that are truly fair for all stakeholders. It should not be beholden to this or any other mayor’s political interests.
The RGB has never before approved a rent freeze, but as I told the Board Members, if ever there was a time for a freeze, it is now.
You can read my full testimony by downloading it from the Publications section of my website.
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2 Responses to “Calling for a Rent Freeze”
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Tire of this corrupcion in NY, Just give the Landlors the key of our apts. so they can move every tenant out of our apts.like they are doing now ,so they can rent them for $2,000 a month o more in a??? rent stabilizaded building????/ o better just give them all our money so they don’t have to pay the Goverment Agencies oficials (DHCR) or the RGB ,that way they do not have put out a circus every year for rent guidelines . Like me other rent Stab. tenants are tire of waiting for chance but like always “Landlors Rules Our Rents Laws” Congratulations New York are yours” feel bad for my kids and every family with kids, and there future,We the working families are paying every single increase for service to live in this city,soon we can’t be able to send our kids to college.Iam telling my kids.So sad that Iam lated to make this comment for today RGB decition,,.good luck for usNew yorkers
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