New York Rent Laws
RSL Table of Contents

NYC Rent Stabilization Law of 1969

Sec. 26-509. APPLICATION TO DEPARTMENT OF HOUSING PRESERVATION AND DEVELOPMENT FOR RENT INCREASE EXEMPTIONS AND EQUIVALENT TAX ABATEMENT FOR RENT REGULATED PROPERTY OCCUPIED BY CERTAIN SENIOR CITIZENS. a. Commencement of department of housing preservation and development (1) Notwithstanding any provisions of this chapter to the contrary, on and after October first, nineteen hundred eighty, the department of housing preservation and development shall grant rent increase exemption orders or tax abatement certificates pursuant to this section and applications for such orders and certificates and renewal applications shall be made to the department of housing (2) the department of housing preservation and development shall have the power, in relation to any application for a rent increase exemption order or tax abatement certificate, to determine the lawful stabilization rent, but it shall not receive applications for adjustment of the initial legal regulated rent pursuant (3) The department of finance, and the department of housing preservation and development may promulgate such rules and regulations as may be necessary to effectively carry out the provisions of this section. b. Rent increase exemptions for certain senior citizens (1) No increase in the legal regulated rent shall be collectible from a tenant to whom there has been issued a currently valid rent exemption order pursuant to this subdivision, except as provided in such order, if such increase is a lawful increase in the monthly legal regulated rent over the rent legally payable on the eligibility date which is provided under a two year lease, or under such other term as regards dwelling units subject to the hotel stabilization provisions of this chapter, for an increase in rent: (i) pursuant to an order of the New York city rent guidelines board, or (ii) based upon an owner hardship rent increase order issued by the state division of housing and community renewal. (2) A tenant is eligible for a rent exemption order pursuant to this section if: (i) the head of the household residing in the housing accommodation is sixty-two years of age or older and is entitled to the possession or to the use or occupancy of a dwelling unit. Nothing herein contained shall render ineligible for benefits persons receiving supplemental security income or additional statement payments, or both, under a program administered by the United States department of health and human services or by such department and the New York state department of social (ii) the aggregate disposable income (as defined by regulation of the department of housing preservation and development) of all members of the household residing in the housing accommodation does not exceed fifteen thousand dollars per year, after deduction of federal, state and city income and social security taxes. For purposes of this subdivision, "aggregate disposable income" shall not include increases in benefits accorded pursuant to the social security act which take effect after the eligibility date of a head of the household receiving benefits under this section whether received by the head of the household or any other member of the household. (iii) (a) in the case of a head of the household who does not receive a monthly allowance for shelter pursuant to the social services law, the maximum rent for the housing accommodation exceeds one-third of the aggregate disposable income or subject to the limitations contained within item (c) of subparagraph (i) of paragraph three of this subdivision, if any expected lawful increase in the maximum rent would cause such maximum rent to exceed one-third of the aggregate disposable income; or (b)in the case of a head of the household who receives a monthly allowance for shelter pursuant to the social services law, the maximum rent for the housing accommodation exceeds the maximum allowance for shelter which the head of the household is entitled to receive pursuant to the social services law, or subject to the limitations contained within item (c) of subparagraph (i) of paragraph three of this subdivision, if any expected lawful increase in the maximum rent would cause such maximum rent to exceed the maximum allowance for shelter which the head of the household is entitled to receive. (3) (i) A rent exemption order pursuant to this subdivision shall provide: (a)in the case of a head of the household who does not receive a monthly allowance for shelter pursuant to the social services law, that the landlord may not collect from the tenant to whom it is issued rent at a rate in excess of either one-third of the aggregate disposable income, or the rent in effect immediately preceding the eligibility date, whichever is greater; or (b)in the case of a head of the household who receives a monthly allowance for shelter pursuant to the social services law, that the landlord may not collect from the tenant to whom it is issued rent a rate in excess of either the maximum allowance for shelter which the head of the household is entitled to receive, or the rent in effect immediately preceding the eligibility date, whichever is greater; and (c)that the landlord may collect from the tenant increases in rent based on an electrical inclusion adjustment or an increase in dwelling space, services or equipment. (ii) Each such order shall expire upon termination of occupancy of the housing accommodation by the tenant to whom it is issued. The landlord shall notify the department of housing preservation and development, on a form to be prescribed by such department, within thirty days of each such termination of occupancy. (4) Any landlord who collects, or seeks to collect or enforce, rent from a tenant in violation of the terms of a rent exemption order shall, for the purposes of all remedies, sanctions and penalties provided in this chapter, be deemed to have collected or attempted to collect or enforce, a rent in excess of the legal regulated rent. (5) A rent exemption order shall be issued to each tenant who applies to the department of housing preservation and development in accordance with its regulations and who is found to be eligible under this subdivision. Such order shall take effect on the first day of the first month after receipt of such application by the department of housing preservation and development, except that where any other increase in the legal regulated rent within ninety days of the issuance of the order increasing the tenant's maximum rent which a tenant is not exempted from paying the rent exemption order shall without further order of the department of housing preservation and development take effect as of the effective date of said order increasing the tenant's rent including any retroactive increments collectible pursuant to such order. (6) A rent exemption order shall be valid for the period of the lease or renewal thereof upon application by the tenant; provided, that upon any such renewal application being made by the tenant, any rent exemption order then in effect with respect to such tenant shall be deemed renewed until such time as the department of housing preservation and development shall have found such tenant to be either eligible or ineligible for a rent exemption order but in no event for more than six additional months. If such tenant is found eligible, the order shall be deemed to have taken effect upon expiration of the exemption In the event that any such tenant shall, subsequent to any such automatic renewal, not be granted a rent exemption order, such tenant shall be liable to the owner for the difference between the amounts the tenant has paid under the provisions of the automatically renewed order and the amounts which the tenant would have been required to pay in the absence of such order. Any rent exemption order issued pursuant to this subdivision shall include provisions giving notice as to the contents of this paragraph relating to automatic renewal of rent exemption orders and shall include provisions giving notice that the tenant must enter into either a one or two year renewal lease in order to be eligible for a rent exemption. The notice that each tenant receives from the owner relating to the right to a renewal lease shall contain similar information Any application or renewal application for a rent exemption order shall also constitute an application for a tax abatement under such section. The department of housing preservation and development may, with respect to renewal applications by the tenants whom it has found eligible for rent exemption orders prescribe a simplified form including a certification of the applicant's continued eligibility in lieu of a detailed statement of income and other qualifications. (7) Notwithstanding any other provision of law, when a head of a household to whom a then current, valid rent exemption order has been issued under this chapter, chapter three or chapter seven of this title moves his or her principal residence to a subsequent dwelling unit subject to regulation under this chapter, the head of the household may apply to the department of housing preservation and development for a rent exemption order relating to the subsequent dwelling unit, and such order may provide that the head of the household shall be exempt from paying that portion of the legal regulated rent for the subsequent dwelling (i) the amount by which the rent for the subsequent dwelling unit exceeds the last rent, as reduced, which the head of the household was required to actually pay in the original dwelling unit; (ii) the last amount deducted from the maximum rent or legal regulated rent meaning the most recent monthly deduction for the applicant in the original dwelling unit pursuant to this section or section 26-605 of this title; or (iii) where the head of the household does not receive a monthly allowance for shelter pursuant to the social services law, the amount by which the legal regulated rent of the subsequent dwelling unit exceeds one-third of the combined income of all members of the household. Such certificate shall be effective as of the first day of the month in which the tenant applied for such exemption or as of the date the tenant took occupancy of the subsequent dwelling unit, whichever is later provided both occur after the effective date of this section. (8) (i) When a dwelling unit subject to regulation under this chapter is later reclassified to a dwelling unit subject to regulation under chapter three of this title, the eligibility of a head of the household to receive a rent increase exemption order upon such reclassification shall be governed by paragraph eight of subdivision m of section 26-405 of this title. (ii) When a dwelling unit subject to regulation under this chapter is later reclassified to a dwelling unit subject to the provisions of article II, IV, V or XI of the private housing finance law or subject to a mortgage insured or initially insured by the federal government pursuant to section two hundred thirteen of the national housing act, as amended, the eligibility of a head of the household to receive a rent increase exemption order upon such reclassification shall be governed by section 26-605.1 of this title. (9) notwithstanding any other provision of law to the contrary, where a head of household holds a current, valid rent exemption order and, after the effective date of this paragraph, there is a permanent decrease in aggregate disposable income in an amount which exceeds twenty percent of such aggregate disposable income as represented in such head of the household's last approved application for a rent exemption order or for renewal thereof, such head of the household may, upon renewal or one year after the issuance or renewal of such rent exemption order, apply for a redetermination of the amount set forth therein. Upon application, such amount shall be redetermined so as to re-establish the ratio of adjusted rent to aggregate disposable income which existed at the time of approval of such head of the household's last application for a rent exemption order or for renewal thereof; provided, however, that in no event shall the amount of adjusted rent be redetermined to be (i) in the case of a head of the household who does not receive a monthly allowance for shelter pursuant to the social services law, less than one-third of the aggregate disposable income; or (ii) in the case of a head of the household who receives a monthly allowance for shelter pursuant to such law, less than the maximum allowance for shelter which such head of the household is entitled to receive pursuant to the social services law. For purposes of this paragraph, a decrease in aggregate disposable income shall not include any decrease in such income resulting from the manner in which such income is calculated pursuant to any amendment to paragraph c of subdivision one of section four hundred sixty-seven-b of the real property tax law or any amendment to the regulations of the department of housing preservation and development made on or after April first, nineteen hundred eighty-seven. For purposes of this paragraph, "adjusted rent" shall mean legal regulated rent less the amount set forth in a rent exemption order. c. Tax abatement for properties subject to rent exemption order. (1) Tax abatement, pursuant to the provisions of section four hundred sixty-seven-b of the real property tax law, shall be granted with respect to any real property for which a rent exemption order is issued under subdivision b of this section to the tenant of any housing accommodation contained therein. The rent exemption order shall also constitute the tax abatement certificate. (2) The real estate tax imposed upon any real property for which a rent exemption is issued, shall be reduced and abated by an amount equal to the difference between: (i) the sum of the maximum rents collectible under such orders, and (ii) the sum of rents that would be collectible from the tenants of such housing accommodations if no exemption had been granted pursuant to subdivision b of this section. (3) For any individual housing accommodation, the tax abatement computed pursuant to this subdivision shall be available with respect to a period commencing on the effective date of the initial rent exemption order, and ending on the expiration date of such order or on the effective date of an order terminating the rent exemption. (4) Prior to the commencement of each fiscal year, the department of housing preservation and development shall notify the department of finance of the total amount of taxes to be abated under this section with respect to each property for which rent exemption orders were in effect for all or any part of the preceding calendar year. The commissioner of finance shall make the appropriate adjustment in the real estate tax payable in such fiscal year (5) Tax abatement pursuant to this section shall be in addition to any other tax abatement authorized by law, but shall not reduce the tax for any fiscal year below zero. In the event that the tax abatement certificate authorizes an amount of deduction in excess of the real estate installment, then the balance may be applied to any subsequent installment until exhausted. In such a case the owner shall submit with his or her real estate tax bill and remittance, a verified statement in such form as prescribed by the commissioner of finance setting forth the carry over amount and the amounts previously applied provided however, that at the request of the owner such balance shall be paid to the owner by the commissioner of finance in lieu of being applied to any subsequent installment, except where the owner is in arrears in the payment of real estate taxes on any property. For the purposes of this paragraph, where the owner is a corporation, it shall be deemed to be in arrears when any of the officers directors or any person holding an interest in more than ten percent of the issued and outstanding stock of such corporation is in arrears in the payment of real estate taxes on any property; where title is held by a nominee, the owner shall be deemed to be in arrears when the person for whose benefit such title is held is in arrears in the payment of real estate taxes on any property. d. Notwithstanding the provisions of this chapter, a tenant who resides in a dwelling unit which becomes subject to this chapter upon the sale by the city of New York of the building in which such dwelling unit is situated may be issued a rent increase exemption order for increases in rent which occurred during ownership of such building by the city of New York provided that such tenant would have been otherwise eligible to receive a rent increase exemption order at the time of such increase but for the fact that such tenant occupied a dwelling unit owned by the city of New York and was therefore not subject to this chapter. Application for such rent increase exemption orders shall be made within one year from the date such building is sold by the city of New York within one Year of the effective date of this provision, whichever is later.


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