By Maria Rocha-Buschel
The City Council member representing Greenwich Village, Corey Johnson, has called on the mayor to reform the Rent Guidelines Board and eliminate the price index from the calculations used to determine the annual rent adjustments for stabilized tenants. Elected officials and tenant advocates joined Johnson at City Hall last Thursday to support his legislation on the matter because they say that the Price Index of Operating Costs (PIOC) does not accurately reflect the costs and revenues accrued by landlords, causing unfair increases for tenants.
The price index doesn’t measure what owners actually spend running buildings but instead estimates their costs based on changes in prices for goods and services, like utilities, without taking changes into account, like the weather. The price index also doesn’t measure any of the income received on the properties.
“The PIOC overestimates landlords’ expenses by as much as one third and doesn’t measure income,” Johnson said. “Tenants deserve a fair shot. The 2.5 million rent-stabilized tenants in New York deserve a metric that accounts for actual income and expenses.”
Mike McKee of TenantsPAC said that the price index study is “an enormous amount of work” and that there is nothing in the law that requires the board to use the data from the study in their decision.