Hempstead escapes rent raise, rest of Nassau unlucky

Don’t expect rents to rise next this coming year — that is, if you’re living in a rent-stabilized apartment in Hempstead village. Everywhere else? Be ready to pay more.

That was the decision of the Nassau County Rent Guidelines Board last week, hearing the concerns voiced by Hempstead village renters at an open forum earlier this month, The rest of Nassau County could see rents climb by 1 percent for one-year leases, and 2 percent for two-year leases beginning Oct. 1.

The passing vote came after a series of contrary motions were denied by the board, including one by landlord representative Barry Stein, who proposed an increase of up to 6.5 percent before being drowned out by a series of boos from tenants and advocates in attendance.

Stein’s justification for such an increase? Rent income increased nearly 3 percent while expense increases more than doubled that. Then there’s the rising property taxes in Nassau County, rising house insurance costs, and mortgage rates doubling. They were numbers Stein called “unsustainable.”

Stein also asserts the state's reported profit figures by landlords are overblown, incorrectly looking at entire buildings — includes units not subject to regulation.

Alternatively, board member Rob Rychlowski explained tenants like him are overburdened.

“We heard a lot of things from the landlords about the rising cost of living, but what about how that disproportionately affects the tenants?” he asked. “Mr. Stein is arguing that we shouldn't be using their overall profit margin because it combines non-regulated housing along with regulated housing.”

Despite these claims, landlord profits are at record highs, according to the state’s New York State Division of housing and community renewal division.

Another member, Martin Melkonian, also pointed out data suggesting rent-stabilized buildings consistently rise in value. That suggests to him this is a profit enterprise — not simply for the cash flow, but for asset growth. And that many ordinary property owners have enormously benefited from rising values.

“Over the past 20 years, the net operating income continues to rise,” Melkonian said. That net operating income peaked at 38 percent in 2022, “which is the highest it's been, despite the fact that the expenses have gone up, and admittedly, rents have not followed along. Nevertheless, net operating income continues to rise. What explains that?”

At least from Melkonian’s point of view, despite regulation, landlords do pretty well in terms of cash flow, and extremely well in terms of the rapidly rising property value of their buildings over time.

Following the vote, Jeremy Joseph, —an organizer with the Working Families Party and the Nassau County Democratic Socialists of America — said he is disappointed with the overall vote, but will accept the small victory for Hempstead village residents while acknowledging the long road ahead.

“All tenants in Nassau County deserve a rent reduction,” Joseph said. “Anything less than that is not enough.”

Prior to the vote, the board heard tenants from Hempstead directly, and that members who are not usually on our side were compelled to vote for no raise.

“Just imagine if they gave that same attention to all the municipalities in the county,” Joseph said. “But they don't. They only have a few hearings.

“If we had a hearing in Freeport and Rockville Centre, they would have heard all the same stuff they heard in Hempstead.”