On Tuesday, June 27th, the City Rent Guidelines Board (RGB) voted in favor of the first rent increase in three years with 7 votes in favor and 2 against coming from the Owner Members.
Despite a rent increase, the small increase does not come close to covering the large increase in operating expenses that property owners have incurred over the last year.
Below is a summary of Rent Guidelines Order No. 49 for leases commencing between October 1, 2017 through September 30, 2018:
1.25% 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 19.25% 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 casino 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.
Vacancy Decontrol Threshold: Pursuant to the Rent Act of 2015 the deregulation threshold for luxury decontrol increases by the amount of the one-year guideline. As a result, the threshold increases to $2,733.75 effective January 1, 2018.
We will have additional information on this year's RGB process in the upcoming July/August edition of the RSA Reporter.
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RSA’s top priority is to protect the best interests of the rental housing industry by advocating in the State and City governments.
Although our staff takes pride in advocating on behalf of residential property owners, it is important that you make your voices heard to your local elected officials as well.
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