Below is a statement from RGB Owner Member Scott Walsh which he requested be submitted along with his proposed final rule for Apartment and Loft Order 48:
I’d like to start off by thanking Mayor de Blasio for his ambitious housing plan to help address the city’s housing crisis. I also want to congratulate the Mayor and City Council for passing Mandatory Inclusionary Housing, which should help to spur the creation of a significant number of affordable units over the next 10 years.
While these are good steps forward, there is no doubt that so much more must be done immediately. Based on the testimony presented to RGB the following solutions are respectfully submitted.
- $150 monthly rent credit for rent burdened tenants to be paid through direct
- $300 monthly rent credit for severely rent burdened tenants to be paid through
direct city/state subsidy
- Retroactive property tax assessment and tax rate freeze for all rent stabilized buildings to tax year 2014
- Retroactive water rate freeze on all rent stabilized buildings to October 1, 2014
- Expansion of the One Shot Deal Program to include funding to pay for tenant moving costs, right sizing of the units and assistance in locating quality affordable housing
- Immediate expansion of the SCRIE/DRIE programs to an income limit of $72,500 for household of 2, $63,500 for household of 1. 100% of Area Median Income
- Immediate outreach to all DHCR registered apartments annually with information on eligibility and how to apply to SCRIE/DRIE programs
- Immediate reinstatement of an enhanced 421A program to ensure housing construction levels to meet the needs of our aging housing stock and growing population
- Direct city subsidy for all rent stabilized units that are not financially self-sustaining, including unsold non-eviction plan co-op and condo units
- Voluntary tenant means testing to accurately access the needs within the housing stock
- Conversion of the RGB to a year round board to better access/determine housing solutions
Percentage Rent Increase for Apartment and Lofts:
- 3% on 1 Year leases
- 5% on 2 year leases
Scott Walsh, RGB Owner Member
Proposal 6 for Final Rule Adoption
NEW YORK CITY RENT GUIDELINES BOARD
2016 Apartment & Loft Order #48
June 27, 2016
Order Number 48 - Apartments and Lofts, rent levels for leases commencing October 1, 2016 through September 30, 2017.
NOTICE IS HEREBY GIVEN PURSUANT TO THE AUTHORITY VESTED IN THE NEW YORK CITY RENT GUIDELINES BOARD BY THE RENT STABILIZATION LAW OF 1969, as amended, and the Emergency Tenant Protection Act of 1974, as amended, implemented by Resolution No 276 of 1974 of the New York City Council, and in accordance with the requirements of Section 1043 of the New York City Charter, that the Rent Guidelines Board (RGB) hereby adopts the following levels of fair rent increases over lawful rents charged and paid on September 30, 2016. These rent adjustments will apply to rent stabilized apartments with leases commencing on or after October 1, 2016 and through September 30, 2017. Rent guidelines for loft units subject to Section 286 subdivision 7 of the Multiple Dwelling Law are also included in this order.
ADJUSTMENT FOR RENEWAL LEASES (APARTMENTS)
Together with such further adjustments as may be authorized by law, the annual adjustment for renewal leases for apartments shall be:
For a one-year renewal lease commencing on or after October 1, 2016 and on or before September 30, 2017: 3%
For a two-year renewal lease commencing on or after October 1, 2016 and on or before September 30, 2017: 5%
These adjustments shall also apply to dwelling units in a structure subject to the partial tax exemption program under Section 421a of the Real Property Tax Law, or in a structure subject to Section 423 of the Real Property Tax Law as a Redevelopment Project.
VACANCY ALLOWANCE FOR APARTMENTS
No vacancy allowance is permitted except as provided by the Rent Regulation Reform Act of 1997 and the Rent Act of 2015.
ADDITIONAL ADJUSTMENT FOR RENT STABILIZED APARTMENTS SUBLET UNDER SECTION 2525.6 OF THE RENT STABILIZATION CODE
In the event of a sublease governed by subdivision (e) of section 2525.6 of the Rent Stabilization Code, the allowance authorized by such subdivision shall be 10%.
ADJUSTMENTS FOR LOFTS (UNITS IN THE CATEGORY OF BUILDINGS COVERED BY ARTICLE 7-C OF THE MULTIPLE DWELLING LAW)
The Rent Guidelines Board adopts the following levels of rent increase above the "base rent," as defined in Section 286, subdivision 4, of the Multiple Dwelling Law, for units to which these guidelines are applicable in accordance with Article 7-C of the Multiple Dwelling Law:
For one-year increase periods commencing on or after October 1, 2016 and on or before September 30, 2017: 3%
For two-year increase periods commencing on or after October 1, 2016 and on or before September 30, 2017: 5%
VACANT LOFT UNITS
No Vacancy Allowance is permitted under this Order. Therefore, except as otherwise provided in Section 286, subdivision 6, of the Multiple Dwelling Law, the rent charged to any tenant for a vacancy tenancy commencing on or after October 1, 2016 and on or before September 30, 2017 may not exceed the "base rent" referenced above plus the level of adjustment permitted above for increase periods.
For the purposes of these guidelines any lease or tenancy for a period up to and including one year shall be deemed a one-year lease or tenancy, and any lease or tenancy for a period of over one year and up to and including two years shall be deemed a two-year lease or tenancy.
Where a lease for a dwelling unit in effect on May 31, 1968 or where a lease in effect on June 30, 1974 for a dwelling unit which became subject to the Rent Stabilization Law of 1969, by virtue of the Emergency Tenant Protection Act of 1974 and Resolution Number 276 of the New York City Council, contained an escalator clause for the increased costs of operation and such clause is still in effect, the lawful rent on September 30, 2016 over which the fair rent under this Order is computed shall include the increased rental, if any, due under such clause except those charges which accrued within one year of the commencement of the renewal lease. Moreover, where a lease contained an escalator clause that the owner may validly renew under the Code, unless the owner elects or has elected in writing to delete such clause, effective no later than October 1, 2016 from the existing lease and all subsequent leases for such dwelling unit, the increased rental, if any, due under such escalator clause shall be offset against the amount of increase authorized under this Order.
SPECIAL ADJUSTMENTS UNDER PRIOR ORDERS
All rent adjustments lawfully implemented and maintained under previous apartment orders and included in the base rent in effect on September 30, 2016 shall continue to be included in the base rent for the purpose of computing subsequent rents adjusted pursuant to this Order.
Under Section 26-513(b)(1) of the New York City Administrative Code, and Section 9(e) of the Emergency Tenant Protection Act of 1974, the Rent Guidelines Board is obligated to promulgate special guidelines to aid the State Division of Housing and Community Renewal in its determination of initial legal regulated rents for housing accommodations previously subject to the City Rent and Rehabilitation Law which are the subject of a tenant application for adjustment. The Rent Guidelines Board hereby adopts the following Special Guidelines:
For dwelling units subject to the Rent and Rehabilitation Law on September 30, 2016, which become vacant after September 30, 2016, the special guideline shall be 33% above the maximum base rent.
The permissible increase for decontrolled units as referenced in Order 3a, which become decontrolled after September 30, 2016, shall be 33% above the maximum base rent.
Rentals charged and paid in excess of the levels of rent increase established by this Order shall be fully credited against the next month's rent.
STATEMENT OF BASIS AND PURPOSE
The Rent Guidelines Board is authorized to promulgate rent guidelines governing apartment units subject to the Rent Stabilization Law of 1969, as amended, and the Emergency Tenant Protection Act of 1974, as amended. The purpose of these guidelines is to implement the public policy set forth in Findings and Declaration of Emergency of the Rent Stabilization Law of 1969 (§26-501 of the N.Y.C. Administrative Code) and in the Legislative Finding contained in the Emergency Tenant Protection Act of 1974 (L.1974 c. 576, §4 [§2]).
The Rent Guidelines Board is also authorized to promulgate rent guidelines for loft units subject to Section 286 subdivision 7 of the Multiple Dwelling Law. The purpose of the loft guidelines is to implement the public policy set forth in the Legislative Findings of Article 7-C of the Multiple Dwelling Law (Section 280).
Dated: June 27, 2016 ___________________________________
Hon. Kathleen A. Roberts (Ret.), Chair
New York City Rent Guidelines Board
Page posted 6/23/2016