*** Important Court Decision for Property Owners ***

We are pleased to report that the State's highest court, the Court of Appeals,HAS REVERSED THE LOWER COURT DECISIONS WHICH HAD INVALIDATED THE LOW-RENT, FLAT-DOLLAR INCREASES APPROVED BY THE RGB IN ORDERS #40 AND 41.

Those increases applied to tenants who had been in occupancy for six years or more. In upholding the RGB orders, the Court stated that the rent laws do not prohibit the RGB from distinguishing some kinds of apartments from others and that, therefore, the RGB may "permit any increases that are larger, in percentage terms, for some apartments than for others." 

WHAT DOES THIS MEAN FOR PROPERTY OWNERS?

Flat-dollar rent increases based upon RGB orders #40 AND 41 are lawful and any overcharge or other claims by tenants arising from those increases are now invalid.

In discussing the long history of the RGB allowing for different increases for electricity, fuel and heat, the Court stated that "the fact that such distinctions have long been accepted without question is further confirmation that nothing in the governing legislation can fairly be read to prohibit them."

RSA appeared as an amicus in this case in support of the RGB. If you have any questions, please contact the RSA at(212) 214-9200. 

Click here to read the decision.