2003 Apartment & Loft Order #35
June 19, 2003
Order
Number 35 - Apartments and Lofts, rent
levels for leases commencing October 1, 2003 through September 30, 2004.
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,
2003. These rent adjustments will apply to rent stabilized apartments
with leases commencing on or after October 1, 2003 and through September
30, 2004. 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, 2003
and on or before
September 30, 2004: 4.5%
For a two-year renewal lease commencing on or after October 1, 2003
and on or before
September 30, 2004: 7.5%
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 as extended by Chapter 82 of the Laws of 2003.
SUPPLEMENTAL
ADJUSTMENT
There
shall be no supplemental adjustment
for apartments renting below any specified amount for renewal
leases.
There
shall be no equalization allowance for apartments continuously
occupied for a specified period of time 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, 2003
and on or before September 30, 2004: 4%
For two-year
increase periods commencing on or after October 1, 2003
and on or before September 30, 2004: 7%
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, 2003 and on or before September
30, 2004 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, 2003 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, 2003
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, 2003 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 Guideline:
For
dwelling units subject to the Rent and Rehabilitation Law on September
30, 2003, which become vacant after September 30, 2003, the
special guideline shall be the greater of:
(1) 50% above
the maximum base rent, or
(2) 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, 2003.
DECONTROLLED
UNITS
The
permissible increase for decontrolled units as referenced in Order
3a which become decontrolled after September 30, 2003, shall
be the greater of:
(1) 50% above
the maximum base rent, or
(2) 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, 2003.
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 19, 2003
Marvin Markus
Chair
New
York City Rent Guidelines Board