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Rent for 2 Million New Yorkers Could Rise After Tuesday Vote

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A New York City Commission responsible for regulating rents for apartments with stable rents for about one million homes said Tuesday after real estate owners were plagued by rising tax, fuel and labor costs. Is expected to approve the highest rise in almost 10 years.

A committee known as the Rental Guidelines Committee will approve a 2-4% increase in rent for one year and a 4-6% increase in rent for two years.

Many tenants insisted on rent freezes or rollbacks while landlords demanded higher prices, but the panel signaled. Intent to support An intermediate approach at last month’s meeting. Expected voting will take place at a conference in Manhattan on Tuesday night.

Already one of the most expensive places in the country, New York City has seen rising costs of living in the midst of a recovery from the worst pandemic. Soaring inflation has hit tenants and real estate owners, and the impact of the latter group on building sustainability was one of the key factors considered by the board. However, the vote also heightened concerns about the shortage of affordable housing and the sustainability of urban recovery.

Annual voting is constant, with intense protests and lobbying from supporters of both tenants and landlords. But this year’s vote will take place after tens of thousands of renters have lost their jobs and struggled to pay during the pandemic.

It was also the first vote in the administration of Mayor Eric Adams, and the board is poised to take a different approach than voting under Adams’ predecessor Bill de Blasio.

Adams said he urged the board to adopt a lower increase, but also expressed sympathy for small real estate owners who need rental income to compensate for the increased cost of maintaining the building.

“I hope the independent board of directors, the Rental Guidelines Committee, will make the right decision for the struggling New Yorker and then take care of the little landlord, the little landlord who is really overwhelmed by inflation. “I’m here,” Adams said in an interview with radio station 1010WINS on Monday. “And it’s very important because we make this important decision for New Yorkers.”

De Blasio focused more on reducing renters’ costs. During his tenure, the highest annual increase approved by the board was 1.5% for a one-year lease and 2.75% for a two-year lease. Inflation was also relatively low during his administration.

Last time, there was a significant increase in 2013, with a one-year lease at 4% and a two-year lease at 7.75%.

Applies to leases starting October 1st or later after the increase is approved on Tuesday.

New York City’s rent stabilization system, a form of rent control first introduced in the late 1960s, continues to be an important source of affordable housing.

According to a recent city survey, the median income of people living in stable rent homes is about $ 47,000 compared to $ 62,960 in unregulated homes. According to a survey, the median monthly rent for apartments with stable rents is $ 1,400, while for unregulated homes it is $ 1,845.

Also, stable rents are in stark contrast to the exorbitant prices seen in recent months in parts of the city. The average monthly rent for newly rented apartments in May was $ 4,975, an increase of 22% year-on-year. A new report by real estate company Douglas Elliman.

Expected results on Tuesday will hit many of the tenants in the lowest-income New Yorkers who had a hard time paying their rent even before the pandemic. Home advocates have been actively lobbying in the past few weeks for the board to reverse the course and support rent freezes or rollbacks.

At a panel hearing in Bronx last week, more than 60 of the approximately 70 speakers were renters and defenders of renters who insisted on rent reductions or rent freezes. Many of the speakers became emotional during the testimony and expressed despair in the face of increased and frustrated home conditions.

Kim Statuto, 62, of the Bronx, who has lived in a stable rent house for nearly 30 years, uses the money he receives from his monthly disability payments, along with electricity and food, for a monthly rent of 1,783. He said he was having a hard time allocating to cover the dollar. And medical expenses.

“Raising rents will hurt my income even more,” she said.

The increase expected to be approved on Tuesday will also disappoint the landlord, who said the building would deteriorate without additional rental income to cover the increased costs. The landlord states that a strict new law passed in 2019 limits the ability to raise rent when an apartment is vacant or upgraded.

Landlord Brian Riff, who testified at a meeting last week, demanded a rent increase of at least 8% and said rent income was already too low to raise many units to livable levels. However, he was “depressed” by what seemed to be a natural conclusion on behalf of the tenant, “the decision seems to be based on who screams loudest.”

Both Adams and the landlord group have locked the difficulties experienced by “mom and pop” landlords when claiming to support rent increases.

However, existing legislation makes it difficult to determine who actually owns a particular building, so how many homeowners with stable rents are actually small real estate owners? It is not clear if the portfolio is a much larger and more diverse landlord.

One rough analysis made by June 2020 Board Staff Proposed More than 61% of units with stable rent were owned by landlords who own less than 10 units.

However, another analysis of real estate records released last week by group JustFix.nyc, a technology company that tracks real estate ownership, suggests the exact opposite. The whole unit. In contrast, about 1% of units with stable rent are owned by landlords who own less than 10 units overall.

“The data clearly show that the landlord owns most of the stable rent housing in New York City,” the group said. Said last week..

Téa Kvetenadze Report that contributed.

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