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See
also Rent Stabilization FAQ's
Is there a difference between RENT CONTROL
and RENT STABILIZATION?
Some
of the people who email us say "rent controlled" but actually MEAN
rent stabilized -- they do not know the difference.
Why
is it so hard to be accurate? There is a difference between rent control
and rent stabilization, as only about 50,000 rent controlled units exist
vs. more than one million stabilized units and rent control has a different
set of regulations than rent stabilization.
The
term "rent regulated" encompasses both rent controlled and rent
stabilized units. By the way, the Rent Guidelines Board has the responsibility
for setting rent adjustments for rent stabilized apartments. We have no jurisdiction
over rent controlled apartments, which is the responsibility of the NY State
Division of Housing and Community Renewal (DHCR).
Rent Control:
The rent control
program generally applies to residential buildings constructed before February
1947 in municipalities that have not declared an end to the postwar rental
housing emergency. A total of 51 municipalities have rent control, including
New York City, Albany, Buffalo and various cities, towns, and villages
in Albany, Erie, Nassau, Rensselaer, Schenectady and Westchester counties.
For an apartment
to be under rent control, the tenant (or their lawful successor such as
a family member, spouse, or adult lifetime partner) must have been living
in that apartment continuously since before July 1, 1971. When a rent controlled
apartment becomes vacant, it either becomes rent stabilized, or, if it
is in a building with fewer than six units, it is generally removed from
regulation. For more information on succession and the definition of family
member, check out the fact sheet.
An apartment
in a one- or two-family house must have a tenant in continuous occupancy
since April 1, 1953 in order to be subject to rent control. Once it is
vacated after that date, it is no longer subject to regulation. Previously
controlled apartments may have been decontrolled on various other grounds.
On rare occasion, a decontrolled apartment is ordered back under rent control
as a penalty for certain violations of the rent laws.
Rent Stabilization:
In NYC, rent
stabilized apartments are those apartments in buildings of six or more
units built between February 1, 1947 and January 1, 1974.
Tenants in
buildings of six or more units built before February 1, 1947, who moved
in after June 30, 1971 are also covered by rent stabilization.
A third category
of rent stabilized apartments covers buildings with three or more apartments
constructed or extensively renovated since 1974 with special tax benefits.
Generally, these buildings are stabilized only while the tax benefits continue.
Many Exceptions:
THERE ARE NUMEROUS
EXCEPTIONS TO BOTH OF THESE GENERAL CATEGORIES. For example, if the legal
rent exceeded $2,000 following a vacancy the unit may be deregulated. Or,
if the unit was in a building converted to a co-op it may be deregulated
upon vacancy.
To determine
if your apartment is under rent stabilization or rent control, contact
the New York State Division of Housing and Community Renewal at (718) 739-6400
or (212) 961-8930.
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What
is the status of rent control?
Rent
control covers about 50,000 apartments occupied largely by an elderly, low
income population who have been in occupancy since July 1, 1971 or by their
lawful successors. Apartments under rent control become decontrolled upon
vacancy. If the apartment is in a building with six or more units it will
generally fall under rent stabilization upon vacancy. If in a building with
five or fewer apartments it will "go to market," that is, leave
rent regulation and become a market-rate rental. Even if the apartment is
in a building with six or more units, and it rents for more than $2,000 it
will be fully deregulated. Whether or not the legal rent has surpassed this
$2,000 threshold may be determined in what is known as a Fair Market Rent
Appeal. For further information on this process see the Fact
Sheet on Fair Market Rent Appeals.
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When
will we see the last rent controlled apartment?
The long-term
trend is towards zero rent-controlled apartments, but no one knows when that
will exactly occur.
Here are some
facts: At one point in the early 1950’s there were over two million
rent controlled apartments. The 1993 Housing and Vacancy Survey (HVS) reported
101,798 rent controlled apartments. The 1996 HVS reported 70,572, a decline
of more than 30,000 units over three years. In 1999 and 2002, only about
50,000 rent control units remained - so the rate of decline slowed a bit.
There is no reliable
rate of units leaving rent-controlled status per year. The factors that most
influence the rate that rent-controlled units move into stabilization are:
- Rent-controlled
tenants are statutory tenants, i.e., they can stay as long as they choose
to so effectively, many apartments could stay rent-controlled in perpetuity
vis-à-vis succession rights (although recent revisions to the law
limits succession only one occurrence);
- Aging tenants
- for tenants who are elderly and do not have successors, their advancing
age will be a factor in the conversion of many rent-controlled apartments;
and
- Changes in
the law - Albany will revisit the entire rent regulation system in 2011,
when the rent stabilization law comes up for renewal.
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We
have continuously occupied our apartment since 1962 - how do I know if
it's rent controlled and if I have the right to stay?
If your building
was constructed prior to February 1, 1947 and has at least three units, you
may indeed be in a rent controlled apartment. Call the Division of Housing
and Community Renewal (DHCR), the state agency that administers the rent
laws, at (718) 739-6400, to check.
DHCR can also tell you what increases were allowed over the years and assess
if your rent is correct. DHCR sets the annual increases for rent controlled
apartments. For rent controlled apartments, any "family member" of
the tenant may have the right to protection from eviction when the tenant dies
or permanently leaves the apartment.
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My
mother passed away - can I continue to live in her controlled apartment?
Under the rent control rules, you could take over or "succeed" to
the apartment only if you had lived with your mother for the two year period
immediately preceding her passing or departure from the apartment, or, if you
are a senior citizen or are disabled, you only had to have lived with your
mother for one year. For more information, see the fact
sheet on succession on this web site.
Succession rights
are also discussed in the Succession Rights FAQ's.
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The prior tenant was rent controlled. How much
can the rent be increased?
The landlord may initially ask any rent that the market may bear, subject to
the tenant’s right to file a Fair Market Rent Appeal.
The new tenant has the right to file a Fair Market Rent Appeal within 90 days
after receiving a special notice about this right from the landlord. However,
even if the owner does not provide notice, the tenant must act within four
years of time that the rent controlled tenancy ended. For more information
contact the NY State Division of Housing and Community Renewal (718-739-6400).
If the DHCR receives a timely Fair Market Rent Appeal, it will consider the "special
guideline" promulgated by the Rent Guidelines Board in setting a new rent.
To review the current special guideline, see the most recent Apartment
Order. The DHCR may also consider rents for comparable apartments which
have undergone decontrol. Typically, both factors are given equal weight. If
no "comparables" are submitted by the owner, the DHCR will rely exclusively
on the special guideline. The DHCR may also add rent increases based upon individual
apartment improvements or major capital improvements.
Due to high rent decontrol laws now in effect, if the legal rent exceeds $2,000
following this process, the apartment will be fully deregulated and the landlord
may charge any amount.
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How
does the Landlord legally increase the rent to over $2,000 and thereby
deregulate a formerly rent controlled apartment?
In assessing whether a decontrolled apartment should be renting for over $2,000,
the DHCR will consider the special guideline adopted by the Rent Guidelines
Board, rents for comparable apartments submitted by the owner, and rent increases
for improvements made by the owner.
Under the "vacancy decontrol" provisions of the rent laws, an apartment
can be deregulated if the rent increases to $2000 or more (i.e., it will become "market-rate" upon
vacancy and the owner can charge whatever he or she wants). However, if application
of the special guideline and consideration of comparable apartments fails to
produce a rent of $2,000 or more, substantial improvements to either the building
or apartment would have been made to reach that threshold:
- Major Capital
Improvements (MCI). When an owner makes an improvement or installation
to a building subject to the rent stabilization or rent control laws, the
owner may be permitted to increase the rent based on the actual, verified
cost of the improvement or installation. For more information, go to the fact
sheet.
- 1/40th Improvements.
An owner may raise the rent in an individual apartment by 1/40th of the
cost of the increased services, new equipment, or improvements. This increase
is in addition to the regular annual Rent Guidelines Board increases for
rent stabilized apartments, and Maximum Base Rent increases for rent controlled
apartments. For more information, go to the fact
sheet.
For
more information, contact the NYS Division of Housing and Community Renewal
(DHCR), the state agency that administers the rent laws, at 718-739-6400.
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Disclaimer: By
providing answers to frequently asked questions the staff of the Rent
Guidelines Board attempts to clarify the often complex programs and
regulations governing landlord tenant relations in NYC. However the
information provided herein does not represent official policies
or opinions of the City of New York or the Rent Guidelines Board. Nor
should this information be used to substitute for advice of legal counsel.
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