Housing Stability and Tenant

Protection Act of 2019

DEREGULATION
Before June 14, 2019

High income High Rent

High income vacancy
deregulation – If the rent was 421a buildings. In 2015, the
deregulation – If an apartment
$2774.76 and the household’s 421a laws were amended. For
is empty and the last legal rent
annual income for the two market rate units only, the law
in the apartment prior to the
preceding calendar years was was changed to allow vacancy
tenant vacating the apartment
$200,000 a year, the landlord deregulation for market rate
$2,774.76, the landlord could
could apply to HCR for an order units.
deregulate the apartment
deregulating the apartment.

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 DEREGULATION

June 14, 2019 and after

For rent stabilized & rent controlled apartments that are not
421a: ALL DEREGULATION IS OVER

421a buildings. Vacancy deregulation for market rate units

continues.

EFFECTIVE DATE: Immediately

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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 The vacancy bonus and longevity increase are repealed.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.

The bill ends fuel pass along increases

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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

Landlord spends $1 million in 100 unit building.

MCI increase is $10,000 per apartment, divided

by 144 = $69.

Tenant with $1000 rent pays:

Year 1: $1020
Year 2: $1040
Year 3: $1060
Year 4: $1069

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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

Tenant Screening Bureaus: bans discrimination based on tenant screening reports

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.

Rent demands must be in writing and must give 14 days notice

Multiple court deadlines are longer

Notices of evictions are 14 calendar days not 5 business days.

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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