Subject: Rent Guideline Board Orders 2006-2007
From: "Hell's Kitchen Online"
Date: Sun, 15 Oct 2006 02:40:41 -0400 (EDT)
Hell's Kitchen Online
http://www.hellskitchen.net
Hell's Kitchen OnlineOctober 14, 2006
2006-2007 RGB ORDERS
Many residents of Hell's Kitchen are rent stabilized tenants. Although some subscribers to the Hell's Kitchen list are also subscribers to the TenantNet list, the overlap is not broad. So if you already received this yesterday from TenantNet, we felt the value of the information outweighs some duplication.
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, 2006 through September 30, 2007, 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 4.25% for a one-year renewal and 7.25% for a two-year renewal (where heat is provided).
If you have questions on any aspects of these orders, please join the TenantNet Forum at http://www.tenant.net/phpBB2
2006 Apartment & Loft Order #38June 27, 2006
Order Number 38 - Apartments and Lofts, rent levels for leases commencing October 1, 2006 through September 30, 2007.
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, 2006. These rent adjustments will apply to rent stabilized apartments with leases commencing on or after October 1, 2006 and through September 30, 2007. 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, 2006 and on or before September 30, 2007: 4.25%
For a two-year renewal lease commencing on or after October 1, 2006 and on or before September 30, 2007: 7.25%
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, 2006 and on or before September 30, 2007: 3.75%
For a two-year renewal lease commencing on or after October 1, 2006 and on or before September 30, 2007: 6.75%
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, 2006 and on or before September 30, 2007: 3.75%
For two-year increase periods commencing on or after October 1, 2006 and on or before September 30, 2007: 6.75%
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, 2006 and on or before September 30, 2007 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, 2006 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, 2006 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, 2006 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, 2006, which become vacant after September 30, 2006, 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, 2006.
DECONTROLLED UNITS
The permissible increase for decontrolled units as referenced in Order 3a which become decontrolled after September 30, 2006, 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, 2006.
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 27, 2006
Marvin Markus
Chair
New York City Rent Guidelines Board
2006 Hotel Order #36June 27, 2006
Order Number 36 - Hotels, Rooming Houses, Single Room Occupancy Buildings and Lodging Houses. Rent levels to be effective for leases commencing October 1, 2006 through September 30, 2007.
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, 2006.
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, 2006, 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, 2006 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, 2006 shall be:
1) Residential Class A (apartment) hotels
2.0%
2) Lodging houses
2.0%
3) Rooming houses (Class B buildings containing less than 30 units)
2.0%
4) Class B hotels
2.0%
5) Single Room Occupancy buildings (MDL section 248 SRO's)
2.0%
Except that the allowable level of rent adjustment over the lawful rent actually charged and paid on September 30, 2006 shall be 0% if permanent rent stabilized or rent controlled tenants paying no more than the legal regulated rent, at the time that any rent increase in this Order would otherwise be authorized, constitute fewer than 80% of all units in a building that are used or occupied, or intended, arranged or designed to be used or occupied in whole or in part as the home, residence or sleeping place of one or more human beings.
NEW TENANCIES
No "vacancy allowance" is permitted under this order. Therefore, the rents charged for tenancies commencing on or after October 1, 2006 and on or before September 30, 2007 may not exceed the levels over rentals charged on September 30, 2006 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 27, 2006
Marvin Markus
Chair
New York City Rent Guidelines Board
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