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Re: new city laws regarding rent control

Posted by TenantNet on October 05, 1997 at 11:05:35:

In Reply to: new city laws regarding rent control posted by J.V. on October 05, 1997 at 09:49:26:

: I've just received my "1996-1997 Amended MBR order of Eligibility"
allowing my rent to increase the standard 7.5% starting 1/1/97. In
light of the recent city council "laws", I'm not sure how to respond.
Do I simply pay the increase and wait for the lawsuits to settle or
withhold the increase. Thanks, in advance, for your help with this.

This goes back to the 1996 MBR which is the ceiling for RC tenants, who
pay a statutory 7.5% increase every year unless and until they hit the
ceiling. The MBR is adjusted upwards every two years. If your MBR is
way above your MCR (max collectible rent -- the part you pay), then
you get hit with the 7.5% increase. If the difference is small, your
increase goes only until you hit the ceiling. In 1996 DHCR issues
a very low MBR jump (approx 3%) based on a variety of factors and built
into a standard formula. The landlords pulled a fast one by filing
suit in Albany (the court Pataki stacked) where tenants were denied
the opportunity to intervene. Predictably, the landlords one when the
court ruled the 3% increase invalid and put in place a 32% increase, which
would be retroactive to Jan 1996. DHCR refused to appeal.

NY City council recently passed a law which reversed this, so a few days
ago the landlords filed another suit trying to stop DHCR from implementing
the new city law.

As of now the "Amended 1996 MBR" any rent control tenant received is
null and void due to the city's new law, but the courts might change that.
So hold onto any money you might owe, but don't pay it (yet).

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