New York’s rent regulation laws are scheduled to expire next week. Nine new rent regulation bills have been introduced to that would dramatically alter rent stabilization. Approximately two-thirds of dwelling units in New York City are renter-occupied, over twice the national average, and so the new legislation – if approved – would dramatically change the local real estate market. As of now, there has not been a date set for the vote, but we expect it to occur in the next two weeks.
Click here for our rent regulation cheat sheet!
Below is a quick summary of what’s being proposed:
- End Vacancy Decontrol (S2591)
This would repeal the provision that allows landlords to permanently deregulate rent-stabilized apartments when the rent becomes more than $2,774 - Eliminate the Vacancy Bonus (S185)
This would repeal the provision that allows landlords to increase the rent on a stabilized apartment by approximately 20% when the unit changes tenants. - Eliminate Preferential Rents (S2845A)
This would repeal the provision that allows landlords to increase a tenant’s preferential rent to the legally allowed maximum rent for the apartment at lease expiration. Basically, the preferential rent would become the legally allowed maximum rent for that tenant. - Eliminate Major Capital Improvement Rent Increases (S3693)
This would prevent landlords from permanently raising rents on rent-regulated apartments based on building-wide improvements. - Eliminate Individual Apartment Improvements (S3770)
This would prevent landlords from increasing rents on rent-regulated apartments based on repairs or renovations to individual units. - “Good Cause” Evictions (S2892)
This would prohibit landlords from evicting a tenant for not paying an “unconscionable” increase in rent. Unconscionable is defined as an annual increase of more than 150% Of the CPI Index (~2-3%). This applies to free-market tenants. This would effectively turn many free-market tenants into rent-regulated tenants. - Rent Control Cap (S299A)
This would cap the maximum rent increase on rent-controlled units at the same rate as the Rent Guidelines Board increases for rent-stabilized units.
To learn more about the New York rent regulations vote, contact Matt Cosentino at mcosentino@terracrg.com or 718-768-6888