N-1 Agreement / Two Blue Slip (lease, tenants, landlord)
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Oh shoot I spoke with Reside today and they finagled me into signing! Please keep me updated, I have in writing from them that this was from HPD directly and it was expected to be with all applications and fine to be signing after the fact but if that or anything in the form is incorrect I am sure it can be argued.
Why would they care about subleasing if it prevents them from having to go through the lottery cycle again?
Oh shoot I spoke with Reside today and they finagled me into signing! Please keep me updated, I have in writing from them that this was from HPD directly and it was expected to be with all applications and fine to be signing after the fact but if that or anything in the form is incorrect I am sure it can be argued.
Why would they care about subleasing if it prevents them from having to go through the lottery cycle again?
Historically subleasing is how many tenants with rent regulated units ran game. It became stuff of legend and even plot device for films and Broadway plays (The Goodbye Girl is one).
Piled onto above also there is a history of some suspect and shady things going on with "affordable" or "low income" lottery apartments.
In regarding banning or whatever subleasing developer and or city want to ensure they know who is living in these apartments. If it means having to go through lottery process again to fill a vacancy so be it; at least that process weeds out applicants.
I totally hear you on that aspect, I more meant if it is mentioned in the laws that you can't make a profit off a rent stabilized unit already so that isn't applicable to this case. You can only charge up to a 10% increase from the rent for a furnished unit so that is already covered by NYC laws. https://rentguidelinesboard.cityofne...qs/subletting/
Location: Read the Marketing Handbook, and Income a Guide.
2,007 posts, read 1,626,371 times
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Quote:
Originally Posted by mew22
I totally hear you on that aspect, I more meant if it is mentioned in the laws that you can't make a profit off a rent stabilized unit already so that isn't applicable to this case. You can only charge up to a 10% increase from the rent for a furnished unit so that is already covered by NYC laws. https://rentguidelinesboard.cityofne...qs/subletting/
I agree with BugsyPal.
Yes, already subject to NYC and NYS regs and laws. However, the lottery is another matter entirely. For example, a billionaire can have a rent stabilized Apt, but they can’t enter AMI% rent regulated lottery for a unit.
Anyhow, it’s way to easy for a lease holder to look like they are not making a profit while the subletting person is gladly paying under the table. And that is not a good look for the government, bureaucrats, and politicians that support affordable housing.
Always keep in mind, big picture of affordable housing lotteries is subject to government regulations that are influenced by politics. If the lucky few that get lottery units appear to be benefiting too much from them it can reduce political support for the programs.
It could become a big scandal if too many lottery unit winners turn their units into Air BnB type businesses in the holiday season and for three day weekends. This is not their intended use. Just as it is not their intended use the unit as an office, or recording studio, or storage unit, and all the while live someplace else. Rules are made against even the hint of that type of thing happening. Residents are asked to abided by rules.
Location: Read the Marketing Handbook, and Income a Guide.
2,007 posts, read 1,626,371 times
Reputation: 479
Quote:
Originally Posted by BugsyPal
Historically subleasing is how many tenants with rent regulated units ran game. It became stuff of legend and even plot device for films and Broadway plays (The Goodbye Girl is one).
Piled onto above also there is a history of some suspect and shady things going on with "affordable" or "low income" lottery apartments.
In regarding banning or whatever subleasing developer and or city want to ensure they know who is living in these apartments. If it means having to go through lottery process again to fill a vacancy so be it; at least that process weeds out applicants.
Game indeed, there were persons with multiple rent regulated units in different buildings or the same building. There was not always incentive on the landlord side to combat this because at least they got a rent every month even if was a low rent, and the tenant might have been a good tenant. It only mattered because it was against regs, and the City had a housing shortage. How does it look with people searching for housing and there is a slick guy has two more units than he is supposed to have?
I just went on and signed the form. My real concern was not being able to sublet my apartment for the time I'm away for work or on vacation, but whatever. I'm over the messiness w/Reside New York they dropped the ball and had the audacity to say our lease would be in jeopardy if we didn't sign AND our case would not be close which is bunch of BS. The insult to my intelligence pissed me off. I'm done.
It actually says in our lease that we can sublease even if it says that we can not elsewhere in the lease. Read the DHCR rider clause below:
State of New York
Division of Housing and Community Renewal,
New York City LEASE Rider For Rent Stabilized Tenants:
Section 3
9. SUBLETTING AND ASSIGNMENT
A tenant has the right to sublet his/her apartment, even if subletting is prohibited in the lease, provided that the tenant complies strictly with the provisions of Real Property Law Section 226-b. Tenants who do not comply with these requirements may be subject to eviction proceedings. Compliance with Section 226-b is not determined by DHCR, but by a court of competent jurisdiction. If a tenant in occupancy under a renewal lease sublets his/her apartment,the owner may temporarily increase the rent by the current rent guidelines board adjustment, regardless of whether the owner has increased the rent by the guidelines board amount within the prior twelve months. This charge may be passed on to the sub-tenant. However, upon termination of the sublease, the Legal Regulated Rent shall revert to the Legal Regulated Rent without such temporary increase. The rent increase is the allowance provided by the NYC Rent Guidelines Board available when the tenant’s lease commenced, and it takes effect when the subletting takes place.
A tenant who sublets his/her apartment is entitled to charge the sub-tenant the rent permitted under the Rent Stabilization Law, and may charge a 10% surcharge payable to the tenant only if the apartment sublet is fully furnished with the tenant’s furniture. Where the tenant charges the sub-tenant any additional rent above such surcharge and sublet allowance, if applicable, the tenant shall be required to pay to the sub-tenant a penalty of three times the rent overcharge, and may also be required to pay interest and attorney’s fees. The tenant may also be subject to an eviction proceeding.
Acknowledging DHCR rider section 3 (9), I will probably sign the form but they are being shady. I really doubt that this N-1 form is from DHCR. I did not see an N1 form anywhere on the DHRC website. The agency should have 100% uniform paperwork and legal forms. Is a total racket the way they hire out 3rd parties to expedite the process. This type of bureaucracy is why people move to Texas. I will call them tomorrow to ask if I should strike out the Reside New York paragraph about no subleasing. Stay tuned for my decision and best of luck everyone.
PS. In NYC rent stabilized apartments house professionals like Architects and Public Defendants.. SO DONT MESS WITH US!!!
Every marketing agency that handles the HPD Housing Connect housing lottery has the N-1 attachment as part of their legal papers to sign by the lottery unit tenants so it's not only Reside, it happened Reside marketing agent perhaps forgot to include it in the paperwork of these OPs who are now being asked to sign after the fact. When I won a housing lottery, my case was handled by Breaking Ground & the reason I told the OP about the N-1 attachment is because I knew & I signed it as part of my TIC packet. I'm sure those who were handled by MHANY &/or other marketing agencies also knew about this N-1 attachment so it's uniformed.
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