The proposed rent increase: part 3
the tip of the iceberg

$1.2 million? No, more like $4.4 million when completed

By now, every tenant should have received a certified letter
with a copy of the revised Capital Improvement application dated December 15, 2015.
A laminated copy was posted to the bulletin board by the mailboxes.

The landlord has now declared his intention to apply for more rent increases for this project.
The new letter says
there will be additional surcharge applications
as future upgrades have been completed.
The $1.2 million (plus interest) is only 30% of the increases the landlord seeks!
The total project cost is estimated at $4.4 million, perhaps more,
as costs increase over the 10-12 years for completion.
That means everything will TRIPLE when the job is completed in 10-12 years!
And the interest calculations are STILL NOT SHOWN!
All the more reasons to FIGHT IT on Jan 20th.

The big picture: in 10-12 years
when the work is completed

This column shows the
monthly rent increase
per the rent board application 		This column shows the
monthly rent increase
per the landlord's spreadsheet
center column
"only apts work is completed" 		This column shows the
monthly rent increase
per the landlord's
per-fancoil proposed settlement
multiply EVERYTHING BY 3.3 EVERYBODY WILL EVENTUALLY
BE PAYING THIS INCREASE 		multiply EVERYTHING BY 3.3
because $1.2 million
is only 30% of job 		because the total cost
is at least $4.4 million 		because $1.2 million
is only 30% of job
spread over 20 years spread over 20 years spread over 30 years
apt D K
3 rooms 		$32.52
× 3.3 = $107.31 		3 fancoils = $116.85 $7.15 × 3 fancoils = $21.45
× 3.3 = $70.78
apt A C H J
3 ½ rooms 		$37.93
× 3.3 = $125.16 		3 fancoils = $116.85 $7.15 × 3 fancoils = $21.45
× 3.3 = $70.78
apt B F I M P
4 rooms 		$43.35
× 3.3 = $143.05 		4 fancoils = $155.80 $7.15 × 4 fancoils = $28.60
× 3.3 = $94.38
apt G N
4 ½ rooms 		$48.77
× 3.3 = $160.94 		4 fancoils = $155.80 $7.15 × 4 fancoils = $28.60
× 3.3 = $94.38
apt E L
5 ½ rooms 		$59.61
× 3.3 = $196.71 		5 fancoils = $194.74 $7.15 × 5 fancoils = $35.75
× 3.3 = $117.97


REMEMBER: Capital Improvement surcharges are TOTALLY SEPARATE
from the annual rent increase, currently capped at $20 per month.
The landlord exercises that option every year.

Over the 5 years already elapsed, everybody's rent has ALREADY BEEN INCREASED $100 a month

10 more years is another $200 per month,
meaning when the work is completed over 15 years,
everybody's rent will have incresed $300 per month USING EXISTING ALLOWANCES!

WHY IS THIS NOT BEING APPLIED to the fancoil work?

A clarification: the first page “NOTICE TO TENANTS” says to
“notify this office in writing at least 10 days before the hearing”.
That means to mail the letter by January 10th for the first hearing,
March 6, 2016 for the second hearing, to
Fair Rental Housing Board
Room 114
50 Winfield Scott Plaza
Elizabeth NJ 07201


A scan of the application.
Click on the thumbnail for full size image.