Just how much can my rent be increased each year?

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

The following are the portion of lease increases allowed, consisting of all fees for regulated housing services, for each program year considering that the Ordinance went into result in August 8, 2010:

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

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

In calculating rent increases, AGAs should be applied to an occupant's acceptable rent level or accredited MAR (Do not include the City's registration cost of $9.75 when computing the rent boost). The Board adopts the AGA in April to be reliable 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 tenants of controlled rental systems of the AGA is sent out in mid-May of the same year. A property owner is eligible to increase rents utilizing AGAs just if the landlord:

1. Registers all units in the very same residential or commercial property with the Rent Stabilization Program; and
2. Substantially adheres to the Ordinance and any orders or policies issued or promoted under the Ordinance, including not charging more than the permitted lease; and
3. Ensures the rental adheres to the implied warranty of habitability; and finishes all repairs purchased by the City.

Rent increases may not surpass 10% in any 12-month period. Fees paid to a property owner for regulated housing services such as parking or energies become part of the rent. Any increase in fees for regulated housing services, or any charges for additional services other than for the addition of a pet charge that were not included in a renter's preliminary rental arrangement, are considered lease increases and should conform to the requirements for raising leas. The addition of a family pet charge is not considered a rent increase. The Board does not verify a property manager's eligibility for yearly rent boosts. Tenants need to monitor rent boosts carefully and file a petition with the Board, if necessitated, to challenge a landlord's eligibility to raise leas or the propriety of any lease increase.

Landlords might raise leas by a lesser quantity than enabled by the AGA or choose not to raise rents by the AGA in any given year, and in that event, they may "bank" the unused AGA for future use to raise a tenant's lease.

When can my property owner raise my lease?

A landlord can not increase lease unless a Certificate of Maximum Allowable Rent has actually been issued for the current occupant of a managed system after a property manager has sent a Registration Statement. Once a Certificate of Maximum Allowable Rent has been released, the landlord can raise that renter's rent once every 12 months, but not in excess of 10% every year, as long as the unit continues to be properly registered, and the property manager remains in significant compliance with the Ordinance. No rent boosts are permitted for tenants within 12 months of initial tenancy.

What does it suggest to "bank" an AGA for future rent boosts?

Landlords may "bank" for future use an AGA that is not utilized to raise lease in the program year for which it is licensed. A composed notice of banking should be offered to the tenant by February 1 in the program year for which an AGA is authorized and will not be utilized that lists which, if any, authorized AGAs have actually not been taken. A property manager may not bank more than 3 AGAs throughout an occupant's tenancy. As such, usage of banked AGAs to raise an occupant's lease is limited to the last 3 AGAs that have been banked.

What is a Certificate of Maximum Allowable Rent?

Beginning in 2011 the Board began releasing Certificates of Maximum Allowable Rent for rentals controlled under the freshly adopted Ordinance. Certificates are only released upon Initial Registration of a rental unit and upon occupancy by a brand-new occupant; they are not issued every year. Based on info sent by proprietors, the Rent Stabilization Administrator computes the MAR in the Certificates issued for rentals that have actually been correctly signed up with the City. Each Certificate of Maximum Allowable Rent just uses to the occupants in a rental arrangement for occupancy of a specific unit address. A renter can not be charged lease, including any charges for regulated housing services, above the MAR for the timeframe specified in the Certificate issued for their unit. If an occupant is charged rent above the MAR, they might submit a petition (Petition A) to look for a rent decrease and a rebate for overcharges. Depending on the facts of a specific tenancy, rebates 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 computing the MAR in Certificates of Maximum Allowable Rent that think about the date the renter moved into the rental, the Adjusted Base Year Rent, and the AGAs permitted given that then. The identified Base Year Rent, which for new occupants is the lease at initial tenancy, is changed by deducting any discount rates offered to the occupant in the first 12 months, and including the quantity of any regulated housing service fees consisted of in the preliminary rental arrangement. This Adjusted Base Year Rent is then multiplied by any collected AGAs since the Base Year. The full chart of the Administrative Formulas for Calculation of the MAR and other files can be found here.

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

Landlords and occupants can petition for a hearing to object to the MAR. For example, either celebration can challenge the accuracy of details reported to the Rent Stabilization Program, which is utilized to calculate 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 good cause. If a prompt objection is not filed, the Certificate of Maximum Allowable Rent becomes last unless there is proof of intentional misrepresentation or fraud, or unless a tenant and property manager voluntarily file a joint petition (a "stated petition") seeking a correction.

Can I be charged a City registration cost 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 hand down to tenants half of the City's registration fee for the Rent Stabilization Program. In program years 2011 through 2015, the occupant's share of this charge was $9.75 monthly. Tenants could not be charged more than this quantity or charged this cost retroactively. This charge was not part of the lease or included in the computation of the MAR or rent increases based on AGAs.

Upon the voter-approved modification of the 2010 Ordinance in November 2016, the maximum allowed lease for occupancies developed on or before November 8, 2016 was increased by 9 dollars and seventy-five cents ($9.75) since November 8, 2016, to show the previous month-to-month registration cost pass-through quantity. As a result, owners are no longer permitted to gather this fee as a different charge.