Programs for regulating rent, known as rent control and rent stabilization, are in place in several communities around New York State. Rent regulation has two purposes: first, to shield tenants in privately held buildings from unlawful rent hikes; second, to enable building owners to maintain their properties while making a fair profit. Of the two rent regulation schemes, rent control is the more established one. It was first implemented in response to the housing scarcity that followed World War II and is typically applicable to structures built before 1947. In general, rent stabilization applies to apartments that were freed from rent control and buildings constructed after 1947 but before 1974. It also includes buildings that are eligible for tax incentives under J-51, 421-a, and 421-g. The apartments that are eligible for these tax benefit programs are determined by their own set of regulations.
Rent stabilization outside of New York City is also referred to as ETPA, or the Emergency Tenant Protection Act, and it’s legal in a few counties and places (see Fact Sheet #8). Rent stabilization can also apply to housing accommodations whose rentals are set by public benefit corporations, DHCR, and other government bodies, as outlined in the rent regulations.
Rent Stabilization
In addition to limiting the amount of rent increases, rent stabilization offers tenants protections. Tenants are entitled to the provision of necessary services, the renewal of their leases, and are not subject to eviction unless there are legally permissible reasons. Tenants have the option to extend their leases for one or two more years. Tenants can use a number of forms developed by the Division of Housing and Community Renewal (DHCR) to make pertinent complaints. After serving the owner with the complaint and gathering evidence, DHCR must issue a formal order that is appealable.
DHCR has the authority to lower rent and impose civil penalties on the owner in cases when a tenant’s rights are infringed. Should you fail to maintain services, your rent may be lowered. If there is an overcharge, the DHCR may impose interest penalties or triple damages that must be paid by the tenant.
Rent Control
Rent control restricts the amount of rent an apartment owner can charge as well as the owner’s ability to evict residents. Additionally, tenants are entitled to certain necessities. Since tenants are regarded as “statutory” tenants, owners are not obligated to provide renewal leases. Tenants can use a number of forms developed by DHCR to file pertinent concerns. After serving the owner with the complaint and gathering proof, DHCR is authorized to issue a written order that is appealable. Rents may be lowered and civil penalties may be imposed by DHCR on the owner in the event that a tenant’s rights are infringed. Reduced rent is a possibility if services are not kept up. When there is an overcharge, the DHCR may determine the legally collectible rent.
Please refer to an attorney for legal advice regarding your specific situation. Additional information can be found at the Department of Homes and Community Renewal.