Thousands of New York City residents face a stabilized rent hike just as inflation continues to pummel Americans’ wallets.
The New York City Rent Regulatory Board voted Tuesday night to raise rents for millions of people in rent-stabilized apartments.
By a 5-4 margin, the Rent Regulatory Board approved two rate increases: a 3.25 percent increase on one-year leases and a 5 percent increase on 2-year leases.
Before the vote, the board had been considering a 2 percent to 4 percent increase in one-year leases and a 4 percent to 6 percent increase in two-year leases.
The Legal Aid Society, which had called for a rent freeze ahead of Tuesday’s vote, called the increase a “shameful vote, likely predetermined, to raise rents for our most vulnerable neighbors.”
The group also said the decision will primarily affect “communities of color, across counties that are barely getting by, disproportionately financially impacted by the pandemic and paying exorbitant costs for groceries, health care and other essential needs.”
Legal Aid also criticized Mayor Eric Adams for not doing enough to fight for a freeze, saying it was “wishful thinking given his appointment of known members against tenants on the Board.”
For his part, Adams said in a statement that the increases “will be a burden on tenants,” while small landlords were at risk of bankruptcy without a raise.
“While we raised our voices and were successful in reducing the increases, today’s determination by the Rent Guidelines Board will unfortunately be a burden to tenants at this difficult time, and that is disappointing,” Adams said.
“At the same time, small landlords are at risk of bankruptcy due to years without a raise, putting building owners with modest means at risk and threatening the quality of life for tenants who deserve to live in modern, well-appointed buildings.” maintained,” he added.
The mayor added that the current system is “broken, and we cannot pit landlords against tenants as winners and losers every year.”
On Monday, Adams acknowledged how inflation is devastating New Yorkers and expressed hope that the Rent Board will opt for a smaller rent increase, if any, so as not to decimate New Yorkers.
Last week, the Board heard from tenants express their fear that rent increases could push the working class into poverty.
Community Action for Safe Apartments condemned the rent increases, saying it directly affects some of the city’s most vulnerable residents. However, the city also heard from homeowners who said they face rising maintenance and construction costs and need help to cover those financial increases.
This is the highest rent increase for rent-controlled apartments in 10 years.
Tuesday’s vote came a few days after the City Council determined that there is indeed a public emergency requiring rent control in New York City, and voted Thursday to extend rent stabilization laws set to expire next month.
The legislation stated that the City Council determined that an ongoing housing emergency exists, and that the emergency will continue after the current expiration of the Rent Stabilization Law, on July 1, 2022.
In addition, the introduction of legislation 558-A that requires the expiration date of the Rent Stabilization Law to be amended to April 1, 2024, thus allowing the renewal of the rent regulation to follow its ordinary three-year cycle, was passed and is currently awaiting Adams’ signature.
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