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In early February, the DHCR released its online service that enables building owners to report information concerning individual apartment improvements (IAIs) for apartments subject to rent stabilization or rent control as required by the Housing Stability and Tenant Protection Act (HSTPA) of 2019. This reporting requirement is mandated by HSTPA to keep track of the temporary nature and limits of rent increases from IAIs.
NYC Local Law 30 of 1970 stipulates that Maximum Base Rents be established for rent-controlled apartments according to a formula calculated to reflect real estate taxes, water and sewer charges, operating and maintenance expenses, return on capital value, and vacancy and collection loss allowance. The Maximum Base Rent (MBR) is updated every two years by a factor that incorporates the changes in these operating costs.
The Housing Stability and Tenant Protection Act (HSTPA) of 2019 requires owners to notify the DHCR of all individual apartment improvements (IAIs) and requires the DHCR to establish a “centralized electronic retention system” for tracking IAIs. Recently, the DHCR announced that on or about Feb. 3, 2020, the DHCR will release its new online service that will enable building owners to report information concerning IAIs for apartments subject to rent stabilization or rent control.
The passage of the Housing Stability and Tenant Protection Act of 2019 (HSTPA) significantly curtailed rent increases owners could get for major capital improvements (MCIs) and increased oversight by the DHCR. When owners make improvements or installations to a building subject to the rent stabilization or rent control laws, they can apply to the DHCR for approval to raise the rents of the tenants. When the improvement or installation meets certain requirements it will be considered an MCI.
To qualify as an MCI, the improvement or installation must:
On June 25, 2019, the New York City Rent Guidelines Board (RGB) issued an order—RGBO #51—setting the rent increases you may take for rent-stabilized tenants in New York City on leases beginning anytime on or after Oct. 1, 2019, through Sept. 30, 2012. The board is mandated to establish fair rents for property owners and tenants. And the mayor appoints members to the board. The board is made up of two tenant representatives, two landlord representatives, and five members of the public with experience in housing or economics.
If you have a tenant who’s paying a monthly rent of $2,774.76 or more for a rent-controlled or rent-stabilized apartment, it might be time to submit online the second of two Division of Housing and Community Renewal (DHCR) forms that may eventually lead to deregulation of the apartment. If you miss the deadline, you’ll have to wait until next year to apply for deregulation.
The Rent Guidelines Board (RGB) is mandated by law to establish yearly rent adjustments for rent-stabilized apartments in New York City. The board holds an annual series of public meetings and hearings to consider research from staff and testimony from owners, tenants, advocacy groups, and industry experts.
If you sign a vacancy lease with a tenant between Oct. 1, 2018, and Sept. 30, 2019, the new order issued on June 26 by the Rent Guidelines Board (RGB)—RGBO #50—lets you collect the vacancy increases permitted under the Rent Regulation Reform Act of 1997 (RRRA).
On June 26, 2018, the New York City Rent Guidelines Board (RGB) issued an order—RGBO #50—setting the rent increases you may take for rent-stabilized tenants in New York City on leases beginning anytime on or after Oct. 1, 2018, through Sept. 30, 2019. This order’s permitted increases are the highest since 2013.
According to the order, you may take a 1.5 percent increase on a one-year renewal lease and a 2.5 percent increase on a two-year renewal lease. The board voted five in favor with four opposed to the increases.
The DHCR recently posted Operation Bulletin 2018-1 entitled, “The Effect of Defective Work on the Disposition of an Owner’s Application for a Major Capital Improvements (MCI) Rent Increase.” It provides guidance on the granting of MCI rent increases when there are defective installations relating to an MCI.
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