Q&A
Explanation of air conditioning costs in rent-stabilized apartments
1:58:21
·
143 sec
Sarah Parker provides a detailed explanation of how air conditioning costs are handled in rent-stabilized apartments, including annual surcharges and individual apartment improvements (IAIs).
- Parker explains the annual air conditioner fee of $418.59 for tenants when the property owner pays for electricity
- She clarifies how the installation of an air conditioner can be considered an IAI, affecting the legal rent
- The discussion covers the limitations on IAIs and how they can be bundled with other improvements
Sarah Parker
1:58:21
Would it be helpful if I explained the individual apartment improvements any further?
1:58:27
I would
Lincoln Restler
1:58:28
I would welcome it if it's okay.
Pierina Sanchez
1:58:30
Sure.
1:58:30
I just have a lot of people signed up for testimony, but go ahead.
1:58:34
Sorry.
Sarah Parker
1:58:35
So this was this was something that came up when I spoke with your staffers, and I just wanted to to clarify.
1:58:44
For rent stabilized apartments, if the tenant does not pay the electricity, the property owner does.
1:58:53
An owner may charge a tenant an annual air conditioner fee, and this is $418.59 is what it's currently set at.
1:59:04
That is not part of what gets the rent increase when the rent guidelines board sets the annual increase.
1:59:10
It's not part of that calculation.
1:59:13
But it is an annual surcharge to cover the the cost that running an air conditioner will have on the property owner.
1:59:20
Separately, the cost to install an air conditioner, if the property owner is the one to pay for it, would be considered an individual apartment improvement, and that is a fraction of that cost can be put onto the legal rent.
1:59:35
That is the monthly rent that the tenant pays.
1:59:38
And that is the rent that then gets increased based on rent guidelines board rules.
1:59:46
Back of the envelope for a window air conditioner to be installed and applied to an individual apartment improvement, we're talking about 2 to 2 to $5 a month.
2:00:01
So I'd like to highlight the the annual charge that we see for air conditioners in instances where the owner pays electricity.
2:00:11
And just to clarify, there are 3 there's a limit on 3 individual apartment improvements in a 15 year period, but those can be a bundle of improvements.
2:00:21
So it's not that installing a window air conditioner is is a singular instance.
2:00:26
It could be part of an owner does painting, replaces appliances, fixes windows, and installs a window air conditioner, and they would submit that bundle of expenses as an individual apartment improvement.
Lincoln Restler
2:00:41
That's very helpful.
2:00:42
I really appreciate it.
Sarah Parker
2:00:44
Thank you for your time.
Pierina Sanchez
2:00:45
Thank you so much.
