(The Center Square) — A New York City panel has approved 3% rent increases for hundreds of rent-stabilized properties in the city as landlords press the U.S. Supreme Court to overturn the city’s rent control law.
On Wednesday, a divided New York City Rent Guidelines Board voted 5 to 4 to increase rents by 3% for one-year apartment leases and 2.75% the first year and 3.2% the second year for two-year leases.
The move allows landlords to raise rents for an estimated 2 million rent-stabilized tenants in the city beginning in October. Last year, the panel approved a plan to increase one-year leases by 3.25% and 5% for two-year leases.
Approval of the higher rents came over the objection of some New York City Council members community activists, who packed a raucous public meeting ahead of Thursday’s vote, urging the panel to freeze or roll them back.
“These rent increases will only fuel our housing crisis unless the city budget invests in housing solutions that prevent evictions and homelessness, and ensures city agencies are supported to advance them,” City Council Speaker Adrienne Adams said in a statement.
Landlords, who had pushed for authorization for higher rent increases, also criticized the panel’s decision.
The Rent Stabilization Association, which represents the city’s landlords, criticized the move, which they said ignored data on rising property costs and “played to the intimidation of radical politicians and activists, depriving the largest providers of affordable housing of the revenue they need to keep up with skyrocketing costs.”
“Tenants in economic distress have government programs to support them, while stabilized building owners – the private providers of a public benefit – are at the mercy of arbitrary politics instead of sound policy.” Joseph Strasburg, the association’s president, said in the statement.
In a statement, Mayor Eric Adams praised the board’s decision, saying it is aimed at “protecting tenants from unsustainable rent increases, while also ensuring small property owners have the necessary resources to maintain their buildings and preserve high-quality, affordable homes for New Yorkers.”
“Finding the right balance is never easy, but I believe the board has done so this year — as evidenced by affirmative votes from both tenant and public representatives,” Adams said.
The move to approve higher rents as landlords petition the U.S. Supreme Court to take up their legal challenge to overturn the city’s rent control laws.
The plaintiffs filed a lawsuit against the city, arguing the rent control law is unconstitutional because it caps prices and limits their ability to evict tenants. The legal challenge was rejected by a federal judge, whose decision was later upheld by the U.S. Court of Appeals for the Second Circuit.
