Rent Control
New York New York's rent regulation programs, which affect mainly Now York City tenants, are divided into those apartments that are under rent control and those that are under rent stabilization.
Rent Control. The rent control program applies only to residential buildings constructed before February 1, 1947, and containing three or more Units (there are only about 100,000 rent control units). In order for an apartment that meets these specifications to be under rent control, the tenant must have lived there continuously since July I, 1971. In addition, rent control covers one-family dwellings and apartments in two-family dwellings built before February 1, 1947, if the same tenant has lived there continuously since May 1, 1953. When a rent-controlled apartment is vacated, it either becomes rent stabilized or completely removed from regulation.
Since there are no new rent control tenants, the program is dying out
Rent Stabilization. Apartments are under rent stabilization if they are in buildings of more than six units, built between February 1, 1947, and January 1, 1974. There are over 1,100,000 rent stabilized units. Tenants in buildings built before February 1, 1947, who moved in after June 30, 1971, are also covered by rent stabilization. In addition, buildings of three or more apartments constructed or extensively renovated since 1974 with special tax benefits are also covered by rent stabilization.
Ordinance Adoption Date
Emergency Housing Rent Control Law of 1946, Emergency Tenant Protection Act of 1974, and New York City Administrative Code Sections 26-501 to 26520, adopted 1969, all amended by the Rent Regulation Reform Act of 1993. Further amendments were made in June 1997.
Exceptions, Rent Control and Rent Stabilization
Buildings with more than six units or built after 1974. Tenants who are 62 years or older may qualify for a full or partial exemption from rent increases. Seniors are eligible if their incomes are below a maximum limit set by local law, they are paying at least 1/3 of their income for rent and their eases are for one or two-year terms. [Senior Citizen Rent Increase Exemption-SCRIE, NYC Admin. Code Sections 26-601 to 26-615.]
Vacated apartments that rent for more than $2,000, including any rent increases that are the result of passed on renovation costs, are deregulated immediately.
Administration
New York State Division of Housing and Community Renewal (DHCP) administer,, rent regulations both in and outside NYC. DHCR has a Central Rent Information Hotline 718-739-6400; 163 W. I 25th Street, 5th Floor, New York, NY 10027, or 156 William Street, 9th Floor, New York, NY 10038.
In addition, NYC has an appointed nine-member Rent Guidelines Board (RGB) which establishes the guidelines for annual rent adjustments. [NYC Admin. Code Sec. 26-510.] Rent Guidelines Board, 51 Chambers Street, Room 202, New York, NY 10007 212-349-2262.
Registration
Owners had to register with the DHCR no later than 6/30/84. For apartments which became subject to rent stabilization after 1984, an owner is required to file an initial registration within 90 days after the property becomes subject to rent stabilization. After the initial registration, owners must file an annual registration statement giving the April 1st rent for each unit and provide tenants with a copy of their statement. Owners who don't comply can't increase the rent and are subject to additional penalties. [NYC Admin. Code Sec. 26-517.]
Rent Formula
Rent Control: A Maximum Base Rent (MBR) system is established for each apartment and adjusted every two years to reflect changes in operating costs. The rent that rent control led tenants pay is called the Maximum Collectible Rent (MCR), which is usually less than the MBR. Owners who certify that they are providing "essential" services are entitled to raise rents up to 7.5% each year Until they reach the MBR. Tenants can challenge the proposed increase on the grounds that the building has safety or health code violations or that the owner's expenses do not warrant an increase.
Rent Stabilization: Landlord can increase the rent when an apartment is vacated based on city guidelines plus an adjustment called the "vacancy allowance." The rent may be increased at least 20% if the lease is for two or more years and the previous tenant has either moved or died. When a landlord renovates a vacant unit, the rent may be increased by $1 for every $40 spent.
Rent Increase Notice Requirements
Owner can increase the rent for increase in services, capital investments or hardship, but must first file an application with the DHCR, which then serves the tenants notice of the increase in rent. The increase in the monthly stabilization rent can only be 1/40th of the total cost of the improvements. [NYC Rent Stabilization Code Part 2522.4.] Landlords can also include the price of fuel in a rent increase in rent controlled apartments only, this is known as a "pass-along,"
Vacancy Decontrol
When a rent-controlled apartment becomes vacated, it falls under rent stabilization if it is in a building with six or more units; otherwise it becomes deregulated. [NYC Rent Stabilization Law Sec. 26-504.]
Luxury Decontrol: Units rented by tenants whose combined yearly income exceeds $175,000 for two consecutive years and who pay $2,000 or more in rent will be deregulated.
Eviction
Landlord must show just cause to evict, [NYC Rent Stabilization Code Part 2524.1, 3.] In addition, a landlord can't refuse to renew a lease of a tenant who is over 62 or disabled because the landlord wants the apartment for personal use. [Rent Stabilization Code 2524.4(a).] A landlord may demolish a building with few units if the tenants are relocated to comparable housing.
Penalties
If a tenant's rights are violated, DHCR can reduce rents and levy civil penalties against the owner ranging from $100 to a maximum of $2,500 for subsequent offense, depending on the violation. If the landlord overcharged the rent, the DHCR can assess treble damages. There is a retroactive four-year maximum on rent overcharge refunds for complaints filed after April 1, 1984, and a two-year maximum on treble damages. Landlords who harass tenants in an effort to get them to vacate their apartments may be charged with a misdemeanor. [NYC Admin. Code Sec. 26-516.]
Other Features
An owner must include a copy of the Rent Stabilization Rider with a tenant's lease, which describes the rights and obligations of tenants and owners under the Rent Stabilization Law. The Rider informs a rent-stabilized tenant signing a vacancy lease of the legal regulated rent in effect immediately prior to the vacancy and explains how the present rent was computed.
In most cases, tenants must place rent into escrow accounts during disputes with landlords.
Tenants' succession rights extend to spouses and unmarried domestic partners only, and are limited to one generation.
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