Now that the new year is upon us, there are certain changes to luxury deregulation that must be kept in mind.
Pursuant to the Rent Act of 2015, the luxury deregulation threshold is adjusted January 1st of each year by the then effective one year renewal guideline. Since the one year renewal guideline was 0% in 2015 and 2016, there was no adjustment and the threshold remained at $2,700.
However, this year the one year renewal guideline currently in effect is 1.25%. Therefore, the luxury deregulation threshold has increased to $2,733.75 effective January 1, 2018.
Any Owner who wants to file for High Income – High Rent Deregulation must be sure that the legal rent equals or exceeds the new increased threshold prior to service of the Income Certification Form on the tenant. Similarly, for High Rent Vacancy deregulation the rent of the vacating tenant should equal or exceed the new $2,733.75 threshold.
In more high rent deregulation news, please be advised that the Court of Appeals has calendared argument in the appeal of Altman v 285 W. Fourth LLC for March 22, 2018. The outcome of that case will affect high rent deregulations which occurred before 2015 and may have an effect on deregulations under the Rent Act of 2015.
Our Administrative Law Group is available to discuss the facts of your particular apartment situations so that deregulation can be properly accomplished.