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Rest-stabilized NYC apartments facing possible 16 percent rent increase
New York City's Rent Guidelines Board is currently figuring out how much rent could potentially increase next year, FOX 5 NY's Jessica Formoso explains.
NEW YORK - The Rent Guidelines Board, a panel that regulates the roughly one million rent-stabilized apartments in New York City, met Thursday to discuss potential rent hikes.
The rent increases could be anywhere from 8.5% on 1-year leases, to 16% on 2-year leases, the highest in decades.
"The tenants never had a decrease. The landlords have always had increases, increases during the recession, they are profiting," said Pilar DeJesus, senior advocacy coordinator with Take Root Justice.
The numbers are just calculations at this point. They come after the board reviewed the Price Index of Operating Costs for buildings, A report that shows it cost landlords over 8% more to operate their buildings in the past year.
"What they said is using various calculations, taking in various economic factors like inflation, like the costs involved in running buildings, like the income that they've lost over the past several years. If we took these factors into consideration, this is what rent increases could look like," said Michael Tobman, Membership Director of the Rent Stabilization Association.
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Last year, the board approved the largest increases in almost a decade – a 3.25% hike on one-year leases and 5% on two-year leases, citing rising costs for landlords.
"Nobody is suggesting at this point that this is the range that may or may not be voted on. But it is a stark and compelling reminder of the numbers involved in running these buildings. It's also important to note that rent-stabilized buildings are owned by private individuals. These are private owners that are providing a public benefit. And the numbers have to make sense," added Tobman.
In the coming weeks, the board will hear from tenants and associations like the Rent Stabilization Association and after hearing from them, they will establish a preliminary range that the increases can fall within. After that, public hearings will be held.