Many tenants are misinformed or just unaware of the type of housing they are living in, and what they are entitled to in terms of rent and maintenance.
Most rental housing in New York City falls into three categories: market-rate housing, rent-regulated housing, and subsidized housing. Market-rate housing can be new buildings which were built recently and were never rent-controlled, or premises which have undergone deregulation and no longer qualify for rent-control or rent-stabilization. Market-rate housing includes apartments where rent exceeds over $2,000 per month, co-op and condominium buildings apartments that are being rented or sublet, and buildings with less than six units. In such apartments, the landlord is free to charge any rent that he deems appropriate.
“Citywide, unregulated rents are 70 percent higher than regulated rents. The median regulated rent is $640, while the median unregulated rent in comparable buildings is $1,090,” the New York State Tenants and Neighbors Information Service reported in a recent study. “The enormous difference between regulated and unregulated rents indicates that in most cases, the deregulated apartments are priced out of the reach of people with incomes similar to those of the previous tenants.”
Kumali Zairee, of Astella Development, a Coney Island non-profit, agrees that most people who live in market-rate apartments struggle to pay the rent.
“Affordable housing is the biggest problem for people in Brooklyn,” she said. “[The city] should make it so that people can afford it, especially the way the economy is right now.”
Although New York City does have rent-regulated apartments, which are either rent-controlled or rent-stabilized, there aren’t enough of them and the rent is steadily growing there as well, and rent control may not apply to buildings that were built after 1947.
Rent-controlled units are subject to the maximum base rent (MBR), which reflects the cost of maintenance, annual taxes, water and sewer charges, among other expenses. The MBR can legally increase every two years, depending on inflation and the rise of building expenses. Singer says that “raising the ceiling” on rent control is becoming a major issue for tenants; she says that some may be paying as much as 10.5 percent increases.
In case of vacancy, a rent-controlled apartment becomes rent-stabilized, unless the building has less than six units. Since the Rent Regulation Reform Act of 1997, rent stabilization became applicable only to apartments where rent does not exceed $2,000 per month. In order for the apartment to qualify for rent stabilization, it also must be the primary residence of the tenant. The landlords of rent-regulated housing are prohibited from charging more than the legal-regulated rent.
Over decades, the City has tried to create more affordable housing by establishing subsidized apartments, which includes “Section 8” housing, public housing, and Mitchell-Lama housing. While Mitchell-Lama housing program provides affordable housing to middle-income residents in rental and co-op buildings; both, public and “Section 8” housing is strictly reserved for low-income residents. “Section 8” housing is a voucher program which allows the tenant to live in a private housing sector and pay only a portion of the rent, usually no more than 30 percent of the household’s income – the rest is covered by the government. Low-income tenants who qualify for public housing reside in buildings managed by the New York City Housing Authority, usually the most inexpensive housing in New York City.
Elected officials like Jerrold Nadler say that affordable housing is a necessity for New Yorkers and needs to be expanded.
I firmly believe that housing is a basic right – not a luxury – and, particularly now in this economy, it is an essential component of middle- and working-class stability, said Rep. Jerrold Nadler.
Nadler and other officials work with tenants on regular basis, and many advocacy groups provide information and guidance related to tenants’ rights. Brooklyn Housing and Family Services, funded by city and state agencies, works with up to 1,000 buildings and assists some 60,000 tenants.
“Up until about four years ago, all of our resources were used to work with tenants and landlords. But since the mortgage crisis, we also deal with people in danger of losing their homes,” said Larry Jayson of Brooklyn Housing and Family Services. “We are funded specifically to assist homeowners and organized tenants in multiple dwellings, as well as work with landlords throughout the entire borough.”
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Here are some organizations and agencies that can help
Brooklyn Housing and Family Services
718-435-7585
http://www.brooklynhousing.org/
New York City Rent Guidelines Board
212-385-2934
Tenants and Neighbors
212-608-4320
http://www.tenantsandneighbors.org/
Brighton Beach Neighborhood Association
718-891-0800
Astella Development Corp.
718-266-4653
http://www.astelladevelopment.org/
