Just how much can my lease be increased each year?

The Ordinance provides that the Rent Stabilization Board each year identifies the acceptable percentage increase, or Annual General Adjustment (" AGA"), that landlords can raise leas for renters in controlled rentals. Landlords of rent-controlled systems, who remain in compliance with the Ordinance may increase leas between July 1 and June 30 of each program year by the quantity of the AGA (presuming the tenant's current rent level is at a previously accredited Maximum Allowable Rent, hereinafter "MAR") after offering appropriate 30-day notification to the occupant, as needed by State law.

The following are the portion of lease increases allowed, including all charges for regulated housing services, for each program year since the Ordinance entered into result in August 8, 2010:

- July 1, 2024 - June 30, 2025 AGA rent boost of 1.9% enabled
- July 1, 2023 - June 30, 2024 AGA rent boost of 4.2% enabled
- July 1, 2022 - June 30, 2023 AGA lease boost of 4.2% allowed
- July 1, 2021 - June 30, 2022 AGA lease boost of 1.3% enabled
- July 1, 2020 - June 30, 2021 AGA lease increase of 2.3% enabled
- July 1, 2019 - June 30, 2020 AGA lease increase of 2.8% allowed
- July 1, 2018 - June 30, 2019 AGA lease increase of 2.9% allowed
- July 1, 2017 - June 30, 2018 AGA lease boost of 2.7% allowed
- July 1, 2016 - June 30, 2017 AGA lease increase of 2.4% enabled
- July 1, 2015 - June 30, 2016 AGA lease boost of 2.0% enabled
- July 1, 2014 - June 30, 2015 AGA rent boost of 2.0% allowed
- July 1, 2013 - June 30, 2014 AGA rent increase of 2.0% permitted
- July 1, 2012 - June 30, 2013 AGA lease increase of 2.4% permitted
- July 1, 2011 - June 30, 2012 AGA rent boost of 1.4% enabled
- August 8, 2010 - June 30, 2011 AGA of 0% (no boosts were enabled)

If lease was increased by more than the percent cited above for any of these program years, tenants might petition for a lease decrease and for a refund for any rent they paid too much, unless the lease boost is to the allowable rent level or MAR, as permitted under State law,1 and the proprietor is otherwise in compliance with the Ordinance.

In computing lease increases, AGAs must be used to a renter's allowable rent level or certified MAR (Do not consist of the City's registration cost of $9.75 when calculating the lease increase). The Board adopts the AGA in April to be effective before the program year starts, which runs July 1 through June 30 of that year and a notice sent out by the Board recommending landlords and renters of regulated rentals of the AGA is sent in mid-May of the exact same year. A property manager is qualified to increase rents using AGAs only if the property manager:

1. Registers all systems in the very same residential or commercial property with the Rent Stabilization Program; and
2. Substantially adheres to the Ordinance and any orders or regulations provided or promoted under the Ordinance, including not charging more than the enabled lease; and
3. Ensures the rental system adheres to the indicated service warranty of habitability; and completes all repair work bought by the City.

Rent increases may not exceed 10% in any 12-month duration. Fees paid to a property owner for managed housing services such as parking or utilities become part of the lease. Any boost in fees for regulated housing services, or any charges for additional services other than for the addition of an animal charge that were not consisted of in a tenant's preliminary rental arrangement, are considered lease increases and should comply with the requirements for raising leas. The addition of an animal charge is ruled out a lease increase. The Board does not verify a landlord's eligibility for annual lease boosts. Tenants must keep an eye on rent boosts carefully and file a petition with the Board, if called for, to challenge a property owner's eligibility to raise rents or the propriety of any rent boost.

Landlords might raise leas by a lesser quantity than enabled by the AGA or pick not to raise leas by the AGA in any given year, and in that occasion, they might "bank" the unused AGA for future usage to raise a renter's lease.

When can my proprietor raise my lease?

A proprietor can not increase lease unless a Certificate of Maximum Allowable Rent has actually been provided for the existing tenant of a controlled unit after a proprietor has actually sent a Registration Statement. Once a Certificate of Maximum Allowable Rent has actually been provided, the property manager can raise that occupant's rent once every 12 months, but not in excess of 10% yearly, as long as the system continues to be properly signed up, and the landlord is in significant compliance with the Ordinance. No lease increases are permitted for occupants within 12 months of preliminary occupancy.

What does it mean to "bank" an AGA for future rent increases?

Landlords may "bank" for future use an AGA that is not used to raise rent in the program year for which it is authorized. A composed notification of banking must be provided to the renter by February 1 in the program year for which an AGA is authorized and will not be used that lists which, if any, authorized AGAs have not been taken. A landlord might not bank more than three AGAs during a renter's occupancy. As such, usage of banked AGAs to raise a tenant's rent is limited to the last 3 AGAs that have actually been banked.

What is a Certificate of Maximum Allowable Rent?

Beginning in 2011 the Board started releasing Certificates of Maximum Allowable Rent for rentals managed under the freshly embraced Ordinance. Certificates are just provided upon Initial Registration of a rental unit and upon tenancy by a new renter; they are not provided every year. Based on info submitted by property managers, the Rent Stabilization Administrator computes the MAR in the Certificates provided for rentals that have actually been effectively signed up with the City. Each Certificate of Maximum Allowable Rent just applies to the tenants in a rental agreement for tenancy of a specific unit address. An occupant can not be charged lease, including any fees for regulated housing services, above the MAR for the timeframe defined in the Certificate released for their unit. If an occupant is charged rent above the MAR, they may file a petition (Petition A) to seek a lease reduction and a refund for overcharges. Depending upon the realities of a specific tenancy, refunds might reach as far back as August 2010.

How are Certificates of Maximum Allowable Rents (MARs) identified?

The Rent Stabilization Program Administrator utilizes solutions for calculating the MAR in Certificates of Maximum Allowable Rent that consider the date the occupant moved into the rental unit, the Adjusted Base Year Rent, and the AGAs allowed ever since. The identified Base Year Rent, which for new renters is the lease at initial occupancy, is changed by deducting any discounts offered to the renter in the very first 12 months, and including the quantity of any regulated housing service charge included in the preliminary rental agreement. This Adjusted Base Year Rent is then multiplied by any built up AGAs considering that the Base Year. The complete chart of the Administrative Formulas for Calculation of the MAR and other documents can be discovered here.

What if I disagree with the MAR in the Certificate of Maximum Allowable Rent released for my unit?

Landlords and tenants can petition for a hearing to challenge the MAR. For example, either celebration can challenge the accuracy of information reported to the Rent Stabilization Program, which is utilized to determine the Maximum Allowable Rent. Objections must be gotten within 30 days of the issuance of a Certificate of Maximum Allowable Rent; this deadline can be extended to 60 days for good cause. If a timely objection is not filed, the Certificate of Maximum Allowable Rent becomes final unless there is evidence of intentional misstatement or scams, or unless an occupant and proprietor willingly submit a joint petition (a "specified petition") seeking a correction.

Can I be charged a City registration fee of $9.75 in addition to my rent?

No, owners can not. Under the 2010 Ordinance, before November 2016, owners, with appropriate advance 30-day notice, could pass on to occupants half of the City's registration charge for the Rent Stabilization Program. In program years 2011 through 2015, the tenant's share of this cost was $9.75 monthly. Tenants might not be charged more than this quantity or charged this charge retroactively. This fee was not part of the rent or consisted of in the estimation of the MAR or rent boosts based on AGAs.

Upon the voter-approved change of the 2010 Ordinance in November 2016, the optimum allowed lease for occupancies developed on or before November 8, 2016 was increased by nine dollars and seventy-five cents ($9.75) as of November 8, 2016, to show the previous monthly registration fee pass-through quantity. As an outcome, owners are no longer permitted to collect this charge as a separate charge.