Local News

New Yorkers Ready To Fight Massive Rent Hike

Landlords Claim Costs Have Skyrocketed To Ridiculously High Levels, Leaving Them Little Choice

NEW YORK (CBS) ― Changes could be coming that affect every renter who enjoys a rent stabilized apartment in New York City. The Rent Guidelines Board is meeting Monday night and they're being pressured to raise rents up a whopping 15 percent.

Money is always the issue at these annual meetings. Just Monday the board released a report stating building operating costs increased 7.8 percent this year. Monday night's meeting is the first of many meetings to decide whether or not those costs will be passed along to residents in rent stabilized buildings.

However, New Yorkers are ready to fight hard to keep the rent of their 1 million rent-stabilized apartments as low as possible.

Elizabeth Gardner lives in one such apartment in Queens, although she works in Manhattan.

"Don't I deserve a little morsel of the apple? Don't I deserve to live near where I work, you know?" Gardner said.

And if not for her rent-stabilized apartment her life with be decidedly different.

"I would have to live with my mother," Gardner said. "I would not be able to afford housing and the commute."

The tenants say those rents go up every year. But the building owners say those increases don't even come close to taking into account their increased expenses.

Denis Gittens bought a Brooklyn apartment building to support him and his wife when he retires. When asked if he's making money on this business venture, Gittens said emphatically, "No. I'm not making a profit."

When asked how much his operational costs have increased this year, Gittens pointed to a reason that is killing many Americans.

"Maybe about 35 percent," he said of the rising costs. "The fuel … because every time they drop the fuel, the price is up!"

For a two-bedroom apartment, Gittens gets $550 a month.

"It is only New York City in the entire world you get this thing that's happening," Gittens said.

Now 72, Gittens says because the building costs more than he's taking in in rent, he's had to take a second job just to make ends meet. He admitted he may eventually have to just walk away from his investment.

"Over 5 percent of small property owners are losing their building, and this is unfair," Gittens said.

But many tenants remain skeptical.

"You cannot tell me dear landlords of New York City that you're hurting," Gardner said. "Because you use every trick in the book to raise your rents. And I'm sorry, I don't buy it."

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