INCREASES ALLOWED AS ESTABLISHED BY THE
RENT GUIDELINES BOARD OF THE
CITY OF NEW YORK
THE CITY RECORD
MONDAY, JULY 24, 1989
THE CITY OF NEW YORK
RENT GUIDELINES BOARD
July 7, 1989
ORDER NUMBER 21 -- Apartments and Lofts.
Rent levels for Leases Commencing October 1, 1989 through
September 30, 1990
NOTICE IS HEREBY GIVEN PURSUANT TO THE AUTHORITY VESTED IN THE
NEW YORK CITY RENT GUIDELINES BOARD BY THE RENT STABILIZATION LAW
OF 1969 and Chapter 576 of the Laws of 1974, implemented by
Resolution No 276 of 1974 of the New York City Council and
extended by Chapter 203 of the Laws of 1977, and further extended
by Chapter 383 of the Laws of 1981, Chapter 403 of the Laws of
1983, Chapter 248 of the Laws of 1985, and Chapter 65 of the Laws
of 1987, and in accordance with the requirements of Section 1043
of the New York City Charter that the Rent Guidelines Board
hereby adopts as final orders the following levels of fair rent
increases over lawful rents charged and paid on September 30,
1989 (including the "stabilizer" and excluding the "April 1979
fuel adjustment" if any) for apartments subject to the Rent
Stabilization Law of 1969, as amended, for leases commencing on
or after October 1, 1989 and through September 30, 1990. Final
rent guidelines for loft units subject to Chapter 349 of the Laws
of 1982, Section 286 paragraph 7 of the Multiple Dwelling Law are
also included in this notice.
ADJUSTMENT FOR RENEWAL LEASES
Together with such further adjustments as may be authorized by
the Board, as explained below:
- For one year lease expiring before October 1, 1991: 5.5%
- For two year lease expiring before October 1, 1992: 9%
These adjustments shall also apply to dwelling units in a
structure subject to the partial tax exemption program under
Section 421 of the Real Property Tax Law, or in a structure
subject to Section 423 Or the Real Property Tax Law as a
Redevelopment Project
LEASES ON VACANT APARTMENTS
Where a dwelling unit becomes vacant, the levels of rent increase
governing a new tenancy commencing on or after October 1, 1989
and on or before September 30, 1990 are the same levels over
rentals charged on September 30, 1989 as those set forth above
for lease renewals, plus 12% over the rental charged on September
30, 1989.
Any level of rent increase pursuant to this provision relating to
leases on vacant apartments may be applied no more than once for
leases commencing October 1, 1989 through September 30, 1990.
SUPPLEMENTARY ADJUSTMENT
For a lease for a dwelling unit with a lawful rent of less than
$325 per month on September 30, 1989, the levels of rent increase
for renewal and vacancy leases commencing October 1, 1989 through
September 30, 1990 are the same as those set forth hereinabove
plus $5 per month, provided the monthly rent resulting from the
application of this level of increase or any portion thereof does
not exceed the rent that would result from application of the
allowable levels of rent increase for renewal and vacancy leases
to an apartment renting for $325 per month on September 30, 1989.
This limitation is as follows:
For renewal leases of:
- one year $342.88 per month.
- two years $354.25 per month.
Where the 12% vacancy allowance applies, for vacancy leases of:
- one year $381.88 per month.
- two years $393.25 per month.
No tenant shall be affected by the supplementary adjustment under
Order 21 if they signed a lease under Order 20 of the Board which
included any or all of the supplementary adjustment of up to $5
for rents below $325. Vacancy leases signed under Order 21 will
not be affected by this restriction.
ELECTRICAL INCLUSION ADJUSTMENT
For a lease for a dwelling unit in which the owner supplies full
electrical services for which there is no additional cost charged
to the tenant in addition to rent, the applicable lease
adjustment as established by this Order is to be the adjustment
for renewal and vacancy leases heretofore stated.
ADJUSTMENTS FOR UNITS IN THE CATEGORY OF BUILDINGS COVERED BY
ARTICLE 7-C OF THE MULTIPLE DWELLING LAW (LOFTS)
Pursuant to Chapter 349 of the Laws of 1982, Section 286
paragraph 7 of The Multiple Dwelling Law ("MDL"), the following
levels of rent increase above the "base rent," as defined in
Section 286 paragraph 4 of the MDL, for units where residential
renewal leases are offered pursuant to Section 286 paragraph 3 of
the MDL, and which commence from October 1, 1989 through
September 30, 1990, shall be the same as those set forth
hereinabove for renewal leases, with the exception of the
supplementary adjustment, which does not apply to loft units:
- For one year leases expiring before October 1, 1991: 5.5%
- For two year leases expiring before October 1, 1992: 9%
Where a dwelling unit in this category of buildings becomes
vacant the levels of rent increase governing a new tenancy
commencing on or after October 1, 1989 and on or before September
30, 1990 are the same levels over the "base rent" as defined in
Section 286, paragraph 4 as set forth hereinabove for renewal
leases, plus 12% over the rental charged on September 30, 1989
unless pursuant to paragraph 6, Section 286 of the MDL the owner
purchases improvements and thereby the unit is either exempted
from the provisions of Article 7-C requiring rent regulation or
may be rented at market value subject to subsequent rent
regulation.
Any Level of rent increase pursuant to this provision relating to
leases on vacancy apartments may be applied no more than once for
leases commencing October 1, 1989 through September 30, 1990.
FRACTIONAL TERMS
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, and the same period over one year and up to and
including two years shall be deemed a two year lease
ESCALATOR CLAUSES
Where a lease for a dwelling unit in effect on May 31, 1968 or
where a lease in effect on June 30, 1974 for a dwelling unit
which became subject to the Rent Stabilization Law of 1969, by
virtue of Chapter 576 of the Laws of 1974 and Resolution Number
276 at the New York City Council, extended by Chapter 203 of the
Laws of 1977, further extended by Chapter 383 of the Laws of
1981, and by Chapter 403 of the Laws of 1983, Chapter 248 of the
Laws of 1985, and by Chapter 65 of the Laws of 1987 contained an
escalator clause for the increased costs of operation and such
clause is still in effect, the lawful rent on September 30, 1989
over which the fair rent under this Order is computed shall
include the increased rental, if any, due under such clause
except those charges which accrued within one year of the
commencement of the renewal lease. Moreover, where a lease
contained an escalator clause that the owner may validly renew
under the Code, unless the owner elects or has elected in writing
to delete such clause, effective no later than October 1, 1989
from the existing lease and all subsequent leases for such
dwelling unit, the increased rental, if any, due under such
escalator clause shall be offset against the amount of increase
authorized under this Order.
STABILIZER
The one-half per cent "stabilizer" charged in leases pursuant to
previous Orders of the Board shall remain in effect until the
expiration of such leases and shall be included in the base rent
for the purpose of computing subsequent rent or leases adjusted
pursuant to this Order.
SPECIAL GUIDELINE TO UPDATE SPECIAL GUIDELINE 6b
In order to aid the State Division of Housing and Community
Renewal in determining fair market rents for housing
accommodations as to applications for adjustments of the initial
legal regulated rent as may be requested by tenants, the Rent
Guidelines Board hereby adopts a special guideline as mandated by
Section 9 of Chapter 576 of the Laws of 1974, as extended by
Chapter 203 of the Laws of 1977, further extended by Chapter 383
of the Laws of 1981, and Chapter 403 of the Laws of 1983 amending
Section 26-513(b)(1) of the New York City Administrative Code,
Chapter 248 of the Laws of 1985, and Chapter 65 at the Laws of
1987:
- for dwelling units subject to the Rent and Rehabilitation Law on September 30, 1989, which subsequently become vacant after September 30, 1989, the special guideline shall be the greater of 45% above the maximum collectible rent last charged to a tenant at the unit, or 25% above the 1988-89 maximum base rent as it existed or would have existed, plus the current allowable fuel cost adjustments as established on Rent Control forms, pursuant to Section 2202 13 of the Rent and Eviction Regulations, beginning in 1980.
DECONTROLLED UNITS
The permissible increase for decontrolled units as defined in
Order 3a which become decontrolled after September 30, 1989,
shall not exceed the greater of 45% above the maximum collectible
rent or 25% over the sum of the 1988-89 biennial cycle maximum
base rent, as it existed or would have existed, plus the current
allowable fuel cost adjustments as established on Rent Control
forms, pursuant to Section 2202.13 of the Rent and Eviction
Regulations, beginning in 1980.
CREDITS
Rentals charged and paid in excess of the levels of rent increase
established by this Order shall be fully credited against the
next month's rent.
STATEMENT OF BASIS AND PURPOSE
The Rent Guidelines Board is authorized to promulgate rent
guidelines governing apartment units subject to the Rent
Stabilization Law of 1969, as amended, and the Emergency Tenant
Protection Act Or 1974, as amended. The purpose of these
guidelines is to implement the public policy set forth in
Findings and Declaration of Emergency of the Rent Stabilization
Law of 1969 (Sec. 26-501 of the N.Y.C. Administrative Code) and
in the Legislative Finding contained in the Emergency Tenant
Protection Act of 1974 (L. 1974 c. 576, Sec. 4[Sec. 2]).
The Rent Guidelines Board is also authorized to promulgate rent
guidelines for loft units subject to Section 286 paragraph 7 of
The Multiple Dwelling Law. The purpose of the loft guidelines is
to implement the public policy set forth in the Legislative
findings of Article 7-C of the Multiple Dwelling Law (Section
280).
Dated: July 19, 1989.
Arthur B. Spector,
Chairman
Rent Guidelines Board