More than 1 million New Yorkers living in rent-stabilized apartments will see no increase in their rent for the next two years after the Rent Guidelines Board approved a historic rent freeze Thursday night. But landlords warn this could lead to forced maintenance cuts.
The board voted overwhelmingly to freeze rents on both one- and two-year lease renewals, marking the first time two-year leases have received a rent freeze. Mayor Zohran Mamdani called the decision a historic victory for working New Yorkers.
Supporters erupted in celebration following the vote, saying the freeze will provide much-needed financial relief as many families continue to struggle with the high cost of living.
"It means everything. It means that our voices were heard, finally," said Bronx stabilized renter Ann Maytin. "Maybe I can afford to make my bills meet at the end of the month."
But the decision drew sharp criticism from many small property owners, who say the freeze will make it even more difficult to cover rising operating and maintenance costs.
"We have to lay off someone, the supers. It's the only choice," said Humberto Lopes, of Gotham Housing Alliance. "It's a business. People don't get it. It's a business, it's not a choice that you think this is for free."
Earlier in the day, in a bombshell decision, landlord representative and Adam's administration appointee Christina Smyth resigned from the Rent Guidelines Board, criticizing what she described as a process that was no longer a “fact-finding body.”
In a LinkedIn post, Smyth pointed to financial data showing that while net operating income for rent-stabilized buildings increased just over 6% citywide, it declined by as much as 13% in several Bronx neighborhoods.
"The money that the building is generating in rent is not sufficient to pay the expenses that are coming due," said Sophia Hepheastou, a building owner in one of the four Bronx neighborhoods taking a hit. “Those expenses are expensive. That we have no control over."
The board’s only “no” vote came from a public representative. The one remaining landlord representative, Maksim Wynn, who is one of six board members appointed by Mamdani, voted in favor of the freeze but cautioned that the city must find ways to reduce operating costs for building owners.
Landlords fear that without the city's help to reduce costs, building maintenance will take a hit, leading to poorer living conditions for tenants and not enough funds to renovate destressed vacate apartments.
Mamdani’s administration previously told News 12 's Heather Fordham the solution lies in lowering operating costs, which have skyrocketed since 2020. The mayor's housing plan vows that the city will focus on reducing the biggest expenses for building owners, including insurance, utilities, maintenance and property taxes as part of a broader effort to preserve affordable housing.