Q: I dwell in a rent-controlled residence on the Higher West Facet, and I’d prefer to know what the lease improve will probably be this 12 months. I’ve learn quite a bit in regards to the will increase for rent-stabilized residences issued by New York’s Hire Tips Board, however for not rent-controlled residences. Is there a rise, and can it’s retroactive? Will we obtain formal discover from a authorities company, or is a be aware from the owner sufficient?
A: It’s not stunning that you simply discovered extra details about will increase for rent-stabilized items in New York Metropolis, as a result of they vastly outnumber rent-controlled items, which account for lower than 1 p.c of the town’s housing inventory — about 16,400 residences in all.
Whereas lease will increase for rent-stabilized items are ruled by the New York Metropolis Hire Tips Board, will increase for rent-controlled items 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 practically all circumstances.
“The owner can’t willy-nilly improve the lease,” stated Gary J. Wachtel, a Manhattan-based lawyer who represents tenants and landlords.
Hire-controlled items function underneath the utmost base lease (MBR) program, a legislation supposed to make sure that such residences 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 Neighborhood Renewal (DHCR), for eligibility, then present tenants with an official discover of the permitted improve, and whether or not it’s retroactive.
The MBR is predicated on a formulation that displays property taxes, working bills and different elements, and it’s adjusted each two years to replicate these prices. Landlords in good standing can increase their rents accordingly, both by the common of the 5 most up-to-date Hire Tips 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 stated. 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 Neighborhood Renewal may also approve will increase for rent-controlled items 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.
For weekly e-mail updates on residential actual property information, join right here.
