The Revenue Regulation Board (RGB) voted on Monday night in favor of increasing rentals of almost a million apartments with stabilized rent in New York City, a decision that did not satisfy the small owners or the defenders of the tenants.
As of October 1, 2025, one -year contracts will have an increase of 3%, while those of two years will increase 4.5%. The vote, which ended 5 to 4, was decided by the nine members of the Board – two representatives of the owners, two of the tenants and five public members designated by the mayor.
Before the public hearing of June 30 at the neighborhood museum in East Harlem, the Board contemplated increases of between 1.75% and 4.75% for one -year contracts, and between 3.75% and 7.75% for two -year contracts. The rank for one year contracts was approved on April 30, but on May 27, in a rare decision, the Board revoked and reduced the range for two -year contracts.
The president of the Board, Doug Apple, justified the re-evidence due to the impact of possible increases on tenants “whose income is not adjusting to the growing cost of living.”
The representative of the tenants, Adam let out, strongly criticized Apple and the rest of the Board for “ignoring the testimonies about affordability” presented since March, and having increased rents approximately approximately 12% in the last four years.
During the meeting, attendees chanted “Freeze rent!” And they booed the majority of the members of the Board, except for Restrn and Genesis Aquino, who were the only ones to be received with applause by the activists.
Called to freeze income
In the midst of the growing affordability crisis, the tenant defenders insist that a freezing of income in the regulated apartments is implemented. During the primaries, the proposal was a key issue; Half of the Mayor’s Democratic candidates supported it in some way.
Zohran Mamdani, Queens assemblyman and recently nominated democrat, has made the freezing of income a central campaign promise. Before the vote, Mamdani warned: “Change comes.”
“Although the income of the owners has increased by 12%, this mayor pleases donors from the real estate sector instead of defending the working people who once said they represent,” he said. “Even a modest increase amid this crisis of the cost of living can expel New Yorkers from their homes. But, as the voters demonstrated last Tuesday, this city is ready for a government that reduces costs, not to increase the profits of the real estate sector.”
The stabilized units include, in general, buildings of more than six apartments built before 1974, as well as more recent projects that receive tax incentives and municipal funds. From the 2019 Revenue Law, the owners cannot increase rentals without the approval of the RGB.
Before Monday’s vote, Mayor Eric Adams urged the Board to approve the lowest possible increases, arguing that “balance the affordability with the need to maintain the quality of the house for the millions of New York living in stabilized units”.
“Rent is one of the largest monthly expenses,” said Adams, stressing that the housing market is going through a crisis with only 1.4% of vacant units. He added that freezing the rent would be “myopia” and would put the health and safety of tenants at risk, making it difficult for small owners to perform repairs.
Insufficient increases for small owners
Ann Korchak, president of Small Property Owners of New York, told Amnewyork that many of its affiliates were already disappointed with the approved ranges, since they do not cover the increase of 6.3% in the operating costs reflected in the Board’s own index.
Korchak explained that the owners face strong increases in taxes and insurance, including 38% increases in commercial policies and up to 300% in civil liability coverage. In her case, her insurer left the market and forced her to pay three years in advance with another company.
“It’s not cheap to keep a 130 -year -old building,” he said. He warned that freezing income without financial assistance for vulnerable tenants would be “unsustainable” and would take more buildings to a financial crisis. “Destabilize ourselves does not suit anyone,” he said. “We are all part of the same ecosystem.”
One of the main fiscal entities of the city alerted the RGB, in testimony prior to the vote, about the deterioration of the stabilized housing park, warning that if the rentals do not rise according to inflation, a maintenance crisis similar to that of Nycha is coming.
Reactions after voting
Brooklyn Assemblyman Marcela Mitaynes described the decision as a “disappointment” that ignores the difficulties of workers. “They are asking for a freezing of rent. We have already asked for it before. They need it now,” he said.
Mitaynes, who represents Red Hook, Sunset Park and Bay Ridge Norte, denounced the deterioration of basic services in stabilized buildings. “In my district, suddenly buildings do not have homemade or superintendents,” he said.
He also criticized the increases as a threat to community stability: “We started with more than 3 million units, and now there are less than one million.” He added that legislators should do more to improve the lives of their constituents. “They are not doing it.”
Outside the enclosure, they released members of Nys Tenant Bloc and accused public members of seeing the problem as an academic exercise. “They look at us as numbers,” he said. “And the reality is that we are not. We have difficulties and responsibilities.”
They released that the members are “immersed in a capitalist society” and believe that the owners “have the right to exploit this business model”, without considering how people really affect.
Despite the vote, they said that the tenants left their mark: “I think they felt it. I don’t think they know what is coming.”
Explanation of votes
The representatives of the owners, Christina Smyth and Robert Ehrlich, voted against the increase. Ehrlich defended that net operational income (NOI) does not equal earnings.
“In the last 12 years, RGB has adjusted the income 1% below inflation, causing the fall of NOI in old buildings,” he warned. He said that adjustments below inflation are, in effect, “cuts” that will lead to the “systemic collapse” of the stabilized housing park.
Smyth agreed: “Adjusting income below inflation is condemning buildings to failure.” He demanded that inflation – 4% this year – be the minimum starting point for adjustments. He also blamed state and municipal legislators for not facing the high costs of the house or the lack of offer.
Smyth accused politicians who ask to freeze the rent of ignoring the urgent need to reform property taxes: “Tax and insurance increases are devastating these buildings, along with the high costs of water, sewerage and electricity.”
The public member Alexander Armlovich described the guidelines approved as a “difficult commitment” to the testimonies found. He was booed and finished his speech, promising to deliver it in writing.
