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Guide To Rent Control

Just how much can my lease be increased each year?

The Ordinance offers that the Rent Stabilization Board each year identifies the acceptable percentage boost, or Annual General Adjustment (” AGA”), that landlords can raise leas for renters in regulated rentals. Landlords of rent-controlled units, who remain in compliance with the Ordinance may increase rents in between July 1 and June 30 of each program year by the amount of the AGA (assuming the tenant’s present lease level is at a formerly accredited Maximum Allowable Rent, hereinafter “MAR”) after offering proper 30-day notification to the renter, as required by State law.

The following are the portion of lease increases allowed, consisting of all costs for regulated housing services, for each program year considering that the Ordinance went into impact in August 8, 2010:

– July 1, 2024 – June 30, 2025 AGA lease increase of 1.9% allowed
– July 1, 2023 – June 30, 2024 AGA lease increase of 4.2% allowed
– July 1, 2022 – June 30, 2023 AGA rent boost of 4.2% permitted
– July 1, 2021 – June 30, 2022 AGA rent increase of 1.3% allowed
– July 1, 2020 – June 30, 2021 AGA rent boost of 2.3% allowed
– July 1, 2019 – June 30, 2020 AGA lease boost of 2.8% allowed
– July 1, 2018 – June 30, 2019 AGA rent increase of 2.9% permitted
– July 1, 2017 – June 30, 2018 AGA rent increase of 2.7% enabled
– July 1, 2016 – June 30, 2017 AGA lease boost of 2.4% permitted
– July 1, 2015 – June 30, 2016 AGA lease increase of 2.0% enabled
– July 1, 2014 – June 30, 2015 AGA rent boost of 2.0% permitted
– July 1, 2013 – June 30, 2014 AGA rent boost of 2.0% permitted
– July 1, 2012 – June 30, 2013 AGA lease boost of 2.4% enabled
– July 1, 2011 – June 30, 2012 AGA rent boost of 1.4% enabled
– August 8, 2010 – June 30, 2011 AGA of 0% (no increases were permitted)

If rent was increased by more than the percent mentioned above for any of these program years, renters may petition for a rent reduction and for a refund for any lease they paid too much, unless the lease increase is to the permissible rent level or MAR, as permitted under State law,1 and the property manager is otherwise in compliance with the Ordinance.

In determining rent boosts, AGAs must be applied to a tenant’s permissible rent level or certified MAR (Do not consist of the City’s registration cost of $9.75 when computing the lease boost). The Board adopts the AGA in April to be effective before the program year begins, which runs July 1 through June 30 of that year and a notice sent out by the Board recommending property managers and occupants of regulated rentals of the AGA is sent out in mid-May of the very same year. A property owner is qualified to increase rents using AGAs just if the property owner:

1. Registers all systems in the exact same residential or commercial property with the Rent Stabilization Program; and
2. Substantially adheres to the Ordinance and any orders or guidelines released or promoted under the Ordinance, consisting of not charging more than the enabled lease; and
3. Ensures the rental abides by the implied warranty of habitability; and finishes all repairs ordered by the City.

Rent increases might not surpass 10% in any 12-month period. Fees paid to a proprietor for managed housing services such as parking or energies become part of the rent. Any increase in costs for regulated housing services, or any charges for extra services except for the addition of an animal charge that were not consisted of in an occupant’s initial rental agreement, are considered lease increases and must adhere to the requirements for raising rents. The addition of a pet charge is ruled out a lease boost. The Board does not validate a property owner’s eligibility for annual rent boosts. Tenants should keep an eye on lease increases closely and file a petition with the Board, if called for, to challenge a property owner’s eligibility to raise rents or the propriety of any lease increase.

Landlords may raise rents by a lower amount than allowed by the AGA or select not to raise rents by the AGA in any given year, and in that occasion, they may “bank” the unused AGA for future use to raise a tenant’s lease.

When can my property owner raise my lease?

A proprietor can not increase rent unless a Certificate of Maximum Allowable Rent has been provided for the present renter of a managed system after a proprietor has submitted a Registration Statement. Once a Certificate of Maximum Allowable Rent has been released, the property manager can raise that occupant’s lease once every 12 months, but not in excess of 10% every year, as long as the unit continues to be effectively signed up, and the property owner remains in substantial compliance with the Ordinance. No rent boosts are permitted for tenants within 12 months of preliminary tenancy.

What does it imply to “bank” an AGA for future rent boosts?

Landlords might “bank” for future usage an AGA that is not used to raise lease in the program year for which it is licensed. A composed notice of banking must be provided to the tenant by February 1 in the program year for which an AGA is authorized and will not be used that lists which, if any, authorized AGAs have actually not been taken. A property owner may not bank more than 3 AGAs throughout an occupant’s tenancy. As such, usage of banked AGAs to raise an occupant’s lease is restricted to the last three AGAs that have been banked.

What is a Certificate of Maximum Allowable Rent?

Beginning in 2011 the Board began issuing Certificates of Maximum Rent for rental systems controlled under the newly adopted Ordinance. Certificates are just released upon Initial Registration of a rental and upon tenancy by a brand-new occupant; they are not released every year. Based on info submitted by property managers, the Rent Stabilization Administrator determines the MAR in the Certificates released for rental units that have been correctly registered with the City. Each Certificate of Maximum Allowable Rent just uses to the occupants in a rental agreement for occupancy of a specific system address. A renter can not be charged lease, including any charges for regulated housing services, above the MAR for the timeframe specified in the Certificate released for their system. If an occupant is charged lease above the MAR, they might submit a petition (Petition A) to seek a lease reduction and a rebate for overcharges. Depending upon the facts of a specific occupancy, refunds may reach as far back as August 2010.

How are Certificates of Maximum Allowable Rents (MARs) identified?

The Rent Stabilization Program Administrator uses formulas for calculating the MAR in Certificates of Maximum Allowable Rent that think about the date the tenant moved into the rental system, the Adjusted Base Year Rent, and the AGAs permitted ever since. The figured out Base Year Rent, which for brand-new occupants is the rent at preliminary occupancy, is changed by deducting any discounts offered to the occupant in the first 12 months, and adding the amount of any regulated housing service fees included in the preliminary rental contract. This Adjusted Base Year Rent is then multiplied by any accumulated AGAs since the Base Year. The full chart of the Administrative Formulas for Calculation of the MAR and other documents can be found here.

What if I disagree with the MAR in the Certificate of Maximum Allowable Rent released for my system?

Landlords and renters can petition for a hearing to object to the MAR. For instance, either celebration can challenge the accuracy of info reported to the Rent Stabilization Program, which is used to determine the Maximum Allowable Rent. Objections need to be gotten within one month of the issuance of a Certificate of Maximum Allowable Rent; this due date can be reached 60 days for excellent cause. If a timely objection is not filed, the Certificate of Maximum Allowable Rent becomes last unless there is proof of deliberate misrepresentation or fraud, or unless a renter and landlord voluntarily submit a joint petition (a “stipulated petition”) looking for a correction.

Can I be charged a City registration cost of $9.75 in addition to my rent?

No, owners can not. Under the 2010 Ordinance, before November 2016, owners, with proper advance 30-day notification, could hand down to renters half of the City’s registration cost for the Rent Stabilization Program. In program years 2011 through 2015, the occupant’s share of this charge was $9.75 per month. Tenants could not be charged more than this amount or charged this charge retroactively. This charge was not part of the rent or included in the calculation of the MAR or rent increases based on AGAs.

Upon the voter-approved modification of the 2010 Ordinance in November 2016, the optimum allowed rent for tenancies developed on or before November 8, 2016 was increased by 9 dollars and seventy-five cents ($9.75) as of November 8, 2016, to reflect the previous month-to-month registration cost pass-through quantity. As an outcome, owners are no longer permitted to collect this cost as a different charge.