2007
Apartment & Loft Order #39
June
26, 2007
Order Number 39 - Apartments and Lofts, rent levels for
leases commencing October 1, 2007 through September
30, 2008.
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, 2007.
These rent adjustments will apply to rent stabilized apartments with leases
commencing on or after October 1, 2007 and through September
30, 2008. 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, 2007 and on or before September
30, 2008: 3.0%
For a two-year renewal lease commencing on or after October
1, 2007 and on or before September 30, 2008: 5.75%
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, 2007 and on
or before September 30, 2008: 2.5%
For two-year increase
periods commencing on or after October 1, 2007 and on or before September
30, 2008: 5.25%
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, 2007 and on or before September
30, 2008 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, 2007 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, 2007 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, 2007 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, 2007, which become vacant after September 30, 2007,
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, 2007.
DECONTROLLED UNITS
The permissible increase for decontrolled units as referenced in Order 3a
which become decontrolled after September 30, 2007, 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, 2007.
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 26, 2007
Marvin
Markus
Chair
New York City Rent Guidelines Board