The rent for units subject to the Rent Stabilization Ordinance may be increased or decreased for several allowable reasons. Some methods allow for temporary rent surcharges and other methods allow for permanent rent increases. Permanent rent increases (such as Primary Renovations and Just & Reasonable) become part of the Maximum Adjusted Rent of a rental unit, whereas the temporary rent surcharges (such as Capital Improvements) are added on after the Maximum Adjusted Rent is computed. Below is an example of the correct way to do this.

BASE RENT = $800.00
Primary Renovation permanent rent increase + 20.00
Subtotal:  = $820.00
Annual Allowable Rent Increase ($820 x 3%) + 24.60
Maximum Adjusted Rent: = $844.60
Temporary Surcharges added to Total Rent:
SCEP Fee monthly passthrough + 2.83
Capital Improvement temporary surcharge + 55.00
Total Rent Due:  $902.33
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