A publication of New York State
               Division of Housing and Community Renewal
                      Office of Rent Administration

     Fact Sheet #26 - Guide to Rent Increases for Rent Stabilized
                        Apartments in New York City
                               [Revised 2/97]

   This is a guide to rent increases for Rent Stabilized Apartments in New
   York City.

   A tenant may separately request from the New York State Division of
   Housing and Community Renewal (DHCR) a printout of the rent registration
   information on file for the tenant's apartment and it will be sent to the
   tenant in a separate mailing. This printout and this guide will assist the
   tenant in reviewing the rental history of the tenant's apartment.

   The rent registration printout will show the rents the building owner
   registered with DHCR for the tenant's apartment for the last four years. Rent
   changes occurring after April 1 of a given year will be included in the rent
   shown for April 1 of the following year.

   In addition to the rent increases discussed in this fact sheet, a tenant's
   rent may be affected by prior cases relating to the tenant's apartment. The
   tenant may request from DHCR a printout showing any prior cases affecting the
   rent of the tenant's apartment. This printout, as well as the rent registration
   printout mentioned above, may be obtained by visiting one of DHCR's offices and
   speaking to a counselor. The reverse side of this fact sheet lists DHCR's offices.

   Three common ways owners may increase rents are:

   -   Lease Increases approved by the New York City Rent Guidelines Board (NYC

       When an apartment is rented to a new tenant, the owner is allowed to
       increase the last tenant's rent by the most recently approved guidelines
       adjustment for the one- or two-year lease term, whichever the new tenant
       chooses, plus an adjustment called the vacancy allowance. When a tenant
       signs a renewal lease, the rent increase for the renewal lease will only be the
       adjustment for a one- or two-year lease. Listed below are increases approved
       by the NYC RGB for leases commencing since October 1, 1992.

       Leases Starting Between:

       10/1/92 - 9/30/93

          1 Year = 3%
          2 Year = 5%
          New Lease Vacancy Allowance = 5%

       10/1/93 - 9/30/94

          1 Year = 3%
          2 Year = 5%
          New Lease Vacancy Allowance = 5%
              (Applies to apts. with rents of less than
              $500.00 per month on 9/30/93)
          New Lease Vacancy Allowance = 3%
              (Applies to apts. with rents of less than
              $999.99 per month on 9/30/93)

       10/1/94 - 9/30/95**

          1 Year = 2%
          2 Year = 4%
          New Lease Vacancy Allowance = 5%
              (Applies to apts. with rents of less than
              $1000.00 per month on 9/30/94)
          New Lease Vacancy Allowance = 10%
              (Applies to apts. with rents of less than
              $400.00 per month on 9/30/94
              in buildings with 30 units or less)

       10/1/95 - 9/30/96**
          1 Year = 2%
          2 Year = 4%
          New Lease Vacancy Allowance = 8.5%

       10/1/96 - 9/30/97**
          1 Year = 5%
          2 Year = 7%
          New Lease Vacancy Allowance = 9%


       The NYC RGB did not authorize a vacancy allowance for apartments with rents
       of $1,000.00 or more per month on 9/30/93 and 9/30/94.

       In certain years, in addition to the renewal and vacancy guideline
       increases, the NYC RGB has ordered an additional amount ("supplementary
       adjustment") for apartments renting at or below a certain amount on the September
       30th prior to the start of the lease.  For example, an apartment renting for
       $400.00 or less on September 30, 1995, or on September 30, 1996 , is eligible
       for a $20.00 per month increase in addition to the guidelines and vacancy
       allowance increases.

       Examples on how to apply the Rent Guidelines Board's Adjustments:

       Examples on how to apply the Rent Guidelines Board's Adjustments:

       9/30/94  Present Rent      =                                $450.00
       10/1/94  1 Yr. Renewal Rent     = $450 x {1 + .020}      =  $459.00
       10/1/94  2 Yr. Renewal Rent     = $450 x {1 + .040}      =  $468.00
       10/1/94  2 Yr. Vacancy Rent     = $450 x {1 +.040 + .050}=  $501.75

   -   Major Capital Improvement rent increases approved by  DHCR.

       Where an owner makes a building-wide improvement, such as the
       installation of a new boiler, the owner may be entitled to collect from each
       rent stabilized tenant in the building a major capital improvement (MCI) rent
       increase. The MCI increase may not be charged until a DHCR order is issued
       authorizing the charge and setting the amount. The MCI increase is allocated
       on a per-room basis, and becomes part of the legal regulated rent for the
       purpose of computing future lawful increase. (See Fact Sheet #11, "Rent
       Increases for Major Capital Improvements," for additional information.)

   -   Individual Apartment Improvement rent increase.

       Where an owner installs a new appliance in, or makes an improvement to,
       an apartment, the owner may be entitled to increase the rent of that apartment
       for the new appliance or improvement.

       If an apartment has a tenant in occupancy, the owner can only receive a
       rent increase for the individual apartment improvement if the tenant consents
       in writing to pay an increase for the improvement(s). However, if the
       apartment is vacant, tenant consent is not required. The increase to the
       tenant's rent is 1/40th of the total cost of the improvement including
       installation. For example, if a new refrigerator is installed in an apartment,
       and the owner's expense is $320.00, the tenant's rent would increase by:  1/40
       x $320.00 = $8.00 per month. The increase, if taking place on a vacancy, is
       not compounded by the guidelines increases, but rather should be added to the
       lawful rent after application of the guidelines increases.  [See Fact Sheet
       #12, "Rent Increases for New Services, New Equipment or Improvements to An
       Apartment," for additional information.]

   If a tenant believes that his or her rent exceeds the lawful rent, DHCR
   recommends that the tenant discuss this with the building's owner or managing
   agent before filing an overcharge complaint with DHCR. If the tenant is unable
   to resolve the problem with the owner, and the tenant has reason to believe
   that his or her rent exceeds the lawful rent, the tenant may file an
   overcharge complaint with DHCR. An overcharge complaint form may be obtained
   by calling DHCR's Rent InfoLine at (718) 739-6400 or by visiting a Borough
   Rent Office.

   A tenant's complaint must be filed with DHCR within four years of the
   first overcharge alleged. A tenant's failure to comply with the time limit for
   filing an overcharge complaint will result in the tenant's inability
   to challenge the lawfulness of the rent.

   Security Deposit

   The amount of a security deposit is usually equal to one month's rent.
   However, if a tenant deposited a two-month security deposit with the owner
   when the apartment first came under rent stabilization, the owner may continue
   to collect from that tenant a security deposit equal to two months rent.  The
   next rent stabilized tenant, however, may not be required to deposit more than
   one month's rent as security.

   When a lease is renewed at a higher rent, or the rent is increased during
   the term of the lease, the owner may collect additional money from the tenant
   to bring the security deposit up to the new monthly rent.

   If after the tenant vacates the apartment, the tenant disagrees with the
   owner over the payment of interest or the return of the security deposit, and
   such disagreement cannot be resolved between the owner and the tenant, the
   tenant may contact the Consumer Frauds and Protection Bureau of the New York
   State Attorney General's Office or begin a proceeding in a court of competent
   jurisdiction (usually, small claims court.)

   For more information or assistance, call the DHCR Rent InfoLine
   (718) 739-6400, or visit your Borough or County Rent Office.

   92-31 Union Hall Street
   4th Floor
   Jamaica, NY 11433
   (718) 739-6400

   55 Hanson Place
   7th Floor
   Brooklyn, NY 11201

   Upper Manhattan
   163 W. 125th Street
   5th Floor
   New York, NY 10027
   North side of 110th St. and above

   Nassau County
   50 Clinton Street
   6th Floor
   Hempstead, NY 11550

   Westchester County
   55 Church Street
   White Plains, NY 10601

   Lower Manhattan
   156 William Street
   9th Floor
   New York, NY 10038
   South side of 110th St. and below

   1 Fordham Plaza
   2nd Floor
   Bronx, NY 10458

   Staten Island
   60 Bay Street
   7th Floor
   Staten Island, NY 10301

   Rockland County
   94-96 North Main Street
   Spring Valley, NY 10977

   Reissued 2/97

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