How much can my rent be increased each year?

The Ordinance provides that the Rent Stabilization Board each year determines the acceptable percentage increase, or Annual General Adjustment (" AGA"), that landlords can raise leas for tenants in controlled rental systems. Landlords of rent-controlled units, who are in compliance with the Ordinance might increase rents between July 1 and June 30 of each program year by the amount of the AGA (assuming the occupant's current rent level is at a formerly certified Maximum Allowable Rent, hereinafter "MAR") after providing proper 30-day notice to the occupant, as required by State law.

The following are the portion of rent increases permitted, consisting of all charges for regulated housing services, for each program year since the Ordinance entered into effect in August 8, 2010:

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

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

In determining lease increases, AGAs must be applied to an occupant's permissible lease level or certified MAR (Do not include the City's registration fee of $9.75 when determining the rent increase). The Board embraces the AGA in April to be efficient before the program year begins, which runs July 1 through June 30 of that year and a notice sent out by the Board recommending property managers and occupants of managed rentals of the AGA is sent in mid-May of the same year. A proprietor is eligible to increase leas utilizing AGAs just if the property owner:

1. Registers all systems in the very same residential or commercial property with the Rent Stabilization Program; and
2. Substantially complies with the Ordinance and any orders or policies provided or promulgated under the Ordinance, consisting of not charging more than the allowed lease; and
3. Ensures the rental complies with the indicated guarantee of habitability; and completes all repairs ordered by the City.

Rent increases may not go beyond 10% in any 12-month period. Fees paid to a proprietor for controlled housing services such as parking or energies are part of the lease. Any boost in fees for regulated housing services, or any charges for extra services other than for the addition of a family pet charge that were not consisted of in an occupant's initial rental contract, are considered lease increases and need to comply with the requirements for raising rents. The addition of a family pet charge is ruled out a rent boost. The Board does not verify a property manager's eligibility for yearly rent boosts. Tenants ought to keep track of lease boosts closely and file a petition with the Board, if required, to challenge a property owner's eligibility to raise leas or the propriety of any lease increase.

Landlords may raise rents by a lesser amount than allowed by the AGA or choose not to raise rents by the AGA in any given year, and in that occasion, they may "bank" the unused AGA for future usage to raise a tenant's lease.

When can my landlord raise my lease?

A property owner can not increase rent unless a Certificate of Maximum Allowable Rent has actually been provided for the existing renter of a regulated unit after a landlord has sent a Registration Statement. Once a Certificate of Maximum Allowable Rent has been provided, the proprietor can raise that occupant's rent when every 12 months, but not in excess of 10% every year, as long as the system continues to be properly signed up, and the landlord remains in considerable compliance with the Ordinance. No rent boosts are permitted for renters within 12 months of preliminary occupancy.

What does it imply to "bank" an AGA for future lease increases?

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

What is a Certificate of Maximum Allowable Rent?

Beginning in 2011 the Board began providing Certificates of Maximum Allowable Rent for rentals managed under the recently embraced Ordinance. Certificates are just issued upon Initial Registration of a rental and upon tenancy by a new tenant; they are not released every year. Based on information sent by property owners, the Rent Stabilization Administrator determines the MAR in the Certificates released for rentals that have been correctly signed up with the City. Each Certificate of Maximum Allowable Rent only uses to the occupants in a rental arrangement for occupancy of a specific unit address. A tenant can not be charged lease, including any fees for regulated housing services, above the MAR for the timeframe specified in the Certificate issued for their system. If a renter is charged lease above the MAR, they may file a petition (Petition A) to look for a rent decrease and a refund for overcharges. Depending on the facts of a particular occupancy, refunds might reach as far back as August 2010.

How are Certificates of Maximum Allowable Rents (MARs) figured out?

The Rent Stabilization Program Administrator utilizes formulas for calculating the MAR in Certificates of Maximum Allowable Rent that consider the date the tenant moved into the rental system, the Adjusted Base Year Rent, and the AGAs allowed given that then. The determined Base Year Rent, which for brand-new renters is the lease at preliminary occupancy, is adjusted by deducting any discounts supplied to the occupant in the very first 12 months, and adding the quantity of any regulated housing service costs included in the initial rental agreement. This Adjusted Base Year Rent is then increased by any accumulated AGAs given that the Base Year. The full 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 system?

Landlords and renters can petition for a hearing to object to the MAR. For instance, either celebration can challenge the accuracy of information reported to the Rent Stabilization Program, which is utilized to determine the Maximum Allowable Rent. Objections need to be gotten within one month of the issuance of a Certificate of Maximum Allowable Rent; this due date can be reached 60 days for great cause. If a timely objection is not submitted, the Certificate of Maximum Allowable Rent becomes final unless there is evidence of intentional misrepresentation or fraud, or unless an occupant and property owner willingly file a joint petition (a "stipulated petition") looking for a correction.

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

No, owners can not. Under the 2010 Ordinance, before November 2016, owners, with correct 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 renter's share of this charge was $9.75 per month. Tenants could not be charged more than this quantity or charged this cost retroactively. This cost was not part of the rent or included in the computation of the MAR or lease boosts based on AGAs.

Upon the voter-approved modification of the 2010 Ordinance in November 2016, the optimum allowable rent for tenancies developed on or before November 8, 2016 was increased by 9 dollars and seventy-five cents ($9.75) as of November 8, 2016, to reflect the previous monthly registration charge pass-through quantity. As a result, owners are no longer enabled to collect this cost as a different charge.