RGB feeling unloved

Real Estate Weekly, July 4, 2001 by Natalie Keith

Hike angers tenants, but owners hurt by surcharge ruling

In a move that surprised many but pleased few in the rent debate, the Rent Guidelines Board approved 4 and 6 percent rent increases on the city's one million rent-stabilized apartments.

The board had approved 3 and 5 percent in a preliminary vote, which, in past years, has rarely been changed. But two weeks ago, the board voted 7 to 2 to up the increases to 4 percent for one-year leases and 6 percent for two-year leases. The increases will become effective Oct. 1.

The panel also voted 5 to 4 to reject a $15 surcharge for tenants paying rents under $500, a levy tenants groups have called the "poor tax."

As they did with the preliminary vote -- and with past votes -- landlord and tenant groups criticized the board's action. Landlord advocates protested the increases, saying they are insufficient to cover increases in energy and other costs.

Tenant advocates, which had called for a freeze on rents, also criticized the board's decision calling them "disgraceful."

For the second year in a row, the board's decision deviates from Mayor Rudolph W. Giuliani's recommendation of 3 and 5 percent increases. Last year, Giuliani criticized the board's decision to increase rents by 4 and 6 percent, saying they were excessive. He has not commented on the board's vote this year.