On Thursday, The Rent Guidelines Board released its annual report on landlord operating costs, which revealed that landlords only experienced a 0.5 percent increase last year, making it the smallest increase since 2002.
Mike McKee of TenantsPAC pointed out that in that year, operating costs were actually in the negatives but the chair at the time had been appointed by Mayor Michael Bloomberg.
“He said that he didn’t care what the price index showed and that we couldn’t have rent increases below 2 and 4,” McKee said. “And that’s what the increases were that year.”
In contrast, the current board that will vote this year was appointed entirely by Mayor Bill de Blasio, who made getting a rent freeze for rent stabilized tenants one of his campaign promises.
The study released last year reported that operating costs had increased by 5.7 percent in 2013, but the board had five new tenant-friendly members and set record-low increase of one percent for one-year leases and 2.75 percent for two-year leases.
The notably small increase in landlord costs in this year’s study is due primarily to a 21 percent decrease in fuel costs throughout last year. The study also noted that there was a 4.2 percent increase in taxes, 7.2 percent increase in insurance costs and 1.2 percent increase in utilities, but these were still outweighed by the drastic decrease in fuel costs.
While the report looks promising for tenants, advocates are still fighting to change the process because they say that the price index is deceptive and shouldn’t even be used as part of the RGB’s process.
Rent Guidelines Board Tenant Representatives Sheila Garcia (center) and Harvey Epstein (left) with others at rally in front of 1 Centre Street prior to the RGB’s first meeting of the year (Photo by Maria Rocha-Buschel)
By Maria Rocha-Buschel
Ahead of the Rent Guidelines Board’s first meeting of the year, tenant advocates called for a rent rollback at a forum hosted by Council Member Corey Johnson at PS 3 in Greenwich Village last Wednesday evening attended by about 100 area residents, most of whom were rent stabilized tenants.
Attorney Tim Collins, who also represents the ST-PCV Tenants Association, is the former executive director of the RGB from 1987 to 1993 and he argued that putting a stop to increases for rent stabilized tenants is long overdue.
“Last year I didn’t ask for a rent freeze; I pushed for a rollback then,” Collins said. “The numbers are clear. The board has clear data on where operating costs have gone. We know that operating costs have gone up faster than inflation at 144 percent but landlords have been given 177 percent in increases since 1990. The RGB has overcompensated owners.”
Johnson, who represents Manhattan’s District 3, periodically hosts “Let’s Talk” events for community residents to inform New Yorkers about issues important to them. He won’t be hosting any other events on the RGB this year, but he said that this event was scheduled specifically to be on the night before the board’s first meeting of the year.
“It’s important that New Yorkers understand what is going on and the massive reforms that need to happen,” he said. “And we want to make sure that the RGB is treating tenants fairly.”