Rent Law of 2015

On June 26, 2015, Governor Cuomo signed into law Chapter 20 of the laws of 2015 which is now known as “The Rent Law of 2015”. The law became effective, retroactively, as of June 15, 2015.

Important changes promulgated by the Rent Law of 2015:

• The Rent Regulatory Law – both Rent Control and Rent Stabilization – had been extended through June 15, 2019

•  For high rent/income deregulation, the income threshold remains $200,000.00, but the rent threshold was raised to $2,700.00 with a caveat that the rent threshold will increase each January in accordance with the guidelines increase for a one (1) year renewal

•  The deregulation threshold is now based upon the rent as of the date the prior tenant vacated. For rent control tenant, an Owner can still undertake a major capital improvement to the entire building to raise the rent for this apartment to an amount above the threshold and, upon vacancy, the apartment will be automatically regulated

•  In a rent controlled apartment if an Owner chooses not to undertake any major capital improvements, in order for the apartment to be deregulated, the Owner must prove that the fair market rents in the neighborhood are above the threshold for deregulation by establishing comparable apartments are at or above the level of the same neighborhood. The deregulation is still subject to challenge by the next tenant

•  Preferential rent may alter a vacancy allowance:

-if the rent charged the vacating tenant was less than the legal rent, the 20% vacancy increase will be reduced to a 5% vacancy increase if the last vacancy was less than two years ago;

-the Owner will be entitled to only a 10% vacancy increase if the last vacancy was less than three (3) years ago;

-the Owner is entitled to a 15% vacancy increase if the last vacancy was less than four (4) years ago;

-if the last vacancy was four (4) years ago or earlier, the Owner is entitled to the entire 20% vacancy allowance