Increases Allowed as Established by The
Rent Guidelines Board of The City of New York Apartment and Loft Order #34 (2002-2003)
2002
Apartment & Loft Order #34 June 28, 2002
Order
Number 34 - Apartments and Lofts, rent levels for leases commencing October 1, 2002 through September
30, 2003.
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 (RGB) hereby adopts
the following levels of fair rent increases over lawful rents charged
and paid on September 30, 2002. These rent adjustments will apply
to rent stabilized apartments with leases commencing on or after
October 1, 2002 and through September 30, 2003. 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, 2002 and on or before September 30, 2003: 2%
For
a two-year renewal lease commencing on or after October 1,
2002 and on or before September 30, 2003: 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.
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.
SUPPLEMENTAL
ADJUSTMENT
There
shall be no supplemental adjustment for apartments renting below
any specified amount for renewal leases.
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 10%.
ADJUSTMENTS
FOR LOFTS (UNITS IN THE CATEGORY OF BUILDINGS COVERED BY ARTICLE
7-C OF THE MULTIPLE DWELLING LAW
The
Rent Guidelines Board 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 to which
these guidelines are applicable in accordance with Article 7-C of
the Multiple Dwelling Law:
For
one-year increase periods commencing on or after October
1, 2002 and on or before September 30, 2003:1%
For
two-year increase periods commencing on or after October
1, 2002 and on or before September 30, 2003: 2%
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 tenancy
commencing on or after October 1, 2002 and on or before September
30, 2003 may not exceed the "base rent" referenced above
plus the level of adjustment permitted above for increase periods.
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 lease or tenancy for a period of over one year
and up to and including two years shall be deemed a two-year lease
or tenancy.
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, 2002 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,
2002 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, 2002 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, 2002, which become vacant after September 30, 2002, the special
guideline shall be the greater of:
50%
above the maximum base rent as it existed or would have existed,
or
The
Fair Market Rent for existing housing as established by the United
States Department of Housing and Urban Development (HUD) for the
New York City Primary Metropolitan Statistical Area pursuant to
Section 8(c) (1) of the United States Housing Act of 1937 (42
U.S.C. section 1437f [c] [1] )and 24 C.F.R. Part 888,
with such Fair Market Rents to be adjusted based upon whether
the tenant pays his or her own gas and/or electric charges as
part of his or her rent as such gas and/or electric charges are
accounted for by the New York City Housing Authority.
Such
HUD-determined Fair Market Rents will be published in the Federal
Register, to take effect on October 1, 2002.
DECONTROLLED
UNITS
The
permissible increase for decontrolled units as referenced in Order
3a which become decontrolled after September 30, 2002, shall be
the greater of:
50%
above the maximum base rent as it existed or would have existed,
or
The
Fair Market Rent for existing housing as established by the United
States Department of Housing and Urban Development (HUD) for the
New York City Primary Metropolitan Statistical Area pursuant to
Section 8(c) (1) of the United States Housing Act of 1937 (42
U.S.C. section 1437f [c] [1] )and 24 C.F.R. Part 888,
with such Fair Market Rents to be adjusted based upon whether
the tenant pays his or her own gas and/or electric charges as
part of his or her rent as such gas and/or electric charges are
accounted for by the New York City Housing Authority.
Such
HUD-determined Fair Market Rents will be published in the Federal
Register, to take effect on October 1, 2002.
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 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 28, 2002
Marvin
Markus
Chair
New York City Rent Guidelines Board
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