Q: I live in a rent controlled apartment on the Upper West Side and would like to know what the rent increase will be this year. I’ve read a lot about the increases for rent-controlled housing issued by the New York Rent Guidelines Board, albeit for non-rent-controlled housing. Is there an increase and will it be retrospective? Do we receive formal notice from a government agency, or is notice from the landlord sufficient?
A: It’s not surprising that you’ve found more information about rent-controlled unit increases in New York City, as they far outnumber rent-controlled units, which make up less than 1 percent of the city’s housing stock — about 16,400 total apartments.
While rent increases for rent-controlled units are governed by the New York City Rent Guidelines Board, increases for rent-controlled units are administered by New York State. For many rent control tenants, the increase this year is 1.4 percent. And yes, in almost all cases, your landlord is required to announce increases provided by a government agency.
“The landlord cannot voluntarily increase the rent,” said Gary J. Wachtel, a Manhattan-based attorney who represents tenants and landlords.
Rent-controlled units are subject to the MBR (Maximum Base Rent) program, a law designed to ensure such apartments provide sufficient income for their maintenance and building improvements. Landlords wishing to participate in the program must apply for eligibility with the New York State Affordable Housing Agency, Division of Housing and Community Renewal (DHCR), and then provide tenants with an official notice of the approved increase, stating: whether this is retroactive.
The MBR is based on a formula that reflects property taxes, operating costs, and other factors, and is adjusted every two years to reflect those costs. Well-respected landlords can increase their rents accordingly, either by the average of the Rent Guidelines Board’s five most recent annual rent increases for one-year lease renewals, or by 7.5 percent until the MBR is met, whichever is lower.
The notice “states exactly as of which date the landlord was entitled to the increase,” Wachtel said. Over the past five years, the average increase in board on one-year leases has been 1.4 percent. This increase went into effect on January 1, 2023.
The Department of Housing and Community Renewal may also approve increases for rent-controlled units if the landlord has the tenant’s written consent, following a building-wide capital improvement, or in hardship cases. Tenants can contest the increase if the building is in violation or if the cost of the building does not justify the increase.
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