By Maria Rocha-Buschel
At a Manhattan hearing of the Rent Guidelines Board, where both landlords and tenants were invited each year to give testimony on their respective suffering, Stuyvesant Town-Peter Cooper Village Tenants Association President Susan Steinberg took umbrage at one owner representative’s argument that MCIs are not sufficient rent increases.
She spoke up after Rent Stabilization Association president Jack Freund, whose organization represents landlords throughout the city, said at the hearing that Major Capital Improvements (MCIs) and preferential rent increases don’t offer enough income to sustain landlords.
“You cannot substitute MCI increases for maintenance and operating rent increases,” he said. “MCIs have nothing to do with this issue and the suggestion that preferential rents somehow should play into this, that you can eliminate the need for rent increases because owners can increase rent (with MCIs and preferential rent increases), is a ludicrous notion. Both of those suggestions, that MCIs and preferential rent increases, can somehow substitute for a necessary, across-the-board rent increase, are just laughable.”
Later, Steinberg, who said she’d originally planned to read pre-written testimony, changed her mind in order to respond to Freund.
“Perhaps he forgot that MCIs get onto a tenant’s rent in perpetuity,” she said during her testimony. “It goes way beyond recouping the landlord’s costs and if you’re a tenant living in a building and have received several MCIs that get added permanently on top of the RGB increases, that adds up really fast. Maybe it’s laughable for the landlord but it sure isn’t for tenants.”