Mayor Says Freeze, Owners Say Raise: A Battle Over Rent in Post-COVID New York
The Real Estate Board of New York is calling for a minimum of a 2.4% increase on rent-stabilized rents due to the financial burden COVID-19 has placed on property owners.
Revised 5/7/2020
Rent has been on many a New Yorker’s mind as the COVID-19 pandemic has grown in strength. New York City Mayor Bill de Blasio has called for rents to be frozen, and tenant advocates are urging a rent rollback. Reps. Alexandria Ocasio-Cortez (Queens, Bronx) and Grace Meng (Queens) have authored a letter to House and Senate leaders on both sides of the aisle, advocating for the cancellation of rent and mortgage payments “for the duration of the pandemic.”
However, the Real Estate Board of New York has an entirely different idea: Raise the rent.
Real Estate Weekly reports that REBNY is calling for a minimum of a 2.4% increase on rent-stabilized rents, asserting that the pandemic has only compounded the financial burden already placed on property owners.
“Even before the Coronavirus crisis, there were early warning signs that the housing market was in trouble,” said Paimaan Lodhi, senior vice president of policy and planning at REBNY. “Now more than ever, it is critical that the Rent Guidelines Board determine responsible increases in rent that correspond to continued increases in property taxes to keep New Yorkers safe and our economy moving.”
The call came as the city’s Rent Guidelines Board met remotely to discuss future rents on one million stabilized apartments.
The Rent Stabilization Association called rent freezes and rollbacks “misguided and inappropriate,” saying the federal government should be providing more aid and local governments should stop playing politics with rent.
“The pandemic has created unprecedented consequences for New York City,” said RSA spokesman Vito Signorile. “We are left to wonder how low-income tenants and tenants who have lost their jobs will be able to pay their rent. But at the same time, when nearly 40 cents of every rent dollar pays for property taxes and water bills alone, how building owners will be able to pay for their operating expenses if rents are not paid is an equally important question.”
The RGB will make a preliminary vote on the rents on Thursday, May 7.
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