Just how much can my lease be increased each year?

The Ordinance provides that the Rent Stabilization Board each year figures out the acceptable percentage increase, or Annual General Adjustment (" AGA"), that landlords can raise leas for occupants in managed rental units. Landlords of rent-controlled units, who are 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 tenant's current lease level is at a previously certified Maximum Allowable Rent, hereinafter "MAR") after providing proper 30-day notice to the tenant, as required by State law.

The following are the portion of lease increases permitted, consisting of all fees for regulated housing services, for each program year since the Ordinance went into impact 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 boost of 4.2% enabled
- July 1, 2022 - June 30, 2023 AGA rent boost of 4.2% allowed
- July 1, 2021 - June 30, 2022 AGA lease boost of 1.3% enabled
- July 1, 2020 - June 30, 2021 AGA lease boost of 2.3% enabled
- July 1, 2019 - June 30, 2020 AGA rent boost of 2.8% enabled
- July 1, 2018 - June 30, 2019 AGA lease boost of 2.9% allowed
- July 1, 2017 - June 30, 2018 AGA rent increase of 2.7% permitted
- July 1, 2016 - June 30, 2017 AGA rent increase of 2.4% allowed
- July 1, 2015 - June 30, 2016 AGA lease increase of 2.0% permitted
- July 1, 2014 - June 30, 2015 AGA lease increase of 2.0% permitted
- July 1, 2013 - June 30, 2014 AGA lease boost of 2.0% permitted
- July 1, 2012 - June 30, 2013 AGA lease boost of 2.4% permitted
- July 1, 2011 - June 30, 2012 AGA lease increase of 1.4% permitted
- August 8, 2010 - June 30, 2011 AGA of 0% (no boosts were allowed)

If rent was increased by more than the percent pointed out above for any of these program years, tenants may petition for a lease decrease and for a refund for any lease they paid too much, unless the lease boost is to the acceptable rent level or MAR, as allowed under State law,1 and the proprietor is otherwise in compliance with the Ordinance.

In determining rent increases, AGAs must be applied to an occupant's allowable lease level or certified MAR (Do not consist of the City's registration charge of $9.75 when determining the lease increase). The Board adopts the AGA in April to be effective before the program year begins, which runs July 1 through June 30 of that year and a notice sent out by the Board advising proprietors and tenants of regulated rental systems of the AGA is sent out in mid-May of the very same year. A proprietor is qualified to increase leas utilizing AGAs only if the property manager:

1. Registers all systems in the exact same residential or commercial property with the Rent Stabilization Program; and
2. Substantially adheres to the Ordinance and any orders or policies provided or promoted under the Ordinance, including not charging more than the enabled rent; and
3. Ensures the rental complies with the implied guarantee of habitability; and finishes all repair work ordered by the City.

Rent increases might not go beyond 10% in any 12-month duration. Fees paid to a landlord for managed housing services such as parking or utilities belong to the lease. Any increase 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 an occupant's initial rental contract, are considered rent boosts and need to comply with the requirements for raising leas. The addition of a pet charge is ruled out a rent increase. The Board does not confirm a property owner's eligibility for annual rent boosts. Tenants ought to keep an eye on rent boosts closely and submit a petition with the Board, if warranted, to challenge a property manager's eligibility to raise rents or the propriety of any lease increase.

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

When can my proprietor raise my rent?

A landlord can not increase lease unless a Certificate of Maximum Allowable Rent has been issued for the present tenant of a controlled system after a landlord has actually submitted a Registration Statement. Once a Certificate of Maximum Allowable Rent has been provided, the property owner can raise that tenant's lease as soon as every 12 months, however not in excess of 10% annually, as long as the system continues to be correctly registered, and the landlord is in significant compliance with the Ordinance. No rent boosts are allowed for tenants within 12 months of initial occupancy.

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

Landlords might "bank" for future usage an AGA that is not used to raise lease in the program year for which it is licensed. A composed notification 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 proprietor might not bank more than 3 AGAs throughout a tenant's tenancy. As such, usage of banked AGAs to raise a renter'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 began releasing Certificates of Maximum Allowable Rent for rentals controlled under the recently adopted Ordinance. Certificates are just issued upon Initial Registration of a rental system and upon tenancy by a brand-new renter; they are not provided every year. Based upon info sent by landlords, the Rent Stabilization Administrator computes the MAR in the Certificates issued for rentals that have been appropriately registered with the City. Each Certificate of Maximum Allowable Rent only uses to the renters in a rental arrangement for tenancy of a particular system address. A renter can not be charged rent, consisting of any charges for regulated housing services, above the MAR for the timeframe specified in the Certificate released for their system. If a tenant is charged lease above the MAR, they may file a petition (Petition A) to seek a rent reduction and a rebate for overcharges. Depending upon the realities of a particular occupancy, refunds may reach as far back as August 2010.

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

The Rent Stabilization Program Administrator utilizes formulas for determining the MAR in Certificates of Maximum Allowable Rent that consider the date the tenant moved into the rental unit, the Adjusted Base Year Rent, and the AGAs enabled since then. The figured out Base Year Rent, which for new tenants is the lease at preliminary occupancy, is changed by subtracting any discount rates supplied to the tenant in the very first 12 months, and including the amount of any regulated housing service costs included in the initial rental contract. This Adjusted Base Year Rent is then increased by any built up AGAs because the Base Year. The complete 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 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 calculate the Maximum Allowable Rent. Objections should be received within 1 month of the issuance of a Certificate of Maximum Allowable Rent; this deadline can be extended to 60 days for good cause. If a timely objection is not submitted, the Certificate of Maximum Allowable Rent becomes last unless there is proof of intentional misrepresentation or scams, or unless a tenant and property manager voluntarily submit a joint petition (a "stated petition") looking for a correction.

Can I be charged a City registration cost 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 notice, might 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 cost was $9.75 each month. Tenants could not be charged more than this quantity or charged this charge retroactively. This cost was not part of the rent or consisted of in the computation of the MAR or rent boosts based on AGAs.

Upon the voter-approved amendment of the 2010 Ordinance in November 2016, the maximum allowable rent for tenancies established 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 a result, owners are no longer permitted to gather this charge as a separate charge.