A New York City board tasked with determining if rents will rise for roughly 1 million rent-stabilized apartments has decided to raise rates, amid calls for a freeze on rent from mayoral candidate Zohran Mamdani and an increase from Mayor Eric Adams.

The Rent Guidelines Board voted 5 to 4 on Monday to raise rents on rent-stabilized apartments by 3% on one-year leases. For two-year leases, the board approved a 4.5% jump.

“It is the role of this board to balance the reality of rising cost and financing challenges facing owners with what are deep affordability challenges facing tenants,” said Doug Apple, the board chair, to boos from the crowd. 

“This is never an easy task," Apple added.

The changes are expected to take hold in October.

In April, the board, whose members are appointed by the mayor, preliminarily voted to approve rent hikes ranging from 1.75% to 4.75% for yearly leases and from 4.75% to 7.75% on biennial leases.

The board voted last year for a 2.75% increase on yearly leases and a 5.25% increase on two-year leases, officials said.

Monday’s vote comes amid a mayoral race in which affordability and rental rates are shaping up as key campaign issues.

Adams, who is vying for another term, this time as an independent, has supported rent increases while in office. This year, Adams urged the board to "adopt the lowest increase possible," according to a statement he posted Monday on X.

After the vote, he said in a separate statement that the board approved increases higher than he demanded but called an effort to freeze rents a "cruel and dangerous proposal."

"While freezing the rent may sound like a catchy slogan, it is bad policy, shortsighted, and only puts tenants in harm’s way. As the mayor of this city, I will never choose a politically advantageous position over what I know in my heart to be best for New Yorkers," Adams said.

Meanwhile, Mamdani, a Queens assemblymember, has spearheaded a campaign focused on affordability, including freezing rents on rent-stabilized apartments and replacing most of the board’s members.

Ahead of the vote, Mamdani, a democratic socialist, challenged Adams’ position, saying the mayor picked the board that is "set to deliver one final blow to struggling rent-stabilized tenants before his term is up."

"Make no mistake: even a supposedly modest rent hike in the midst of a cost-of-living crisis will push New Yorkers out of their homes," he said in a statement.

Kenny Burgos, CEO of the New York Apartment Association — which advocates for landlords and property owners — said in a statement: "Every year the Rent Guidelines Board is put in a horrible position because elected officials do nothing to lower the cost of housing."

"While we are disappointed that the RGB once again adjusted rents below inflation, we appreciate that they stood up to political pressure calling for rent freezes that would accelerate the financial and physical deterioration of thousands of older rent-stabilized buildings," Burgos said.

However, a tenant’s group said Adams "is squeezing in one last rent hike for his real estate donors on his way out the door."

"We are sick and tired of the landlords and lobbyists trying to buy our city. We outnumber them, and we have already shown we can out organize them," said Cea Weaver, director at New York State Tenant Bloc, in a statement after the vote. "Come November, we will elect Zohran Mamdani and win the rent freeze tenants so desperately need."