RGB Proposes Lease Renewal Adjustments
On April 30, the Rent Guidelines Board (RGB) voted on preliminary numbers for increasing rent-stabilized rents. The board voted for rent hikes of between 3.25 and 6.25 percent on one-year renewal leases and increases of between 5.0 percent and 9.75 percent for two-year renewal leases.
The influential factors in the range established by the board are: recent trends and data in housing affordability; tenant income; and owners' costs. One of the three reports issued last month by the RGB was the Price Index of Operating Costs for Rent Stabilized Apartment Buildings (PIOC). According to the report, the PIOC for Rent-Stabilized Apartment Buildings increased 5.9 percent this year.
In addition to the proposed rent increases, the board is also proposing two special guidelines. One is for rent-controlled units entering rent stabilization. The other involves rent credits. Apartments charged and paid in excess of the levels of rent increase established by the rent order would be fully credited against the next month's rent.
According to the special guidelines proposal, the permissible increase for units that become decontrolled after Sept. 30, 2013, shall be the greater of:
- 30 percent 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 New York City. The HUD-determined Fair Market Rents will be published in the Federal Register, to take effect on Oct. 1, 2013.
Comment on Proposed Rules
A final vote setting the specific increase is scheduled for June 20. Before the final vote, the RGB will hold a public hearing on Thursday, June 13. Any person who wishes to testify has a legal right to do so, and the RGB has traditionally allowed three minutes for each speaker, alternating between owner and tenant representatives. In relation to the public hearings, registration of speakers is required. Those who wish to pre-register for the June 13 hearing may call (212) 385-2934 until 1 p.m. on Wednesday, June 12, 2013. Those who haven’t preregistered or need to re-register can register at the hearing location from 9:45 a.m. until 7 p.m., and will be heard in the order of their registration.
If you wish to submit public comments on the proposed Apartment Guidelines Order No. 45, you can submit your views online in writing by June 17. Go to www.nyc.gov/html/nycrules, and you can find the order under "Proposed Rules." Click on the "Comment" option for an online form to submit your comments or upload a document in either .doc or .pdf format. All comments submitted through the NYC Rules Web site will be accepted by the RGB and entered into the official record.
Upcoming Public Hearings
The schedule of the upcoming RGB meetings is as follows:
- Thurs., June 13; 10:00 a.m.; Emigrant Savings Bank Building, 49-51 Chambers St., New York, NY 10007 (Public Hearing)
- Thurs., June 20; 5:30 p.m.; The Great Hall at Cooper Union, 7 E. 7th St., New York, NY 10003 (Vote on Final Rent Guidelines)