The Building and Realty Institute of Westchester & the Mid-Hudson Region (BRI) Warns of Long-Term Consequences as Rent Guidelines Board Vote Falls Short of Inflation
On June 26, the Westchester County Rent Guidelines Board approved a rent adjustment of 2% for one-year leases and 3% for two-year leases starting October 1, 2025, through September 30, 2026, with a final vote of 5-3.
While the new increases prevent another destructive rent freeze, they again fall short of what is required to keep up with rising costs. The current inflation rate stands at 3.9%, meaning the board’s approved adjustments amount to a real-dollar rent cut for property owners managing aging, rent-stabilized buildings.
“Once again, we’re staring down the same math problem with the same dangerous answer,” said Alana Ciuffetelli, Chair of the BRI’s Apartment Owners Advisory Council (AOAC). “These increases do not match the surging costs of insurance, fuel, water, repairs, and local compliance. It’s becoming nearly impossible to keep buildings safe and well-maintained without the financial tools to do so.”
Over the past year, insurance premiums for multifamily buildings have soared 26% on average, with some property owners seeing annual premiums per unit surpass $1,770. That’s a 103% jump from four years ago, and that’s if owners can even find coverage—more and more insurers are pulling out of the rent-stabilized market entirely.
“These increases are crumbs at a time when owners need tools, not barriers,” said Ciuffetelli. “Every day, we see more buildings slipping into disrepair because their owners are trapped between regulatory overreach and economic neglect.”
The consequences of the Housing Stability and Tenant Protection Act (HSTPA) of 2019 continue to cascade through the system. The inability to raise rents in step with costs has led to widespread devaluation of rent-stabilized buildings, diminishing access to financing for critical repairs and even threatening bank portfolios.
Meanwhile, the limited Individual Apartment Improvement (IAI) cap—currently $30,000—is a fraction of what’s needed for full-scale renovations, which typically cost between $100,000 and $150,000. Applications for Major Capital Improvements (MCI) have dropped 83% over the last five years, reflecting the sheer economic uncertainty facing property owners.
“Tonight’s vote sends a clear message to owners: keep providing more with less,” Ciuffetelli said. “But this model is unsustainable—and eventually, we’re all going to pay the price.”
County Legislator Emiljana Ulaj posted, “WE WON! The Westchester Rent Guidelines Board voted to allow a common sense 2% increase on 1 year leases for all ETPA properties across Westchester County bucking the trend of exorbitant rate increases across the region. Just this month, Legislator Shanae Williams and I worked on a letter to the RGB urging them to set a modest increase that protects tenants while providing landlords with the resources they need to meet operational expenses. Onward!”
