Rent Regulation: Overview of the Housing Market


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.