The Price Index of Operating Costs for rent stabilized apartments increased 5.7 percent over the past year, the Rent Guidelines Board announced yesterday. The Board had predicted a 2.6% increase, but significantly underestimated fuel costs. The projection for next year is 1.7 percent based largely on the idea that fuel costs will drop 8.6 percent. Also yesterday, Mayor de Blasio appointed Rachel Godsil, a civil rights attorney to chair the RGB.
Comptroller Scott Stringer began a report he issued on affordable housing this week complaining that median rents in New York City rose 75 percent from 2000 to 2012. If he had waited a day for the Rent Guidelines Board 2014 Income and Expense Study, he could have calculated that property taxes went up 108 percent and City water rates went up 138 percent over the same time period. One fact Stringer did report was completely missed by the media: he said that “When long-term financing costs and the developer’s return on investment are factored in, plus typical monthly operating costs, the average new housing unit would need to rent for at least $2,600 month, even if it received full tax exemption.”
One expense that may moderate is water and sewer. DEP has proposed a 3.35 percent increase for 2015, the lowest in nine years.
The City Council reacted favorably to most of Mayor de Blasio’s budget proposals this week, but wants to create a property tax commission to study inequities in the system. It will no doubt take time for a commission to figure out how to make the system equitable without raising taxes on single family homeowners who vote.
One source of alternate revenue could be hotel taxes on Airbnb guests, if they were legal…but State Attorney General Eric Schneiderman says more than half are illegal and is battling the tech company in court on the issue.
You have until Wednesday to cut your fuel costs next year by joining the ABO-FS Energy purchasing group. Contact Thom Devlin for details today if you are not locked into a contract or have one expiring soon. Otherwise, you will not be able to join until the Fall.