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Vote passes to increase rents on rent stabilized tenants

Realism strikes political world

New rent stabilized development (Credit: NYC Planning)

The Rent Guidelines Board voted to increase rents on the city’s rent stabilized tenants. Rents will increase 1.5 percent on 1-year leases and 2.5 percent on 2-year leases starting October 1st, according to a report in the NYTimes.

Origins of rent regulation: For our history buffs… President Franklin D. Roosevelt signed the Emergency Price Control Act into law in 1942. In the throes of World War II, the goal was to prevent inflation by setting price controls in a fully employed economy.

Worth Noting: The board’s nine members who approved the measure were all appointed by the Mayor.

Why it happened: Even the Mayor understood the absurdity of the situation… In his first four years in office, rents on 1-year leases increased a total of 2.5 percent. During the same time period, building operating costs rose a cumulative 11.2 percent and real estate taxes were up 24.5 percent.

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