Proposed Apartment/Loft & Hotel Guidelines

Proposed Apartment/Loft & Hotel Guidelines

On May 7, 2019, the NYC Rent Guidelines Board adopted a proposed range of renewal lease guidelines for rent stabilized apartments & lofts (Apartment/Loft Order #51) and hotels (Hotel Order #49) commencing between October 1, 2019 and September 30, 2020.

The proposed guidelines, as well as procedures relating to public meetings and public hearing concerning the guidelines, is detailed in the Public Notice below (also available in pdf format.

The proposed guidelines may also be viewed, and comments may be submitted, on the Rules of the City of New York Information Center (NYC Rules) website.

 

Notice of Public Hearings and Opportunity to Comment on Proposed Rules

What are we proposing?  Pursuant to its statutory mandate, the New York City Rent Guidelines Board (RGB) is proposing rent guidelines for October 1, 2019 through September 30, 2020.

When and where are the hearings?  See information on the following pages for dates, time, locations, and disability access.

How do I comment on the proposed rules?  Anyone can comment on the proposed rules by:

  • Mail.  You can mail comments to NYC Rent Guidelines Board, 1 Centre Street, Suite 2210, New York, NY 10007.
  • Fax.  You can fax comments to NYC Rent Guidelines Board, 212-669-7488.
  • By Speaking at the Hearing.  Anyone who wants to comment on the proposed rule at a public hearing must sign up to speak. You can sign up before the hearing by calling 212-669-7480. You can also sign up at the public hearings from 5:00 pm to 8:00 pm on June 11, 13 and 20 and from 5:30 pm to 8:30 pm on June 18. You can speak for up to two minutes.

Is there a deadline to submit comments?  The deadline to submit comments is June 21, 2019. 

What if I need assistance to participate in the Hearing?  You must tell the Rent Guidelines Board if you need a reasonable accommodation of a disability at a Hearing. Spanish interpreters will be provided at each hearing and a Mandarin interpreter will be provided at the June 13 meeting in Brooklyn. You must tell us if you need a sign language interpreter or language interpreter for a language other than those previously mentioned. You can tell us by mail at the address given above. You may also tell us by telephone at 212-669-7480. Advance notice is requested to allow sufficient time to arrange the accommodation. Please tell us by June 4, 2019.

All meeting and hearing locations have the following accessibility option(s) available: wheelchair accessible.

Can I review the comments made on the proposed rules?  You can review the comments made online on the proposed rules by going to the website at http://rules.cityofnewyork.us/. Copies of comments submitted online and copies of written comments will be available at 1 Centre Street, Suite 2210, New York, NY, by appointment, between 10:00 AM and 4:00 PM on weekdays at the RGB office.  A few weeks after the final hearing on June 20, a summary of oral comments concerning the proposed rule will be available at the RGB office.

What authorizes NYC Rent Guidelines Board to make this rule?  Section 1043(a) of the City Charter and the Rent Stabilization Law of 1969, as amended, and the Emergency Tenant Protection Act of 1974, as amended, implemented by Resolution No 276 of 1974 of the New York City Council authorize the NYC Rent Guidelines Board to make this proposed rule. The proposed rule was included in the most recent regulatory agenda for the Rent Guidelines Board.

Where can I find the NYC Rent Guidelines Board rules?  The NYC Rent Guidelines Board rules are in title 30 of the Rules of the City of New York.

What laws govern the rulemaking process?  The NYC Rent Guidelines Board must meet the requirements of Section 1043 of the City Charter when creating or changing rules. This notice is made according to the requirements of Section 1043 of the City Charter.

PUBLIC NOTICE 

PLEASE TAKE NOTICE THAT SCHEDULES AND PROCEDURES RELATING to meetings and hearings of the New York City Rent Guidelines Board (RGB) for consideration of the guidelines for rent adjustments for apartment, loft and hotel dwelling units subject to the Rent Stabilization Law of 1969, as amended, have been formulated. In accordance with Chapter 45 of the New York City Charter (the "City Administrative Procedure Act"), the Board has proposed rent guidelines, which are now being followed by a notice and comment period, public hearings and the promulgation of final rent orders.

The proposed rent guidelines will be published in accordance with the City Administrative Procedure Act. The public will have a minimum of 30 days to review and consider the proposals at a series of public hearings prior to the final Board meeting.

Following the hearings and the receipt of public comments on the proposed rent guidelines, the Board will meet on Tuesday, June 25, 2019 at 7:00 PM at The Great Hall at Cooper Union, 7 East 7th Street at corner of 3rd Ave. (basement), New York, NY, 10003, to adopt final rent guidelines.

Apartment renewal leases and loft increase periods during the period of October 1, 2019 through September 30, 2020 and rent stabilized hotel units will be affected.

SCHEDULE OF MEETINGS AND HEARINGS

The schedule of Rent Guidelines Board meetings and hearings to consider such adjustments is as follows:

DATE LOCATION TIME

Thursday
May 16, 2019
Public Meeting

Landmarks Preservation Commission
Conference Room
1 Centre Street, 9th Floor
New York, NY 10007

9:30 A.M.
This location has the following accessibility option(s) available: Wheelchair Accessible

Tuesday
June 11, 2019
Public Hearing
(Public Testimony)

Main Theatre of
Hostos Community College/CUNY
450 Grand Concourse
Bronx, NY  10451

5:00 P.M. – 8:00 P.M.
Interpretation and Simultaneous Translation Available: Spanish
This location has the following accessibility option(s) available: Wheelchair Accessible

Thursday
June 13, 2019
Public Hearing
(Public Testimony)

Saint Francis College
Founders Hall
180 Remsen Street
Brooklyn, New York 11201

5:00 P.M. – 8:00 P.M.
Interpretation Available: Spanish and Mandarin
This location has the following accessibility option(s) available: Wheelchair Accessible

Tuesday
June 18, 2019
Public Hearing
(Public Testimony)

Jamaica Performing Arts Center
Auditorium
153-10 Jamaica Avenue
Jamaica, NY 11432

5:30 P.M. – 8:30 P.M.
Interpretation Available: Spanish
This location has the following accessibility option(s) available: Wheelchair Accessible

Thursday
June 20, 2019
Public Hearing
(Public Testimony)

Oberia D. Dempsey Multi
Service Center - Auditorium
127 West 127th Street
New York, NY 10027

5:00 P.M. – 8:00 P.M.
Interpretation Available: Spanish
This location has the following accessibility option(s) available: Wheelchair Accessible

Tuesday
June 25, 2019
Public Meeting
(Final Vote)

The Great Hall at
Cooper Union
7 East 7th Street at corner
of 3rd Ave. (basement)
New York, NY 10003

7:00 P.M.
This location has the following accessibility option(s) available: Wheelchair Accessible

NOTE: The Rent Guidelines Board reserves the right to cancel or reschedule public meetings.

HEARING AND PUBLIC MEETING RULES AND PROCEDURES

To ensure that the members of the Rent Guidelines Board are able to deliberate and to hear members of the public with regard to renewal lease adjustments, and that members of the public are able to participate meaningfully in the public meeting and hearing process, items that are reasonably likely to disrupt the proceedings, such as noisemakers and drums, are prohibited and may not be brought into meeting and hearing venues.

We encourage you to arrive early to avoid delays and help speed the entry of all members of the public. Your cooperation, patience and understanding are greatly appreciated.

SPEAKING AT A PUBLIC HEARING

Anyone wishing to speak at a public hearing must register. Pre-registration of speakers is now being accepted and is advised. To pre-register you may call (212) 669-7480:

  • until 12:00 P.M. on Monday, June 10 for the June 11 hearing in the Bronx;
  • until 12:00 P.M. on Wednesday, June 12 for the June 13 hearing in Brooklyn;
  • until 12:00 P.M. on Monday, June 17 for the June 18 hearing in Queens; and
  • until 12:00 P.M. on Wednesday, June 19 for the June 20 hearing in Manhattan.

An exact time for speaking cannot be provided, but those pre-registering will be informed of their number on the list of pre-registered speakers when they call the above phone number to pre-register.

Written requests for pre-registration must be received at the office of the Board at 1 Centre Street, Suite 2210, New York, NY, 10007 by 12:00 P.M. on the business day prior to the public hearing date.
Persons who request that a sign language interpreter, language interpreter or other form of reasonable accommodation for a disability be provided at any of the scheduled hearings must notify Ms. Charmaine Superville at the NYC Rent Guidelines Board (212) 669-7485, 1 Centre Street, Suite 2210, New York, NY 10007 by Tuesday, June 4, 2019 at 4:30 PM.

Pre-registered speakers who have confirmed their presence on the day of the hearing will be heard in the order of pre-registration and before those who have not pre-registered.  If a speaker's pre-registered position has been passed before he or she has confirmed his or her pre-registration, his or her position is forfeited and he or she must re-register. There will be no substitution of one speaker's position for another.

Those who have not pre-registered or need to re-register can register at the hearing locations from 5:00 PM to 8:00 PM on June 11, 13 and 20 and from 5:30 PM to 8:30 PM on June 18 and will be heard in the order of their registration. You can speak for up to two minutes.

Public officials and a limited number of speakers chosen by owner and tenant groups may be given priority over other speakers. The public is invited to observe all public meetings and public hearings but is invited to speak at only the public hearings. Please note that testimony regarding the preliminary guidelines from tenants and owners of rent stabilized apartments, lofts, and hotels, as well as public officials, will be heard throughout the evening starting at 5:00 PM June 11, 13 and 20 and at 5:30 PM June 18. There are no scheduled breaks for dinner.

SUBMITTING WRITTEN COMMENTS

Written comments on the proposed rent guidelines must be received by Friday, June 21, 2019. Materials must be submitted to the office of the RGB at 1 Centre Street, Suite 2210, New York, N.Y. 10007, or directly to the RGB Staff at the public hearings.  Written submissions can also be sent via fax at 212-669-7488, by email via Contact the Rent Guidelines Board or through NYC RULES at http://rules.cityofnewyork.us.

INSPECTION AND ACCESS TO THE MATERIAL

Written material submitted to the RGB may be inspected by members of the public by appointment between 10:00 AM and 4:00 PM on weekdays at the RGB office. Copies of written materials submitted to the RGB may be ordered, in writing, at a cost of $.25 per page, plus postage, which must be paid in cash. In addition, copies of the existing guidelines and the RGB's Explanatory Statements from prior years are also available for inspection and copies may be obtained in the manner provided above and on the RGB’s website, nyc.gov/rgb.


NEW YORK CITY RENT GUIDELINES BOARD
NOTICE OF OPPORTUNITY TO COMMENT
PROPOSED 2019 APARTMENT AND LOFT ORDER (#51)

Notice of Opportunity to Comment on Proposed Rent Guidelines Governing Rent Levels in the following accommodations subject to the Rent Stabilization Law of 1969, as amended: Apartments and Lofts.

NOTICE IS HEREBY GIVEN PURSUANT TO THE AUTHORITY VESTED IN THE NEW YORK CITY RENT GUIDELINES BOARD BY THE RENT STABILIZATION LAW OF 1969, as amended, and the Emergency Tenant Protection Act of 1974, as amended, and as implemented by Resolution No 276 of 1974 of the New York City Council, and in accordance with the requirements of Section 1043 of the New York City Charter, that the Rent Guidelines Board (RGB) hereby proposes the following levels of fair rent increases over lawful rents charged and paid on September 30, 2019. These rent adjustments will apply to rent stabilized apartments with leases commencing on or after October 1, 2019 and through September 30, 2020. Rent guidelines for loft units subject to Section 286 subdivision 7 of the Multiple Dwelling Law are also included in this order.

PROPOSED RENEWAL ADJUSTMENTS FOR APARTMENTS

Together with such further adjustments as may be authorized by law, the annual adjustment for renewal leases for apartments shall be:

For a one-year renewal lease commencing on or after October 1, 2019 and on or before September 30, 2020: 0.5% - 2.75%

For a two-year renewal lease commencing on or after October 1, 2019 and on or before September 30, 2020: 1.5% - 3.75%

These adjustments for renewal leases shall also apply to dwelling units in a structure subject to the partial tax exemption program under Section 421a of the Real Property Tax Law, or in a structure subject to Section 423 of the Real Property Tax Law as a Redevelopment Project.

PROPOSED VACANCY ALLOWANCE FOR APARTMENTS

No vacancy allowance is permitted except as provided by the Rent Regulation Reform Act of 1997 and the Rent Act of 2015.

PROPOSED ADDITIONAL ADJUSTMENT FOR RENT STABILIZED APARTMENTS SUBLET UNDER SECTION 2525.6 OF THE RENT STABILIZATION CODE

In the event of a sublease governed by subdivision (e) of section 2525.6 of the Rent Stabilization Code, the allowance authorized by such subdivision shall be: 10%.

PROPOSED ADJUSTMENTS FOR LOFTS (UNITS IN THE CATEGORY OF BUILDINGS COVERED BY ARTICLE 7-C OF THE MULTIPLE DWELLING LAW)

The Rent Guidelines Board proposes the following levels of rent increase above the "base rent," as defined in Section 286, subdivision 4, of the Multiple Dwelling Law, for units to which these guidelines are applicable in accordance with Article 7-C of the Multiple Dwelling Law:

For one-year increase periods commencing on or after October 1, 2019 and on or before September 30, 2020: 0.5% - 2.75%

For two-year increase periods commencing on or after October 1, 2019 and on or before September 30, 2020: 1.5% - 3.75%

VACANT LOFT UNITS - PROPOSAL

No Vacancy Allowance is permitted under this Order. Therefore, except as otherwise provided in Section 286, subdivision 6, of the Multiple Dwelling Law, the rent charged to any tenant for a vacancy tenancy commencing on or after October 1, 2019 and on or before September 30, 2020 may not exceed the "base rent" referenced above plus the level of adjustment permitted above for increase periods.

FRACTIONAL TERMS - PROPOSAL

For the purposes of these guidelines any lease or tenancy for a period up to and including one year shall be deemed a one year lease or tenancy, and any lease or tenancy for a period of over one year and up to and including two years shall be deemed a two-year lease or tenancy.

ESCALATOR CLAUSES - PROPOSAL

Where a lease for a dwelling unit in effect on May 31,1968 or where a lease in effect on June 30, 1974 for a dwelling unit which became subject to the Rent Stabilization Law of 1969, by virtue of the Emergency Tenant Protection Act of 1974 and Resolution Number 276 of the New York City Council, contained an escalator clause for the increased costs of operation and such clause is still in effect, the lawful rent on September 30, 2019 over which the fair rent under this Order is computed shall include the increased rental, if any, due under such clause except those charges which accrued within one year of the commencement of the renewal lease. Moreover, where a lease contained an escalator clause that the owner may validly renew under the Code, unless the owner elects or has elected in writing to delete such clause, effective no later than October 1, 2019 from the existing lease and all subsequent leases for such dwelling unit, the increased rental, if any, due under such escalator clause shall be offset against the amount of increase authorized under this Order.

SPECIAL ADJUSTMENTS UNDER PRIOR ORDERS - PROPOSAL

All rent adjustments lawfully implemented and maintained under previous apartment orders and included in the base rent in effect on September 30, 2019 shall continue to be included in the base rent for the purpose of computing subsequent rents adjusted pursuant to this Order.

PROPOSED SPECIAL GUIDELINE

Under Section 26-513(b)(1) of the New York City Administrative Code, and Section 9(e) of the Emergency Tenant Protection Act of 1974, the Rent Guidelines Board is obligated to promulgate special guidelines to aid the State Division of Housing and Community Renewal in its determination of initial legal regulated rents for housing accommodations previously subject to the City Rent and Rehabilitation Law which are the subject of a tenant application for adjustment. The Rent Guidelines Board hereby proposes the following Special Guidelines:

For dwelling units subject to the Rent and Rehabilitation Law on September 30, 2019, which become vacant after September 30, 2019, the special guideline shall be 39% above the maximum base rent.

DECONTROLLED UNITS - PROPOSAL

The permissible increase for decontrolled units as referenced in Order 3a, which become decontrolled after September 30, 2019, shall be 39% above the maximum base rent.

CREDITS - PROPOSAL

Rentals charged and paid in excess of the levels of rent increase established by this Order shall be fully credited against the next month's rent.

STATEMENT OF BASIS AND PURPOSE

The Rent Guidelines Board is authorized to promulgate rent guidelines governing apartment units subject to the Rent Stabilization Law of 1969, as amended, and the Emergency Tenant Protection Act of 1974, as amended. The purpose of these guidelines is to implement the public policy set forth in Findings and Declaration of Emergency of the Rent Stabilization Law of 1969 (§26-501 of the N.Y.C. Administrative Code) and in the Legislative Finding contained in the Emergency Tenant Protection Act of 1974 (L.1974 c. 576, §4 [§2]).

The Rent Guidelines Board is also authorized to promulgate rent guidelines for loft units subject to Section 286 subdivision 7 of the Multiple Dwelling Law. The purpose of the loft guidelines is to implement the public policy set forth in the Legislative Findings of Article 7-C of the Multiple Dwelling Law (Section 280).

Dated: May 7, 2019

David Reiss, Chair
New York City Rent Guidelines Board


NEW YORK CITY RENT GUIDELINES BOARD
NOTICE OF OPPORTUNITY TO COMMENT
PROPOSED 2019 HOTEL ORDER (#49)

Notice of Opportunity to Comment on Proposed Rent Guidelines Governing Rent Levels in the following accommodations subject to the Rent Stabilization Law of 1969: Hotels, Rooming Houses, Single Room Occupancy Buildings and Lodging Houses.

NOTICE IS HEREBY GIVEN PURSUANT TO THE AUTHORITY VESTED IN THE NEW YORK CITY RENT GUIDELINES BOARD BY THE RENT STABILIZATION LAW OF 1969, as amended, and the Emergency Tenant Protection Act of 1974, as amended, and as implemented by Resolution No. 276 of 1974 of the New York City Council, and in accordance with the requirements of Section 1043 of the New York City Charter, that the Rent Guidelines Board hereby proposes the following levels of fair rent increases over lawful rents charged and paid on September 30, 2019.

APPLICABILITY

This order shall apply to units in buildings subject to the Hotel Section of the Rent Stabilization Law (Sections 26-504(c) and 26-506 of the N.Y.C. Administrative Code), as amended, or the Emergency Tenant Protection Act of 1974 (L.1974, c. 576 §4[§5(a)(7)]). With respect to any tenant who has no lease or rental agreement, the level of rent increase established herein shall be effective as of one year from the date of the tenant's commencing occupancy, or as of one year from the date of the last rent adjustment charged to the tenant, or as of October 1, 2019, whichever is later. This anniversary date will also serve as the effective date for all subsequent Rent Guidelines Board Hotel Orders, unless the Board shall specifically provide otherwise in the Order. Where a lease or rental agreement is in effect, this Order shall govern the rent increase applicable on or after October 1, 2019 upon expiration of such lease or rental agreement, but in no event prior to one year from the commencement date of the expiring lease, unless the parties have contracted to be bound by the effective date of this Order.

PROPOSED RENT GUIDELINES FOR HOTELS, ROOMING HOUSES, SINGLE ROOM OCCUPANCY BUILDINGS AND LODGING HOUSES

Pursuant to its mandate to promulgate rent adjustments for hotel units subject to the Rent Stabilization Law of 1969, as amended, (§26-510(e) of the N.Y.C Administrative Code) the Rent Guidelines Board hereby proposes the following rent adjustments:

The allowable level of rent adjustment over the lawful rent actually charged and paid on September 30, 2019 shall be:

1) Residential Class A (apartment) hotels - 0%
2) Lodging houses - 0%
3) Rooming houses (Class B buildings containing less than 30 units) - 0%
4) Class B hotels - 0%
5) Single Room Occupancy buildings (MDL section 248 SRO's) - 0%

NEW TENANCIES - PROPOSAL

No "vacancy allowance" is permitted under this order. Therefore, the rents charged for tenancies commencing on or after October 1, 2019 and on or before September 30, 2020 may not exceed the levels over rentals charged on September 30, 2019 permitted under the applicable rent adjustment provided above.

ADDITIONAL CHARGES - PROPOSAL

It is expressly understood that the rents collectible under the terms of this Order are intended to compensate in full for all services provided without extra charge on the statutory date for the particular hotel dwelling unit or at the commencement of the tenancy if subsequent thereto. No additional charges may be made to a tenant for such services, however such charges may be called or identified.

STATEMENT OF BASIS AND PURPOSE

The Rent Guidelines Board is authorized to promulgate rent guidelines governing hotel units subject to the Rent Stabilization Law of 1969, as amended, and the Emergency Tenant Protection Act of 1974, as amended. The purpose of these guidelines is to implement the public policy set forth in Findings and Declaration of Emergency of the Rent Stabilization Law of 1969 (§26-501 of the N.Y.C. Administrative Code) and in the Legislative Finding contained in the Emergency Tenant Protection Act of 1974 (L.1974 c. 576, §4 [§2]).

Dated: May 7, 2019

David Reiss, Chair
New York City Rent Guidelines Board


NEW YORK CITY MAYOR’S OFFICE OF OPERATIONS
253 BROADWAY, 10th FLOOR
NEW YORK, NY 10007
212-788-1400
 

CERTIFICATION / ANALYSIS
PURSUANT TO CHARTER SECTION 1043(d)

 

RULE TITLE: 2019 Rent Guidelines

REFERENCE NUMBER: RGB-9

RULEMAKING AGENCY: Rent Guidelines Board

I certify that this office has analyzed the proposed rule referenced above as required by Section 1043(d) of the New York City Charter, and that the proposed rule referenced above:

(i) Is understandable and written in plain language for the discrete regulated community or communities;

(ii) Minimizes compliance costs for the discrete regulated community or communities consistent with achieving the stated purpose of the rule; and

(iii) Does not provide a cure period because it does not establish a violation, modification of a violation, or modification of the penalties associated with a violation.

Mayor’s Office of Operations:
/s/ Francisco X. Navarro

Date:
May 8, 2019


NEW YORK CITY LAW DEPARTMENT
DIVISION OF LEGAL COUNSEL
100 CHURCH STREET
NEW YORK, NY 10007
212-356-4028

CERTIFICATION PURSUANT TO
CHARTER §1043(d)

RULE TITLE: 2019 Rent Guidelines

REFERENCE NUMBER: 2019 RG 032

RULEMAKING AGENCY: New York City Rent Guidelines Board

I certify that this office has reviewed the above-referenced proposed rule as required by section 1043(d) of the New York City Charter, and that the above-referenced proposed rule:

(i) is drafted so as to accomplish the purpose of the authorizing provisions of law;

(ii) is not in conflict with other applicable rules;

(iii) to the extent practicable and appropriate, is narrowly drawn to achieve its stated purpose; and

(iv) to the extent practicable and appropriate, contains a statement of basis and purpose that provides a clear explanation of the rule and the requirements imposed by the rule.

Acting Corporation Counsel:
/s/ STEVEN GOULDEN

Date:
May 8, 2019