Good Old Lower East Side

Tenants Demand Rent Freeze by Kenny Schaeffer (Met Council Repri

Mar 23, 2001

In the face of skyrocketing rents and record profits for landlords-both fueled by unwarranted rent increases imposed year after year by the city Rent Guidelines Board- Met Council is demanding that the RGB allow tenants to renew their leases with no increase in the coming year.
A one-year rent freeze in 2001 is the only way to prevent the further loss of affordable housing over the next 12 months. Business as usual in the form of another round of rent increases would cause the additional loss of tens of thousands of affordable units. Even if the next mayor starts building new low-cost housing, rent increases on existing apartments would wipe out any gain in the supply of affordable units.
The RGB will set the rent increase guidelines for 2001-02 on June 19, in the Langston Hughes Auditorium at the Schomberg Center on 135th Street and Malcolm X Boulevard in Harlem. The preliminary vote on next year?’s guidelines will be on May 3 at the Metrotech center in downtown Brooklyn, followed by a day-long public hearing at Schomberg on June 13.
Every year, the RGB imposes higher increases than its own studies justify. Last year, it imposed the highest increases in five years, despite an 11% increase in owner?’s profits over the previous year. Both poor and midddle-class tenants in the city are squeezed as never before. The results are visible in increased homelessness, overcrowding and hunger. More than 46% of all stabilized households, some 475,600 families, pay over 30% of their income as rent-the federal hardship level- and more than 1/3 pay over 40%. Meanwhile, owners?’ profits have risen 24.5% in the past years. The average net profit per stabilized apartment per month rose from $244 to $295. This means that each year, over $3.6 billion is transferred from rent-stabilized tenants to the real-estate industry-the difference between what owners take in as rent and what they spend on operating and maintenance costs.
Tenants are also demanding the replacement of ?“Rudy Giuliani?’s Boys?”, the RGB ?“public?” members who have been drawn exclusively from the business community and who neither understand nor agree with the concept of rent regulation as a necessary response to the housing crisis. It is unconscionable to entrust the enforcement of affordable housing laws to a group of businessmen who don?’t know what its like to have to choose between paying the rent and buying medicine or a winter coat. About 60% of rent-stabilized tenants are people of color, but there are no women, African or Asian Americans among the RGB members appointed by Guiliani.
Both the mayor and the City Council have an opportunity to begin remedying the RGB?’s dominance by anti-tenant ?“public?” members. One of the public seats is empty as a result of the dismissal of Edward Weinstein, following numerous protests organized by Met Council, including overnight vigils at Gracie Mansion and City Hall. Weinstein directed open contempt at tenants and the concept of keeping rents affordable, culminating last June when he cast the decisive vote in favor of the ?“poor tax?”, the $15 a month surcharge on apartments under $500.
Met Council is demanding that the mayor replace him with someone who truly represents the public and who will strive to implement the letter and spirit of the rent-stabilization law, as well as someone who reflects city?’s diverse population. Additionally, Met Council is calling for the replacement of RGB chair Edward S. Hochman, who, like Weinstein, has demonstrated that he doesn?’t understand the purposes of rent regulation and has little tolerance for tenants?’ concerns.
Met Council is also calling on the Council to enact Intro.859, which will remove the mayor?’s exclusive control over RGB appointments, by giving the Council advice and consent power. Intro. 859, sponsored by 17 Councilmembers, will also require that public members have five years experience in housing, public service, or nonprofits, in place of the current requirement of five years experience in business, finance or housing.
Tenants who want to fight against unwarranted rent increases, and for no increase in 2001 and an RGB which truly represents the public, should:
Call or write to Mayor Giuliani demanding that the RGB chair Ed Hochman be replaced, and that the vacant public member positions be filled by people who support rent regulation and who reflect the diversity of New York City?’s population.
Call or write to City Council Speaker Peter Vallone to demand passage of Intro. 859
Attend the public meetings of the Rent Guidelines Board
Call Met Council at 212 693 0553 or GOLES at 212 533-2541 for more information