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DEREGULATION
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What else is no longer allowed
The vacancy bonus and longevity increase are repealed.
The Rent Guidelines Board has no power to issue increases for
vacancy leases.
The Rent Guidelines Board can no longer issue increases based on
longevity or the amount of rent a tenant pays.
RENT CONTROL INCREASES
Before June 14, 2019
Rents can be increased only by order of HCR
Rent Under the Maximum Base Rent (MBR) system, annual rent increases of up to 7.5% are allowed
Control
A landlord is not eligible for increases for:
• Harassment
• Failure to provide essential services
• Uncorrected rent-impairing services
Additionally, rent controlled tenants may face rent increases based on increases in fuel costs
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RENT CONTROL INCREASES
After June 14, 2019
Rent In any one year period a landlord can collect the lesser of
• 7.5% or
Control • The increase allowed is the average of the last five years of one year increases
promulgated by the RGB for rent stabilized apartments
A landlord still must apply for the increase and HCR will issue an order if the landlord is
eligible for the increase.
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Changes to rent increases
for in place tenants
Any tenant who is entitled
to receive a renewal lease
on or after the effective
date of the act, upon
A tenant can keep the
renewal of such lease, the
preferential tenant for as
amount of rent that may Rent control tenants
long as the tenant lives in
be charged and paid by increases have a new
the apartment. All lawful
the tenant shall by no formula
increases will be taken
more than the amount
from the preferential rent.
charged and paid by the
tenant prior to the
renewal plus applicable
guidelines increases.
Major Capital Improvement reform
DHCR must create a “schedule of reasonable costs” that “shall set a ceiling for what can be
recovered”
Pay back period
buildings with thirty-five units or fewer, 144 months.
buildings with more than 35 units, 150 months
Annual cap is 2% but Landlord may add full balance of MCI to rent upon vacancy though.
No more retroactive charges
The landlord can take percentage increase annually until the aggregate rent increase reaches
1/144th or 1/150th of the cost of the improvement
MCIs expire after 30 years. MCIs are now called “temporary MCIs.”
Major Capital Improvement reform
MCIs must be “essential for the preservation, energy efficiency, functionality or
infrastructure of the entire building, including heating, windows, plumbing and
roofing, but shall not be for operational costs or unnecessary cosmetic
improvements”
Work inside individual apartments is no longer eligible (e.g., kitchen/bathroom
replacement)
If building has less than 35% rent regulated tenants, no MCIs
Building must be clear of both B and C violations
Increases go into effect the first of the month after the date of mailing + 60 days
HCR must audit and inspect 25% of MCIs.
MCI Increases – example
Old Law New Law
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Individual Apartment Increases
Total expenditure capped at $15,000 every 15 years. The landlord can make
improvements three or more times in a 15 year period but cannot claim more
than a total of $15,000.
Rate of increase
For buildings with more than 35 units, the landlord may take 1/180th of the
cost of the improvement
For buildings with 35 or fewer units, the landlord may take 1/168th of the
cost of the improvement
IAIs expire after 30 years
Miscellaneous
Owner Use
Only one unit
Statute of Limitations and Look Back Period
6 years unless rent registrations not reliable
Provisions for all tenants
Late fees: The landlord can charge $50 or 5% of the monthly rent whichever is lower.
Security deposit law:
No more than one month’s rent
Landlord can withhold security deposit for
damage to the unit above wear and tear,
non payment of rent or non payment of utility charges payable directly to landlord as
part of lease
moving and storage of tenant’s belongings
New scheme of inspections
Within fourteen days of move out landlord must provide an itemized list of why he is
retaining any portion of the deposit or return the deposit
If the landlords fails to provide the 14 written statement, the landlord cannot keep the
security deposit
New Provisions
All Tenants
Retaliatory Eviction: adds complaints to landlord about breach of warranty of habitability. Makes the
presumption applicable to complaints within a year (not 6 months currently), requires the landlord to “establish”
(not give a “credible explanation of”) a non-retaliatory motive.
Notices of non renewal or rent increase of more than 5% If a tenant has a lease of less than one year and has
occupied the apartment for less than one year, 30 days notice of nonrenewal, if a tenant has a lease of one – less
than 2 years, or has occupied the apartment for more than 1 year, 60 days notice of nonrenewal. If a tenant has
a lease or has lived in a unit for 2 years or more, 90 days notice of nonrenewal. Takes effect in 120 days
Tenant breaks a lease during the lease term: after tenant breaks lease, landlords have duty to mitigate by renting
at lower of market rent or tenant’s last rent
Application fees for new apartment: bars or limits application fees prior to rental (including background checks)
to $20.
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New Provisions
All Tenants
Non-rent fees excluded from nonpayment cases. Fees probably include a/c fees and late fees.
In certain cases, courts may give tenants more time to find another apartment. The court can give up to one year
and must consider ill health, exacerbation of an ongoing condition, child’s enrollment in a local school, or any
other extenuating life circumstance affecting the ability of the tenant or tenant family to relocate and maintain
quality of life.
In breach of lease cases tenants have 30 to fix the breach (get rid of washing machine for example) instead of 10
days.
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