The nine-member panel, which is appointed by the mayor, also approved an increase of 2.75% for two-year leases of rent-stabilized units. The increases take effect in October.
"This moment is a nightmare," one of the board members, Steven Flax, said as he voted for the proposal. Hundreds of tenants waving signs calling for no increase howled in anger.
The proposal, one of several the board had considered, passed 5-4 but not before more than an hour of angry protests by tenants' groups whose chants and angry shouts often drowned out board members as they spoke.
The final agreement appeared to please no one. Tenants and some board members had called for a rent freeze or a rent rollback, arguing that landlords have reaped the rewards of decades of annual rent increases.