RENT REGULATION AFTER 50 YEARS An Overview of New York State's Rent Regulated Housing 1993 NEW YORK STATE DIVISION OF HOUSING & COMMUNITY RENEWAL ================================================================ RENT REGULATED HOUSING Overview Of The Housing Market New York City is a very distinct and unique housing market when compared to the United States as a whole. Throughout the country almost two out of three households (64%) own their homes, while in New York City only 3 out of 10 are owners. Throughout the country almost 3 out of 4 households live in buildings with less than 5 apartments and 64% occupy single family homes. In the City, fewer than 2 households out of 5 (37%) live in buildings with less than 5 units while almost 9% live in buildings with 200 or more units. The 1990 Census reports an 8.5% net rental vacancy rate for the United States, while the 1993 New York City Housing and Vacancy Survey reports a net rental vacancy rate of only 3.44%.* * Statistics in the Overview Section when referring to New York City are from the 1993 Housing and Vacancy Survey, U.S. Department of Commerce, Bureau of the Census. Statistics referring to the United States, New York State, or municipalities other than New York City are from the 1990 decennial census. In New York State in 1990 there were 7,226,891 housing units with New York City accounting for almost 3 million housing units. The 1993 New York City Housing and Vacancy Survey reported 2,985,527 units. Nearly four percent (111,510 or 3.7%), of these units were vacant and not available for sale or rent. Some examples of these units are dilapidated units, apartments undergoing renovation, and units awaiting to be converted to cooperative use. Of the remaining 2,874,017 units, 2,047,016, or 71.2 percent, were rental units and 827,001, or 28.8 percent, were owner occupancy units. Thus, as stated, the great majority of New York City residents are renters, while in the rest of the State and in the Nation a majority of households are owners. The owner and renter categories are further broken-down into various subcomponents. The conventional homeowner component represents 19% of New York City's housing stock. Conventional homeowners reside predominantly in single-family and two-family houses. Private cooperative and condominium owners occupy 8% of the housing stock and Mitchell-Lama owners 1%. The Mitchell-Lama program provides State or City long-term, low interest mortgage loans to foster the production of middle income rental or cooperative housing. The rental category is broken-down into five sub-components. Privately owned rental housing that is rent regulated represents 38% with 4% rent controlled and 34% rent stabilized. All privately owned non-regulated rental housing represents 22% of the total New York City housing stock. The final rental components, publicly owned and publicly-aided housing, represents 9% of the City's housing stock with 6% being public housing and 3% Mitchell-Lama housing. In addition, 2% of the available housing stock was vacant for rent and 1% was vacant for sale. ================================================================ COMPOSITION OF THE NEW YORK CITY HOUSING STOCK, 1993 Inventory Units Vacancy Rate --------- ----- ------------ Owner-Occupied 806,479 Vacant For Sale 20,522 2.48% ------- Total Owner Units 827,001 Renter Occupied 1,976,671 Vacant For Rent 70,345 3.44% --------- Total Renter Units 2,047,016 Vacant Not Available 111,510 --------- Total Housing Units 2,985,527 ================================================================ ================================================================ COMPOSITION OF THE NEW YORK CITY HOUSING STOCK, 1993 Source: Housing and Vacancy Survey, New York City, 1993 Conventional (owner) 19% Co-op/Condo (owner) 8% Mitchell-Lama (owner) 1% Rent Controlled 4% Rent Stabilized 34% Mitchell-Lama (renter) 3% Public Housing 6% All other renter 22% Vacant for rent 2% Vacant for sale 1% ================================================================ In New York City half of all occupied rental housing units were rent stabilized. An additional five percent of occupied rental housing units were rent controlled. Nine percent of occupied rental housing was in State, City or federally supported public housing which is owned and operated by the New York City Housing Authority. Mitchell-Lama housing represented four percent of the occupied rental stock. The remaining 33 percent of rentals were categorized as other rentals. These rental units are either unregulated consisting of non-rent controlled units in buildings containing less than 6 units, buildings built after 1974 with no tax abatements or rentals in cooperative and condominium buildings that have been deregulated or never regulated, or under government auspices such as "in-rem" units and HUD federally subsidized units. ================================================================ COMPOSITION OF THE OCCUPIED RENTAL HOUSING STOCK, NEW YORK CITY, 1993 Source: Housing and Vacancy Survey, New York City, 1993 Rent Controlled 5% Rent Stabilized 49% Public Housing 9% Mitchell-Lama 4% Other rentals 33% ================================================================ ================================================================ OCCUPIED RENTAL HOUSING UNITS, NEW YORK CITY 1993 Regulatory Status Units Percentage Rent Controlled 101,798 5.2 Rent Stabilized 979,026 49.5 Mitchell-Lama 79,138 4.0 Public Housing 173,561 8.8 Other Rental 643,148 32.5 --------- ----- Total 1,976,671 100.0 ================================================================ Manhattan was the borough with the highest percentage of rent stabilized (61 percent) and rent controlled (8 percent) occupied units. Thus, almost 7 out of 10 rental units in Manhattan were regulated. Nine percent of occupied rental housing was in public housing developments and four percent in publicly aided Mitchell- Lama developments. Only 17 percent of occupied rental housing (the lowest percentage in the five boroughs) was classified as other rental in Manhattan. The low percentage of other rental housing can be accounted for by the small number of buildings with less than 6 units in Manhattan and by participation of most builders in the Section 421a program when developing post-1974 rental housing. Such City tax abatement programs as Section 421a place rental units under rent stabilization during the period that tax benefits remain in effect. However, because of the expiration of tax benefits, and because of the large number of buildings converted to cooperative status (vacated rental units in buildings converted to cooperative status are no longer subject to regulation), and because of the 1993 Rent Regulation Reform Act provisions gradually deregulating units of $2,000 or more, the number of unregulated units in Manhattan should increase relative to the total number of rental units. ================================================================ MANHATTAN Regulatory Status Units Percentage Rent Controlled 47,309 8% Rent Stabilized 355,310 61% Public Housing 54,164 9% Mitchell-Lama 26,077 4% Other Rentals 98,381 17% ================================================================ Brooklyn and Queens had 43 percent of their respective occupied rental housing classified as rent stabilized and 4 percent classified as rent controlled. Other rental housing was 40 percent of Brooklyn's occupied rental stock as compared to 46 percent for Queens. Public housing represented 10 percent of Brooklyn's rental stock as compared to 4 percent for Queens. Mitchell-Lama housing represented 3% of the housing stock in these contiguous boroughs. ================================================================ QUEENS Regulatory Status Units Percentage Rent Controlled 16,501 4% Rent Stabilized 182,180 43% Public Housing 16,839 4% Mitchell Lama 12,870 3% Other Rental 191,787 46% ================================================================ ================================================================ BROOKLYN Regulatory Status Units Percentage Rent Controlled 26,666 4% Rent Stabilized 254,743 43% Public Housing 59,673 10% Mitchell Lama 17,068 3% Other Rental 238,574 40% ================================================================ The Bronx recorded the highest percentage of public and publicly aided housing with almost 1 out of 5 renter occupied units falling into these categories. Public housing represented 11% of the stock and Mitchell-Lama units 7%. Fifty-four percent of the housing stock in the Bronx was classified as rent stabilized, 3% as rent controlled and 24% as other rental. ================================================================ BRONX Regulatory Status Units Percentage Rent Controlled 10,284 3% Rent Stabilized 177,338 54% Public Housing 37,565 11% Mitchell Lama 23,123 7% Other Rental 79,454 24% ================================================================ In Richmond, 69 percent of rental housing was classified as other rental, the largest percentage figure for this type of rental housing in the five boroughs. Small buildings, one and two-family homes are the hallmark of this borough's housing stock. Nineteen percent of rental housing was rent stabilized, 10 percent was public housing and 2 percent was rent controlled. ================================================================ STATEN ISLAND Regulatory Status Units Percentage Rent Controlled 1,037 2% Rent Stabilized 9,455 19% Public Housing 5,321 10% Other Rental 34,952 69% ================================================================ Vacancies The 1993 Housing and Vacancy Survey (HVS) reported a City-wide net rental vacancy rate of 3.44. This represents a modest tightening of the market since 1991 when the HVS reported a 3.78% net rental vacancy rate. The vacancy rate in New York City continues to remain well below the five percent threshold signifying a housing emergency. Vacancy rates varied by location, size, age and regulatory status of the apartments. The net rental vacancy rates in 1993 for the boroughs had little variance falling into the narrow range of 3% - 4%: the Bronx, 4.0%; Brooklyn, 3.2%; Manhattan, 3.5%; Queens, 3.1%; and Staten Island, 4.1%. Manhattan reported a significant decline in the vacancy rate as it fell from 4.45% in 1991 to 3.52% in 1993. Vacancy rates had an inverse relationship to the size of the unit with studios (0 bedroom) reporting a 6.6% vacancy rate, 1-bedroom apartments, 3.4% and two or more bedroom apartments, 2.9%. There was also a disproportionate number of vacancies in newly constructed buildings. Buildings completed after 1987 had a vacancy rate of 7.80% while the vacancy rate for pre-1987 buildings was only 3.38%. As expected, vacancy rates increase as the asking rent increases. The net rental vacancy rate is less than 1% (0.7%) for apartments renting for less than $400; 3.2% for units renting between $400 and $700; and is 5.3% for apartments renting for $700 or more. The net rental vacancy rate for rent stabilized apartments in 1993 was 3.36%. This compares to a 4.73% vacancy rate in the unregulated sector. Vacancy rates are not applicable to rent controlled apartments, because, by definition, rent controlled apartments must be occupied in order to remain under control. Vacated rent controlled apartments become subject to rent stabilization or are deregulated depending on the size and status of the building. Rent Regulation Outside New York City Rent regulation outside of New York City is in effect in municipalities in seven counties. In four of the counties (Albany, Erie, Rensselaer, and Schenectady) the only regulated units are rent controlled; two counties (Nassau and Westchester) contain rent controlled and rent stabilized (Emergency Tenant Protection Act) regulated units; and in Rockland County there are only apartments regulated under ETPA. Since all counties in the State are subject to the vacancy decontrol provisions of Chapter 371 of the Laws of 1971 (see "History" chapter) the number of State rent controlled units has steadily declined and only several thousand units remain under control outside of New York City. The exact total of these rent controlled units is unknown because these apartments are not required to annually register with ORA. The agency has initiated a survey of regulated upstate buildings in order to provide accurate data on the number and location of these rent controlled apartments. Rent regulation outside of New York City is also predicated on an housing emergency, meaning the net rental vacancy rate is less than 5 percent. Selected vacancy rates in cities covered by the Emergency Tenant Protection Act are as follows: Glen Cove, 4.6%; Mount Vernon, 3.3%; New Rochelle, 3.2%; White Plains, 4.3%; and Yonkers, 3.7%. Listed on the following table are municipalities outside New York City which are covered by rent control and municipalities in Nassau, Rockland and Westchester counties which have adopted the Emergency Tenant Protection Act of 1974. ================================================================ RENT REGULATED HOUSING OUTSIDE NEW YORK CITY County Rent ETPA Locality Control Regulated By Building Size -------- ------- -------------------------- ALBANY COUNTY Albany x Watervliet x Bethlehem x Green Island Town x New Scotland x Green Island Village x Voorheesville x ERIE COUNTY Buffalo x Cheektowaga x Depew x Sloan x NASSAU COUNTY Glen Cove x 100 or more units Long Beach x 60 or more units Hempstead x 6 or more units North Hempstead x 6 or more units Oyster Bay x Bellerose x Cedarhurst x 6 or more units Floral Park x 6 or more units Freeport x 6 or more units Hempstead x 6 or more units Mineola x 6 or more units New Hyde Park x Sea Cliff x Valley Stream x Westbury x Williston Park x Baxter Estates 6 or more units Flower Hill x 6 or more units Great Neck 6 or more units Great Neck Plaza 6 or more units Lynbrook x 6 or more units Rockville Centre 6 or more units Russell Gardens 6 or more units Thomaston 6 or more units RENSSELAER COUNTY Rensselaer x Hoosick x North Greenbush x Hoosick Falls x ================================================================ ================================================================ RENT REGULATED HOUSING OUTSIDE NEW YORK CITY (continued) County Rent ETPA Locality Control Regulated By Building Size -------- ------- -------------------------- ROCKLAND COUNTY Haverstraw 100 or more units Spring Valley 6 or more units SCHENECTADY COUNTY Niskayuna x Princeton x WESTCHESTER COUNTY Mount Vernon x 6 or more units New Rochelle x 6 or more units White Plains x 6 or more units Yonkers x 6 or more units Eastchester x 6 or more units Greenburgh x 6 or more units Harrison x 6 or more units Mamaroneck Town x 6 or more units Ardsley x Dobbs Ferry x 6 or more units (2 rms+) Hastings-on-Hudson x 6 or more units Larchmont x 6 or more units Mamaroneck Village x 6 or more units North Tarrytown x 6 or more units Tarrytown x 6 or more units Tuckahoe x Irvington 20 or more units Mt. Kisco 16 or more units Pleasantville 20 or more units Port Chester 12 or more units ================================================================ Rent Registration The Omnibus Housing Act of 1983 requires owners to file an initial apartment registration, listing all apartment equipment and services and monthly regulated rents for every apartment in buildings subject to regulation. Owners are also required to update that registration each year by submitting Annual Registration Summary and Annual Apartment Registration forms. These filings provide a data base which is a wellspring of information and the most complete source of data on New York's stabilized housing stock. The rent registration data base maintains information on two files, a building file and an apartment file. The building file contains the name and address of the owner and/or manager, building address and type of structure (hotel, Class A multiple dwelling, cooperative, etc.), total number of apartments in the structure, and building-wide service information from the initial registration form. The apartment file contains the name of the tenant, lease date, legal registered rent, rent actually paid, basis of change in rent and individual apartment services from the initial apartment rent registration form. The apartment file has extensive information on the basis for the change in rent since the last registration including; lease renewal, vacancy adjustment, major capital improvement increase, hardship increase, overcharge adjustment and individual apartment improvement increase. Information on rent controlled apartments is more limited because annual registrations are not required by the rent control law. However, owners may file for rent increases under the Maximum Base Rent program in New York City. Data providing the number of rent controlled units and buildings in the City are based on these filings. Number of Registered Units A total of 926,649 housing units in 43,792 buildings were registered with DHCR in 1992 in New York City and Nassau, Rockland and Westchester counties. The overwhelming majority of the apartments registered (91%) were in occupied stabilized units. Four percent of the registered units were vacant and 3% were temporarily exempt from regulation. Examples of temporarily exempt accommodations are: owner occupied units; units occupied by an employee paying no rent and transient occupants in a stabilized hotel or single room occupancy (SRO) building. In addition, 18,199 or two percent of the registered units were registered as permanently exempt. These are units which first became exempt from regulation in 1992. More than half of these units were in buildings that were converted to ownership status. ================================================================ Apartments Permanently Exempt from Rent Regulation, NYC, ETPA, 1992 Co-op/Condo 54% 421-a Expired 13% Commercial/Prof 1% Substantial Rehab 2% J-51 Expired 6% Other 24% ================================================================ Excluding the permanently exempt apartments, a total of 908,450 stabilized units were registered in 1992. The vast majority of these stabilized units, 855,923 or 94.2%, were located in New York City.* Manhattan contained more than one-third (35.5%) of the total number of registered units; Brooklyn had 23.0%; Queens and the Bronx reported 17.5%; and Staten Island contained less than 1% (0.6%). * The total number of registered stabilized apartments differs from the total number of stabilized units reported in the 1993 New York City Housing and Vacancy Survey. The HVS is a sample survey and as such it is subject to both sampling and non-sampling errors. In addition, the documentation accompanying the HVS states that their procedures "may tend to overestimate somewhat the total number of regulated units in the city..." DHCR's rent registration database contains records from owner filings. While owners are required to register annually, some owners have registered intermittently and others have never registered. Therefore, the DHCR registration database would undercount the number of stabilized units. In the three suburban ETPA counties, Westchester had 4.0%; Nassau reported 1.5%; and Rockland contained less than 1% (0.3%). Manhattan also had the most buildings containing registered stabilized units. Registered buildings in Brooklyn contained fewer stabilized apartments than the Citywide average while buildings in the Bronx contained a greater number of stabilized apartments than the City-wide average. ================================================================ Registered Rent Stabilized Apartments And Buildings By County, 1992 County Buildings Percent Apartments Percent ------ --------- ------- ---------- ------- Bronx 4,792 10.9% 159,251 17.5% Kings 12,805 29.2% 209,397 23.0% New York 14,397 32.9% 322,713 35.5% Queens 8,812 20.1% 159,140 17.5% Richmond 383 0.9% 5,422 0.6% Total NYC 41,189 94.1% 855,923 94.2% Nassau 618 1.4% 13,877 1.5% Rockland 105 0.2% 2,633 0.3% Westchester 1,880 4.3% 36,017 4.0% Total ETPA 2,603 5.9% 52,527 5.8% Grand Total 43,792 100.0% 908,450 100.0% ================================================================ ================================================================ Registered Rent Stabilized Buildings by County, 1992 New York 14,397 Queens 8,812 Kings 12,805 Bronx 4,792 Richmond 383 Rockland 105 Nassau 618 Westchester 1,880 ================================================================ ================================================================ Registered Rent Stabilized Apartments by County, 1992* New York 322,713 Queens 159,140 Kings 209,397 Bronx 159,251 Richmond 5,422 Rockland 2,633 Nassau 13,877 Westchester 36,017 * Excludes 18,199 units which were registered as permanently exempt in 1992 ================================================================ Rent Levels In New York City, 826,083 rent stabilized apartments with reported rents were registered in 1992. The median rent for these apartments was $516 and the mean or average rent was $606. Apartment rents were clustered in a narrow range between $350 to $649. This interval represents 61.3% of all registered stabilized apartments in the City. There were 96,216 (11.7%) apartments renting for less than $350 per month and there were 31,029 (3.8%) apartments renting for $1,400 a month or more. Almost a quarter (23.3%) of the stabilized stock in New York City rented between $650 to $1,399. ================================================================ Mean And Median Rents Rent Stabilized Apartments - Registered in 1992 County Mean Rent Median Rent ------ --------- ----------- Bronx $481 $466 Brooklyn $502 $480 Manhattan $762 $611 Queens $559 $531 Richmond $565 $550 New York City $606 $516 Nassau $671 $655 Rockland $625 $606 Westchester $566 $547 ETPA Counties $596 $582 ================================================================ The mean monthly rent is the sum of the rents reported by owners for all registered units divided by the number of units registered indicating a rent level. The median rent is the midpoint of the reported rents. The reported registered rent may vary from the rent paid by the tenant for several reasons. Some examples are: - The owner has received Major Capital Improvement (MCI) increases which total more than 6% of the rent paid. - The annual permanent rent increase resulting from such an MCI can only increase by a maximum of 6% while the registered rent would reflect the total allowable increase. - The owner has received a temporary retroactive increase for an MCI installation. Such retroactive increases are not included as part of the registered rent. - The owner has leased the unit to the tenant at a preferential rent below the registered rent level. - There is a surcharge in effect (air conditioning charge) which is not reflected in the registered rent. [Note: the following table is formatted for 100 columns] ==================================================================================================== MONTHLY REGISTERED RENTS FOR RENT STABILIZED APARTMENTS IN NEW YORK CITY AND ETPA COUNTIES 1992 County Number of Apartments ------ -------------------- 350- 500- 650- 800- 950- 1,400- over <$350 499 649 799 949 1,399 1,999 $2,000 TOTAL -------------------------------------------------------------------------------------- BRONX 21,306 72,471 45,215 12,262 2,337 929 132 20 154,672 KINGS 24,892 88,559 61,525 20,055 4,775 2,401 634 63 202,904 NEW YORK 40,608 73,844 54,082 42,032 28,214 40,301 18,373 11,126 308,580 QUEENS 9,157 57,954 49,257 26,279 7,699 3,641 454 227 154,668 RICHMOND 253 1,739 1,914 919 283 151 0 0 5,259 TOTAL NYC 96,216 294,567 211,993 101,547 43,308 47,423 19,593 11,436 826,083 -------------------------------------------------------------------------------------- NASSAU 186 1,819 4,517 3,949 1,911 854 66 5 13,307 ROCKLAND 100 473 1,033 718 192 84 0 1 2,601 WESTCHESTER 3,421 10,414 10,075 6,094 2,700 1,235 21 2 33,962 TOTAL ETPA 3,707 12,706 15,625 10,761 4,803 2,173 87 8 49,870 UNKNOWN 223 371 192 124 59 8 2 0 979 TOTAL 100,146 307,644 227,810 112,432 48,170 49,604 19,682 11,444 876,932 ================================================================================================== [Note: the following table is formatted for 100 columns] ==================================================================================================== AVERAGE MONTHLY REGISTERED STABILIZED RENTS BY APARTMENT SIZE AND COUNTY, 1992 Apartment Size ----------------------------------------------------------------------------- COUNTY 1 ROOM 2 ROOM 3 ROOM 4 ROOM 5 ROOM 6 ROOM 7 ROOM 8 ROOM Bronx $364 $419 $453 $510 $557 $637 $592 $668 Kings 468 456 480 523 559 613 697 698 New York 582 736 715 788 861 916 1,004 1,355 Queens 480 488 539 602 629 751 775 * Richmond 366 492 531 601 733 672 * * Nassau 430 563 639 713 806 807 956 * Rockland 452 552 572 609 638 677 * * Westchester 422 474 531 590 676 686 707 * * Too few units to report. ================================================================================================== ================================================================ AVERAGE MONTHLY REGISTERED RENT FOR STABILIZED APARTMENTS RECEIVING SECTION 421A TAX BENEFITS BY COUNTY, 1992 NUMBER OF AVERAGE COUNTY APARTMENTS MONTHLY RENT Bronx 457 $ 872 Kings 1,055 591 New York 16,957 1,906 Queens 1,771 958 Richmond 281 795 New York City 20,521 $1,713 ================================================================ See Manhattan Stabilized Rents Manhattan had the greatest number of registered stabilized units with reported rents in 1992 (308,580). It had the highest mean rent ($762) and median rent ($611) and the greatest spread between median and mean rents. This is the result of the comparatively large number of units renting for $1,400 or more. For the City, Manhattan contained 93.8% of the apartments renting between $1,400 -- $1,999 and 97.3% of the apartments renting for $2,000 or more per month. In addition, 83% of the stabilized units receiving 421-A tax benefits were located in Manhattan. These buildings of recent construction had significantly higher average rents than the stabilized stock as a whole. Manhattan's relatively higher rents compared to the rest of the City is further shown in the table entitled "Average Monthly Registered Rent Stabilized Rent By Apartment Size." Studio (1 room) apartments in Manhattan on the average rented for more than 5 room apartments in the Bronx and Brooklyn and 3 room apartments in Queens and Staten Island. Manhattan also had a large number of low priced units with 40,608 or 13.2% renting for less than $350 per month. See Brooklyn Stabilized Rents In Brooklyn, 202,904 apartments, with reported rents were registered in 1992. The median rent for these stabilized apartments was $480 and the mean rent $502. The rents for Brooklyn's units were heavily concentrated within the monthly range of $350 - $499 (43.6%) and $500 - $649 (30.3%). Thus, nearly three-quarters of Brooklyn's stabilized apartments rented between $350 - $649. Approximately one out of eight apartments (12.3%) rented for less than $350 per month. More than half (56%) of Brooklyn's units rented for less than $500 per month. See Bronx Stabilized Rents In the Bronx, 154,652 apartments were registered, with reported rents, in 1992. The Bronx reported the lowest median ($466) and mean ($481) rents for the City. Six out of ten stabilized apartments in the Bronx rented for less than $500. The monthly rent range of $350 - $499 contained almost half (46.9%) of the units and the less than $350 category contained 13.8% of the units. See Queens Stabilized Rents Queens reported a median rent of $531 and a mean rent of $559 for the 154,668 registered stabilized units with rent data in 1992. While the rent of $350 - $499 contained the highest percentage of units at 37.5%, it only narrowly led the $500 $649 interval which contained 31.8% of the stabilized apartments in Queens. This borough also had a high percentage of units (17.0%) renting between $650 - $799. Only 5.9% of the apartments rented for less than $350. Staten Island Stabilized Rents Staten Island with the least number of stabilized units, 5,259, reported a median rent of $550 and a mean rent of $565 for 1992. While in all the other boroughs the $350 - $499 rent range contained the most registered units, in Staten Island the $500 - $649 range had the highest percentage (36.4%) of apartments. The $350 - $499 category followed at 33.1%. Staten Island had the lowest percentage (4.8%) of apartments renting for less than $350. In Nassau, Rockland and Westchester counties 49,870 apartments, with reported rents, were registered in 1992. These apartments are regulated under the Emergency Tenant Protection Act (ETPA). A median rent of $582 and a mean rent of $596 was reported for the ETPA counties. The median rent for the suburban counties was substantially higher than the median rent for New York City while the mean rent was slightly lower. This points out the strong influence of the "luxury" rental market in Manhattan skewing the mean rents for stabilized units in the City. Westchester County with two-thirds of the registered units reporting rents in the ETPA counties had the lowest median rent ($547) and mean rent ($566). The pattern of rents in Westchester County was similar to those of the borough of Queens, while Nassau and Rockland counties, on the average, reported higher rents. Westchester contains several large cities (Yonkers, Mount Vernon, New Rochelle, and White Plains) where older high-rise construction is prevalent. Nassau and Rockland counties are more suburban in character with less pre-war construction. Three out of ten ETPA units in Westchester rented within the $350 - $499 range. This was followed by: 29.7% in the $500 - $649 range; 17.9% in the $650 - $799 range and 10.1% renting for less than $350. Nassau County, with 13,307 registered units reporting rents, had the highest median rent of any county ($655) and reported a mean rent of $674. Slightly more than one-third (33.9%) of Nassau's ETPA units fell into the $500 - $649 range. Three out of ten units rented in the $650 - $799 range. Only fifteen percent of the units rented for less than $500 and only 1.4% rented for less than $350. In Rockland County, 2,601 apartments with reported rents, were registered in 1992. The median rent for Rockland County was $606 and the mean rent was $625. Almost four out of ten (39.7%) units rented within the $500 - $649 range and 27.6% rented in the $650 - $799 range. Only 3.8% of the ETPA units in Rockland rented for less than $350. ================================================================ AVERAGE REGISTERED REGULATED RENT RENT STABILIZED APARTMENTS BY ZIP CODE, 1992 MANHATTAN BROOKLYN Zip Code Rent Zip Code Rent 10001 $714 11201 $733 10002 460 11203 482 10003 729 11204 487 10004 * 11205 490 10005 733 11206 426 10006 386 11207 531 10007 803 11208 483 10009 628 11209 546 10010 694 11210 521 10011 738 11211 426 10012 608 11212 479 10013 437 11213 456 10014 831 11214 520 10016 993 11215 586 10017 1,035 11216 426 10018 875 11217 549 10019 919 11218 509 10021 1,045 11219 487 10022 1,190 11220 491 10023 901 11221 431 10024 862 11222 438 10025 704 11223 495 10026 461 11224 478 10027 443 11225 470 10028 964 11226 502 10029 509 11228 498 10030 386 11229 524 10031 469 11230 504 10032 483 11231 655 10033 509 11232 460 10034 471 11233 414 10035 393 11234 506 10036 784 11235 508 10037 440 11236 503 10038 762 11237 442 10039 388 11238 513 10040 474 10128 1,144 10280 1,622 * Too few units to report. ================================================================ ================================================================ AVERAGE REGISTERED REGULATED RENTS RENT STABILIZED APARTMENTS BY ZIP CODE, 1992 QUEENS Zip Code Rent 11004-5 $737 11101 528 11102 568 11103 557 11104 520 11105 536 11106 537 11354 574 11355 583 11356 589 11357 557 11358 558 11360 791 11361 518 11362 536 11363 637 11364 500 11365 655 11366 491 11367 488 11368 554 11369 533 11370 517 11372 531 11373 550 11374 562 11375 626 11377 524 11378 512 11379 479 11385 480 11411 561 11412 562 11413 566 11414 548 11415 575 11416 496 11417 571 11418 572 11419 504 11420 536 11421 522 11423 502 11426 810 11427 512 11428 519 11429 498 11432 575 11433 605 11434 585 11435 553 11691 551 11692 442 11694 472 BRONX Zip Code Rent 10451 $491 10452 465 10453 473 10454 434 10455 390 10456 445 10457 459 10458 482 10459 416 10460 444 10461 489 10462 484 10463 556 10464 407 10465 488 10466 494 10467 494 10468 487 10469 516 10470 496 10471 572 10472 454 10473 418 10474 387 RICHMOND Zip Code Rent 10301 $597 10302 544 10304 505 10305 560 10306 506 10307 471 10308 536 10309 266 10310 559 10312 * 10314 555 * Too few units to report ================================================================ Rent Controlled Units See Manhattan Controlled Rents See Brooklyn Controlled Rents See Bronx Controlled Rents See Queens Controlled Rents A total of 84,053 rent controlled housing units participated in the Maximum Base Rent (MBR) program in 1992. As with the rent stabilized stock, Manhattan contained the greatest number of housing units under rent control. Forty-five percent of the units participating in the MBR program were located in Manhattan. Brooklyn with 19,382 units contained 23.1% of the City's total. One out of five controlled units were located in Queens and almost 12% were located in the Bronx. ================================================================ RENT CONTROLLED BUILDINGS AND APARTMENTS PARTICIPATING IN THE MBR PROGRAM By Borough, New York City, 1992 Borough Buildings Percent Apartments Percent Bronx l,626 10.4% 9,968 11.9% Brooklyn 4,551 29.1% 19,382 23.1% Manhattan 5,790 37.0% 37,894 45.1% Queens 3,634 23.2% 16,686 19.9% Richmond 40 0.3% 123 0.1% Total 15,641 100.0% 84,053 100.0% ================================================================ Rent controlled units (the number of controlled apartments has fallen from over one million in 1971 to approximately one hundred thousand in 1993 as a result of vacancy decontrol) are located predominately in stable, economically advantaged neighborhoods. The middle-class areas of Flatbush, Midwood, Forest Hills, Greenwich Village and the Upper East and West Sides of Manhattan have a large number of rent controlled units when compared to the poorer, minority areas of the South Bronx, Harlem, Central Brooklyn and Coney Island. Rent Adjustments The Rent Guidelines Boards in New York City and Nassau, Rockland and Westchester counties annually establish guidelines for rent adjustments. The Boards review many factors impacting on the economic condition of the residential real estate industry including: overall maintenance costs; real estate taxes; the cost and availability of financing; vacancy rates and the supply of housing; relevant data from cost of living indices; and any other relevant data made available to the Boards. Rents in rent controlled apartments in New York City are adjusted primarily under the Maximum Base Rent (MBR) system. The MBR is adjusted every two years to reflect changes in economic conditions. Application of a mathematical formula which consists of cost components (operation and maintenance expenses, real estate taxes, water and sewer charges and an allowance for vacancy and collection losses), an allowance for a return on capital value and an adjustment for commercial income is employed to derive the MBR increase. Under the MBR system, the annual adjustment to the rent that the tenant pays (Maximum Collectible Rent) cannot exceed 7.5%. The following tables provide a summary of the rent adjustments authorized for stabilized and controlled apartments. ================================================================ NEW YORK CITY RENT CONTROLLED APARTMENTS -- STANDARD ADJUSTMENT FACTOR Biennial Maximum Base Year Rent Adjustment ---- --------------- 1974 8.5% 1975 1976 22% 1977 1978 9% 1979 1980 10% 1981 1982 11% 1983 1984 7.5% 1985 1986 11.5% 1987 1988 16.4% 1989 1990 8.0% 1991 1992 10.8% 1993 1994 14.7% 1995 ================================================================ ================================================================ NEW YORK CITY APARTMENT RENT ADJUSTMENT GUIDELINES 1969 -- 1993* Order Lease Term (percent) ------ ------- ------- Number Lease Starting 1 Year 2 Years 3 Years ------ -------------- ------ ------- ------- 1 7/1/68-6/30/70 10.0 10.0 15.0 2 7/1/70-6/30/71 6.0 8.0 11.0 3 7/1/71-6/30/72 7.0 9.0 12.0 4 7/1/72-6/30/73 6.0 8.0 10.0 5 7/1/73-6/30/74 6.5 8.5 10.5 6 7/1/74-6/30/75 8.5 10.5 12.0 7 7/1/75-6/30/76 7.5 9.5 12.5 8 7/1/76-6/30/77 6.5 8.0 11.0 9 7/1/77-6/30/78 6.5 8.5 11.5 10 7/1/78-6/30/79 4.5 6.5 8.5 11 7/1/79-6/30/80 8.5 12.0 15.0 12 7/1/80-9/30/81 11.0 14.0 17.0 13 10/1/81-9/30/82 10.0 13.0 16.0 14 10/1/82-9/30/83 4.0 7.0 10.0 15 10/1/83-9/30/84 4.0 7.0 10.0 16 10/1/84-9/30/85 6.0 9.0 @ 17 10/1/85-9/30/86 4.0 6.5 18 10/1/86-9/30/87 6.0 9.0 19 10/1/87-9/30/88 3.0 6.5 20 10/1/88-9/30/89 6.0 9.0 21 10/1/89-9/30/90 5.5 9.0 22 10/1/90-9/30/91 4.5 7.0 23 10/1/91-9/30/92 4.0 6.5 24 10/1/92-9/30/93 3.0 5.0 25 10/1/93-9/30/94 3.0 5.0 @ Owners were no longer required to offer a 3-year lease. * The table provides the history of lease adjustments orders and excludes allowable adjustments for vacancy allowance, electrical inclusion charges, low-rent supplements and fuel surcharges. ================================================================ ================================================================ WESTCHESTER COUNTY APARTMENT RENT ADJUSTMENT GUIDELINES 1974 -- 1993* Lease Term (percent) ------ ------- ------- Lease Starting Between 1 Year 2 Years 3 Years ---------------------- ------ ------- ------- 2/1/75 - 6/30/75 15.0 17.5 19.5 7/1/75 - 6/30/76 13.0 15.5 17.0 7/1/76 - 6/30/77 4.0 5.0 7.0 1st 2nd 1st 2nd 3rd yr. yr. yr. yr. yr. ---- ---- ---- ---- ---- 7/1/77 - 6/30/78 7.0 5.0 4.0 4.0 5.0 5.0 7/1/78 - 6/30/79 6.0 5.0 4.0 5.0 5.0 4.0 7/1/79 - 6/30/80** 9.0 11.0 13.0 7/1/80 - 9/30/81 12.0 15.0 16.0 10/1/81 - 9/30/82 12.0 15.0 18.0 10/1/82 - 9/30/83 4.0 6.0 9.0 10/1/83 - 9/30/84 0.0 0.0 @ 10/1/84 - 9/30/85 0.0 3.0 10/1/85 - 9/30/86 6.0 10.0 10/1/86 - 9/30/87 3.0 5.0 10/1/87 - 9/30/88 3.0 5.0 10/1/88 - 9/30/89 6.0 9.0 10/1/89 - 9/30/90 3.0 5.0 10/1/90 - 9/30/91 4.0 7.0 10/1/91 - 9/30/92 3.5 5.0 10/1/92 - 9/30/93 3.0 4.0 10/1/93 - 9/30/94 3.0 4.0 @ Owners were no longer required to offer a 3-year lease. * The table provides the history of lease adjustment orders and excludes allowable adjustments for vacancy allowance, electrical inclusion charges and fuel surcharges, and leases with tax escalation clauses. ** Additional guidelines promulgated based on location of municipality. ================================================================ ================================================================ NASSAU COUNTY APARTMENT RENT ADJUSTMENT GUIDELINES 1974 - 1993* Lease Term (percent) ------ ------- ------- Lease Starting Between 1 Year 2 Years 3 Years ---------------------- ------ ------- ------- 4/1/75 - 6/30/75** 12.0 15.0 18.0 7/1/75 - 6/30/76 9.0 12.0 15.0 7/1/76 - 6/30/77 5.0 7.0 9.0 7/1/77 - 6/30/78 5.0 7.0 9.0 7/1/78 - 6/30/79 6.0 8.0 10.0 7/1/79 - 6/30/80 7.0 10.0 13.0 7/1/80 - 9/30/81 9.0 13.0 15.0 10/1/81 - 9/30/82 12.0 15.0 17.0 10/1/82 - 9/30/83 6.0 10.0 12.0 10/1/83 - 9/30/84 6.5 9.0 @ 10/1/84 - 9/30/85 6.0 8.0 10/1/85 - 9/30/86 4.5 6.5 10/1/86 - 9/30/87 4.0 5.5 10/1/87 - 9/30/88*** 3.5 5.0 10/1/88 - 9/30/89 5.0 6.5 10/1/89 - 9/30/90 5.0 6.5 10/1/90 - 9/30/91 4.0 5.5 10/1/91 - 9/30/92 5.0 6.5 10/1/92 - 9/30/93 3.0 5.0 10/1/93 - 9/30/94 2.5 4.3 @ Owners were no longer required to offer a 3-year lease. * The table provides the history of lease adjustment orders and excludes allowable adjustments for vacancy allowance, electrical inclusion charges and fuel surcharges. Also excludes special guidelines for leases with tax escalation clauses and/or leases with previous guidelines adjustments. ** Additional guidelines promulgated based on location of municipality. *** Additional guidelines promulgated based on cooperative status. ================================================================ ================================================================ ROCKLAND COUNTY APARTMENT RENT ADJUSTMENT GUIDELINES 1974 - 1993* Lease Term (percent) ------ ------- ------- Lease Starting Between 1 Year 2 Years 3 Years ---------------------- ------ ------- ------- 2/1/75 - 6/30/75 14.0 16.0 17.0 7/1/75 - 6/30/76 9.75 13.0 16.0 7/1/76 - 6/30/77 5.0 9.0 12.5 7/1/77 - 6/30/78 7.0 9.0 11.0 7/1/78 - 6/30/79 5.0 8.0 11.0 7/1/79 - 6/30/80 11.5 13.5 15.0 7/1/80 - 9/30/81 8.0 12.0 15.5 10/1/81 - 9/30/82 10.5 13.5 16.0 10/1/82 - 9/30/83 7.0 10.0 12.5 10/1/83 - 9/30/84 4.0 7.5 @ 10/1/84 - 9/30/85 3.0 6.0 10/1/85 - 9/30/86 4.5 7.0 10/1/86 - 9/30/87 3.0 4.5 10/1/87 - 9/30/88 2.5 4.5 10/1/88 - 9/30/89 2.5 4.0 10/1/89 - 9/30/90 3 0 5.0 10/1/90 - 9/30/91 2.5 4.0 10/1/91 - 9/30/92 3.0 5.0 10/1/92 - 9/30/93 1.5 2.5 10/1/93 - 9/30/94 1.5 2.5 @ Owners were no longer required to offer a 3-year lease. * The table provides the history of lease adjustment orders and excludes allowable adjustments for vacancy allowance, electrical inclusion charges, type of fuel used and fuel surcharges.