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Speaker Christine Quinn calls for rent hike freeze
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Here we are again, awaiting the annual rubber stamping of rent hikes by the Rent Guidelines Board. An early vote taken on May 5th was the first step to moving forward an increase of 2% to 4.5% increase for one-year leases and 4% to 7.5% for two-year leases. This in spite of thee fact that building owners took in a 17.2% higher profit in 2007 than in 1990 after adjusting for inflation. And operating costing have risen only 4% over this past year. In short, rising fuel costs did little against the ever-increasing profit margins enjoyed by many of the city's largest building owners. Between 2006 and 2007, the net operating income rose 9.3 % while operating costs rose 5.2%. In some ways this is the first time that we have the numbers to say "no", you can't justify another rent hike. We didn't have a full a scope of just how out of whack the situation is. That is to say, while tenants all over the city are being priced out of their homes, landlords continue to live high on the hog. But this time around it seems that we have a hero in the NY City Council, a voice from the wilderness, Speaker Christine Quinn. Not the Quinn of recent years who helped Bloomberg bypass the wishes of New York residents on the issue of term limits but the Quinn of yesteryear who fought like mad to help save rent stabilized housing.
Christine Quinn is now calling for a rent freeze, the first since rent guidelines board was put in place in 1969. She is currently calling for rent stabilized housing rates to stay where they are. A rent reduction would do more to keep families in their homes but, hey, at least it’s a move in the right direction. According to Quinn, in 2007 a landlord of a 6 story building took home a net income of $400 per rent stabilized unit. After adjustments for maintenance fees, their annual profit was $30,000 for that one building. Because fuel costs have fallen by 10% over the last year, those profit margins are sure to be reached this year. And according to Quinn despite the 2.2% increase of operating costs that the RGB is predicting, the expenses will not exceed last years 8.5% rent hikes.
As Quinn correct fully points out, the rent increases that come each year affect more than 1 million rent stabilized New Yorkers. This is large part due to the $2000 a month threshold. Once the rent hits exceeds that mark, then that apartment is no longer regulated and the owner/landlord can receive market value for it, which now ranges from $3000 to $6000 dollars a month. And many landlords at this time are looking to cash in on the gold rush of the current housing crunch. This rubber stamping of rent increases every year despite the fact that they really aren't warranted, put rent stabilized tenants at risk of losing their homes. And with our current economic downturn which the current administration warns will continue through 2009, NYC residents continue to lose their jobs which only adds to the need for a rent freeze this year.
Until next time…
http://www.nydailynews.com/opinions/2009/05/07/2009-05-07_a_rent_freeze_is_the_best_way_to_aid_new_york_citys_middle_class.html
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