Second Consecutive Rent Freeze Approved,
RSA Commences Lawsuit Against Mayor-Controlled RGB
UPDATE: RSA has filed a lawsuit in the Manhattan Supreme Court against the RGB. The RGB continues to implement Mayor Bill de Blasio's political agenda, targeting apartment building owners. As a result, RSA will fight these unjust and unlawful rent guidelines in the courts. The lawsuit filed seeks the courts to, among other things:
• Annul the rent freeze on the ground that it violates the Rent Stabilization Law because the RGB based the guidelines upon tenant affordability.
• Declare the rent freeze unconstitutional on the grounds that the RGB’s use of tenant affordability as a determining factor in promulgating rent guidelines violates the separation of powers doctrine.
• Direct the RGB to promulgate new rent guidelines for the period October 1, 2016 to September 30, 2017 in accordance with the applicable law.
Please stay tuned for updates regarding the lawsuit against the RGB. In the meantime, below is a summary of Rent Guidelines Order No. 48 for leases commencing between October 1, 2016 through September 30, 2017:
0% for one-year leases
2% for two-year leases
A sublet allowance of 10%
Special Guideline: Maximum Base Rent (MBR) + 33%
A vacancy allowance of 18% for one-year leases*
A vacancy allowance of 20% for two-year leases*
*With regard to vacancy allowance increases, as a result of amendments to the rent stabilization laws which took effect June 15, 2015, where the tenant who vacated the apartment was paying a preferential rent, the vacancy allowance is 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 20% if the last vacancy lease commenced four or more years ago. The vacancy allowances are applied to legal regulated rent, not the preferential rent.
We will have additional information on this year's RGB process, as well as the lawsuit against the RGB, in the September edition of the RSA Reporter.
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