Q: I dwell in a rent-controlled residence on the Higher West Facet, and I’d prefer to know what the lease improve might be this 12 months. I’ve learn quite a bit concerning the will increase for rent-stabilized flats issued by New York’s Hire Pointers Board, however for not rent-controlled flats. Is there a rise, and can or not it’s retroactive? Will we obtain formal discover from a authorities company, or is a notice from the owner sufficient?
A: It’s not shocking that you simply discovered extra details about will increase for rent-stabilized models in New York Metropolis, as a result of they vastly outnumber rent-controlled models, which account for lower than 1 p.c of town’s housing inventory — about 16,400 flats in all.
Whereas lease will increase for rent-stabilized models are ruled by the New York Metropolis Hire Pointers Board, will increase for rent-controlled models are administered by New York State. For a lot of rent-controlled tenants, the rise this 12 months is 1.4 p.c. And sure, your landlord is required to serve discover of the will increase offered by a state company in almost all circumstances.
“The owner can’t willy-nilly improve the lease,” mentioned Gary J. Wachtel, a Manhattan-based lawyer who represents tenants and landlords.
Hire-controlled models function below the utmost base lease (MBR) program, a regulation meant to make sure that such flats present sufficient revenue for his or her upkeep and constructing enhancements. Landlords searching for to take part in this system should apply to New York State’s affordable-housing company, the Division of Housing and Group Renewal (DHCR), for eligibility, then present tenants with an official discover of the authorised improve, and whether or not it’s retroactive.
The MBR is predicated on a method that displays property taxes, working bills and different components, and it’s adjusted each two years to mirror these prices. Landlords in good standing can increase their rents accordingly, both by the typical of the 5 most up-to-date Hire Pointers Board annual lease will increase for one-year renewal leases, or by 7.5 p.c till the MBR is reached, whichever is much less.
The discover “will set forth precisely what date the owner turned entitled to the rise,” Mr. Wachtel mentioned. Within the final 5 years, the board’s common improve for one-year leases was 1.4 p.c. That improve turned efficient on Jan. 1, 2023.
The Division of Housing and Group Renewal may also approve will increase for rent-controlled models if the owner has written consent from the tenant, or following a building-wide capital enchancment, or in circumstances of hardship. Tenants can problem the rise if the constructing has violations, or if the constructing’s bills don’t warrant the rise.
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