TenantNet Forum

Where tenants can seek help and help others



High rent de-control clarification

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

Moderator: TenantNet

High rent de-control clarification

Postby uwslifer » Mon Mar 06, 2017 12:07 am

Hello,

I have a somewhat technical question regarding how rent is figured to determine whether the high rent threshhold is met for decontrolling a rent-controlled apartment.

Prior to the latest rent law of 2015, the term "maximum rent" was used to define the threshhold. Was this the MBR, the MCR, or the actual rent?

The rent control law now in effect uses the term "regulated rent" when defining the current threshhold of $2,700. What does "regulated rent" mean in the context of a rent-controlled apartment?

Thanks for any insight.
uwslifer
 
Posts: 3
Joined: Thu Apr 21, 2016 5:56 pm

Re: High rent de-control clarification

Postby TenantNet » Mon Mar 06, 2017 3:38 am

I'm assuming you're rent controlled, so you should know that the Maximum Rent (MCR) is the rent that you actually pay (along with any fuel charges), and that the Maximum Base Rent (MBR) is actually a ceiling that is adjusted every two years. The MCR is increased by 7.5% every year until it hits the MBR cap.

I don't have any specific knowledge as to your question, but I would guess that DHCR used the MCR to determine if the High Rent threshold is reached. It's currently set at $2,700.

However, in the context of high rent, a unit meeting or exceeding that rent amount can only be deregulated upon a vacancy, and at that time it's no longer arguably rent controlled. Understand, however, that the provisions of High Income do allow for deregulation during a tenancy. That's a different situation altogether. For some specifics, see http://www.nyshcr.org/Rent/factsheets/orafac26.pdf

You should ask for a legal opinion from DHCR as only they can tell you what they think. I would write the Commissioner's office and ask for an opinion letter. They will express an opinion based on a hypothetical situation.
The Tenant Network(tm) for Residential Tenants
Information from TenantNet is from experienced non-attorney tenant
activists and is not considered legal advice.

Subscribe to our Twitter Feed @TenantNet
TenantNet
 
Posts: 10306
Joined: Mon Jan 21, 2002 2:01 am
Location: New York City

Re: High rent de-control clarification

Postby uwslifer » Mon Mar 06, 2017 4:46 pm

Thanks very much for the quick and helpful response.

My interest in the question is regarding a hypothetical high income/high rent situation in a rent-controlled unit, to understand where the line is. I see no ambiguity in the high income part of the test, nor on the administrative process whereby it would be enforced; thus my question boiled down to how the high rent threshhold is defined.

I am indeed familiar with the difference between MCR and MBR, but I know others reading along may not be. By "actual rent" I meant the MCR as adjusted with any fuel charges etc.

I Am Not A Lawyer but I found it interesting that in their wisdom, the legislature saw fit to change the language in the law for deregulating rent-controlled units from "maximum rent" to "regulated rent". I suppose it is possible this new difference has not yet been tested or challenged, and may have been a result of sloppy drafting. The distinction is of course critical for a unit that may have an MBR above the ceiling while the MCR or actual rent are still below it. Perhaps this is why fact sheet #36 is still under revision.

I may write to DHCR for an opinion letter, that is a good suggestion. I am concerned about maintaining anonymity however. I have done some searching to find documentation on any recent cases of high income/high rent deregulation on a rent-controlled unit to see what the precedent has been, and come up empty so far.

Thanks again for the invaluable service you provide by moderating and maintaining this forum.
uwslifer
 
Posts: 3
Joined: Thu Apr 21, 2016 5:56 pm


Return to NYC Rent Regulated Apartments

Who is online

Users browsing this forum: No registered users and 51 guests