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 27
Apartments and Lofts, rent levels for leases
commencing October 1, 1995 through September 30, 1996
NOTICE IS HEREBY GIVEN PURSUANT TO THE AUTHORITY VESTED IN THE
NEW YORK CITY RENT GUIDELINES BOARD BY THE RENT STABILIZATION LAW
OF 1969, as amended, and the Emergency Tenant Protection Act of
1974, as amended, implemented by Resolution No 276 of 1974 of the
New York City Council and extended by Chapter 253 of the laws of
1993, and in accordance with the requirements of Section 1043 of
the New York City Charter, that the Rent Guidelines Board hereby
adopts the following levels of fair rent increases over lawful
rents charged and paid on September 30, 1995. These rent
adjustments will apply to rent stabilized apartments with leases
commencing on or after October 1, 1995 and through September 30,
1996. Rent guidelines for loft units subject to Section 286
subdivision 7 of the Multiple Dwelling Law are also included in
this order.
1. ADJUSTMENT FOR RENEWAL LEASES (APARTMENTS)
Together with such further adjustments as may be authorized by
law, the annual adjustment for renewal leases for apartments
shall be:
- For a one year renewal lease commencing on or after October 1, 1995
and on or before September 30, 1996: 2%
- For a two year renewal lease commencing on or after October 1, 1995
and on or before September 30, 1996: 4%
And, in addition, a Supplementary Adjustment of $20 per month to
the levels of rent increase for renewal and vacancy leases
commencing October 1, 1995 through September 30, 1996, if the
apartment is renting for $400 or less on September 30, 1995.
These adjustments shall also apply to dwelling units in a
structure subject to the partial tax exemption program under
Section 421a of the Real Property Tax Law, or in a structure
subject to Section 423 of the Real Property Tax Law as a
Redevelopment Project.
2. LEASES ON VACANT APARTMENTS (VACANCY ALLOWANCE)
Where a dwelling unit becomes vacant, the levels of rent increase
governing a new tenancy commencing on or after October 1, 1995
and on or before September 30, 1996 are the same levels over
rentals charged on September 30, 1995 as those set forth above
for lease renewals, plus 8.5% over the rent charged on September
30, 1995.
3. ADJUSTMENTS FOR UNITS IN THE CATEGORY OF BUILDINGS COVERED
BY ARTICLE 7C OF THE MULTIPLE DWELLING LAW (LOFTS)
The Rent Guidelines Board hereby adopts the following levels of
rent increase above the "base rent," as defined in Section 286,
subdivision 4, of the Multiple Dwelling Law, for units where
residential renewal leases are offered pursuant to Section 286,
subdivision 3:
- For one year renewal leases commencing on or after October 1, 1995
and on or before September 30, 1996: 2%
- For two year renewal leases commencing on or after October 1, 1995
and on or before September 30, 1996: 4%
4. LEASES ON VACANT LOFT UNITS
No "vacancy allowance" is permitted under this order. Therefore,
except as otherwise provided in Section 286, subdivision 6, of
the Multiple Dwelling Law, the rent charged to any tenant for a
vacancy lease commencing on or after October 1, 1995 and on or
before September 30, 1996 may not exceed the "base rent"
referenced above plus the level of adjustment permitted above for
renewal leases.
5. 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 any period over one year and up to and
including two years shall be deemed a two year lease.
6. 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 the Emergency Tenant Protection Act of 1974 and
Resolution Number 276 of the New York City Council, contained an
escalator clause for the increased costs of operation and such
clause is still in effect, the lawful rent on September 30, 1995
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, 1995
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.
7. SPECIAL ADJUSTMENTS UNDER PRIOR ORDERS
All rent adjustments lawfully implemented and maintained under
previous apartment orders and included in the base rent in effect
on September 30, 1995 shall continue to be included in the base
rent for the purpose of computing subsequent rents adjusted
pursuant to this Order.
8. SPECIAL GUIDELINE
Under Section 26-513(b)(1) of the New York City Administrative
Code, and Section 9(e) of the Emergency Tenant Protection Act of
1974, the Rent Guidelines Board is obligated to promulgate
special guidelines to aid the State Division of Housing and
Community Renewal in its determination of initial legal regulated
rents for housing accommodations previously subject to the City
Rent and Rehabilitation Law which are the subject of a tenant
application for adjustment. The Rent Guidelines Board hereby
adopts the following Special Guidelines:
- For dwelling units subject to the Rent and Rehabilitation Law on September 30, 1995, which become vacant after September 30, 1995, the special guideline shall be the greater of 35% above the maximum base rent as it existed or would have existed, or 45% above the maximum collectible rent paid by the prior tenant.
9. DECONTROLLED UNITS
The permissible increase for decontrolled units as referenced in
Order 3a which become decontrolled after September 30, 1995,
shall not exceed the greater of 35% above the maximum base rent
as it existed or would have existed, or 45% above the maximum
collectible rent paid by the prior tenant.
10. 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 of 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 (Section 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, Section 4 [Section 2]).
The Rent Guidelines Board is also authorized to promulgate rent
guidelines for loft units subject to Section 286 subdivision 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: June 27, 1995
Edward S. Hochman, Esq.
Chairman
Rent Guidelines Board