Historic Rent Freeze Approved By City Board Last Night

For the first time in New York City’s history, the Rent Guidelines Board voted Monday night to green-light a rent freeze for the city’s approximate two million residents living in rent-stabilized homes, eliciting cheers of approval from elected officials and neighbors who have long called for relief for tenants.

The board, which regulates rent for the 1.2 million rent-stabilized apartments in the city, voted 7-2 to place a freeze on one-year leases, as well as approved a 2 percent increase for two-year leases. The vote affects lease renewals signed between October 1, 2015 and September 30, 2016.

[pullquote]This is a historic moment.A rent freeze will have a very tangible and fundamental impact on the lives of New Yorkers. –Mayor Bill de Blasio[/pullquote]

The move from the board, which consists of nine members appointed entirely by the mayor, fulfills a campaign pledge Mayor Bill de Blasio made while running for office in 2013.

“This is a historic moment,” de Blasio said in a press statement. “A rent freeze will have a very tangible and fundamental impact on the lives of New Yorkers.”

Last night’s vote followed a report issued by the board earlier this year showing landlords of rent-stabilized buildings had experienced their smallest increase in operating costs since 2002 — 0.5 percent — a jump so minute that elected officials and tenant advocate groups immediately said it should translate to financial relief for tenants.

Not everyone was pleased with the decision, and Joseph Strasburg, the president of the Rent Stabilization Association, slammed the freeze as an “unconscionable, politically driven decision to carry out de Blasio’s campaign promise of two years ago,” the New York Times reported.

“A rent freeze on the surface may sound pro-tenant,” Strasburg told the Times. “but the reality is landlords will now have to forgo repairing, maintaining and preserving their apartments, which will trigger the deterioration of quality, affordable housing de Blasio pretends to care about.”

Borough President Eric Adams, however, disagreed with Strasburg.

[pullquote]This is the right thing to do for our tenant population that is struggling to make it from paycheck to paycheck, spending an inordinate amount of their earnings on having a safe place to call home. –Borough President Eric Adams[/pullquote]

“As a small property owner and landlord, I have long understood that it is possible to make a rent freeze work because I have managed to provide it for years to the tenants in my own building,” Adams said. “This is the right thing to do for our tenant population that is struggling to make it from paycheck to paycheck, spending an inordinate amount of their earnings on having a safe place to call home.”

The Flatbush Tenant Coalition, which had been at the forefront of fighting for a rent freeze, too threw their support behind the vote, writing that, “this amazing victory was the result of a multi-year campaign led by NYC tenant groups and advocates, including the Flatbush Tenant Coalition and our incredible tenant leaders.”

The Coalition went on to write:

For two years we lobbied the Mayor to finally appoint a tenant-friendly Rent Guidelines Board (RGB). For two years we packed the RGB hearings with hundreds of tenants demanding justice. For two years, dozens & dozens of Coalition leaders took part in RGB hearings and testified about why tenants need a rent freeze. For two years we fought for this victory, and it’s here NOW – 0% rent increase for 1 year leases and a historically low 2% for two year leases!

Numerous advocates noted that this victory comes on the heels of Albany failing to significantly strengthen the state’s rent laws.

“Solving our affordable housing crisis is not an easy task, and it will require hard choices,” the borough president said. “However, the needs of many must always outweigh the greed of a few. At a time where leaders in Albany have failed to stand up for the tenants that make this city’s greatness possible, it is more important than ever that leaders in New York City have stood up for them.”

Councilman Mark Treyger applauded the decision on his Facebook page today, but lamented the fact that such protections were not extended to homeowners and co-op shareholders, who are dealing with a spike in property taxes.

“Good news on the rent guidelines board voting to freeze rents on one year leases for rent regulated apartments, which protects many vulnerable New Yorkers,” wrote the councilman. “I wish the Department of Finance would also freeze reassessments of property values that keep increasing taxes on working class home owners and co-op shareholders. The affordability crisis extends to them as well.”

To read last night’s decision from the RGB, you can go here, and to find out more about how this could directly affect you, go here.

[Additional reporting by Rachel Silberstein]