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Challenging legal rent in affordable housing development

NYC Rent Regulation: Rent Control/Rent Stabilized, DHCR Practice/Procedures

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Challenging legal rent in affordable housing development

Postby rsinnyc123 » Sun Oct 16, 2016 5:58 pm

A little over a year ago, I moved into a new affordable housing building. The tenants are a mix of section 8 and so-called "community tenants" (me). Our building is run by a nonprofit social services company and a for-profit management company that were founded by the same people and was funded through HUD loans and the LIHTC.

Before moving in I signed a lease that indicated the apt was rent stabilized, and listed the same rent that was advertised on the housing lotto website. I also signed a rider with the building's rules and policies. I wasn't given a rent stabilization rider, and nothing indicated my legal rent was higher than what was listed on my lease.

A few days before my initial lease expired I paid my next month's rent to the leasing & compliance associate for my building, and asked if she knew when I'd be receiving a renewal lease. She told me she didn't handle renewal leases, but she could get a copy of mine and e-mail it to me. I should sign it, and then she would pass it along to the person in charge of signing and returning it.

The e-mailed renewal included a new rider that changed a bunch of terms in my lease, and said that rent is based on 30% of tenant's income. I also saw the rent stabilization rider for the first time, which listed my current rent as preferential and then listed a legal rent that was 3x higher. I e-mailed the person who sent it to me with some questions. They told me it wasn't their job or problem, and the person who's it was would be reaching out shortly.

My rent history from DHCR shows that my apartment had been registered for the first time as a "vacancy lease" 9 months after I moved in. That was the first year on file, and no initial rent registration had ever been filed. It also listed the same legal rent and preferential rent that I had seen on the renewal. Another tenant told me they also received a renewal from the same person, with the same preferential rent and a legal rent that was significantly higher (but different than mine).

About a week later I met with the person who handles leasing for all of the management company's properties. They seemed unaware about my e-mails with the other employee, and I was given the following to sign:
-New lease (exactly the same as the original except for the dates)
-Original rider w/ building rules (again, exactly the same as original)
-The new rider described above

I signed the new lease and original rider, but said I wasn't comfortable with the new rider. The landlord tried to convince me it was fine, none of it was enforceable, and it was OK to sign. I declined, and he didn't push it much further.

After re-signing the lease and original rider, I was told that my renewal was finished. I asked why I hadn't been given a rent stabilization rider and the landlord said "what are you talking about?" I pulled out a copy of the rider that had been e-mailed to me, and said I was worried about the higher legal rent and how it had never been disclosed to me when I moved in. The landlord told me "you don't need to sign that form, but if you really want to, I'll set up another meeting." I asked if he had the form with him now, he said no. I asked how the higher legal rent was calculated, and he said it was the same for everyone in the building, and set by HPD. He also said I would never be charged it, and all increases would be based on the preferential rent and would never exceed the RGB increases allowed for that year (though language to that effect was nowhere to be found in the lease or any rider). I asked why other people in the building had told me their legal rent was not the same as mine, and he wouldn't answer. I left with signed copies of my new lease and rider, and haven't had contact since.

What should I do now? Do I need a lawyer? And are my rights affected by the fact that I did receive a rent-stabilization renewal rider this year, even though it was delivered via e-mail by someone other than the landlord, and my landlord did not allow me to sign it at my renewal meeting? Worried they try and evict me after it goes unsigned for 60 days.

Since moving in I've always paid my rent and been a respectful tenant, I abide by all the building rules, etc. I'm also concerned about other tenants but worried about retaliation if I go door to door talking to people (lots of security cameras).
Last edited by rsinnyc123 on Mon Oct 17, 2016 1:31 am, edited 1 time in total.
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Re: Challenging legal rent in affordable housing development

Postby TenantNet » Sun Oct 16, 2016 10:54 pm

Shorten by 2/3 please, at least. Also, send us the address and name of the landlord by private mail (look for "PM"). Do not post that info publicly.
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Re: Challenging legal rent in affordable housing development

Postby rsinnyc123 » Mon Oct 17, 2016 1:32 am

Done, sorry! Took out as much as possible. Will PM you.
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Re: Challenging legal rent in affordable housing development

Postby TenantNet » Tue Oct 18, 2016 8:22 pm

Still way too long, but I'll try to look at it within the next few days.
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Re: Challenging legal rent in affordable housing development

Postby rsinnyc123 » Wed Oct 19, 2016 7:38 pm

Totally understand, it's a long story with a lot of details. I'll give you the extra-short version here and if you feel like you need more details you can read the longer post:

-I live in a new affordable housing project funded by HUD & LIHTC (first tenant to live in this unit)
-Rent history shows legal rent that's 3x higher than preferential rent
-Preferential rent was never disclosed to me when I moved in (I just assumed it was the legal rent as it was the only rent listed on my lease)
-Initial rent registration never filed -- 9 months after I moved in the apt was registered for the first time as a "vacancy lease"
-Two days before my original lease expired, an employee of the landlord e-mailed me a renewal lease that included the RS rider (which showed the higher legal rent and lower preferential rent), told me "not her problem" when I asked her Qs, and told me to talk to her boss about it
-Her boss ("landlord" is a management company) allowed me to sign a new lease but refused to let me sign the renewal rider, seemed pretty upset that I found out about the higher legal rent
-I believe this is a building-wide problem

My main questions are:
-Can the landlord try to evict me for not signing the renewal rider within 60 days of "receipt"? I'd assume no because it was e-mailed to me by an unauthorized person and the landlord refused to let me sign when I confronted him, but very worried about the possibility of being taken to court and potentially losing my job if I miss work.

-Does DHCR's 4 year statute of limitations apply here? Very scared of retaliation, and unsure if it's worth filing a complaint unless they try to jack my rent way up (the registered legal rent is higher than market rate for this area, and completely unaffordable to me)
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Re: Challenging legal rent in affordable housing development

Postby TenantNet » Wed Oct 19, 2016 11:09 pm

Sorry, not putting it off, but just a busy week.
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Re: Challenging legal rent in affordable housing development

Postby BubbaJoe123 » Thu Oct 20, 2016 11:41 am

If the original lease you got didn't state a preferential and legal rent, but just stated one number, then that number is the legal rent going forward. The landlord can only claim a higher legal rent, and charge a lower preferential rent, if he/she includes both numbers in the initial lease. Doesn't matter what they registered with DHCR; by not including both numbers in the initial lease, they waived their ability to claim a higher legal rent.

See example #2 of Fact Sheet 40:

http://www.nyshcr.org/Rent/FactSheets/orafac40.pdf
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Re: Challenging legal rent in affordable housing development

Postby rsinnyc123 » Thu Oct 20, 2016 7:16 pm

Thanks! That's what I had assumed. I just spoke to someone at DHCR about my concerns and they basically said the exact same thing, and encouraged me to file a rent overcharge complaint.

There was some very technical and confusing language regarding how to set legal & preferential rents in the original loan agreement that I found, which was why I initially had doubts that the "legal rent" was actually illegal. But it sounds like even if it was legal (probably wasn't), my landlord forfeited their ability to charge it by not disclosing the higher legal rent in the initial lease.

So sad that an organization supposedly dedicated to creating affordable housing would try to pull something this shady. Unfortunately, all of the research I've done since this whole thing started has made me realize that I should not be surprised :(
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Re: Challenging legal rent in affordable housing development

Postby TenantNet » Sat Oct 22, 2016 5:36 am

Sorry for the delay; it's been a busy week. Beyond that I'm reluctant to speak too much on various "affordable housing" situations as they can all vary. What might be legal in one situation might not be in another. In contrast, a scheme like rent stabilization has more or less the same rules across the city.

Although you may have signed a "rent stab" least, there might be special rules set up by DHCR and/or HPD. There might be special rules for Section 8 tenants and so on.

So in general, while the associate might have tried to do you a favor, it really wasn't. Giving a signed lease to her might have got it lost. Best to make copies and send it by certified mail to the proper address.

Renewal leases must be offered between 90 and 150 days before the current lease expires, then the tenant has 60 days to respond.

For RS tenants, renewal leases MUST be offered on the same terms and conditions as the expiring lease, unless there are changes required by DHCR. For example, DHCR can order MCI rent increases on top of the RGB renewal rates.

As for the new lease with the new rider, it might be that your rent is set at 30% income as part of the affordable housing agreement ... that could be 421(a) or Section 8. So that might not be a change per se.

But the preferential change is troubling. I would fight that as it wasn't memorialized in the initial lease. See DHCR FAQ http://www.nyshcr.org/Rent/factsheets/orafac40.pdf

At this time even if they give you the DHCR rider, I would not sign it or acknowledge it. Don't give them anything to claim the preferential rider was given to you initially. NEVER sign the DHCR rider. You sign your renewal lease, but not any riders.

You're not in court, so you don't need a lawyer, but it can't help to get good advice from one. You can file a complaint with DHCR as to the preferential situation.
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Re: Challenging legal rent in affordable housing development

Postby TenantNet » Sat Oct 22, 2016 6:32 am

Reading extra-short version...

You say "rent history" show legal rent 3x higher than pref. rent. But since you're the first tenant in the new building, there is no "rent history," correct?

This might be not a regular "preferential rent," but a market rent set when the building was constructed. A real preferential rent is a discount from a claimed rent stab legal rent. Perhaps this might be the cause for confusion.

But if it's the latter, then a DHCR complaint might be appropriate.

Don't know what you mean by Init registration not being filed. FYI, all RS units must be registered once a year, by the end of July, showing the rents that existed in April. Could it be that you moved in during the autumn and they didn't send you a registration until the following July?

Does the lease or the DHCR rider show a vacancy increase?

Still don't know what you mean by "but refused to let me sign the renewal rider..." Is this the DHCR rider or some other rider? You aren't being clear.

All RS renewals are made on the RTP-8 form at http://www.nyshcr.org/forms/rent/rtp8.pdf
Pay attention to the instructions on the back. This is a renewal lease. It is not a rider.

The only "rider" is the DHCR rider, and it is strictly informational. You should not sign it even though they now have a place for the tenant acknowledging receipt.

I really can't answer fully here as I suspect you're not using the correct terms, and I haven't seen any of the papers.
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