ORA Annual Report Shows Significant Lack Of Funding For Rent-Stabilized Housing
The report shows more than 366,000 apartments, about 40 percent of the rent-regulated housing stock, has rents below operating costs
(New York, NY) – The Office of Rent Administration (ORA) released its annual report on the state of the rent-stabilized market, showing hundreds of thousands of apartments with rents that are below operating costs. The report also detailed a steep decline in Major Capital Improvements (MCIs) filings, meaning there has been less investment in these aging buildings.
“This report is setting off alarm bells, and shows a clear need for change to make sure older rent-stabilized buildings can be preserved and improved for future generations,” said New York Apartment Association CEO Kenny Burgos. “We cannot let these buildings continue to get defunded through growing costs like property taxes and insurance. We stand ready to work with lawmakers to preserve tenant protections while making sure these buildings can actually function.”
The annual report, which is required by law, showed 366,138 apartments, roughly 40% of all stabilized housing, with rents at or below $1,450. This is slightly less than what the New York City Housing Authority needs to operate similar apartments, according to the Citizens Budget Commission, which found operating costs were $1,510 per apartment. It is important to note that NYCHA does not pay property taxes or debt service.
The lack of funding directly leads to deterioration. This is reflected in the decline of MCI applications. There were only 296 applications approved in 2024, which is a 75 percent decline from 2018. This dramatic reduction shows the impacts of the 2019 Housing Stability and Tenant Protection Act, which has prevented investment in these buildings.
The report also shows 290,162 units have preferential rents, meaning the rent the tenant pays is less than the legal amount the property owner could charge under rent-stabilization, and there were only 307 overcharge cases granted in 2024, or 0.03 percent of all rent-stabilized apartments. Less than one-third of valid overcharge complaints were ultimately granted as overcharges.
The report shows that 921,536 apartments were registered on time in 2024. Previous years show that there are approximately 970,000 rent-regulated apartments, and like previous years, it is likely that about 50,000 missed the rent-registration deadline. The number of registrations is likely to improve after a new law went into effect levying steep fines on unregistered apartments.
“While some headlines have tried to spin a narrative that rent-stabilized building owners are failing to register apartments, we are seeing the numbers tell the same story that it has always told: Most professional owners register on time and have done so for decades and will continue to do so,” Burgos said. “Our leaders must work with our membership to determine the future of these buildings or this vital housing stock will have no future..”
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The New York Apartment Association (NYAA) is a 501(c)(6) not-for-profit organization that represents a diverse coalition of apartment building owners and managers who provide the majority of affordable multi-family housing in the state of New York. To put it simply, we are Housing New York. NYAA was formed through the merging of two organizations that historically represented rent-stabilized building owners: The Rent Stabilization Association (RSA) and the Community Housing Improvement Program (CHIP). The official NYAA website is HousingNY.Org. @HousingNY on X; @HousingNY on Instagram; @HousingNY on Youtube, and @HousingNY on TikTok.