INCREASES ALLOWED AS ESTABLISHED BY THE
RENT GUIDELINES BOARD OF THE
CITY OF NEW YORK
THE CITY OF NEW YORK
RENT GUIDELINES BOARD
Order Number 5
Rent Levels July 1, 1973 through June 30, 1974
PURSUANT TO THE AUTHORITY VESTED IN IT BY THE RENT
STABILIZATION LAW OF 1969, the Rent Guidelines Board hereby
establishes and adopts the following levels of fair rent
increase over lawful rents charged and paid on June 30, 1973,
(including the "stabilizer", if any), for dwelling units
covered by such law (other than hotel dwelling units).
Lease Renewals
- For one year leases expiring before July 1, 1975: 6-1/2 per cent;
- For two-year leases expiring before July 1, 1976: 8-1/2 per cent;
- For three-year leases expiring before July 1, 1977: 10-1/2 per cent.
Stabilizer
The 1/2% "stabilizer" established under Order #4 shall remain
in effect on leases entered into before July 1, 1973 until
the expiration of such leases.
Leases on dwelling units receiving partial tax exemption
pursuant to Section 421 of the Real Property Tax Law
Where a dwelling unit is in a structure subject to the
Partial Tax Exemption Program under Section 421 of the Real
Property Tax Law, permissible percentage increases for
renewal leases will be:
- For one year leases expiring before July 1, 1975: 4 per cent
- For two-year leases expiring before July 1, 1976: 6 per cent
- For three-year leases expiring before July 1, 1977: 8 per cent
However, where such unit is vacated on or after June 30,
1973, the levels of fair rent increase governing the new
tenancy are the same levels over the rental charged on the
last date on which rent was paid prior to such vacancy as
those set forth in this section for lease renewals, plus 5
per cent.
Furthermore, nothing in this Order shall prohibit the
inclusion of a lease provision for an annual or other
periodic rent increase over the initial rent at an average
rate of not more than 2.2% per annum where the dwelling unit
is receiving partial tax exemption pursuant to Section 421 of
the Real Property Tax Law and the Regulations adopted
pursuant thereto. This cumulative but not compounded charge
of up to 2.2% per annum is in addition to the amount
permitted under this section of the Guideline Order for
renewal leases.
Subleases
Where a dwelling unit is subleased pursuant to a clause which
provides that upon the exercise of the privilege of
subletting, the rent payable to the owner effective upon the
date of subletting may be established as if the renewal lease
had been a vacancy lease, the levels of fair rent increase
governing such tenancy are the same levels over rentals
charged on June 30, 1973 as those set forth in this Order for
lease renewals, plus 5 per cent.
Fractional Terms
Except as to leases on vacant apartments, for the purpose of
these guidelines any lease or tenancy for a period up to and
including one year shall be deemed a one year lease or
tenancy; the same for a period over one year and up to and
including two years shall be deemed a two year lease; and the
same for a period over two years and up to and including
three years shall be deemed a three year lease. As to leases
on vacant apartments subject to the Partial Tax Exemption
Program, for the purpose of these guidelines any lease for a
period from one year to less than two years shall be deemed a
one year lease; the same for a period from two years to less
than three years shall be deemed a two year lease; and the
same for a period of three years or more shall be deemed a
three year lease.
Escalator Clauses
Where a lease for a dwelling unit in effect on May 31, 1968
contained an escalator clause for increased costs of
operation and such clause is still in effect, the lawful
rental on June 30, 1973 over which the fair rent under this
Order is computed shall include the increased rental, if any,
due under such clause.
Decontrolled Units
The permissible percentage increases for decontrolled units
under Order 3A remains in effect for units covered by such
order.
Credits
Rental charged and paid in excess of the levels of fair rent
increase established by this Order shall be fully credited
against the next month's rent.
Dated: June 25,1973
Filed with City Clerk
June 26, 1973
Roger Starr
Chairman,
Rent Guidelines Board