Above-Guidelines rent increases (AGI’s) are becoming almost annual. There is a procedure for shielding landlords from unusual expenses such as drastic increases in utility or property tax costs, or unusual and necessary capital expenses.
There is an impression among 20 Prince Arthur tenants that this process is being distorted and abused. Current rules about passing through capital expenses require that these be Necessary, NOT cosmetic, and NOT solely for enhancement of prestige of the building. But expenses that promote energy conservation or promote handicapped access CAN be passed through to tenants.
Here is a PATA newsletter report of the January 22, 2009 AGI hearing:
“Eight tenants and our paralegal, Kevin Milburn, attended the hearing with 60 proxies from other tenants. After several hours of negotiation, the AGI increase was reduced from 1.94 % to 1.65 %. Because the portion related to construction of the decking outside the building only applies to tenants who resided here when the work was complete, tenants who moved in on or before July 1, 2008 will have an increase of 1.65 % plus the guideline of 1.8%, or 3.45 %. For tenants who moved in after July 1, 2008, the increase is 0.90 % above the guideline, or 2.7 %. Increases will go into effect on each tenant’s lease anniversary date, beginning February 1, 2009.”
Tenants are being asked by PATA to be observant about activities in the building, and LOG or PHOTOGRAPH EVERYTHING in preparation for fighting the NEXT AGI.
