A vote by theRent Guidelines Committeeon Tuesday proved one thing. This 50+ year setup process will increase for 1 and 2 year rents. -Stable apartment debt has been broken — and the state legislator is responsible.
But the good news: they can fix it.
Over the past eight years, historically low RGB rent limits (frozen for three and a half years, an increase of 0.75% in average annual rent) promote affordability for most people. The income-bearing population had little effect. Even for affordable home providers, it was clear what rent would be needed for building owners to accommodate the increased operating costs, but the system failed.
Tuesday's rent adjustments are the highest since 2013, but one-year and two-year leases increasedbyby 3.25% and 5%, respectively, compared to the surge. It is inferior. Over the last 12 months, including astronomical property tax assessments, the largest increase in water prices in the last decade, off-chart inflation, and the year-on-year increase in energy costs since 2005. Building operating costs and other upticks as well.
These rent increases should be an inspiration for lawmakers. The catastrophic housing law package they passed in 2019 is for owners ofrent-stabilized real estateto offset increased operating costs as well as 70 repair and upgrade costs. Created a system that relies heavily on RGB rent adjustments-plus a year building.
This gives rise to the RGB mission and affordable housing providers. Balanced economic needs. On the one hand, and on the other hand, the needs of one of the country's most volatile populations are even more important. It didn't help that the previous mayor's administration created the misunderstanding that RGB is basically an affordable program for tenants.
On the other hand, elected civil servants are targeting RGB members, claiming that those who do not meet the rent freeze will drive tenants out of their homes. But these politicians are the only ones who have the power to protect their tenants.
Building owners have become city ATMs, especially property taxes and water charges are constantly increasing. The only way owners can catch up while maintaining a stable, dilapidated apartment is through proper rent adjustments. Still, RGB couldn't pass.
Congressman needs to go back to the drawing board, but he doesn't have to reinvent the wheel. In 2015 and 2016, the Legislature unanimously passed a bill to subsidize underfunded low-income tenants. Offset the rise in rent. The bill didn't even get a single vote in the state legislature.
It's time to ask these lawmakers why they couldn't support the bill to protect the most vulnerable lessees.
Programs like this will begin to solve some of the problems of the rent control system decades ago. Ultimately, it will have a long-term impact on RGB's ability to set appropriate rent adjustments for the future. Unfortunately, sound housing policies are out of sync with the political rhetoric and vitriols spit out by anti-owner elected civil servants and tenant lobbies.
If politicians choose not to offer subsidies or voucher programs that may support heavily-paid tenants, when they run for public office The same members who vowed to protect will fail.
This broken system is a tenant with stable rents and , and has failed. Affordable housing infrastructure in the city. Relying solely on the RGB process is driving affordable homes to the ground. It's time for another approach.
Instead of blaming building owners and RGB for housing policy failures, legislators are reforming property taxes (another broken system) and rising premiums sharply. Addressing other costs and — most important — create a wider net-throwing rent guarantee assistance program to keep the most vulnerable tenants at home.
Equally important, rental-stabilized apartment owners are safe and of high quality for the 2.5 million renters currently living and for future generations. It provides the revenue flow needed to provide affordable homes.
JosephStrasburgis a rent representing 25,000 diverse owners of 1 million rents President of the Stabilization Association. Stable apartments in 5 autonomous regions.
