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Court: Rent Stabilized Tenants Paying Under $1,000/Month Will Have To Pay Increases
By
Jen Chung
Published Mar 25, 2011
Modified Mar 25, 2011
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By
Jen Chung
Published Mar 25, 2011
Modified Mar 25, 2011
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The NY State Court of Appeals has decided on the years-lond dispute between landlords and their rent-stabilized tenants—the ones who pay less than $1,000/month for their apartments—over how much rents can be increased. And the court found in favor for the landlords, which means that 300,000 tenants may need to pay a lot in retroactive rent increases.
Back in 2008, the Rent Guidelines Board approved hikes of 4.5% and 8.5% for one- and two-year leases, noting that landlords needed to pay for increasingly expensive maintenance. The Post notes, "But a minimum increase was set at $45 and $85 for the low-paying tenants in place for six years or more. Under those terms, the one-year renewal rent of someone with a $450-a-month lease would reach $495, up 10 percent." The tenants sued, arguing it was a tax on low-income New Yorkers.
A lawyer representing landlords told City Room, "There are certain tenants who, because they’ve been in occupancy so long, pay rents that are so low that those rents don’t cover expenses. As a result, it’s fair to raise the rents of the lowest rent-paying tenants so that those rents start approximating what it costs owners to run them."
Tagged
court of appeals
landlord
lawsuit
real estate
rent
rent-stabilized
tenant
Jen Chung
Jen Chung is a former WNYC and Gothamist editor.
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Gothamist is funded by sponsors and member donations
Gothamist is funded by sponsors and member donations
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