Rent Freeze For 1-Year Stabilized Leases Goes Through
As expected, the nine-member Rent Guidelines Board voted for a second straight year to freeze rents for one-year leases in rent stabilized units.
Rising taxes, increased risk of litigation and a more complex regulatory environment requiring full-time professionals to navigate were among the reasons cited by landlords that a rent freeze could cause expenses to outpace operating income.
Tenants’ groups have argued that factors like lower fuel costs should make it possible for building owners to take the hit.
“[The vote] failed to take into account the real expenses in operating multifamily buildings in New York City,” Community Housing Improvement Program executive directive Patrick Siconolfi said in a statement.
Municipal taxes make up the highest percentage of a building’s operating expenses, CHIP’s statement says. Patrick's organization represents roughly 3,500 small owners of about 400,000 multifamily properties across the five boroughs.
Rents for two-year leases were not frozen, and will be allowed a 2% raise.
