DHCR FACT SHEET #1 Division of Housing and Community Renewal RENT CONTROL and RENT STABILIZATION 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 must have been living there continuously since before July 1, 1971. When a rent controlled apartment becomes vacant, it either becomes rent stabilized or is removed from regulation. Formerly controlled apartments may have been decontrolled on various other grounds. Rent control limits the rent an owner may charge for an apartment and restricts the right of an owner to evict tenants. It also obligates the owner to provide essential services and equipment. [See Fact Sheet on Required and Essential Services] Outside NYC, the NYS Division of Housing and Community Renewal (DHCR) determines maximum allowable rates of rent increases. Owners may apply for these increases every two years. In NYC, rent control operates under the Maximum Base Rent (MBR) system. A maximum base rent is established for each apartment and is adjusted every two years to reflect changes in operating costs. Owners who certify that they are providing essential services and have removed violations can raise rents by 7.5% each year until they reach the MBR limit. Tenants may challenge the proposed increase on the grounds that: the building has violations; the owner's expenses do not warrant an increase; or the owner is not maintaining essential services. Both in NYC and elsewhere, rents can also be increased in other ways: (1) it the owner increases services or substantially rehabilitates a building, or installs a major capital improvement; (2) hardship; (3) high labor costs; (4) in NYC, fuel costs (passalongs). Rents may be decreased in certain cases by DHCR. Such cases include: substantial, uncorrected code violations; reduction in services including facilities, space or equipment. The law prohibits harassment of rent regulated tenants. Owners found guilty of intentional actions to force a tenant to leave an apartment or otherwise surrender their rights can be denied decontrol and lawful rent increases, and may also be fined. 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 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. Outside NYC, rent stabilization applies to non rent controlled apartments in buildings of six or more units built before January 1, 1974 in the localities that adopted the Emergency Tenant Protection Act (ETPA) in Nassau, Westchester and Rockland counties. Some municipalities limit ETPA to buildings of a specific size but never less than six The local Rent Guidelines Boards (in NYC, Nassau, Westchester, and Rockland counties) set maximum rates for rent increases once a year and are effective for leases beginning on or after October 1st of each year. Like rent control, stabilization provides other protections to tenants besides rent regulation. Tenants are entitled to receive required services. to have their leases renewed, and may not be evicted except on grounds allowed by law. Leases may be entered into and renewed for one or two year terms at the tenant's choice. If the tenant's rights are violated, DHCR can reduce rents and levy civil penalties on the owner. Rents may be reduced if services are not maintained. In cases of overcharges, DHCR may assess penalties of interest or, in the case of willful overcharges, treble damages payable to the tenant. The ETPA also provides for substantial penalties for tenant harassment. The Omnibus Housing Act required owners to initially register (with DHCR) the rent and services for all rent stabilized apartments that were occupied on April 1,1984 by June 30,1984. Owners were required to send a copy of the registration to tenants, who had 90 days to challenge the information provided by the owner. If a tenant challenges the rent and the challenge is upheld, DHCR will order a refund of any overcharges, plus interest or three times the damages. For buildings and apartments subject to Rent Stabilization after 1984, owners must initially register all apartments within 90 days after they become subject to rent stabilization and each year after or they will be denied rent increases. Owners must provide tenants with a copy of the annual registration. ------------------------------------------------------------ DHCR Fact Sheets (series of thirty) are issued by the New York State Division of Housing and Community Renewal (DHCR) as plain- english informational publications. For official agency policies, see DHCR Policy Statements, Advisory Opinions and Operational Bulletins. Also refer to the Rent Stabilization Code, the Rent Stabilization Law and various Rent Control Statutes. Electronic versions of these documents on TenantNet are for informational purposes only and there is no guarantee they will be accepted by any court (or even DHCR) as true copies of DHCR policy. The reader may obtain true copies of these documents from DHCR. Every attempt has been made to conform to the original Fact Sheets as issued by DHCR; TenantNet makes no representation the enclosed material is current or will be applied as written. The reader is advised that DHCR often fails to properly apply, interpret or enforce housing laws. Since housing laws are complex and often contradictory, it is recommended the reader obtain competent legal advice from a tenant attorney or counseling from a tenant association or community group. (rev. 3/13/96) DHCR documents are public documents; the electronic version of such documents have been developed by TenantNet and any added value, enhancements and/or proprietary features are copyright 1994, 1995 and 1996 by TenantNet. These documents may be freely distributed provided they remain intact as herein presented, including this and the top informational banner referencing TenantNet as the original provider. ------------------------------------------------------------ For more information or assistance, call the DHCR Rent Infoline at (718) 739-6400, or visit your Borough Rent Office. Queens Central Office 92-31 Union Hall St. 4th Fl. Jamaica, NY 11433 (718) 739-6400 Bronx One Fordham Plaza Bronx, NY 10458 (718) 563-5678 Brooklyn 250 Schermerhorn St. 3rd Floor Brooklyn, NY 11201 (718) 780-9246 Lower Manhattan 156 William Street 9th Floor NY, NY 10038 (212) 240-6011, 6012 South side of 110th St. and below Upper Manhattan 163 W. 125th St. 5th Floor NY, NY 10027 (212) 961-8930 North side of 110th St. and above Staten Island 350 St. Mark's Place Room 105 Staten island, NY 10301 (718) 816-0277 Nassau County District Rent Office 50 Clinton Street, 6th Floor Hempstead, NY 11550 (516) 481-9494 Westchester County District Rent Office 55 Church Street, 3rd Floor White Plains, NY 10601 (914) 948-4434 Rockland County District Rent Office 94-96 North Main St. Spring Valley, NY 10977 (914) 425-6575 Albany Regional Office 119 Washington Avenue Albany, NY 12210 (518) 432-0596 Buffalo Regional Office Ellicot Square Building 295 Main St., Room 438 Buffalo, NY 14203 (716) 856-1382 ------------------------------------------------------------