State Judge Upholds Rent Freeze For NYC Rent Stabilized Housing

NEW YORK, NY — A New York State Supreme Court judge ruled Tuesday to uphold a rent freeze for tenants of New York City's rent stabilized housing. The Rent Stabilization Association, a group representing landlords and owners of rent stabilized housing, sued the Rent Guidelines Board for passing a rent freeze on one-year leases for rent stabilized apartments, houses and lofts last year.

The Rent Stabilization Association (RSA) filed its lawsuit against the Rent Guidelines Board (RGB) last July, one month after the board's ruling. The RSA argued that the board's decision to pass a rent freeze on one-year leases and a small increase on two-year leases was a politically motivated stunt to push Mayor Bill de Blasio's agenda.

And the RSA isn't happy, to say the least, about Tuesday's ruling.

"It’s disappointing that this court didn’t see that de Blasio’s political influence resulted in the RGB using a parameter – tenant affordability – that is not allowed by law," RSA President Joseph Strasburg said in a statement. "The RGB process, which is supposed to be independent of City Hall influence, has been corrupted by a Mayor that puts politics ahead of sound affordable housing policy, which is bad for tenants, affordable housing, and the owners of one million rent-stabilized apartments — the largest providers of affordable housing."

But city officials and housing advocated celebrated the ruling. In a statement, de Blasio fired back at the RSA by calling the ruling a victory over the "landlord lobby."

“Despite attempts to overturn the recent rent freeze, a court has ruled the Rent Guidelines Board was correct in its decision. The rent freeze stays, and more than 2 million people in rent-regulated apartments can breathe a sigh of relief," de Blasio said in a statement. "We are fighting displacement and protecting affordable housing on every front. We have put shovels in the ground for more affordable housing and we’re investing in universal access to free legal services for tenants fighting eviction. We have more work to do, but together we are turning the tide."

On Thursday the RGB will meet for the first of many public hearings for this year's rent guidelines process. The RGB is scheduled to hold its preliminary vote on April 25, but will likely hold its final vote some time in June or July.

Last June the RGB voted in favor of a one-year rent freeze for one year leases and a 2 percent rent increase for two year leases signed starting Oct. 1, 2016 and ending Sept. 31, 2017. Seven of the nine board members voted in favor of the rent freeze and two members — representing landlords — voted to abstain. (For more updates on the rent freeze saga and other New York City news delivered right to your inbox subscribe to Patch's free daily newsletters and news alerts.)

Last year's housing reports commissioned by the RGB determined that the cost of operating rent-stabilized apartments has decreased 1.2 percent in 2016. The RGB's commissioned housing reports for 2017 have not yet been released, but last year's report calculated that the price of operating rent-stabilized buildings will increase a projected 5.5 percent next year.

Mayor Bill de Blasio will comment on the court's ruling at 5 p.m. Patch has left messages with the mayor's office and the city Law Department.

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Photo by Brendan Krisel