New Rent Guideline Board Orders 2005-2006

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NYtenants Online/TenantNet 8/21/05
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In this issue...

New Rent Guideline Board Orders 2005-2006

1. It's Silly Season 2005
2. Readers Note
3. 2005 APARTMENT & LOFT ORDER #37
4. 2005 HOTEL ORDER #35

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2005-2006 RGB ORDERS

In this issue we include the full text of the latest orders of the NYC Rent
Guidelines Board. These orders, which are in effect from October 1, 2005
through September 30, 2006, affect only rent stabilized tenants.

Rent Control apartments are not affected by these orders, except that
special guidelines are included for units moving from Rent Control to Rent
Stabilization (which is one method to determine the 'Fair Market Rent' when
a tenant in a new rent stabilized unit challenges the first stabilized rent
being charged).

For most tenants, the SHORT ANSWER is that if your rent stabilized lease is
renewed during this period, the permissible increase is 2.75% for a
one-year renewal and 5.5% for a two-year renewal (where heat is provided).

For leases that commence prior to October 1, 2005, use the prior year's RGB
orders, which can be found at
http://www.tenant.net/pipermail/nytenants-online/2004-July/000268.html.

If you have questions on any aspects of these orders, please join the
TenantNet Forum at http://www.tenant.net/.WWW/forum/cgi-bin/ultimatebb.cgi


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2005 APARTMENT & LOFT ORDER #37
NYC Rent Guidelines Board
June 21, 2005

ORDER NUMBER 37 - Apartments and Lofts, rent levels for leases
commencing October 1, 2005 through September 30, 2006.

NOTICE IS HEREBY GIVEN PURSUANT TO THE AUTHORITY VESTED IN THE NEW YORK CITY RENT GUIDELINES BOARD BY THE RENT STABILIZATION LAW OF 1969, as
amended, and the Emergency Tenant Protection Act of 1974, as amended,
implemented by Resolution No 276 of 1974 of the New York City Council and
extended by Chapter 82 of the Laws of 2003, and in accordance with the
requirements of Section 1043 of the New York City Charter, that the Rent
Guidelines Board (RGB) hereby adopts the following levels of fair rent
increases over lawful rents charged and paid on September 30, 2005. These
rent adjustments will apply to rent stabilized apartments with leases
commencing on or after October 1, 2005 and through September 30, 2006. Rent
guidelines for loft units subject to Section 286 subdivision 7 of the
Multiple Dwelling Law are also included in this order.

ADJUSTMENT FOR RENEWAL LEASES (APARTMENTS)

Together with such further adjustments as may be authorized by law, the
annual adjustment for renewal leases for apartments shall be:


Where HEAT IS PROVIDED or required to be provided to a dwelling unit by an
owner from a central or individual system at no charge to the tenant, the
adjustments are as follows:

For a ONE-YEAR RENEWAL LEASE commencing on or after
October 1, 2005 and on or before September 30, 2006: 2.75%

For a TWO-YEAR RENEWAL LEASE commencing on or after
October 1, 2005 and on or before September 30, 2006: 5.5%


Where HEAT IS NEITHER PROVIDED NOR REQUIRED to be provided to a dwelling
unit by an owner from a central or individual system, the adjustments are
as follows:

For a one-year renewal lease commencing on or after
October 1, 2005 and on or before September 30, 2006: 2.25%

For a two-year renewal lease commencing on or after
October 1, 2005 and on or before September 30, 2006: 4.5%


These adjustments shall also apply to dwelling units in a structure subject
to the partial tax exemption program under Section 421a of the Real
Property Tax Law, or in a structure subject to Section 423 of the Real
Property Tax Law as a Redevelopment Project.

VACANCY ALLOWANCE FOR APARTMENTS

No vacancy allowance is permitted except as provided by sections 19 and 20
of the Rent Regulation Reform Act of 1997.

SUPPLEMENTAL ADJUSTMENT

There shall be no supplemental adjustment for apartments renting below any
specified amount for renewal leases.

EQUALIZATION ALLOWANCE

There shall be no equalization allowance for apartments continuously
occupied for a specified period of time for renewal leases.

ADDITIONAL ADJUSTMENT FOR RENT STABILIZED APARTMENTS SUBLET UNDER SECTION 2525.6 OF THE RENT STABILIZATION CODE

In the event of a sublease governed by subdivision (e) of section 2525.6 of
the Rent Stabilization Code, the allowance authorized by such subdivision
shall be 10%.

ADJUSTMENTS FOR LOFTS (UNITS IN THE CATEGORY OF BUILDINGS COVERED BY
ARTICLE 7-C OF THE MULTIPLE DWELLING LAW)

The Rent Guidelines Board adopts the following levels of rent increase
above the "base rent", as defined in Section 286, subdivision 4, of the
Multiple Dwelling Law, for units to which these guidelines are applicable
in accordance with Article 7-C of the Multiple Dwelling Law:

For one-year increase periods commencing on or after
October 1, 2005 and on or before September 30, 2006: 2.25%

For two-year increase periods commencing on or after
October 1, 2005 and on or before September 30, 2006: 4.5%

VACANT LOFT UNITS

No Vacancy Allowance is permitted under this Order. Therefore, except as
otherwise provided in Section 286, subdivision 6, of the Multiple Dwelling
Law, the rent charged to any tenant for a vacancy tenancy commencing on or
after October 1, 2005 and on or before September 30, 2006 may not exceed
the "base rent" referenced above plus the level of adjustment permitted
above for increase periods.

FRACTIONAL TERMS

For the purposes of these guidelines any lease or tenancy for a period up
to and including one year shall be deemed a one year lease or tenancy, and
any lease or tenancy for a period of over one year and up to and including
two years shall be deemed a two-year lease or tenancy.

ESCALATOR CLAUSES

Where a lease for a dwelling unit in effect on May 31, 1968 or where a
lease in effect on June 30, 1974 for a dwelling unit which became subject
to the Rent Stabilization Law of 1969, by virtue of the Emergency Tenant
Protection Act of 1974 and Resolution Number 276 of the New York City
Council, contained an escalator clause for the increased costs of operation
and such clause is still in effect, the lawful rent on September 30, 2005
over which the fair rent under this Order is computed shall include the
increased rental, if any, due under such clause except those charges which
accrued within one year of the commencement of the renewal lease. Moreover,
where a lease contained an escalator clause that the owner may validly
renew under the Code, unless the owner elects or has elected in writing to
delete such clause, effective no later than October 1, 2005 from the
existing lease and all subsequent leases for such dwelling unit, the
increased rental, if any, due under such escalator clause shall be offset
against the amount of increase authorized under this Order.

SPECIAL ADJUSTMENTS UNDER PRIOR ORDERS

All rent adjustments lawfully implemented and maintained under previous
apartment orders and included in the base rent in effect on September 30,
2005 shall continue to be included in the base rent for the purpose of
computing subsequent rents adjusted pursuant to this Order.

SPECIAL GUIDELINE

Under Section 26-513(b)(1) of the New York City Administrative Code, and
Section 9(e) of the Emergency Tenant Protection Act of 1974, the Rent
Guidelines Board is obligated to promulgate special guidelines to aid the
State Division of Housing and Community Renewal in its determination of
initial legal regulated rents for housing accommodations previously subject
to the City Rent and Rehabilitation Law which are the subject of a tenant
application for adjustment. The Rent Guidelines Board hereby adopts the
following Special Guidelines:

For dwelling units subject to the Rent and Rehabilitation Law on September
30, 2005, which become vacant after September 30, 2005, the special
guideline shall be the greater of:
50% above the maximum base rent, or
The Fair Market Rent for existing housing as established by the United
States Department of Housing and Urban Development (HUD) for the New York
City Primary Metropolitan Statistical Area pursuant to Section 8(c) (1) of
the United States Housing Act of 1937 (42 U.S.C. section 1437f [c] [1] )
and 24 C.F.R. Part 888, with such Fair Market Rents to be adjusted based
upon whether the tenant pays his or her own gas and/or electric charges as
part of his or her rent as such gas and/or electric charges are accounted
for by the New York City Housing Authority.

Such HUD-determined Fair Market Rents will be published in the Federal
Register, to take effect on October 1, 2005.

DECONTROLLED UNITS

The permissible increase for decontrolled units as referenced in Order 3a
which become decontrolled after September 30, 2005, shall be the greater of:
50% above the maximum base rent, or
The Fair Market Rent for existing housing as established by the United
States Department of Housing and Urban Development (HUD) for the New York
City Primary Metropolitan Statistical Area pursuant to Section 8(c) (1) of
the United States Housing Act of 1937 (42 U.S.C. section 1437f [c] [1] )
and 24 C.F.R. Part 888, with such Fair Market Rents to be adjusted based
upon whether the tenant pays his or her own gas and/or electric charges as
part of his or her rent as such gas and/or electric charges are accounted
for by the New York City Housing Authority.

Such HUD-determined Fair Market Rents will be published in the Federal
Register, to take effect on October 1, 2005.

CREDITS

Rentals charged and paid in excess of the levels of rent increase
established by this Order shall be fully credited against the next month's
rent.

STATEMENT OF BASIS AND PURPOSE

The Rent Guidelines Board is authorized to promulgate rent guidelines
governing apartment units subject to the Rent Stabilization Law of 1969, as
amended, and the Emergency Tenant Protection Act of 1974, as amended. The
purpose of these guidelines is to implement the public policy set forth in
Findings and Declaration of Emergency of the Rent Stabilization Law of 1969
(�26-501 of the N.Y.C. Administrative Code) and in the Legislative Finding
contained in the Emergency Tenant Protection Act of 1974 (L.1974 c. 576, �4
[�2]).

The Rent Guidelines Board is also authorized to promulgate rent guidelines
for loft units subject to Section 286 subdivision 7 of the Multiple
Dwelling Law. The purpose of the loft guidelines is to implement the public
policy set forth in the Legislative Findings of Article 7-C of the Multiple
Dwelling Law (Section 280).


Dated: June 21, 2005
Marvin Markus
Chair
New York City Rent Guidelines Board

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2005 HOTEL ORDER #35
NYC Rent Guidelines Board
June 21, 2005

ORDER NUMBER 35 - Hotels, Rooming Houses, Single Room Occupancy Buildings
and Lodging Houses. Rent levels to be effective for leases commencing
October 1, 2005 through September 30, 2006.

NOTICE IS HEREBY GIVEN PURSUANT TO THE AUTHORITY VESTED IN THE NEW YORK
CITY RENT GUIDELINES BOARD BY THE RENT STABILIZATION LAW OF 1969, as
amended, and the Emergency Tenant Protection Act of 1974, as amended,
implemented by Resolution No. 276 of 1974 of the New York City Council and
extended by Chapter 82 of the Laws of 2003, and in accordance with the
requirements of Section 1043 of the New York City Charter, that the Rent
Guidelines Board hereby adopts the following levels of fair rent increases
over lawful rents charged and paid on September 30, 2005.

APPLICABILITY

This order shall apply to units in buildings subject to the Hotel Section
of the Rent Stabilization Law (Sections 26-504(c) and 26-506 of the N.Y.C.
Administrative Code), as amended, or the Emergency Tenant Protection Act of
1974 (L.1974, c. 576 �4[�5(a)(7)]). With respect to any tenant who has no
lease or rental agreement, the level of rent increase established herein
shall be effective as of one year from the date of the tenant's commencing
occupancy, or as of one year from the date of the last rent adjustment
charged to the tenant, or as of October 1, 2005, whichever is later. This
anniversary date will also serve as the effective date for all subsequent
Rent Guidelines Board Hotel Orders, unless the Board shall specifically
provide otherwise in the Order. Where a lease or rental agreement is in
effect, this Order shall govern the rent increase applicable on or after
October 1, 2005 upon expiration of such lease or rental agreement, but in
no event prior to one year from the commencement date of the expiring
lease, unless the parties have contracted to be bound by the effective date
of this Order.

RENT GUIDELINES FOR HOTELS, ROOMING HOUSES, SINGLE ROOM OCCUPANCY BUILDINGS
AND LODGING HOUSES

Pursuant to its mandate to promulgate rent adjustments for hotel units
subject to the Rent Stabilization Law of 1969, as amended, (�26-510(e) of
the N.Y.C Administrative Code) the Rent Guidelines Board hereby adopts the
following rent adjustments:

The allowable level of rent adjustment over the lawful
rent actually charged and paid on September 30, 2005 shall be:

1) Residential Class A (apartment) hotels 0%

2) Lodging houses 0%

3) Rooming houses (Class B buildings containing less than 30 units) 0%

4) Class B hotels 0%

5) Single Room Occupancy buildings (MDL section 248 SRO's) 0%

NEW TENANCIES

No "vacancy allowance" is permitted under this order. Therefore, the rents
charged for tenancies commencing on or after October 1, 2005 and on or
before September 30, 2006 may not exceed the levels over rentals charged on
September 30, 2005 permitted under the applicable rent adjustment provided
above.

ADDITIONAL CHARGES

It is expressly understood that the rents collectible under the terms of
this Order are intended to compensate in full for all services provided
without extra charge on the statutory date for the particular hotel
dwelling unit or at the commencement of the tenancy if subsequent thereto.
No additional charges may be made to a tenant for such services, however
such charges may be called or identified.

STATEMENT OF BASIS AND PURPOSE

The Rent Guidelines Board is authorized to promulgate rent guidelines
governing hotel units subject to the Rent Stabilization Law of 1969, as
amended, and the Emergency Tenant Protection Act of 1974, as amended. The
purpose of these guidelines is to implement the public policy set forth in
Findings and Declaration of Emergency of the Rent Stabilization Law of 1969
(�26-501 of the N.Y.C. Administrative Code) and in the Legislative Finding
contained in the Emergency Tenant Protection Act of 1974 (L.1974 c. 576, �4
[�2]).

Dated: June 21, 2005
Marvin Markus
Chair
New York City Rent Guidelines Board

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