On Monday, June 29th, the City Rent Guidelines Board (RGB) approved a rent freeze on one-year leases for the first time in the 47-year history of the Board.
This unprecedented outcome was approved by a vote of 7 to 2 with the two votes against coming from the Owner Representatives on the Board. The RGB fulfilled a campaign promise of a rent freeze made by Mayor Bill de Blasio, who has appointed or reappointed all nine members of the Board.Below is a summary of Rent Guidelines Order No. 47 for leases commencing between October 1, 2015 through September 30, 2016:
- 0% for one-year leases
- 2% for two-year leases
- A sublet allowance of 10%
- Special Guideline Maximum Base Rent (MBR) + 33% or HUD's Fair Market Rent, whichever is greater
- A vacancy allowance of 18% for one-year leases*
- A vacancy allowance of 20% for two-year leases*
*Please note that, as a result of the changes in the State Rent Stabilization Laws effective June 15, 2015 through June 15, 2019, if a tenant was paying a preferential rent, the vacancy allowance is modified as follows: 5% if the last vacancy lease commenced less than two years ago, 10% if the last vacancy lease commenced less than three years ago, 15% if the last vacancy lease commenced less than four years ago, and a vacancy allowance of 18% for one-year leases and a vacancy allowance of 20% for two-year leases, if the last vacancy lease commenced four or more years ago. The vacancy allowances are applied to legal regulated rent, not the preferential rent.
For more information on this year's rent increases, you can download the summary of the Rent Guidelines Board 2015 Apartment Order #47 by clicking here. We will have additional information on this year's RGB process, as well as the changes to the State rent laws, in the upcoming July/August edition of the RSA Reporter.