Important Notice Regarding RGB Orders Nos. 40 and 41
(For apartment leases subject to renewal between Oct. 1, 2008 and Sept. 30, 2010):
Rent Guidelines Board Order No. 40 set maximum rent increases for apartments subject to renewal on or after October 1, 2008 and on or before September 30, 2009. Rent Guidelines Board Order No. 41 applies to renewal leases commencing on or after October 1, 2009 and through September 30, 2010.
In a decision dated January 20, 2010, the Supreme Court of New York County issued a decision invalidating the minimum rent increases approved by the Rent Guidelines Board in Orders Nos. 40 and 41. These minimum increases affected rent stabilized tenants who renewed leases with effective dates between October 1, 2008 and September 30, 2010, had been living in their apartments for at least six years, and were paying rent of less than $1,000 a month.
On June 22, 2010, a mid-level appellate court affirmed the lower court's decision to invalidate the minimum increases. The Board then asked the Court of Appeals (the State's highest Court) to review the case.
On October 26, 2010, the Court of Appeals agreed to review the case. The Court is expected to hear the case in February 2011. But until a decision is made, the minimum increases of Order Nos. 40 and 41 are not in effect.
The other provisions of Order Nos. 40 and 41 are not affected by the litigation. Thus, unless the Court of Appeals reinstates the minimum increase provisions, the established percentage guideline increases set forth in Order Nos. 40 and 41 apply to all regulated apartments, regardless of length of tenancy or rent level.
November 9, 2010