Owners of multi-family buildings pay the lion’s share of New York City property taxes

Real Estate WeeklyWe’re all miserable as rents and taxes continue to climb

10:56 AM, MAY 2, 2012

By Sarah Trefethen & Sabina Mollot

Owners of multi-family buildings pay the lion’s share of New York City property taxes, according to a recent analysis by New York University’s Furman Center for Real Estate and Urban Policy.

The effective tax rate for larger rental buildings is five times the rate for one- to three-family homes, according to the findings, included in the center’s State of New York City’s Housing and Neighborhoods Report.

http://blog.rsanyc.net/rent-guidelines-board/wp-content/uploads/2012/05/Real_Estate_Weekly_Tenant_Protester.jpg

TENANT PROTESTOR AT THE ANNUAL RGB MEETING

“As a result of the strong preference shown to homeowners at the expense of large rental properties, New York City imposes one of the highest tax burdens on apartment buildings of any large city in the country,” Vicki Been, director of the Furman Center, said in a statement. “Conversely, the tax on one- to three-family homes is one of the lowest in the country.”

The survey results were announced as the city’s Rent Guidelines Board unveiled its proposals for annual rent increase for the New York’s one million rent regulated apartments.

In proposing hikes from 1.75 to 6.75 percent, owner representative Steven Schleider said tenants need to “share the burden” of landlords’ rising fuel costs and property taxes.

In the 2011 fiscal year, the city collected nearly $17 billion from property owners, according to the Furman Center study, and 36 percent of that revenue came from taxes on apartment buildings – even though those buildings make up only 24 percent of the citywide market value.

At the same time, one-, two- and three-family homes make up 49 percent of the city’s real estate value but accounted for just 15 percent of the city’s property tax revenue. Continue reading

RGB Prelim Vote Did Not Take into Account Rising Operating Costs of Property Owners

NY 1

Updated 05/01/2012 11:37 PM

Rent Guidelines Board Approves Range For Rent Hikes

By: Natasha Ghoneim

http://blog.rsanyc.net/rent-guidelines-board/wp-content/uploads/2012/05/NY1_rgb_prelim_vote.jpgAbout a million city rent-regulated apartment dwellers are expected to pay higher rents this fall, after the Rent Guidelines Board approved at a Tuesday vote in Cooper Union a preliminary hike range.

The proposed rent hikes are 1.75 to 4 percent for one-year leases and between 3.5 to 6.75 percent for two-year leases. Any new increases will affect leases signed or renewed starting October 1.

Board members claimed they tried to strike a middle ground on increases for rent stabilized apartments.

Tenants rights groups and Occupy Wall Street demonstrators rallied outside Cooper Union, saying they represented what they call the “rights of the 99 percent.”

They say the board, which has members allied with landlords, tenants, and the public, is just a rubber stamp for Mayor Michael Bloomberg’s policies.

However, advocates for property owners said the board did not take into account rising property taxes, water and sewer rates and the increasing price of oil.

Three more public hearing will be held before the board’s final vote on June 21.

Last year, the board hiked rents 3.75 percent on one-year leases and 7.25 percent on two-year leases.

Source: NY1

 

 

RGB Approves Low Increase in Rents

NY Times

Board Is Met With Jeers as It Recommends an Increase in Rents

By C. J. HUGHES

May 1, 2012

A panel voted on Tuesday to recommend raising rents on rent-stabilized apartments in New York City by amounts comparable to those approved last year.

By a vote of 5 to 4 at Cooper Union’s Great Hall, the Rent Guidelines Board approved increases of 1.75 percent to 4 percent on one-year leases, and 3.5 percent to 6.75 percent increases on two-year leases.

The actual increases will be narrowed to a single percentage when the board votes again on June 21, after hearings on June 13 and 18, at which members of the public can testify.

Last year, the nine-member board, which is appointed by Mayor Michael R. Bloomberg, approved increases of up to 3.75 percent on one-year leases and 7.25 percent on two-year leases. About one million apartments in the city are rent stabilized.

As in the past, protesters jeered from their seats during the vote, under the watchful eyes of police officers, who set up metal detectors at the front doors.

The meeting coincided with May Day protests by the Occupy Wall Street movement. Helicopters buzzed, nearby streets were closed, and a band with a tuba and drum played outside.

Some protesters at the board meeting carried a banner reading, “Tenants are the 99 percent,” while others shouted, “Greed” and “Shame on Bloomberg” while the board members spoke.

But the protesters’ ranks were thinner this year because of an Occupy march scheduled for around the same time on Broadway, said Larry Wood, a housing advocate.

Still, he promised, they would turn out in droves in June. “There will be a lot more theater for the next vote,” Mr. Wood said.

Lowest Increases in a Decade

NY Post

‘Low’ rent hikes on horizon

By DAVID SEIFMAN City Hall Bureau Chief

Posted: May 2, 2012

The Rent Guidelines Board set the stage last night for the lowest increases in a decade.

 
In a swift, 34-minute meeting, the board voted 5-4 to approve preliminary rent hikes of 1.75 to 4 percent for new one-year leases and 3.5 to 6.75 percent for two-year renewals.

 
The range of increases was about 50 percent below last year’s and signaled that tenants in more than a million rent-stabilized apartments could be on the verge of the lowest increases since 2002, when rents went up by 2 and 4 percent.

 
Renters who had the misfortune of signing new leases last year were hit with 3.75 and 7.25 percent hikes.
Keeping with the theme of the day, about 200 tenants gathered outside Cooper Union to “occupy” the RGB and protest what they described as a sham vote in the historic building’s basement auditorium.
With the demonstrators otherwise occupied, the board rushed through its agenda without any pretense of a genuine discussion.

 

 

Continue reading

Owners Prepare for Occupied RGB Vote

DNAinfo.com logo

Rent Stabilized Tenants Prepare to Protest Hike Vote Tuesday 

Tenant advocates waved homemade signs at the Rent Guidelines Board's public session Monday at the Cooper Union. (DNAinfo/Patrick Hedlund)  Read more: http://www.dnainfo.com/new-york/20120501/greenwich-village/rent-stabilized-tenants-prepare-protest-hike-vote-tuesday#ixzz1tdwz3i00

Tenant advocates waved homemade signs at the Rent Guidelines Board's public session Monday at the Cooper Union. (DNAinfo/Patrick Hedlund)

By Jill Colvin, DNAinfo Reporter/Producer

NEW YORK — It’s time to brace for a rent hike.

The city’s Rent Guidelines Board, which sets rates for the city’s one million rent-stabilized apartments, is set to cast its preliminary vote on increases Tuesday night.

The typically raucous hearings pit tenant groups against landlords as the board decides how much rents can legally climb in the coming year, based on owners’ rising costs and other factors.

This year’s meetings are likely to be particularly rowdy with a large showing by Occupy Wall Street protesters, who are planning to “Occupy the RGB” as part of Tuesday’s May Day demonstrations.

No rent-hike numbers have been formally proposed, but a report released by the board last month floated several possibilities ranging from 1.5 percent to 3.75 percent for one-year leases, and 2 percent to 6 percent for two year leases.

The rent board’s executive director, Andrew McLaughlin, stressed that it’s up to members to decide on final numbers and that numerous factors are taken into consideration, including tenants’ ability to pay.

Continue reading

Rent Guidelines Board Holds Preliminary Vote Tonight

NY1 News LogoRGB Prelim Vote Tonight

Tenants and building owners will once again be squabbling over annual rent hikes for the city’s rent-regulated apartments as the Rent Guidelines Board holds a preliminary vote this evening at Cooper Union.

Last year, the board hiked rents 3.75 percent on one-year leases and 7.25 percent on two-year leases.

Tonight’s meeting is open to the public, but officials say any noisemakers that can be used to disrupt the proceedings are prohibited.

Tenants rights groups and Occupy Wall Street demonstrators plan to hold a protest outside the meeting.

The board’s final vote is on June 21.

Any new increases will affect leases signed or renewed starting October 1.

 

Source: NY1 News

No Relief for Owners: Operating Costs Increase

 

Mild rent hike on tap

Finally, some relief for tenants.

A benchmark used to set annual rent increases for more than 1 million tenants in rent-stabilized apartments has come in at its lowest level in a decade — a sign that this year’s hikes could be among the lowest since 2002.

The Rent Guidelines Board determined that landlords’ operating costs climbed a modest 2.8 percent over the last 12 months, compared with 6.1 percent last year.

Based mainly on landlord costs, last year’s rent hikes were set at 3.75 percent for a one-year lease renewal and 7.25 percent for two years.

If the board follows form, this year’s hikes could be lower.

The board will vote Tuesday on preliminary rent hikes.

Source: New York Post

Bad News For Landlords: Rent-Regulated Tenants Are On A Winning Streak

Rent-Regulated Tenants Are On A Winning Streak

By Kim Velsey 4/2

Yet more good news for tenants living in rent-regulated apartments! Rents will will still be going up, of course—don’t be crazy, the rent always goes up—but this year could see the lowest hike in a decade.

What's the rent? (dpapworth, flickr)

 

The Rent Guidelines Board has set one of the benchmarks used to determine rent increases—the rise in landlords’ operating costs—at 2.8 percent,The New York Post reports.

The landlords’ operating cost increase is used to determine how much the rent can be raised on the city’s roughly 1 million rent-regulated apartments. Last year, based on a landlord operating cost increase of 6.1 percent, the Rent Guidelines Board set rent increases at 3.75 percent for a one-year lease renewal and 7.25 percent for two years.

Heartening news for tenants, especially since the board has set annual increases at about 3 percent for the last decade, a decision that never fails to irritate both tenants and landlords, who have demanded more transparency, so they know why the board makes the decisions that everyone hates.

Continue reading

Owners May See Smallest Rent Increase in 10 Years

Stabilized Tenants May See Smallest Rent Increase in 10 Years

Friday, April 27, 2012, by Sara Polsky

The circus is almost here, folks. The Rent Guidelines Board is about to embark on its annual series of hearings, where tenants cry, landlords beg, and the board hikes stabilized apartments’ rents. Landlords with stabilized tenants recently found out that the Supreme Court won’t hear a case on the legality of rent-stabilization. Now landlords could be in for a second disappointment: the smallest rent increase in a decade. According to the Rent Guidelines Board, the Post explains, operating costs for landlords rose only 2.8 percent over the past 12 months, compared to 6.1 percent last year. And rising costs are a major argument from landlords in favor of higher rents.

 

 

Last year, the board called for rent hikes of 3.75 percent on one-year leases and 7.25 percent on two-year leases. The board will conduct its preliminary vote on this year’s increases on Tuesday. The median stabilized rent right nowin Manhattan below 96th Street is $1,480/month.

 

Source: Curbed NY