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Citing Pandemic, City Grants Rent-Regulated Tenants One Year Rent Freeze
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David Cruz
Published Jun 18, 2020
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Scott Lynch/Gothamist
By
David Cruz
Published Jun 18, 2020
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The Rent Guidelines Board voted to approve a rent freeze on more than a million rent-regulated apartments in New York City for one year, but approved a 1% hike for the second year of a 2-year lease.
It was an unprecedented 6-3 vote by the RGB, which typically approves rent hikes on two-year leases for each year. The board sought a middle ground between tenants and landlords with its vote, citing the economic impact the COVID-19 pandemic that has had on millions of New York City residents, while acknowledging the financial hardships of building owners who cite rising maintenance costs. The freeze takes effect October 1st.
Leah Goodridge, a pro-tenant member of the RGB, sought an across-the-board rent freeze, pointing out the pain essential workers, most of whom she noted are Black, have endured during the pandemic.
“Historically, Black tenants in rent-stabilized apartments have been...lower income, elderly or have disabilities and do not have the same access to capital as their landlords do,” said Goodridge, appearing at the virtual hearing on Wednesday evening. “It's been concerning to me to see people be silent about the pain that has caused the protests we're seeing across the world, but be very vocal about the property damage on account of the protests. And again, that parallels a lot with how we talk about the pain of landlords losing money, tenants facing death, and an abyss of poverty due to coronavirus.”
David Reiss, Board chair, put forward his proposal immediately after members voted against the full rent freeze and another proposal put forward by landlords requesting the RGB increase rents 2% on one-year leases and 5% on two-year leases.
The vote capped weeks of tension between tenants and landlords, who've offered proposals in line with their financial interests. In previous years, the final vote meeting was often met with angry tenants booing or holding up signs pressuring the RGB to side with them. This time, with a pandemic that's prohibited large gatherings, the meeting was more subdued, lasting just under an hour.
Despite the one-year freeze, Ava Farkas, executive director of the Met Council, a tenant advocacy group, was lukewarm on the final vote, admitting it's "historic," but still calling it “unconscionable” given the pandemic that's devastated New York City's economy. Farkas also criticized the format of the meetings that were held via Zoom, which posed technical challenges.
"Having virtual hearings left many tenants unable to testify due to limited slots, a confusing system, and the digital divide that exists in our city,” said Farkas in a statement released shortly after the vote.
Adrienne Holder, attorney-in-charge of the Civil Practice at the Legal Aid Society, saw no need for even an incremental increase, saying the Board "cast its vote with disregard for the most vulnerable tenants."
She added, "Even the 1% increase for 2-year leases will have a devastating impact on those who can barely make rent as is. Their right to remain in their home and keep a roof over their families should have been prioritized.”
Median monthly rents across the five boroughs were $1,260 in 2018, a 72% increase from 2010 when median monthly rents were $910, according to the New York Times.
Since the pandemic broke, Governor Andrew Cuomo signed an executive order for an eviction moratorium through August 20th. Cuomo’s order bars owners from issuing late fees for missed payments and allows them to pay rent using their security deposit. Since May, some renters have taken part in a rent strike. A report by the NYU Furman Center released on Monday showed evictions declined throughout 2019.
Trinity Mirabito, a Met Council member from the Bronx, expected a rent rollback. "It was already something we needed badly. If we didn't get it this year during a pandemic, what will it take?" said Mirabito.
Mayor Bill de Blasio, who’s seen two rent freezes during his tenure and owns two properties in Brooklyn, praised the Board's vote, saying it will keep a roof over renters' heads.
“This is one step of many we have to take to get families through this crisis—but it’s a big one,” de Blasio said in a statement.
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David Cruz
David is a former WNYC and Gothamist editor.
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