![]() Apartments that were legally deregulated prior to 2019 remain market rate. Renovations are no longer a path to deregulation, nor is any level of rent increase, as there is no high-rent threshold. Vacancy Decontrol and High-Income Deregulation were enacted in 1997 and abolished in 2019. The apartment must be the tenant's primary residence to qualify for stabilization. New York City rent stabilization qualifications changed over the years, purportedly to curb perceived abuses that allowed the wealthy to enjoy protection that was ostensibly intended for the working class. ![]() For rents to be placed under regulation, the municipality must declare a housing emergency and the rental vacancy rate must be less than 5% for all or any class or classes of rental housing accommodations, as demonstrated by a housing vacancy survey. Apartments that are converted into co-ops and condos and vacated after Jmay not be subject to rent stabilization. Upon leaving programs such as the Mitchell-Lama Housing Program or Section 8, housing may enter rent stabilization if built before 1974. Buildings such as housing owned by non-profit corporations are not included in the program. Regulation and policies vary by municipality. Owners of more recent buildings can agree to rent stabilization in exchange for tax benefits. It generally applies to buildings of six or more units built before 1974 that are not subject to rent control. Rent stabilization is applicable to New York City, Nassau, Rockland and Westchester Counties. Owners must apply for the Maximum Base Rent system for the tenants. The MBR is updated every two years to reflect changes in these expenses. The formula reflects real estate taxes, water and sewer charges, operating and maintenance expenses, return on capital and vacancy and collection loss allowance. Maximum Base Rent (MBR) is calculated to ensure the rent from rent control units covers the cost of building maintenance and improvements. However, the tenant may challenge these increases on grounds that the building has violations or that the higher amount exceeds that needed to cover expenses. Every two years, the landlord may increase the rent up to 7.5% (as of 2012) until the Maximum Base Rent is reached. A maximum allowable rent is established for each unit. In New York City, rent control is based on the Maximum Base Rent system. Outside of New York City, the state government determines the maximum rents and rate increases, and owners may periodically apply for increases. Failure to provide these may allow the tenant to receive a lower rent. Rent control limits the price a landlord can charge a tenant for rent and also regulates the services the landlord must provide. Rent control does not generally apply to units built after 1947. Once the unit becomes vacant, it is decontrolled. In units within single and two-family homes, the tenant must have resided in the unit continuously since March 31, 1952, to qualify for rent control. When vacant, a rent-controlled unit becomes "rent stabilized", except in buildings with fewer than six units, where it is usually decontrolled. To qualify for rent control, a tenant must have been continuously living in an apartment since July 1, 1971, or be a qualifying family member who succeeded to such tenancy. In New York City, rent stabilization applies to all apartments except for certain classes of housing accommodations for so long as they uphold the status that gives them the exemption. Other rent-controlled municipalities include Nassau, Westchester, Rensselaer, Schenectady and Erie counties. As of 2007, 51 municipalities participated in the program, including Albany, Buffalo and New York City, where over one million apartments are regulated. ![]() Įach city in the state chooses whether to participate. In addition to controlling rent, the system also prescribes rights and obligations for tenants and landlords. Rent control and rent stabilization are two programs used in parts of New York state (and other jurisdictions). Rent regulation in New York is a means of limiting the amount of rent charged on dwellings. ![]()
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