Picture via Capital New York
Yesterday, we stood with State Senator Daniel Squadron, Assembly-Member Brian Kavanagh, City Council Speaker Christine C. Quinn, Tenants & Neighbors and tenants and neighbors from around the city to urge New York State elected officials to pass legislation to reform the Rent Guidelines Board (RGB), ahead of the RGB’s annual vote to adjust rents.
The Rent Guidelines Board was established in 1969 and is mandated manage the persist housing shortage in New York City that puts low to moderate income New Yorkers at risk of losing their home. New York City Council and New York State legislature have both recognized that under conditions of less than 5% vacancy rate, an unregulated rental market causes “severe hardship to tenants” and forces the “uprooting [of] long-time city residents from their community.” By establishing the annual rate at which rent in regulated units is allowed to rise, the Board’s mission is to create fair rent levels in a market driven by chronic scarcity.
Under current law, the RGB is made up of nine members, all appointed by the Mayor. These nine members are charged with investigating the economic condition of the real estate industry in NYC, including average cost of operating a multifamily building and the average income and cost of living for residents each borough. Two members are appointed to represent tenant interest, two members are appointed to represent owner interest, and five members are appointed to represent the general public. The RGB is consistently under fire from tenants and the NYC affordable housing advocacy community for regularly raising rents despite data that suggests landlord income is going up and affordable housing is scarce.
The proposed legislation (S741A/A6394B), sponsored by Senator Squadron and Assembly member Kavanagh, would require City Council confirmation of the Mayor’s appointees to the RGB, bringing necessary checks and balances to the system and making the appointment process more democratic. The bill would also open up appointment to a wider array of professionals – including those who work non-profit and urban policy – and ensure that more diversified views are represented on the RGB.
City Council Speaker Christine Quinn expressed support for the bill, pointing to the fact that the council already has the authority to provide oversight to various NYC agencies and boards that are arguably less important to New Yorkers. “The question becomes…why hasn’t this happened? Why is this one board that is so important, so central to the life of so many New Yorkers, only appointed by the executive with no input from the legislature?”
Like Tenants and Neighbors, we agree that the RGB is consistently pro-landlord, taking little cue from actual data or tenant experience in New York City. These days, nearly everyone is weighing in on whether or not the housing market is rebounding. (We have our own thoughts – stay tuned.) People don’t seem to argue that years of homeownership struggle have caused on influx of new renters to the market. Basic economics tells us that rents will naturally rise. But unemployment isn’t dropping nearly as quickly as rents are rising and tenants in the Bronx and Central Brooklyn are still struggling with high rents and low pay. Even though the “market” may be doing better, we know that the people who live in this city are still struggling. By bringing accountability and democracy to the RGB, we hope that the board can become a stronger ally for affordable housing and NYC tenants.
To join this fight, follow Real Rent Reform on Twitter (@realrentreform) and like them on Facebook! Even better, get on the van to Albany on Wednesday to support the Assembly Housing Committee vote on R3’s priority bills: preferential rent reform, RGB reform, MCI reform, rent control reform, and the decrease in the vacancy bonus. Help R3 and Tenants and Neighbors put weight behind these bills! The van leaves from 236 W. 27th Street in Manhattan. RSVP to Sam at firstname.lastname@example.org.
For more on the RGB, visit their website: http://www.housingnyc.com . Stay tuned to this important fight for NYC tenants! Check out Capital New York for more on this story and yesterday’s announcement.