December 3, 2008
State looks to shake up Rent Guideline Board
By David Freedlander, amNewYork Staff Writer Albany is proposing to take up a measure that would drastically reshape the Rent Guideline Board, a move that would greatly impact the approximately one million rent stabilized apartments in the city.
The legislation, proposed by state Sen. Thomas Duane (D-Manhattan) and Assemb. George Latimer (D-Westchester) and being introduced in Albany next week, would give the City Council greater say in who makes up the board, which determines bi-annually how much landlords can charge on rent stabilized apartments. The bill also seeks to eliminate the need for tenants to annually renew their leases, permitting them to stay in a unit as long as they like if they are able to pay the required rent.
"People are really feeling the pinch of deregulated units and units with rapidly escalating rents," Duane said.
In addition, the measure would shift the way that the board determines rent increases. Currently, rents are based on landlord's expenses and operating costs. Under the proposed system, the net income of properties would be the deciding factor.
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It was this aspect of the bill that most galled Frank Ricci, director of governmental affairs for the Rent Stabilization Association, a landlord group.
"On the one hand you have politicians raising everyone's taxes by leaps and bounds, and then on the other hand tell owners they can't collect increases on that from the people who are benefiting," Ricci said, citing water, sewer and property tax increases.
Councilwoman Letitia James (D-Brooklyn) will introduce a resolution in the city council next week supporting Duane's bill.
"It's high time for major surgery to be performed on this dysfunctional system," James said. "This is just the right medicine to correct a sick system."
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