Just how much can my rent be increased each year?

The Ordinance provides that the Rent Stabilization Board each year determines the permissible portion boost, or Annual General Adjustment (" AGA"), that landlords can raise rents for renters in managed rental systems. Landlords of rent-controlled systems, who are in compliance with the Ordinance may increase rents between July 1 and June 30 of each program year by the quantity of the AGA (presuming the renter's current lease level is at a previously certified Maximum Allowable Rent, hereinafter "MAR") after offering correct 30-day notice to the occupant, as needed 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 entered into result in August 8, 2010:

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

If lease was increased by more than the percent cited above for any of these program years, renters may petition for a lease decrease and for a refund for any lease they paid too much, unless the rent increase is to the acceptable lease level or MAR, as permitted under State law,1 and the property manager is otherwise in compliance with the Ordinance.

In determining lease increases, AGAs need to be used to an occupant's permissible lease level or certified MAR (Do not consist of the City's registration charge of $9.75 when determining the rent increase). The Board embraces the AGA in April to be effective before the program year begins, which runs July 1 through June 30 of that year and a notification sent by the Board encouraging property owners and tenants of regulated rentals of the AGA is sent out in mid-May of the same year. A proprietor is qualified to increase rents using AGAs only if the property manager:

1. Registers all systems in the same residential or commercial property with the Rent Stabilization Program; and
2. Substantially adheres to the Ordinance and any orders or guidelines released or promulgated under the Ordinance, including not charging more than the enabled lease; and
3. Ensures the rental complies with the implied service warranty of habitability; and completes all repair work purchased by the City.

Rent increases may not exceed 10% in any 12-month duration. Fees paid to a proprietor for managed housing services such as parking or utilities become part of the rent. Any boost in charges for regulated housing services, or any charges for additional services other than for the addition of an animal charge that were not consisted of in a renter's initial rental arrangement, are considered rent boosts and need to comply with the requirements for raising rents. The addition of an animal charge is not considered a rent boost. The Board does not validate a landlord's eligibility for yearly lease increases. Tenants ought to keep track of lease boosts carefully and file a petition with the Board, if called for, to challenge a landlord's eligibility to raise leas or the propriety of any lease boost.

Landlords may raise rents by a lower quantity than allowed by the AGA or select not to raise leas by the AGA in any given year, and in that event, they may "bank" the unused AGA for future use to raise an occupant's lease.

When can my property manager raise my lease?

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

What does it imply to "bank" an AGA for future rent 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 composed notification of banking should be provided to the renter 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 may not bank more than three AGAs during a renter's occupancy. As such, usage of banked AGAs to raise an occupant's lease is limited to the last 3 AGAs that have actually been banked.

What is a Certificate of Maximum Allowable Rent?

Beginning in 2011 the Board started providing Certificates of Maximum Allowable Rent for rental units regulated under the recently adopted Ordinance. Certificates are only released upon Initial Registration of a rental system and upon occupancy by a brand-new renter; they are not provided every year. Based on details submitted by landlords, the Rent Stabilization Administrator calculates the MAR in the Certificates provided for rental systems 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 particular unit address. An occupant can not be charged rent, including any fees for regulated housing services, above the MAR for the timeframe defined in the Certificate provided for their unit. If a renter is charged rent above the MAR, they might submit a petition (Petition A) to look for a lease 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 formulas for determining the MAR in Certificates of Maximum Allowable Rent that think about the date the tenant moved into the rental, the Adjusted Base Year Rent, and the AGAs permitted given that then. The identified Base Year Rent, which for brand-new occupants is the lease at initial tenancy, is changed by deducting any discounts provided to the tenant in the very first 12 months, and adding the amount of any regulated housing service charge included in the initial rental arrangement. This Adjusted Base Year Rent is then increased by any collected AGAs considering that 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 issued for my unit?

Landlords and tenants can petition for a hearing to challenge the MAR. For instance, either party can challenge the precision of details reported to the Rent Stabilization Program, which is used to calculate the Maximum Allowable Rent. Objections need to be gotten within 1 month of the issuance of a Certificate of Maximum Allowable Rent; this deadline can be extended to 60 days for great cause. If a prompt objection is not filed, the Certificate of Maximum Allowable Rent becomes last unless there is evidence of intentional misstatement or scams, or unless an occupant and property owner willingly submit a joint petition (a "specified petition") looking for a correction.

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

No, owners can not. Under the 2010 Ordinance, before November 2016, owners, with proper advance 30-day notification, could pass on to tenants 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 amount or charged this charge retroactively. This cost was not part of the rent or consisted of in the estimation of the MAR or lease increases based on AGAs.

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