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Old 11-15-2011, 05:40 PM
 
247 posts, read 435,709 times
Reputation: 210

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Is there a website/agency that I can go to re: fair market rent?

We aren't rent stabilized (as far as we were told) but right now our electric is included in our rent and we were just told that we will be getting meters soon. According to a letter our management company wrote that I found online, our rent will be reduced to fair market rent once we start paying for our own electric. Our lease isn't up until January but I want to be prepared in case they try to screw us.

Any help would be greatly appreciated--I've looked online but haven't found anything helpful. Thanks!
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Old 11-16-2011, 06:38 AM
 
Location: Manhattan
19,451 posts, read 25,776,318 times
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For an unstabilized apartment the landlord can charge anything he wishes...the electricity situation is not relevant.
There is no such thing as "fair market rent," only "market rent."
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Old 11-16-2011, 06:52 AM
 
Location: Brooklyn, New York
3,097 posts, read 3,377,599 times
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US Department of Housing and Urban Development calculates the Fair Market Rate (FMR).

Fair Market Rents | HUD USER
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Old 11-16-2011, 11:29 AM
 
247 posts, read 435,709 times
Reputation: 210
Thanks, Gantz--I'll check it out.
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Old 11-16-2011, 03:15 PM
 
Location: NY,NY
2,899 posts, read 8,203,254 times
Reputation: 2019
Quote:
Originally Posted by Gantz View Post
US Department of Housing and Urban Development calculates the Fair Market Rate (FMR).

Fair Market Rents | HUD USER
You do realize that the above has to do with HUD subsidized properties. I believe I wrote about this recently.

Idiotic nothing to do with reality, government created 'formulations' which LLs, who have built or renovated buildings with HUD subsidies, must adhere to as a consequence of receiving the Hud susidy. The susidy is most often in the form of 'loan guarantees' and/or tax breaks.

Such LLs are allowed to charge 'market rents' as determined by the government/HUD. The whole thing is a farce! A simple matter of manipulating the data which is fed into the government formula. By so doing a builder/LL can partake of government subsidy, build so-called 'affordable' housing, and charge market rates.

THIS is basically the ONLY manner in which 'new' middle class housing is built in NYC. That is, w/o the tax subsidy and especially loan guarantees (which hedges the builder's risk to zero), Builders have ZERO incentive to build middle class housing; AND, there w/b NO 'true' marke rate housing of *modern quality* in the outer boroughs and non-trendy neighborhoods.

Generally, such buildings are located in the outer boroughs and less trendy areas of Manhattan. Most often such buildings are the most modern buildings in their neighborhood and as such, rents tend toward the top of the market for the neighborhood.

Most LLs who are involved with this sort of HUD sponsored development are politically connected. Local politicians often involved with 'shell' companies which develop such properties. In exchange for their efforts in procuring HUD and other government subsidies, a piece of the project goes to the politicians 'shell' company.

Its all a shame and a farce, and the result and consequence of government interference in the market, rent laws, rent subsidy, etc.

Ultimately, in all neighborhoods in this city, the people who gain access to these apartments, are those most capable of affording market rate apartments, while those in most need of *relative* 'affordable' near market rents, and the intended beneficiaries, are simply left out. Forced to deal with substandard old rent stabilized housing. Their circumstance a consequence of unintelligent, uninformed support for government interference and rent laws.

Catch-22 FK yourself!

Oh, btw, with HUD susidized housing, normally there is a 'time limit', 10, 20 or whatever years. Afterwhich, the LL is no longer restricted by HUD/government 'conditions', and the LL is free to charge TRUE market rents, free of HUD 'formulations'; and to restructure the rent as well.

For example, as a condition of the HUD and/or other government susidy, the LL may be required to include electricity, gas, and/or other utlities, as a part of the 'fair market rent'. Once the HUD susidy period expires and the LL is no longer bound by HUD, as above described, then the LL can not only charge TRUE market rents, but can then require tenants to pay for utilities, which were formerly, under HUD guidelines, a part of the 'formulized fair market rent'.

THIS is the circumstance, I suspect, the OP finds herself!!

Tenants in these buildings, if original to the building, often 'forget' the realities of their initial tenancy; and/or tenants who rent in the dwindling years of the HUD subsidy period, often are unaware of the subsidized nature of the building (even though the rental process is a clear give away!), and/or that the subsidized nature of the rent is near to expiration.

Again, I strongly suspect this is the circumstance of the OP.

Such tenants, in their ignorance are SURPRISED by the changes in rent; and will swear to heaven that somehow they are being 'rooked' by the LL! When the reality is that they have benefited from the HUD subsidy, and now must deal with the reality of their life circumstance.

Actually, in these circumstances there s/b little surprise, as the leases they signed are somewhat more inclusive of provisions, not normally a part of the average 'market rate lease'; as well as disclosure forms/notices which are provided at the lease signing and/or during the tenancy.

For example, as a recent inquiry here in the forum exampled, the rent actually charged by the LL (HUD determined 'fair market rent') is disclosed alongside the actual 'market rent' and/or the LL's 'discount' relating to 'market rent'.

Most often the difference/discount is several hundred, even a thousand below the 'market rate'. This, in addition to whatever 'utility subsidy'.

ALL of the above is LEGAL, CORRECT and ALLOWED!

Why paint the LL as the bad guy? The LL is a beneficiary/victim of the 'system', just as is the tenant. Time is up, that's all. The 'system' is NOT LL created, but tenant created!!

Nothing in this life is perfect nor guaranteed. Such is the circumstance when government interferes with the 'natural' market. The results are imperfect, unfair and very often *contrary* to the actual intention.

Such is the nature of *unintended consequences*!
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Old 11-16-2011, 03:44 PM
 
88 posts, read 220,142 times
Reputation: 45
in nyc, there are no more cheap apartments. Expect to pay 1600+ a month even for s studio
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