As Mayor Bill de Blasio touts the rent freeze for rent-stabilized tenants, and the landlord lobby criticizes him for it, let’s be clear—while the mayor deserves credit for appointing fair-minded people to the Rent Guidelines Board, we never would have had a rent freeze for New York City tenants without a vigorous tenant movement.
Perennially and without fail, thousands of New Yorkers turn up to the New York City Rent Guidelines Board hearings to tell their stories and rally for a fair decision. But historically, the rent board has not been considerate of tenants. Since 1970, the board ordered rent increases each year, and in the 12 years of the Bloomberg administration, increases were notoriously high and well above the percentages justified by inflation or the price index of operating expenses until 2014.
According the board’s own data released in 2016, landlords’ costs decreased by 1.2% while their total rental income rose by 4.8%. Their net operating income rose by 3.5% for the year, their 10th consecutive annual increase. Landlords across the city continuously testify with a narrative of burden and loss, but in 2014 only two owner hardship applications were filed with the Department of Homes and Community Renewal and none qualified for relief.
article continues below advertisement
Since 1990 the percentage of buildings considered distressed, meaning that the operating and maintenance costs are greater than the gross income, has decreased. In 1990, 13.9% of the sampled rent-stabilized buildings were considered distressed, compared with only 6.3% in 2014. While the Rent Guidelines Board voted for the lowest rent adjustments in 2015 and 2016, landlords have continued to gain profit via the 2% rent increase for two-year lease holders as well as from major capital improvements, individual apartment improvements, preferential leases, vacancy bonuses and fees.
With a new and more fair board put in place by de Blasio, rent-stabilized tenants have seen some relief with freezes on one-year leases in 2015 and 2016.
However, the board’s vote to freeze rents was not, as the landlord lobby contends, some partisan political project. Rather, it was a logical decision based upon facts and numbers—including the fact that landlords have benefited from grossly high adjustments in years prior. Those unwarranted rent increases far exceeded inflation and resulted in increased displacement, homelessness and a precipitous decline in the quality of life for rent-stabilized tenants. The board surveyed the damage of past unwarranted increases and said “enough is enough.”
While landlords have benefited, rent-stabilized tenants have felt the burden of continuous rent increases. According to the housing and vacancy survey done every three years, rent-stabilized apartments had a median gross rent to income ratio of 36.4%, meaning that the majority of rent-stabilized tenants are unable to afford their apartments or face a high financial burden. The American Community Survey showed that a third of households citywide are paying 50% or more of their income in rent. In 2014, households making $20,000 or less a year were spending 30% or more of their income on housing costs.
As household incomes rose, the percentage of income spent on housing costs decreased, demonstrating that low-income families disproportionately face financial burden. The Department of Homeless Services reported that homelessness in the city increased for a seventh consecutive in year in 2015, by 5.6%. Despite landlords’ claims of financial struggle, they were approved by the state to make major capital improvements totaling $112.3 million in 2014.
The Rent Guidelines Board hearings, particularly in the past two years, are an example of a space for vibrant, participatory democracy with true grassroots tenant involvement. Thousands of tenants have attended hearings in Manhattan, the Bronx, Brooklyn and Queens, and hundreds have told their stories. The data released in 2015 and 2016 by the board not only proved their experiences but also validated the vote for a rent freeze.
Rent freezes have been a massive victory for the tenant movement in New York City. These wins were not a gift from the mayor but the result of hard-fought battles waged by hard-working middle- and low-income New Yorkers of all stripes, with communities of color being particularly hard hit with displacement and homelessness. When people across race and class divides who are most directly affected by policies have a seat the table, our city can succeed in making policies rooted in dignity and justice for all.
That is why the Rent Justice Coalition recently petitioned the state Supreme Court to intervene in the landlord lobby’s lawsuit against the Rent Guidelines Board, which attempts to invalidate the rent freeze. The suit claims the board went beyond the scope of its edict in justifying its rent freezes. We believe the case has no merit and are confident that justice for New York City tenants will prevail.
Carmen Vega-Rivera and Shea Colon are tenants in rent-regulated housing and affiliated with the Rent Justice Coalition, which includes more than 30 community organizations representing thousands of tenants in each borough.
As Mayor Bill de Blasio touts the rent freeze for rent-stabilized tenants, and the landlord lobby criticizes him for it, let’s be clear—while the mayor deserves credit for appointing fair-minded people to the Rent Guidelines Board, we never would have had a rent freeze for New York City tenants without a vigorous tenant movement.
Perennially and without fail, thousands of New Yorkers turn up to the New York City Rent Guidelines Board hearings to tell their stories and rally for a fair decision. But historically, the rent board has not been considerate of tenants. Since 1970, the board ordered rent increases each year, and in the 12 years of the Bloomberg administration, increases were notoriously high and well above the percentages justified by inflation or the price index of operating expenses until 2014.
According the board’s own data released in 2016, landlords’ costs decreased by 1.2% while their total rental income rose by 4.8%. Their net operating income rose by 3.5% for the year, their 10th consecutive annual increase. Landlords across the city continuously testify with a narrative of burden and loss, but in 2014 only two owner hardship applications were filed with the Department of Homes and Community Renewal and none qualified for relief.
Since 1990 the percentage of buildings considered distressed, meaning that the operating and maintenance costs are greater than the gross income, has decreased. In 1990, 13.9% of the sampled rent-stabilized buildings were considered distressed, compared with only 6.3% in 2014. While the Rent Guidelines Board voted for the lowest rent adjustments in 2015 and 2016, landlords have continued to gain profit via the 2% rent increase for two-year lease holders as well as from major capital improvements, individual apartment improvements, preferential leases, vacancy bonuses and fees.
With a new and more fair board put in place by de Blasio, rent-stabilized tenants have seen some relief with freezes on one-year leases in 2015 and 2016.
However, the board’s vote to freeze rents was not, as the landlord lobby contends, some partisan political project. Rather, it was a logical decision based upon facts and numbers—including the fact that landlords have benefited from grossly high adjustments in years prior. Those unwarranted rent increases far exceeded inflation and resulted in increased displacement, homelessness and a precipitous decline in the quality of life for rent-stabilized tenants. The board surveyed the damage of past unwarranted increases and said “enough is enough.”
While landlords have benefited, rent-stabilized tenants have felt the burden of continuous rent increases. According to the housing and vacancy survey done every three years, rent-stabilized apartments had a median gross rent to income ratio of 36.4%, meaning that the majority of rent-stabilized tenants are unable to afford their apartments or face a high financial burden. The American Community Survey showed that a third of households citywide are paying 50% or more of their income in rent. In 2014, households making $20,000 or less a year were spending 30% or more of their income on housing costs.
As household incomes rose, the percentage of income spent on housing costs decreased, demonstrating that low-income families disproportionately face financial burden. The Department of Homeless Services reported that homelessness in the city increased for a seventh consecutive in year in 2015, by 5.6%. Despite landlords’ claims of financial struggle, they were approved by the state to make major capital improvements totaling $112.3 million in 2014.
The Rent Guidelines Board hearings, particularly in the past two years, are an example of a space for vibrant, participatory democracy with true grassroots tenant involvement. Thousands of tenants have attended hearings in Manhattan, the Bronx, Brooklyn and Queens, and hundreds have told their stories. The data released in 2015 and 2016 by the board not only proved their experiences but also validated the vote for a rent freeze.
Rent freezes have been a massive victory for the tenant movement in New York City. These wins were not a gift from the mayor but the result of hard-fought battles waged by hard-working middle- and low-income New Yorkers of all stripes, with communities of color being particularly hard hit with displacement and homelessness. When people across race and class divides who are most directly affected by policies have a seat the table, our city can succeed in making policies rooted in dignity and justice for all.
That is why the Rent Justice Coalition recently petitioned the state Supreme Court to intervene in the landlord lobby’s lawsuit against the Rent Guidelines Board, which attempts to invalidate the rent freeze. The suit claims the board went beyond the scope of its edict in justifying its rent freezes. We believe the case has no merit and are confident that justice for New York City tenants will prevail.
Carmen Vega-Rivera and Shea Colon are tenants in rent-regulated housing and affiliated with the Rent Justice Coalition, which includes more than 30 community organizations representing thousands of tenants in each borough.
Sign up for our FREE daily email newsletter. A summary of the day’s top business and political headlines from the newsroom of Crain’s New York Business.
More Newsletters ›
Our editors found this article on this site using Google and regenerated it for our readers.