CHIP blasts Rent Guidelines Board preliminary vote to freeze rents

New York, NY Following a preliminary vote by the Rent Guidelines Board to move forward with a misinformed potential decision to freeze rents on the approximately one million stabilized apartments throughout New York City, the Community Housing Improvement Program (CHIP) released the following statement: “Our members know that the real expenses which accompany the operation and maintenance of multifamily buildings have continued to skyrocket over the past few years. Clearly, the largest single expense shouldered by New York City building owners is taxes, with more than 40 percent of a building’s operating costs going right into the City’s treasury. If the rent is too high, it’s mostly because taxes are too high. According to CHIP, the data used to reach last night’s preliminary vote is insufficient in accounting for all building expenses faced by owners. Compounded with the slew of city regulations, and the accompanying administrative costs levied on the owners of multifamily housing, the full costs of operating a multi-family building have not been fully captured. "We urge the City’s Rent Guideline Board to properly and accurately evaluate the source of its information and ensure that any proposed increases in rent takes into full account not only the previous years’ expense growth, but also the compounded financial burdens from years of rent increases insufficient to meet escalating costs before making its recommendation in June,” said Patrick Siconolfi, executive director, CHIP.