As a developer, it’s important for you to understand the distinction between the increase in rent stabilized rents amounts that are issued by the Rent Guidelines Board (RGB), and the AMI figures that are released by Housing and Urban Development (HUD) which determine the income used to calculate affordable rents.
 
DHCR Increase:
On Tuesday night, the board members passed the first vote on one-year and two-year leases, providing insight on what the rent increases for stabilized apartments may look like for the upcoming year.
According to the current proposal, the potential rent adjustment could increase by 2-5% for one-year leases and 4-7% for two-year leases. However, the new rent amounts will only be disclosed following the final vote of the Rent Guidelines Board, which is scheduled for June 21.
 
AMI Increase:
To date, the AMI rent amounts for ’23 have not crossed the threshold yet. They are expected to be released by HUD on May 15, and implemented by HPD shortly thereafter.
These new AMI rent amount will apply to projects that haven’t started the 421a filing process yet.
 
To summarize:
DHCR Rent Stabilization Increases will affect the permitted rent amounts for Rent Stabilized apartments in NYC, while the Area Median Income rent amount will alter the permitted rent amounts for Affordable apartments in NYC.
 
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