Friday, June 21, 2013

RGB whacks NYC tenants: Highest hike since 2008

The NYC Rent Guidelines Board just hurt tenants with huge increases. 

For rent stabilized tenants: 
  • For a one-year renewal lease commencing on or after October 1, 2013 and on or before September 30, 20144.0%
  • For a two-year renewal lease commencing on or after October 1, 2013 and on or before September 30, 2014: 7.75

See the Wall St. Journal article and more information below. 

See the RGB website for increases for other types of rentals.


Tenants are hurt by increases that go well over their income - and that are based on incorrect math.   Many tenants may lose their homes.

Fight for real rent reform and a Rent Guidelines Board that is not wholly appointed by the mayor.  

Come to the R3 meeting on 
Wednesday, June 26, 2013 
at 7 PM
Goddard-Riverside Community Center, 593 Columbus Ave. @ 88th St.

______________________

WALL STREET JOURNAL

·                                 NY REAL ESTATE RESIDENTIAL
·                                 June 20, 2013, 11:15 p.m. ET
·                                  

Panel Approves Rent Increase for New York's Rent-Regulated Apartments

Board Votes in Favor of Rent Increase of at Least 4% for Rent-Regulated Apartments

 

By JOSH BARBANEL

Despite calls to freeze rents by three Democratic candidates seeking to succeed Mayor Michael Bloomberg, a panel appointed by the mayor voted for a rent increase of at least 4% for nearly a million city tenants in rent-regulated apartments, the largest such increase adopted since the financial crisis of 2008.
In its decision, adopted before a crowd of about 200 tenants and a contingent of landlords at the Great Hall at Cooper Union, the Rent Guidelines Board approved an increase of 4% for one-year leases that take effect on or after Oct. 1, or 7.75% increase in two-year leases.
The 4% increase, was the largest since a 4.5% increase in one-year leases adopted in the spring of 2008 for most rent-regulated tenants. The 7.75% matched a two-year increase passed in 2011. In 2008, most two-year leases went up 8.5%.
In testimony and written statements to the guidelines board by the mayoral candidates, City Council Speaker Christine Quinn, City Comptroller John C. Liu and Public Advocate Bill de Blasio joined with tenant groups in calling for a complete freeze on rents.
"The Rent Guidelines Board had an opportunity to protect tenants, an opportunity the Board squandered when they chose to subject New Yorkers to disruptive rent hikes instead," Ms. Quinn said in a statement after the vote.
But the board, with five members to represent the public as well as two landlord and two tenant representatives, all appointed by the mayor, followed the lead of a staff report showing that owner costs rose by 5.9% in the year ended in March, including a 7.1% in water and sewer charges and 2.6% increase in property taxes assessed by the city.
Tenant leaders said the figures overstated landlord costs.
"It's outrageous, that the board could come up with this type of number when we are still in an economic downturn," said Barry Soltz, a tenant leader at JanelTower in the Bronx.
Landlords said it made up for some of the more parsimonious increases in recent years, but didn't address their needs in building where tenants pay very low rents that don't cover expenses. In some past years the board adopted minimum increases for apartments renting for less than $1,000 a month, but declined to do so this year.
As the board prepared to vote, Jonathan L. Kimmel, a lawyer who services as the board's president, expressed regret that board had difficulty addressing the travails of those most in need, "the struggle of the marginal owner and the poor tenant."
He said the board was "a blunt instrument that cannot solve these issues." "Instead he said that "real solutions lie with the legislature."
Write to Josh Barbanel at josh.barbanel@wsj.com
A version of this article appeared June 20, 2013, on page A16 in the U.S. edition of The Wall Street Journal, with the headline: Rent Board Approves Boost of at Least 4%.
http://online.wsj.com/article/SB10001424127887323393804578558103574700828.html