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RS Lease Renewal more than 2.2%

NYC Rent Regulation: Rent Control/Rent Stabilized, DHCR Practice/Procedures

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RS Lease Renewal more than 2.2%

Postby woolyMammoth » Tue Nov 01, 2022 3:33 pm

Hello,

My lease renewal rent jumped from $3,800 to $4,398.70. I am in a RS apartment and signed a 421-a rider. I was hoping to get some clarity around the 15% increase in case its an error.

I have been charged an additional deposit of $123.50 and 421a(2.2%) of $475.20
For context -
The legal regulated rent for 2022 is $10,653.16 and the new legal rent for 2023 is (+3.25%) $10,999.39.
The legal regulated rent for 2021 was $10,653.16 and preferential rent was $3,550.

The rider mentions that the 421-a tax benefits are scheduled to expire on or about June 30, 2025. The annual 2.2% rent increases in accordance with RPTL section 421-a section 6-04(b) of the city's 421-a regulations and section 2522.5(e)(2) of the rent stabilization code. commencing approximately on July 1 2017, the surcharge commencement date and effective on the anniversary date of the commencement of the first lease for the apartment LL is entitled to charge and collect monthly rent increases at the rate of 2.2% of the actual monthly rent for the apartment in effect on the surcharge commencement date. On or after the surcharge commencement date the 2.2% increase shall be collected on each successive first lease anniversary date until the expiration of the 421-a tax benefit period. These 2.2% increases will be charged cumulatively but not compounded by another other lawful increases in order to offset the gradual diminution of 421-a partial tax exemption benefits.
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Re: RS Lease Renewal more than 2.2%

Postby TenantNet » Wed Nov 02, 2022 4:32 am

I think you're in the wrong place, not because you're a tenant, but because if your rent is $4,300 or $10,653, you can very well afford an attorney who knows this stuff a lot better than we do (if you can't find one, look at our advertisers - real tenant attorneys). To be honest, we're more concerned with poorer tenants who don't have heat, hot water and a harassing landlord trying to evict them.

The 421-a situation adds so many carve-outs, exceptions and complications, we can't really make an attempt to give you an honest assessment, and whoever does needs to actually see all the documents. We don't know if the 2.2% increase is instead of regular RGB increases, or not.

Plus, I'm not sure you're aware of things ... The $123.50 is a deposit, not additional rent. It is payable once, until the next increase. You included that in the $4,398.70.

If you want to see the regular allowable increases, look at the current Rent Guidelines Order.

I don't know how you get to $10K ... unless you have a penthouse with six bedrooms. Preferential Rents, since 2019, have more or less been nullified and can no longer be increased during the life of your tenancy. Any increases are added to the lower amount.
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Re: RS Lease Renewal more than 2.2%

Postby woolyMammoth » Wed Nov 02, 2022 10:36 am

Thank you so much for the quick reply! I will look for an attorney who can help me figure out this 421-a.
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