NEW YORK, NY – March 29, 2013 – (RealEstateRama) — Tenants & Neighbors commends the New York State Legislature for taking action to raise the minimal wage. This much needed move will help many low income households stay afloat in difficult economy. It is imperative, however, that as legislators act to raise wages for workers, they also take steps to protect these same individuals from unaffordable rent increases.
Increases in incomes have often failed to raise the standard of living for low-income New Yorkers because rents have risen faster than wages. For example, the incomes of low-income (less than 200 percent of poverty) tenants without housing subsidies rose by 11 percent during the boom years from 2005 to 2008, but rents rose by 13 percent during the same period. As a result, the median per-capita income left over after rent for those tenants fell by 6 percent.
Many minimum wage workers live in rent stabilized apartments, and are subject to expensive rent hikes as a result of persistent Rent Guidelines Board increases and permanent Major Capital Improvements. When low wage workers seek new housing, they often have a hard time finding affordable homes because of Vacancy Bonuses and Individual Apartment Improvements that allow rents to skyrocket between tenancies. We call on the Legislature to enact comprehensive rent law reform to protect tenants, and make sure that the mandated minimum wage increases aren’t simply swallowed by rising rents.
Contact:
Sam Stein, 212-608-4320 x316, sstein (at) tandn (dot) org
