May 5, 2008 11:22 pm US/Eastern
NYC Rent Guidelines Board OKs Big Increases
Two-Year Leases To Be Hit Harder Than One-Year Leases
Reporting
Lou Young
NEW YORK (CBS) ―
There are changes that could be coming that will affect every tenant who enjoys a rent-stabilized apartment in New York City.
The Rent Guidelines Board met Monday night under intense pressure to raise rents a whopping 15 percent.
Christopher Athenos' building has a mix of 48 market and rent-stabilized units, with a few tenants paying as low as $600 per month. The landlord says the kind of rent hike being talked about Monday night will force him to put off building maintenance.
"We're not going to be able to do painting. We're not able to do our façade," Athenos said. "We're gonna have to forego putting on a new roof. We'll have to do patch work instead of replacing items."
Tenants, though, say city rents are cutting fixed incomes like a knife.
"I'm losing my city," said Janet Henne of Rego Park. "I was born and raised here. I see my city being destroyed."
"My pension plus $50 goes to the landlord. I got social security left. That's it," said Dianne Clein of Bay Ridge. "Where am I going? Out of town."
The Rent Guidelines Board on Monday night officially adopted a rent increase range of 3.5 to 7 percent for one-year leases and 5.5 to 9.5 percent increases for two-year leases.
The 1 million New York City apartments under its jurisdiction. Both the tenants and landlords are hoping to find middle ground for two sides being squeezed in a wounded economy. CBS 2 HD got plenty of reaction to the proposed increases.
"They're too high," tenant board member Adrienne Holder said. "They're alarmingly high."
Added Joe Strassburgh of the Building Owners' Association: "The numbers clearly show that owners are not going to be compensated for the actual cost."
Then there was Rent Guidelines Board chairman Martin Marcus …
"I don't think it's a thankless job but nobody's going to thank me at the end," Marcus said.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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