Last night, the Rent Guidelines Board voted to increase rents for tenants of rent-stabilized apartments by 4% for one-year leases and 7.75% for two-year leases. This is the highest increase in five years.

Last year, the RGB voted on 2% and 4% increases for one-year and two-year leases respectively; in 2008, the increases were 4.5% and 8%. The increases typically leave both landlords/building owners and tenants furious, and this was no exception. Tenants told NY1, "Tenants are sick and tired of these outrageous increases. We're still in a recession. I'm just outraged" and "The landlords are making money, and the tenants are being squeezed."

However, Aaron Sirulnick, chairman of the Rent Stabilization Association, said, "The board has once again failed to take into consideration the ever-increasing costs that small property owners have by way of real estate taxes, water and sewer charges, and all the other regulatory charges that the board recognized but didn't take into account in their final numbers." The increases are based on "Price Index of Operating Costs, which calculates the operating and maintenance costs to landlords. Kimmel said that those costs have increased 5.9% from last year"—landlords/building owners were looking for increases of 6.25% for one-year leases and 9.5% for two-year leases (PDF).

There are about one million New Yorkers who live in rent-stabilized apartments; the increases go into effect in October. And not all developers can offer $10 apartments.