I moved into an 80/20 building last year and I'm confused about the different definitions of rent in the lease. I think the landlord might be overcharging.
The lease states the "Legal Rent" is ~$900, while for now I am being charged a temporary "Preferential Rent" of $700 due to "market conditions". The lease contains a preferential rent rider that makes all this clear, so this seems fine.
However I qualified for a 40% AMI unit and according to the LIHTC rider in the lease, the Tenant's Maximum Rent should be 30% of 40% of the AMI (adjusted for the number of bedrooms). My calculations are as follows. The unit has 1 bedroom so that's 1.5 individuals, and for 2018 the AMI for 1.5 individuals in this area is about $80000. 30% of 40% of that gives a Maximum Rent of $800/month.
The landlord is charging me $700 right now, so that's less than $800 and that seems fine... but they are also claiming the "Legal Rent" is $900, which is more than the Maximum Rent of $800. I'm worried that in 4 years, after the 4-year time limit to challenge the rent with the NYC DHCR expires, they will raise the rent to the "Legal Rent" and overcharge me.
So my questions are:
* Does the LIHTC "Maximum Rent" apply to the Legal Rent, or just to the Preferential Rent i.e. what they are actually charging me each year?
* Will I still be able to challenge the rent after 4 years if they raise the rent above the $800 limit, or will it be too late? Should I act now?
All advice much appreciated - thanks!