About NYC Rent Guideline Board Orders
Although NY Rent Stabilization is administered by a state agency, the
Division of Housing and Community Renewal (DHCR), it does not actually
set the allowable percentages of rent increase for new (vacancy) leases
and renewal leases. That is the job of the New York City Rent Guidelines
Board (RGB) and it covers Rent Stabilization only.
Section 26-510 of the Rent Stabilization Law creates the rent guidelines
board which consists of nine members, appointed by the mayor for two-year
term. Two members are representative of tenants, two are representative of
owners five are "public members" who have at least five years experience
in either finance, economics or housing. One public member is designated
as chairman.
The RGB is required to consider:
- the economic condition of the residential real estate industry
in the affected area including such factors as the
prevailing and projected (i) real estate taxes and sewer and
water rates, (ii) gross operating maintenance costs
(including insurance rates governmental fees, cost of fuel
and labor costs), (iii) costs and availability of financing
(including effective rates of interest), (iv) over-all
supply of housing accommodations and over-all vacancy rates,
- relevant data from the current and projected cost of
living indices for the affected area,
- such other data as may be made available to it.
On July first of each year, the board sets the levels of allowable rent
increases for vacancy and renewal leases for Rent Stabilized tenants for
all leases commencing on or after the following October first and through the
next succeeding twelve months.
Since the RGB system was put in place in 1969 it has become a political
circus. Every June hearings are held to determine the allowable rent
increases. In most cases landlords have made out like bandits getting
RGB increases which exceed the cost of living (COL) and the costs of
operating buildings. For example, in 1995, even with an essentially zero
percent increase in the costs of operating buildings, landlords still
received a 2% increase for one-year renewals and a whopping 8.5% increase
for vacancy leases.
