HOTEL ORDER #28
June 22, 1998
Order Number 28 - Hotels, Rooming Houses, Single Room Occupancy Buildings
and Lodging Houses. Rent Levels to be effective for leases or other rental
agreements commencing October 1, 1998 through September 30, 1999.
NOTICE IS HEREBY GIVEN PURSUANT TO THE AUTHORITY VESTED IN THE
NEW YORK CITY RENT GUIDELINES BOARD BY THE RENT STABILIZATION
LAW OF 1969, as amended, and the Emergency Tenant Protection Act of 1974, as
amended, implemented by Resolution No. 276 of 1974 of the New York City Council
and extended by the Rent Regulation Reform Act of 1997, and in accordance with
the requirements of Section 1043 of the New York City Charter, that the Rent
Guidelines Board hereby adopts the following levels of fair rent increases over
lawful rents charged and paid on September 30, 1998.
This proposed order shall apply to units in buildings subject to the Hotel Section of
the Rent Stabilization Law (Sections 26-504(c) and 26-506 of the N.Y.C.
Administrative Code), as amended, or the Emergency Tenant Protection Act of 1974
(L.1974, c. 576 §4[§5](a)(7)). With respect to any tenant who has no lease or rental
agreement, the level of rent increase established herein shall be effective as of one
year from the date of the tenant's commencing occupancy, or as of one year from the
date of the last rent adjustment charged to the tenant, or as of October 1, 1998,
whichever is later. This anniversary date will also serve as the effective date for all
subsequent Rent Guidelines Board Hotel Orders, unless the Board shall specifically
provide otherwise in the Order. Where a lease or rental agreement is in effect, this
Order shall govern the rent increase applicable on or after October 1, 1998 upon
expiration of such lease or rental agreement, but in no event prior to one year from
the commencement date of the expiring lease, unless the parties have contracted to
be bound by the effective date of this Order.
Pursuant to its mandate to promulgate rent adjustments for hotel units subject to
the Rent Stabilization Law of 1969, as amended, (§26-510(e) of the N.Y.C
Administrative Code) the Rent Guidelines Board hereby adopts the following rent
The allowable level of rent adjustment over the lawful rent actually charged and
paid on September 30, 1998 shall be:
1) Residential Class A (apartment) hotels 0%
2) Lodging houses 0%
3) Rooming houses (Class B buildings
containing less than 30 units) 2%
4) Class B hotels 0%
5) Single Room Occupancy buildings
(MDL section 248 SRO's) 0%
Except that the allowable level of rent adjustment over the lawful rent actually
charged and paid on September 30, 1998 shall be 0% if:
1) Ten percent or more of the units have been withheld from the rental market for a
period exceeding thirty days, unless the owner can show a reasonable basis for the
2) Twenty percent or more of the dwelling units in the building are not registered
with the State Division of Housing and Community Renewal pursuant to Section
2528 of the Rent Stabilization Code; or
3) Fifty percent or more of the units have been leased, used, or dedicated to a use
other than permanent residential housing at the legal level.
Furthermore, the allowable level of rent adjustment over the lawful rent actually
charged and paid on September 30, 1998 shall be 0% on any individual unit if the
owner has failed to provide to the new occupant of that unit a copy of the Rights
and Duties of Hotel Owners and Tenants, pursuant to Section 2522.5 of the Rent
No "vacancy allowance" is permitted under this order. Therefore, the rents charged
for tenancies commencing on or after October 1, 1998 and on or before September 30,
1999 may not exceed the levels over rentals charged on September 30, 1998 permitted
under the applicable rent adjustment provided above, except as otherwise provided
It is expressly understood that the rents collectible under the terms of this Order are
intended to compensate in full for all services provided without extra charge on the
statutory date for the particular hotel dwelling unit or at the commencement of the
tenancy if subsequent thereto. No additional charges may be made to a tenant for
such services, however such charges may be called or identified.
STATEMENT OF BASIS AND PURPOSE
The Rent Guidelines Board is authorized to promulgate rent guidelines governing
hotel units subject to the Rent Stabilization Law of 1969, as amended, and the
Emergency Tenant Protection Act of 1974, as amended. The purpose of these
guidelines is to implement the public policy set forth in Findings and Declaration of
Emergency of the Rent Stabilization Law of 1969 (§26-501 of the N.Y.C.
Administrative Code) and in the Legislative Finding contained in the Emergency
Tenant Protection Act of 1974 (L.1974 c. 576, §4 [§2]).
Dated: June 25, 1998
Edward S. Hochman, Esq.
Rent Guidelines Board