The board also passed a minimum increase for anyone who had been living in an apartment for more than six years: They would have to pay at least $45 and $85 for one- and two-year leases, respectively. This meant that any long-term tenant paying less than $1,000 a month would be faced with a higher percentage increase than other rent-stabilized tenants. The rule was called Order No. 40.
The motivation behind the boardâ€™s increase was to compensate landlords for rising operational costs and to equalize rents between long- and short-term tenants, according to court papers. But the City Council and some Legal Aid lawyers cried foul, claiming in a September 2008 lawsuit that lower-income tenants were being unfairly singled out.