The Westchester County Rent Guidelines Board on a vote of 6-1 has approved rent increases of 2.5% for one-year leases and 3.5% for two-year leases starting October 1 for rent-controlled buildings. The board announced plans to schedule another public meeting to be held in September at which time it expects to certify the new rent guidelines for rent-stabilized leases.
Landlords already are reacting by saying the increases are not adequate to meet increased expenses and the effects of inflation.
“Once again, property owners are given disappointing rent increases,” said Lisa DeRosa, president of the Building and Realty Institute (BRI) and a White Plains property owner. “We have the oldest stock of housing which has the highest need for maintenance and repairs. It is becoming increasingly difficult, if not impossible, to provide safe and well-maintained units.”
DeRosa said that the Rent Guidelines Board’s allowed increases do not even keep up with inflation or the Consumer Price Index.
BRI said that this year the major points of discussion have been soaring insurance premiums and the ongoing devaluation of rent-stabilized properties, in addition to inflation and rising maintenance costs for property owners.
BRI said that annual Insurance premiums have been going up by 26% on average while coverage is diminishing or challenging to secure.
BRI also said that deceasing values for rent-controlled buildings have restricted property owners’ access to loans for essential upkeep, renovations, and maintenance.
Alana Ciuffetelli, who chairs BRI’s Apartment Owners Advisory Council, testified to the Rent Guidelines Board that every morning she wonders how many more years she can keep her building in business when allowable rent increase remain small while maintenance and repair costs continue to rise.
“What’s going to happen when it’s time for me to refinance my mortgage in a year and I find that no bank wants to come near my building because it’s already viewed as a negative investment? It’s challenging to remain positive as a rent-stabilized property owner in these times, and these rent guideline increases offer a small glimmer of hope amidst the uncertainty,” Ciuffetelli testified.
