‘Prepare for fewer repairs.’ Property owners say rent freeze will price out preventative maintenance
The board voted 7–1 this week to advance a proposal allowing 0% to 2% increases for one‑year leases and 0% to 4% for two‑year leases, ahead of June’s final vote.
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A preliminary vote by the Rent Guidelines Board to consider a full rent freeze has sparked outrage among small property owners, who say the move threatens their ability to maintain aging rent‑stabilized buildings.
The board voted 7–1 this week to advance a proposal allowing 0% to 2% increases for one‑year leases and 0% to 4% for two‑year leases, ahead of June’s final vote.
Supporters in the room cheered, but owners of rent‑controlled and rent‑stabilized buildings say the celebration overlooks the financial reality they face.
Ann Korchak, director of the Small Property Owners of New York, said the board’s move leaves owners without the resources needed to keep buildings safe and functional.
“They are making it impossible to run our businesses,” she said, adding that owners are forced to patch roofs and boilers instead of replacing them.
Chris Athineos, who owns a more than a century-old rent‑stabilized building in Bay Ridge, said he warned the board last year that a freeze would make it impossible to keep up with repairs. He pointed to his nearly 40‑year‑old boiler, a replacement he says would cost about $200,000, and said the situation has only grown more dire.
“To come up with a 0% proposal when there are constantly new mandates — backflow prevention devices, gas detectors, lead paint abatement, energy efficiencies — how is this getting paid for?” Athineos said. “It’s not.”
He said some of his tenants pay as little as $600 a month, a rent level he says doesn’t cover even a single emergency repair.
“You call a plumber once — it’s $600,” he said.
Athineos argues that a freeze won’t stop negligent landlords but will instead push responsible small owners out of the market.
“If we are forced to sell, no one would buy a building like this except speculators, and no one wants that,” he said.
He tells News 12 that with buildings over 100 years old, he worries how he will be able to reach future efficiency standards, like those that are set to be included in Gov. Kathy Hochul's budget.
"These are over 100 years old, past their original effective life, we need relief maintaining this affordable housing stuck, but there's no help, and a bank won't give you a loan, when the city just announced your income will be basically flat," he said, adding that maintenance costs rise on average of 6 percent a year in his properties.
The Small Property Owners of New York estimates that more than 10,000 small landlords could be affected citywide if the board approves a freeze in June.
