A Manhattan Supreme Court judge ruled Monday that the special minimum increases imposed by the Rent Guidelines Board in 2008 were illegal.

The law said tenants paying less than $1,000 a month had to pay an increase of either $45 or 4.5 percent on one-year leases — whichever was higher.

For two year leases, those figures jumped to $85 or 8.5 percent.

The judge said the dollar increases were often significantly higher than the percentage increase.

The judge says in effect, the law penalizes low income New Yorkers who cannot afford to move because of a lack of affordable housing.

The ruling could lead to millions of dollars in refunds.

Plaintiffs, backed by City Council leaders, applauded the decision.

Meanwhile, the outgoing head of the Rent Guidelines Board told NY1 he believes the Board’s decision will be re-instituted after an appeal.

Source: NY1