2005
Apartment & Loft Order #37
June
21, 2005
Order Number 37 - Apartments and Lofts, rent levels
for leases commencing October 1, 2005 through September 30, 2006.
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 82 of the Laws of 2003, 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, 2005. These rent adjustments will apply to rent stabilized apartments
with leases commencing on or after October 1, 2005 and through September
30, 2006. 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:
Where heat is provided or required to be provided to a dwelling unit
by an owner from a central or individual system at no charge to the
tenant, the adjustments are as follows:
For a one-year renewal lease
commencing on or after October 1, 2005 and on or before September
30, 2006: 2.75%
For a two-year renewal lease commencing on or after October
1, 2005 and on or before September 30, 2006:
5.5%
Where heat is neither provided nor required to be provided to a dwelling unit
by an owner from a central or individual system, the adjustments are as follows:
For a one-year
renewal lease commencing on or after October 1, 2005 and on or before September
30, 2006: 2.25%
For a two-year renewal lease commencing on or after October
1, 2005 and on or before September 30, 2006: 4.5%
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.
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.
EQUALIZATION ALLOWANCE
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, 2005 and on
or before September 30, 2006: 2.25%
For two-year increase
periods commencing on or after October 1, 2005 and on or before September
30, 2006: 4.5%
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, 2005 and on
or before September 30, 2006 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, 2005 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, 2005 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, 2005 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, 2005, which become
vacant after September 30, 2005, the special guideline shall be the
greater of:
- 50% above the maximum base rent, 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, 2005.
DECONTROLLED UNITS
The permissible increase for
decontrolled units as referenced in Order 3a which become decontrolled after September
30, 2005, shall be the greater of:
- 50% above the maximum base rent, 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, 2005.
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 21, 2005
Marvin
Markus
Chair
New York City Rent Guidelines Board