The Rent Guidelines Board voted Tuesday night on a preliminary range of increases for rent-stabilized tenants in the city amid a chaotic scene in Manhattan.
The board approved a rent increase between 2% and 5% on one-year leases and between 4% and 7% on two-year leases, according to Mayor Eric Adams. The final vote was 5-4.
"While we are reviewing the preliminary ranges put forward by the Rent Guidelines Board this evening, I want to be clear that a 7% rent increase is clearly beyond what renters can afford and what I feel is appropriate this year," Adams said.
Immediately following the vote, the scene at Cooper Union turned chaotic as tenant advocates stormed the stage. Several individuals surrounding the board, which was seated at a table on the stage, holding signs and chanting “rent roll back.”
Board members reportedly sat in silence while waiting for protesters to finish.
Last year, the board also voted in favor of increasing rents between 2% and 4% for one-year leases and between 4% and 6% for two-year leases.
The decision came after rent freezes and marginal increases under the Bill De Blasio administration.
Michael Tobman, a director with the Rent Stablization Association – a group representing owners and managers of rent stabilized buildings – said a raise in rent is needed to maintain buildings and keep up with costs impacted by inflation.
"Income for buildings is rent – and when that is capped, and when that is missing and when that is delayed, it cannot be used to meet ever-increasing costs and expenses," he told NY1.
Adams said he understood landlords' position, but wanted to ensure tenants were brought into consideration before rent hikes are implemented.
"I recognize that property owners face growing challenges maintaining their buildings and accessing financing to make repairs; at the same time, we simply cannot put tenants in a position where they can't afford to make rent," Adams said.
Last week, a report by the Fund for the City of New York and the United Way of New York City found that 50% of working-age city households do not earn enough to meet basic needs.
However, the board's study on the costs to run buildings found inflation has affected landlords and they would need rent increases between 5% and 8% for one-year leases and increases between 6% and 16% for two-year leases in order to maintain the same profits from prior years.
"Members of the [Rent Guidelines Board] are tasked with making independent decisions based on all available data. However, I hope they will look at options below the top of these preliminary ranges to strike the right balance to keep New Yorkers in their homes while providing building owners with the resources they need to provide safe, high-quality homes," Adams said.
Ahead of the vote, Public Advocate Jumaane Williams organized a rally Tuesday afternoon where tenants protested a rent increase.
"Landlords are still pushing for an even more extreme increase, which will force even more families from their homes," Williams said in a statement. "They attempt the same disingenuous argument every year, and I fear that with this administration's appointees and priorities, the board will listen to them."
Public meetings will be held in each borough before a final vote scheduled on June 21 is made by the board.