Rent Guideline 40 Invalid

Tenants sued the Rent Guidelines Board, claiming that Rent Guideline 40 was invalid. Guideline 40 covered the period from Oct. 1, 2005, through Sept. 30, 2006. The guideline provides that tenants who earn less than $24,000 per year would pay a 1 percent increase for a one-year lease, and a 2 percent increase for a two-year lease. Otherwise, the rent increases were 5.25 percent for a one-year lease and 7.25 percent for a two-year lease. Tenants claimed that the board couldn't do this, and that it didn't properly file its findings. The court ruled for tenants. Guideline 40 divided the classes of tenants and varied rent increases on the basis of income. But the board didn't have the authority to do this. The ETPA allowed the board to adjust rents only based on the types of housing accommodation, zones, or jurisdictions. The board also didn't report findings regarding prevailing water and sewer rates and the cost of financing. The failure to consider these factors also made Guideline 40 invalid.

N.Y.S. Tenants & Neighbors Coalition, Inc. v. Nassau Cty. Rent Guidelines Board: NYLJ, 11/9/06, p. 24, col. 3 (Sup. Ct. Nassau; Feinman, J)