Short-Term Rent Freeze Proposed by Rent Guidelines Board

On June 23, 2021, the Rent Guidelines Board (RGB) voted 5 to 4 to “freeze stabilized rents for the first 6 months on one-year leases that begin on, or after, Oct. 1; and for the remaining 6 months of the lease, rents will be raised by 1.5 percent.” The proposal is intended to provide additional time for economic recovery. A 2.5 percent rent increase has also been proposed by the RGB for two-year leases, as well as a rent freeze on stabilized hotels. In contrast, owner representatives had proposed a 2.75 percent and 5.75 percent rent increase on one-year leases and two-year leases respectively to meet costs of maintenance, insurance, and property taxes.