New Rent Increases Shouldn’t Affect Chelsea Hotel Tenants

New York City really has got it in for rent stabilized tenants as the Rent Guidelines Board just passed increases of 4.5% on one year leases and 8.5% on two year leases.  This is not the free market talking; it is, rather social engineering in its most repellant form, as the city sells out to the money interests who want to drive the working and middle classes out of New York . 
     Fortunately, the Chelsea doesn’t seem to be subjects to these increases.  Although the 4.5% per year figures applies to Class B hotels such as the Chelsea, most of our apartments were never registered with the DHCR – a prerequisite for legally increasing the rent. 
     Furthermore, even if you live in an apartment that has been registered, the Board has put a loophole in the law that works in your favor.  It basically says that if less than 85% of units in a hotel are inhabited by Rent Regulated Tenants, then the allowable increase is 0%.  This is my interpretation anyway.  The loophole is confusingly worded.  And as far as I can tell no major media outlets mentioned the loophole. The loophole may be intended to put the breaks on hotels that are aggressively forcing out rent-stabilized tenants, which, especially in SRO hotels, results in increased homelessness.
    So if you do get a increase in October – which is not out of the realm of possibilities given all of the money business that has been going on around here lately – be sure to consult a lawyer.  Various agencies in the city offer free legal advice, including the Westside SRO project. -- Ed Hamilton