Last week, the NYC Rent Guidelines Board (RGB) started its annual process of reviewing data and taking testimony to propose and approve rent increases on Rent Stabilized apartments in the five boroughs. Their decision will affect approximately one million residential units.
The Board consists of nine members appointed by the mayor for terms varying from two to four years. Two members represent apartment renters, and two represent property owners. The other five represent the general public.
Mayor Adams has given the Board the freedom to base their decision on the data provided by owners of Rent Stabilized apartment houses. The PIOC (Price Index Operating Costs) report data indicates that the cost of running Rent Stabilized buildings has increased dramatically. As a result, the Board has published that they are considering increases up to 8.25% for one-year leases and up to 15.75% for two-year leases.
Considering the average increase was 1% over the past nine years, this increase is minimal. The higher-end increase is crucial to maintaining an aging housing stock, and as responsible owners, we want to ensure we can keep up the repairs needed to keep the residents safe.
It is important to note that the Board pays attention to how many owners appear at the public hearings to testify. Every year I try to testify or submit a written statement. If you are in a position to appear and speak, please come and make an appearance. If you need help coordinating or accessing the Community Housing Improvement Program (CHIP), an owners’ trade group will be willing to help you.