Increases Allowed as Established by The
Rent Guidelines Board of The City of New York
THE CITY OF NEW YORK
RENT GUIDELINES BOARD
June 22, 1998
Order Number 30
Apartments and Lofts, rent levels for leases
commencing October 1, 1998 through September 30, 1999
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 the Rent
Regulation Reform Act of 1997, 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, 1998. These rent adjustments will apply to rent stabilized
apartments with leases commencing on or after October 1, 1998 and through September
30, 1999. Rent guidelines for loft units subject to Section 286 subdivision
7 of the Multiple Dwelling Law are also included in this order.
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, 1998 and
on or before September 30, 1999: 2%
- For a two year renewal lease commencing on or after October 1, 1998 and
on or before September 30, 1999: 4%
These two 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.
PROPOSED VACANCY ALLOWANCE FOR APARTMENTS
No vacancy allowance is permitted except as provided by sections 19 and 20
of the Rent Regulation Reform Act of 1997.
SUPPLEMENTARY ADJUSTMENT OF UP TO $15 PER MONTH FOR RENEWAL LEASES FOR APARTMENTS
RENTING FOR LESS THAN $450 ON SEPTEMBER 30, 1998
For a renewal lease on a dwelling unit with a lawful rent of less than $450 per
month on September 30, 1998 the levels of rent increase for renewal leases
commencing October 1, 1998 through September 30, 1999 are the same as those set
forth hereinabove plus a $15 per month supplementary adjustment provided the
monthly rent resulting from application of this level of increase or any portion
thereof does not exceed $465.
ADDITIONAL ADJUSTMENT FOR RENT STABILIZED APARTMENTS SUBLET UNDER SECTION 2525.6 OF THE RENT STABILIZATION CODE
In the event of a sublease governed by subdivision (e) of section 2525.6 of the Rent
Stabilization Code, the allowance authorized by such subdivision shall be 5%,
provided, however, that this charge shall not be in addition to other sublet
adjustments that may otherwise be allowed by law.
PROPOSED ADJUSTMENTS FOR LOFTS (UNITS IN THE CATEGORY OF BUILDINGS COVERED
BY ARTICLE 7-C OF THE MULTIPLE DWELLING LAW)
The Rent Guidelines Board proposes 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, 1998 and
on or before September 30, 1999: 1.5%
- For two year renewal leases commencing on or after October 1, 1998 and on
or before September 30, 1999: 3%
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, or by other law, the rent charged to any tenant for a vacancy
lease commencing on or after October 1, 1998 and on or before September 30,
1999 may not exceed the "base rent" referenced above plus the level of adjustment
permitted above for renewal leases.
FRACTIONAL TERMS
For the purposes 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.
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, 1998 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, 1998 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.
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, 1998 shall
continue to be included in the base rent for the purpose of computing subsequent
rents adjusted pursuant to this Order.
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,
1998, which become vacant after September 30, 1998, the special guideline shall be
80% above the maximum base rent as it existed or would have existed, plus the
allowable fuel cost adjustment, or $650, whichever is greater.
DECONTROLLED UNITS
The permissible increase for decontrolled units as referenced in Order 3a
which become decontrolled after September 30, 1998, shall be 80% above the
maximum base rent as it existed or would have existed, plus the allowable fuel cost
adjustment, or $650, whichever is greater.
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 (§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, §4 [§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 guideline 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 25, 1998
Edward S. Hochman, Esq.
Chairman
Rent Guidelines Board