As landlords await the decision from the Rent Guidelines Board — Mayor Zohran Mamdani reveals that some landlords with stabilized units will be spared.
On Tuesday, the 34-year-old revealed a plan that would allow distressed properties to charge a one-off rent hike on qualifying empty units, according to a report from The Wall Street Journal. An increase can be allowed even if a rent freeze is enacted — with Mamdani assuring that tenants wouldn't become victims of a hike if the RGB decides to keep adjustments flat.
This move is actually in accordance with a tool through the Housing Preservation and Development that's been around for a while, applying to a "select number of units", according to Mamdani.
"This does not exempt any landlord from the decision of the Rent Guidelines Board," he said in a response to a question when revealing a new housing plan called the "Block by Block" on Tuesday.
"Under this tool, no tenant would see their rent increase beyond that which the RGB determines."
The percentage hike on the eligible distressed empty units varies on a case-by-case basis, according to the WSJ. The news outlet also reported that dozens of NYC rent-stabilized landlords who meet the criteria could be eligible to raise rents.
Keep in mind that should the RGB decide to keep adjustments flat after its final voting decision in June, it would only apply to stabilized units, which are almost half of the city's total rental supply. Last month, the nine-member board agreed preliminarily to allow rate increases for one-year leases in the 0-2 percent range, with an up to four percent hike possibly for two-year leases.
Additionally, Mamdani announced that the city will build 200,000 rent-stabilized and affordable homes over the next 10 years. In addition, he noted that NYC will preserve and stabilize another 200,000 homes thanks to a $22 billion capital investment altogether.
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