421A Fee Exorbitant Charge

[dd999]

I have been in the same rent-stabilized unit for around 15 years, since the building was built. My lease renewal includes an insane 421a fee. On the lease it isn't even clear as it lists it as $20 per month, but then below it says $332 a month beneath that! Given what my rent is, this is exorbitant and beyond my means, and I was not warned of this ahead of time and only found out a few weeks ago. I have been trying to research this via HCR and other online resources but am very confused---I thought this would be a fee that the next leaseholder would pay? My questions are:
1. Is this legal?
2. Can this amount be charged monthly as management says, or should this be the yearly amount (which is how it looked on lease)?
3. I cannot afford this (and am unable to move right now because of medical reasons), do I have any options to pay my rent but without this fee until I move out next lease renewal?
4. They completely renovate all units after tenant moves out, I am still in my original apt and they are essentially trying to get me to pay close to market rate for an unrenovated apartment, how can I approach this?

Help needed, lease is due this month. Thank you.

[TenantNet]

We probably can't answer all your questions, but yes, it sounds fishy. Start with this:
https://www.nyc.gov/assets/hpd/download ... -sheet.pdf

This is from NYC, but DHCR and other sources all have fact sheets on 421-a.

https://hcr.ny.gov/system/files/documen ... 7-2022.pdf
https://hcr.ny.gov/surcharges-and-fees (scroll down to the FAQ section)
https://www.nyc.gov/site/hpd/services-a ... 421-a.page

You say the building was constructed 15 years ago, so that's roughly 2008, yes? Is this a regular 421-a or a 421-a(16) situation?

A lot may depend on the particular building, the wording of your original lease and renewal leases. As is pointed out, there are different flavors of 421-a, so you have to find the rules that apploy to your building and your apartment.

Is there any chance this is a preferential rent posing as a 421-a fee?

Have you requested a DHCR rent history?

I would review all these documents and more (as there are many sources on 421-a). Look at your lease and renewals very carefully.

Beyond that, as the only information we have is that it's a "421a fee," we can't give you specifics.

[dd999]

Yes, the building is 2008.
421a not 421a (16)

I had already looked through those links before my initial post here, but was still confused because it seems like a lot of grey area.

Any recommendations of who to call for free legal advice? I was also going to call DHCR.

Are they allowed to be charging this fee every month, or once annually?

Is it possible to renew lease without signing the 421a rider and agree to the normal paperwork/rent but refuse to sign 421a rider and say I am still seeking information/legal info regarding this? Thanks you for your help.

[TenantNet]

You could call DHCR, but what you get is someone who isn't fully trained on issues like this. Try it an see. I'd recommend a tenant attorney. Private lawyers sometimes have reduced-cost consultations. We are not qualified to give you an answer on this - plus we (or a lawyer) would need to see all the documents.

You can also look for tenant clinics where attorneys volunteer. If you do that, bring all your paperwork.

Problem is right now everyone is still backlogged from COVID.

BTW, some of these abatement situations are administered by HPD, so be sure which agency handles your building.

You could try to sign just the lease, but the LL might give you a problem.

[dd999]

The problem is I only have another day or two to figure this out before I have make a decision. My building is large and predominantly market-rate units, I am one of the few original rent stabilized tenants, can they still charge me this fee? Wouldn't it be the market-rate units that pay it instead? I think that is the biggest question I have that I can't seem to find an answer too.

They are also now trying to act like it is such a great deal, however with this fee tacked on I would essentially be paying almost the exact amount someone that just moved in here would be paying for a market-rate just gutted/renovated apt with top finishes, and my apt is still in its original dated condition, so this seems pretty outrageous.

[TenantNet]

I wish we could give you a better answer (especially after only four days since your first post), but you really do need to get correct legal advice on this. Not having seen anything - and we're not really 421a experts, I can't even begin to offer an opinion. But in my experience, "deadlines" are often less than absolute, especially when it involves rent stab tenancies.

That you may be one of the few RS tenants left is probably irrelevant.

LLs often act as if something must be done on their schedule. That's called intimidation.

Tomorrow, call a tenant lawyer and get a consultation.

[Bigskunk911]

It could be as simple as the 2.2% surcharge when 421-a tax benefits start to phase out for non-affordable units. Not sure if you can get any assistance such as scrie or drie with rent. Of course, there can be a lot of other issues at play so you need to do your research or find a qualified person.