Rent stabilization is the larger, and more recent, of
the two sets of laws which regulate rents in New York
City. (See Rent Control for a description of the older
law.) Currently, there are about 1 million rent
stabilized apartments in the city. Established in 1969
to cover tenants in post-World War II buildings, the law
was extended when the state legislature passed the
Emergency Tenant Protection Act of 1974. Rent
stabilization offers tenants three basic protections:
right of tenure (you can only be evicted on a limited
number of grounds); protection against steep rent
increases; and the right to receive basic services and
repairs. The rent stabilization system is NYC’s largest
affordable housing program (the median household income
of the rent stabilized household is $30,000 per year;
close to 60% of Section 8 recipients live in rent
stabilized apartments). The system protects tenants
from the housing market forces that drive displacement
and steep rent increases while it permits landlords a
fair return on their investment. Because the system
limits landlords' profits, it is under continuous attack
from the real estate industry.
Today, rent stabilization applies to tenants who live in
buildings:
-
Built before 1974 (or later if covered by a property
tax abatement)
-
Containing 6 or more units
-
That are not coops or condos (although tenants who
moved in prior to the conversion are covered by rent
stabilization)
-
That are not owned by a nonprofit and run for
charitable or educational purposes
-
Where the rent for the apartment was below $2,000
when the tenant moved in
Rent stabilized tenants are entitled to leases (an
initial one when the apartment is first rented, and
renewals after) of one or two years (the tenant’s
choice). Tenants pay rent increases only at lease
renewal or when ordered by the NYS Division of Housing &
Community Renewal (Major Capital Improvements, for
example). Lease renewal increases are set by the
NYC Rent Guidelines Board. The initial rent for an
apartment is based on the previous tenant’s rent plus
the vacancy allowance and any increases allowed for
improvements done by the owner. The DHCR is charged
with supervising the rent stabilization system and
landlords are required to register their apartment rents
every year with the DHCR. Tenants can get a rent
history from the agency by calling 718-739-6400 or
visiting the nearest
DHCR office. Tenants can apply to the DHCR for
a rent reduction if they suspect an overcharge or if
they are not receiving services or repairs.
Tenants in rent stabilized apartments can only be
evicted for: nonpayment of rent, illegal or “nuisance”
behavior, violating the lease (subletting without the
landlord’s permission, for example), or, in limited
situations, when the landlord wants the apartment for
his/her personal use or wants to demolish the building.
Rent stabilized tenants also have
rights of succession,
or the right to inherit an apartment: when the main
tenant dies or moves and an immediate family (or
family-like) member has been living in the apartment and
wants to stay. The right to organize a tenants
association and to file complaints about services and
repairs are rights that all stabilized tenants have.
Most tenants can also share
and sublet their apartments.
The rent laws are controlled from Albany thanks to
changes made in the 1970’s when Governor Rockefeller enacted
vacancy decontrol in an attempt to phase out rent
regulations. The rent stabilization law was saved,
however the state retained the power over the enabling
of the laws and tenants must go to Albany on a regular
basis to get the laws renewed, in addition to getting
the NY City Council to renew the laws every three years. (See Home Rule)
In the 1990’s and most recently, in 2003,
landlords have forced weakening amendments as the price
of renewal. Landlords give millions of dollars to
elected officials in Albany (especially to the
committees controlled by Governor Pataki and Senate
leader Joe Bruno). Thanks to these changes, we have
lost tens of thousands of units of regulated housing.
Without a fierce fight from the tenants in NYC, we will
lose so many more units that the laws will be gutted in
Albany. Join the fight to preserve and strengthen the
rent laws.
