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Vacancy Decontrol Question

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

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Vacancy Decontrol Question

Postby dotcom » Fri Sep 06, 2002 3:51 pm

I currently reside in a Rent Controlled apartment. I expect my succession rights will be challenged. I am trying to understand worst-case scenarios.

My understanding is that Rent Control apartments must become rent stabalized apartments in the case of Vacancy Decontrol.

If my succession rights are not approved, will the apartment become rent stabalized, and does the new rent have to be calculated based on the "20%" formula, or can the LL attempt to increase the rent without any limitation?
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Re: Vacancy Decontrol Question

Postby consigliere » Sat Sep 07, 2002 10:54 am

Rent Guidelines Board Apartment and Loft Order #34, as well as previous RGB orders, provides for initial rents for decontrolled apartments, as found below.
 
However, the landlord (a) doesn't have to rent that apartment to you, and (b) can also choose to make improvements in the apartment to bring the rent to over $2,000 a month, to remove it from rent stabilization as well.
 
 
DECONTROLLED UNITS
 
The permissible increase for decontrolled units as referenced in Order 3a which become decontrolled after September 30, 2002, shall be the greater of:
 
50% above the maximum base rent as it existed or would have existed, or
 
The Fair Market Rent for existing housing as established by the United States Department of Housing and Urban Development (HUD) for the New York City Primary Metropolitan Statistical Area pursuant to Section 8(c) (1) of the United States Housing Act of 1937 (42 U.S.C. section 1437f [c] [1] ) and 24 C.F.R. Part 888, with such Fair Market Rents to be adjusted based upon whether the tenant pays his or her own gas and/or electric charges as part of his or her rent as such gas and/or electric charges are accounted for by the New York City Housing Authority.
 
Such HUD-determined Fair Market Rents will be published in the Federal Register, to take effect on October 1, 2002.

 
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Re: Vacancy Decontrol Question

Postby dotcom » Sat Sep 07, 2002 1:01 pm

Thank you for such precise information. Of course, a follow up curiosity is:

Is there a governing order which applies for vacancies occuring prior to the September effective date of this order?

How does one access the Fair Market Rent data in the Federal Register (already published or pending)?

Don't want to push my luck with inquiries, but of course, the only stupid question is the one I didn't ask....
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Re: Vacancy Decontrol Question

Postby consigliere » Sat Sep 07, 2002 2:52 pm

HUD's Fair Market Rent for existing housing for the New York City Primary Metropolitan Statistical Area is used for many purposes, so a check for Fair Market Rents on the HUD website or a call to HUD should get you the current rents for different size apartments.
 
The RGB's current order, Apartment and Loft Order #33, provides:
 
DECONTROLLED UNITS
 
The permissible increase for decontrolled units as referenced in Order 3a which become decontrolled after September 30, 2001, shall be the greater of the following:  
 
150% above the maximum base rent as it existed or would have existed, plus the allowable fuel cost adjustment, or
 
The Fair Market Rent for existing housing as established by the United States Department of Housing and Urban Development (HUD) for the New York City Primary Metropolitan Statistical Area pursuant to Section 8(c) (1) of the United States Housing Act of 1937 (42 U.S.C. section 1437f [c] [1] ) and 24 C.F.R. Part 888, with such Fair Market Rents to be adjusted based upon whether the tenant pays his or her own gas and/or electric charges as part of his or her rent as such gas and/or electric charges are accounted for by the New York City Housing Authority.
 
Such HUD-determined Fair Market Rents will be published in the Federal Register, to take effect on October 1, 2001.

 
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Re: Vacancy Decontrol Question

Postby subcriminal » Mon Sep 09, 2002 11:52 am

If you expect your succession rights to be challanged, get a lawyer as soon as you can. Although succession rights might seem easy to prove, it's a very tedious, technical process and you will desperately need someone to protect your rights. I thought I could represent myself, and once I realized I was in over my head I got a lawyer- and that has been a lifesaver. If your landlord brings a holdover case against you, the cost of a lawyer to fight for you will be MUCH less than the moving expenses and rent should you lose and be forced to move elsewhere.

If you know you definately have succession rights, fight, by all means fight and don't give up. And get a good tenant lawyer on retainer so your landlord can't bully you around.
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Re: Vacancy Decontrol Question

Postby Cranky Tenant » Tue Sep 10, 2002 9:05 am

Dr. Love is right in that you should be focusing on whether you're entitled to succession rights. It's not simply a matter of raising the rent. Most likely the LL will want to renovate and find a new tenant when he's done.

The law is pretty clear on succession. If you can document that you're entitled to these rights you may not need a lawyer.
I'm a cranky tenant NOT a cranky lawyer.
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Re: Vacancy Decontrol Question

Postby dotcom » Tue Sep 10, 2002 3:31 pm

Appreciate the experienced insights. Will definitely need a top notch tenent rep ASAP.
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Re: Vacancy Decontrol Question

Postby HAJ77 » Tue Sep 10, 2002 6:01 pm

Good Luck. I had the same situation and a good tenant attorney can make all the difference in the world. It changed from if I would be able to keep the apartment to would the LL drop the case before we had to go to court. Start gathering all records that you can, attorney can guide you best, but everything from bank statements, credit card bills, phone bills, and tax records (School records are even better if that's part of the situation).
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