Below is Lewis Barbanel’s submitted testimony for the NYC 2023 Rent Guidelines Board Public Hearings.
Good evening, my name is Lewis Barbanel, and I am the President of Barberry Rose Management Co Inc., which manages approximately 1,000 apartments across the boroughs of Queens, Brooklyn, and Manhattan.
The United States of America is the greatest Constitutional Republic on Earth. No individual should ever feel intimidated or silenced when expressing their thoughts.
Firstly, I would like to thank the board for upholding their civic duty despite facing numerous challenges.
Every year, apartment building owners provide this board with our financial statements for review and analysis. These records highlight and should raise alarm that the rising tide of core inflation has significantly impacted every aspect of running our buildings.
This includes
• THE COST OF LABOR
• THE COST OF MATERIALS
• AND THE COST OF INSURANCE
This is aside from the increases in other costs like real estate taxes and water/sewer. There are many rent-stabilized units whose rent doesn’t even cover its own share of these basic costs.
The ability to effectively manage and maintain Rent Stabilized buildings has been severely hindered by the economic fallout caused by the pandemic. Since the outbreak of Covid, we have been collecting, on average, under 80% of the rent that is due.
Let me be clear; we are fully supportive of assisting those in need. During the pandemic, no means test was required to demonstrate that residents faced financial jeopardy. However, the consequences of this burden continue to be borne by property owners.
In addition, immense and overwhelming new laws and regulations are being enacted that further impose immense financial burdens on already distressed owners.
These include
• mandatory inspections and upgrades of GAS LINES (as outlined in local 157),
• stricter LEAD ABATEMENT standards for the entire building, not just units with children (as stated in local law 31),
• and ENVIRONMENTAL REQUIREMENTS (as stipulated by local law 97).
While these regulations are commendable in their intent, the financial implications of implementing them have not been adequately addressed or are simply being ignored. In the past, when the government sought to encourage the private sector to adopt policies for the greater good, they offered tax abatements such as the J51 and the toilet rebate program, for just two examples.
Considering all these factors I respectfully request that the Board consider approving an increase of 8% for one-year leases and 16% for two-year leases. Thank you for your attention and consideration.