It appears that Mayor Zohran Mamdani’s proposed rent freeze will benefit only certain New Yorkers, while his Department of Housing Preservation and Development (HPD) plans to significantly increase rents for others.
HPD has suggested a nearly 30% rent increase over the next four years at Tracey Towers, a Mitchell-Lama housing complex in The Bronx. This hike is intended to address substantial expenses related to repairs, maintenance, and mortgage obligations.
In contrast, the Rent Guidelines Board, influenced by Mamdani’s appointees, is moving forward with a 0% increase for many other landlords who are facing similar financial strains.
The mayor’s newly established Office of Mass Engagement is orchestrating a community-driven campaign to demonstrate widespread public discontent. This effort aims to support the Rent Guidelines Board’s expected decision to freeze rents for those living in rent-stabilized apartments.
There seems to be little concern for how landlords of rent-regulated properties, which account for over 40% of the city’s rental market, will manage their escalating expenses. Many of these property owners are already struggling financially.
Meanwhile, Mamdani’s HPD proposes double-digit rent hikes at the Bronx complex to cover its mortgage arrears, repair and other operating expenses.
One more time: Pre-1974 rent-stabilized buildings are in crisis, with low rent revenues, high property-tax burdens, soaring utility costs and zero help from the city or state.
Meanwhile, the crisis at once-comfortable Mitchell-Lama middle-income housing like Tracey Towers built over decades under the “watchful” eye of government bureaucrats despite millions in government subsidies.
State Comptroller Tom DiNapoli has for years noted the financial stresses on these complexes, built under past laws aiming to provide affordable housing, which can’t afford renovations to put vacant units back on the market.
Similar financial stresses, low rent-rolls and the state 2019 Housing Stability and Tenant Protection strictures now keep over 57,000 rent-stabilized apartments off the market, too.
The New York City Public Housing Authority is an absolute disaster, with many of its complexes begging for demolition.
HPD is finally, belatedly facing the Mitchell-Lamas’ woes, even as the mayor turns a blind eye to the same problem in RGB-governed buildings and basically ignores NYCHA.
Which means the city’s affordable housing-crisis will grow worse.
And neither snappy TikTok videos nor recycled socialist schemes will do a thing to help.
Whether or not this mayor ever admits it, the only solution is to quit pretending government has any answers here, and unleash the private market.