How much can my lease be increased each year?

The Ordinance supplies that the Rent Stabilization Board each year figures out the acceptable portion increase, or Annual General Adjustment (" AGA"), that landlords can raise leas for renters in controlled rental units. Landlords of rent-controlled systems, who remain 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 renter's current rent level is at a previously licensed Maximum Allowable Rent, hereinafter "MAR") after giving correct 30-day notification to the tenant, as required by State law.

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

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

If lease was increased by more than the percent mentioned above for any of these program years, renters may petition for a rent decrease and for a refund for any rent they paid too much, unless the lease increase 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 boosts, AGAs need to be applied to a renter's allowable lease level or accredited MAR (Do not include the City's registration charge of $9.75 when determining the rent boost). 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 notification sent by the Board recommending property owners and renters of controlled rentals of the AGA is sent in mid-May of the very same year. A proprietor is qualified to increase rents utilizing AGAs just if the landlord:

1. Registers all units in the same residential or commercial property with the Rent Stabilization Program; and
2. Substantially adheres to the Ordinance and any orders or policies provided or promulgated under the Ordinance, including not charging more than the permitted rent; and
3. Ensures the rental abides by the indicated warranty of habitability; and completes all repairs purchased by the City.

Rent increases may not exceed 10% in any 12-month period. Fees paid to a landlord for managed housing services such as parking or energies belong to the rent. 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 included in a tenant's initial rental arrangement, are thought about rent boosts and must adhere to the requirements for raising rents. The addition of a pet charge is ruled out a rent increase. The Board does not verify a proprietor's eligibility for yearly lease increases. Tenants must monitor lease boosts closely and submit a petition with the Board, if necessitated, to challenge a property owner's eligibility to raise leas or the propriety of any rent increase.

Landlords might raise leas by a lesser amount than permitted 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 usage to raise a renter's rent.

When can my property manager raise my lease?

A property owner can not increase rent unless a Certificate of Maximum Allowable Rent has been provided for the current occupant of a controlled system after a landlord has actually sent a Registration Statement. Once a Certificate of Maximum Allowable Rent has been issued, the proprietor can raise that occupant's lease when every 12 months, however not in excess of 10% annually, as long as the system continues to be appropriately signed up, and the landlord remains in substantial compliance with the Ordinance. No rent increases are allowed for occupants within 12 months of initial occupancy.

What does it mean to "bank" an AGA for future lease boosts?

Landlords may "bank" for future usage an AGA that is not used to raise lease in the program year for which it is authorized. A written notification of banking must be offered 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, authorized AGAs have not been taken. A property owner may not bank more than 3 AGAs throughout an occupant's occupancy. As such, use of banked AGAs to raise an occupant's lease is restricted to the last 3 AGAs that have actually been banked.

What is a Certificate of Maximum Allowable Rent?

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

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

The Rent Stabilization Program Administrator uses formulas for determining the MAR in Certificates of Maximum Allowable Rent that consider the date the renter moved into the rental, the Adjusted Base Year Rent, and the AGAs allowed given that then. The identified Base Year Rent, which for new renters is the rent at initial occupancy, is changed by deducting any discounts supplied to the occupant in the very first 12 months, and adding the amount of any regulated housing service charge included in the preliminary rental agreement. This Adjusted Base Year Rent is then multiplied by any accumulated AGAs since the Base Year. The full chart of the Administrative Formulas for Calculation of the MAR and other documents can be found 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 object to the MAR. For instance, either party can challenge the accuracy of info reported to the Rent Stabilization Program, which is used to determine the Maximum Allowable Rent. Objections need to be received within thirty days of the issuance of a Certificate of Maximum Allowable Rent; this deadline can be encompassed 60 days for good cause. If a prompt objection is not filed, the Certificate of Maximum Allowable Rent becomes final unless there is evidence of deliberate misrepresentation or scams, or unless a tenant and proprietor voluntarily submit 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 appropriate advance 30-day notification, could hand down to tenants half of the City's registration charge for the Rent Stabilization Program. In program years 2011 through 2015, the tenant's share of this charge was $9.75 monthly. Tenants might not be charged more than this quantity or charged this fee retroactively. This charge was not part of the lease or consisted of in the calculation of the MAR or rent boosts based on AGAs.

Upon the voter-approved change of the 2010 Ordinance in November 2016, the maximum permitted lease for occupancies developed on or before November 8, 2016 was increased by nine dollars and seventy-five cents ($9.75) since November 8, 2016, to reflect the previous regular monthly registration cost pass-through amount. As an outcome, owners are no longer allowed to gather this charge as a different charge.