–Urges members and other real estate industry professionals to testify; pushing back on insufficient reasoning for rent freeze as costs continue to rise –
As the City's Rent Guidelines Board gears up to vote on a predetermined rent freeze again this year, Community Housing Improvement Program (CHIP) – a housing policy advocacy organization representing more than 3,500 New York City multi-family building owners and 400,000 units of housing throughout the five boroughs – is urging its members and other owners of residential property to testify at the Board's upcoming hearings in order to raise awareness of the escalating costs in operating multifamily properties.
On the heels of the 2.1 percent increase on the city’s water and sewer rates which was approved on Friday, May 27th by the New York City Water Board, owners are faced with increasing costs including an often insurmountable 32 to 40 percent tax burden.
“Our members know that the real expenses which accompany the operation and maintenance of multi-family buildings have continued to skyrocket over the past few years,” said Matthew Engel, President of CHIP. “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.”
The data that was used in reaching the preliminary vote back in May, proved to be 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 multi-family housing, the full costs of operating a multi-family building have not been properly 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 of CHIP.
The Rent Guidelines Board proposed a guideline range of 0 to 2 percent for a one year lease and for 0.5 to 3.5 percent for a two year lease – the same proposed numbers as last year – which resulted in a rent freeze.
This year, CHIP celebrates 50 years of advocating solutions for New York City’s housing issues. The association focuses on ensuring that key housing topics and policies remain in the forefront of public concerns both at the citywide and statewide levels.
About Community Housing Improvement Program
Community Housing Improvement Program (“CHIP”) is a trade association representing more than 3,500 apartment-building owners and 400,000 units of housing in New York City's five boroughs. Founded in 1966, CHIP has played a significant role in City and State housing policy. Defending the rights of New York’s municipal housing, it has served the industry as experts, leading councils, lobbyists, and information providers for 50 years. CHIP primarily focusses on subjects such as property taxes, zoning policies, lead paint, water rates, and rent regulation. CHIP represents major commercial and residential property owners and builders with memberships that extend to various institutions that are professionally invested in the city’s real estate. Please visit us online at http://chipnyc.com
