New York Advocates Advance Campaigns for Greater Protections against Unaffordable and Unlawful Rent Increases

The New York State Tenants & Neighbors Coalition, an NLIHC State Coalition Partner, has made significant progress with its 2013 legislative and regulatory priorities, including the preservation of affordability of rent-regulated units, reforms to New York City’s Rent Guidelines Board (RGB), and proposed rules to enforce the state’s rent laws. Despite significant rent increases for residents of rent-stabilized units in New York City, advocates hope that legislation will address their concerns about the RGB and its rent-setting processes.  For many decades, New York’s rent regulation laws have protected lease holders of certain units from speculative or unwarranted rent increases, and from baseless or retaliatory refusal to renew a lease. Tenants & Neighbors has long criticized the RGB, which establishes rent adjustments to these units annually, for raising them to levels that many low and moderate income New Yorkers cannot afford. It also has called for reforms to the RGB appointment process, including eligibility criteria for board appointees (see Memo, 5/11/12). In May, the RGB proposed increases ranging from 3.25% to 6.25% for residents renewing their leases for one year, and ranging from 5% to 9.5% for two years. Prior to that decision, it scheduled only one hearing to solicit public input on the proposed increase. Tenants & Neighbors sent action alerts urging residents to participate in the comment process, testify against an increase, and express concern that a high increase was unnecessary for landlords to properly maintain their buildings and make a reasonable return on their investment.Advocates were disappointed that RGB did not convene a second hearing in the evening or in a borough other than Manhattan, as it had done in prior years. In response, Tenants & Neighbors and CASA-New Settlement, a community-based organization in the Bronx, organized a “People’s RGB” hearing, which more than 200 residents attended and at which approximately 50 residents testified. They explained why rents should not be increased and why additional hearings should be held at other times and places. Tenants & Neighbors invited RGB members to attend the event; one tenant member did. Despite residents’ concerns about affordability, the RGB voted for a 4% increase for one-year leases and a 7.75% increase for two-year leases. Advocates and residents alike are dismayed as these increases are among the highest in recent years. Alarmed by the RGB process, advocates want the next Mayor to improve the board’s appointment criteria so that its members include New Yorkers with a broader range of backgrounds and experiences. In addition, they are interested in revising the price index of owner operating costs, usually a key factor in the board’s decision about rent increases, as many believe it is not an accurate indicator of actual costs. In June, the State Assembly passed two bills about the RGB and rent-regulated units. A104 would reform the RGB appointment process and expand eligibility criteria, while A991 would prevent the RGB from charging higher rent increases for certain groups of rent-stabilized tenants, but not others. Both bills await a Senate vote.Meanwhile, Tenants & Neighbors has waged an intensive campaign to strengthen enforcement of New York’s rent laws so that owners cannot impose unlawful increases above and beyond the already excessive RGB increases. In a major development, the New York State Homes and Community Renewal (HCR) has issued proposed new rules and regulations for rent law enforcement, two years after the state’s Rent Act was passed. This law expands rent regulations for the first time in nearly two decades, and mandates HCR to promulgate rules for the enforcement of rent law provisions. Advocates are pleased with the proposed regulations; among other items, they outline the responsibilities of the Tenant Protection Unit, newly established to conduct proactive and targeted enforcement of rent laws. Historically, resident complaints have driven HCR enforcement activities, a problematic scenario given that many residents are unfamiliar with their rights or ways to protect them. “HCR reform has been a key priority for our members, who have been organizing for stronger enforcement of the rent laws for many years,” said Katie Goldstein, Tenant & Neighbors’ Director of Organizing. If passed as they are now, these regulations will close loopholes through which bad actors have been able to raise rents and harass tenants, leading to the disruption of strong and diverse neighborhoods.”Tenants & Neighbors held a rally with residents and allies to show support prior to HCR’s hearing on the proposed rules and regulations. Its representatives also testified in support of the revisions at the hearing. Advocates hope that the agency will issue final amendments by the end of 2013 and that they include both the existing provisions and other strengthening ones.For more information, contact Katie Goldstein, [email protected]