The Rent Stabilization Guidelines of New York
Rent stabilization is a regulatory system enacted in New York City in 1969 to prevent rental prices from increasing too high too fast in certain post-war buildings. Stabilization protects tenants from sharp rental increases by allowing landlords to increase rents by only a certain percentage each year. New York rent stabilization guidelines are relatively complex in New York, which has about 1 million stabilized rental units in the city. The guidelines cover the types of buildings subject to stabilization as well as the rights of tenants that occupy rent-stabilized units.
Dwelling Type
Rent stabilization rules apply to apartment buildings and lofts with six or more units built between Feb. 1, 1947 and Jan. 1, 1974, reports the New York City Rent Guidelines Board. Tenants who live in buildings built prior 1947 but moved in after June 30, 1971 are protected by rent stabilization regulations. Newly constructed or extensively renovated apartments built after Jan. 1, 1974 that qualify for special tax abatements also meet the criteria for rent stabilization.
Rental Amounts
Rental charges for a rent-stabilized apartment are set by the guidelines board, which regulates initial rents as well as maximum rent increases for units up for renewal. For one-year leases beginning on or after Oct. 1, 2011, the annual rent adjustment is 3.75 percent. The annual adjustment for two-year renewal leases is 7.25 percent. Rental units that exceed $2,500 per month become deregulated.
Improvement Increases
The rent guidelines board allows rent increases during the lease term under certain conditions. For example, upon consent of the current tenant, rents can increase if the owner enhances services and equipment or substantially improves the unit. Also, the owner can increase rents if he performs capital improvements to the entire building with the consent of the Department of Housing and Community Renewal.
Tenants' Rights
Each tenant in a rent-stabilized apartment has the right to renew his lease. The landlord must supply the tenant with a lease renewal offer up to three months prior to lease expiration. Tenants also have the right to sustain specific services and conveniences such as heat and hot water, sanitary common areas, and security locks and doors. Tenants can withhold rents if living conditions are not adequate. A landlord who violates a tenants rights is subject to civil penalties by the Department of Housing and Community Renewal, which can reduce rents to protect the rights of tenants, if necessary.
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