Luna Harper
Rent stabilization is a form of rent regulation that helps combat New York City's housing crisis by ensuring that some units remain affordable. Almost half of all rental apartments in New York City are rent-stabilized, and they are most commonly found in buildings with six or more units built before 1974. Newer buildings that receive tax breaks because they have units renting below the market rate may also be rent-stabilized. The Rent Guidelines Board approves the percentages by which landlords can increase rents for stabilized units. Since the Housing Stability and Tenant Protection Act (HSTPA) was passed, rent-stabilized apartments remain so regardless of how high the rent reaches.
| Characteristics | Values |
|---|---|
| Buildings with 6 or more units | Generally rent-stabilized |
| Buildings with fewer than 6 units | Generally deregulated |
| Buildings with 3 or more units, constructed or renovated after 1/1/1974 | Rent-stabilized if they have special tax benefits |
| Buildings with 6 or more units, built before 1974 | Rent-stabilized |
| Buildings with 6 or more units, built between 2/1/1947 and 12/31/1973 | Rent-stabilized |
| Buildings with 6 or more units, built between 2/1/1947 and 1/1/1974 | Rent-stabilized if other terms are met |
| Buildings with fewer than 6 units, built before 1947 | Rent-controlled |
| Buildings with 6 or more units, built before 1947 | Rent-controlled |
| Buildings with 6 or more units, built before 1974, not subject to rent control | Rent-stabilized |
| Buildings with 3 or more units, built before 1974 | Rent-stabilized if they have special tax benefits |
| Buildings with tax exemptions | May be rent-stabilized |
| Buildings with 421-a exemption | May be deregulated |
| Buildings with 80-20 housing program exemption | Rent-stabilized |
| Buildings with J-51 exemption | Rent-stabilized |
| Buildings with newly constructed status | May be rent-stabilized |
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What You'll Learn
Rent stabilization criteria
Rent stabilization is a form of rent regulation in New York City that helps combat the city's housing crisis by ensuring some units remain affordable. Almost half of all rental apartments in New York City are rent-stabilized.
Rent stabilization was enacted in 1969 when rents were rising sharply in many post-war buildings. The system has been extended and amended frequently. The Rent Guidelines Board, a nine-member body, approves the percentages by which landlords can legally increase rents for stabilized units. The board meets every year to determine how much the landlord can charge.
Rent stabilization generally applies to buildings with six or more units built before 1974. Owners of more recent buildings can agree to rent stabilization in exchange for tax benefits. Buildings such as housing owned by non-profit corporations are not included in the program.
To determine if your home is rent-stabilized, you can check your lease or order your rent history from NYS Division of Housing and Community Renewal (HCR). If your lease is unclear or you don't have one, you can fill out an online form offered by NYS Homes and Community Renewal (HCR). If your apartment is rent-stabilized, you will receive the rent history in the mail. If your apartment is not rent-stabilized, you will not receive anything in the mail.
Rent-stabilized tenants are protected from sharp increases in rent and have the right to renew their leases. When a rent-stabilized building is converted to a co-op or condo, renters in place at the time of the conversion are usually allowed to remain under a non-eviction plan. They also have the right to renew their leases and cannot be kicked out. However, once the rent-stabilized tenant moves out, the apartment can be sold or rented without the protections of rent stabilization.
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Rent stabilization vs. rent control
Rent control and rent stabilization are two different policies aimed at regulating rent prices in specific buildings or areas. While they share a similar goal, the methods and extent of their implementation differ.
Rent control is typically applied to specific units or buildings, rather than an entire city or region. It usually involves imposing a maximum base rent, which is a legally mandated price that landlords are not allowed to exceed. This ensures tenants pay rents that are closer to historical rates, despite any increases in the market value of the property. Rent control also restricts the right of landlords to evict tenants without just cause. However, it is important to note that rent control is not applicable to new construction, and it only applies when a tenant has been continuously living in the unit since a specified date, such as July 1, 1971, in New York City.
Rent stabilization, on the other hand, is a form of rent regulation that is often applied to a larger number of units or even an entire city or region. It aims to protect tenants from excessive rent increases while also allowing landlords to earn a fair return on their investment. Under rent stabilization, landlords are permitted to increase rents annually by a certain percentage determined by a government agency or rent board. This ensures that rents remain affordable for tenants, even in high-demand areas. Rent stabilization may also provide additional protections and rights for tenants, such as succession rights, which allow certain family members to take over the lease if the original tenant passes away or moves out.
In New York City, rent stabilization is the most commonly applied protection, covering about 28% of the city's housing stock and 44% of all rentals. Rent-controlled apartments, while highly coveted, make up only about 1% of the housing stock. The city's rental market is complex, with a mix of rent-regulated and unregulated units, and tenants are advised to familiarize themselves with the specific laws and regulations in their area.
To determine if a unit is rent-controlled or rent-stabilized in NYC, tenants can request its rent history from the Division of Housing and Community Renewal or the NYS Homes and Community Renewal (HCR). Additionally, there are tools like JustFix.nyc and the Association for Neighborhood and Housing Development (ANHD) portal that can help tenants look up building records and other relevant information.
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Rent increases in stabilized apartments
Rent stabilization is a form of rent regulation that helps combat New York City's housing crisis by ensuring some units remain affordable. Almost half of all rental apartments in New York City are rent-stabilized. These apartments are most often located in buildings containing six or more units, built before 1974.
Rent-stabilized apartments in the city are becoming more expensive. The rent-regulation system has been in place for decades to help insulate rents from market forces. The Rent Guidelines Board, a nine-member body first established in 1969, approves the percentages by which landlords can legally increase rents for stabilized units. The board is mandated to establish fair rents for property owners and tenants. The board members consider detailed reports that outline the condition of the housing stock, the rent tenants are already paying, and landlords' operating costs. After several public meetings, the members hold a final vote on the maximum rent increases landlords can charge. The amount by which rents are allowed to increase typically differs for one- and two-year leases.
In 2023, the board approved increases on one-year leases by 3% and on two-year leases by 2.75% for the first year and 3.2% for the second year. That followed increases on one-year leases by 3.25% and on two-year leases by 5% the year before—the highest figures in nearly a decade.
Tenants with preferential rent will still see rent increases, but only by the percentages allowed by the Rent Guidelines Board. The Housing Stability and Tenant Protection Act (HSTPA) of 2019 established that tenants paying a preferential rent on or after June 14, 2019, will retain it as long as they continue to rent the property. Preferential rent is rent that is lower than the legal regulated rent for the apartment.
If you are rent-stabilized, your rent can only be increased in accordance with the rent guidelines issued by the Rent Guidelines Board or on a specific ground set forth in the Rent Stabilization Code. The most common grounds for rent increases outside of the annual guidelines are major capital improvement (MCI) and individual apartment improvement (IAI) increases.
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How to check if your apartment is rent-stabilized
Rent stabilization helps combat New York City's housing crisis by ensuring that some units remain affordable. Almost half of all rental apartments in New York City are rent-stabilized. Rent-stabilized apartments are most often located in buildings containing six or more units, built before 1974. If you live in a rent-stabilized unit, you are entitled to additional protections and rights, so it is important to know your status.
- Request the Rent History: If your apartment is rent-stabilized, you will receive the rent history in the mail. If it is not, you will not receive anything. You can request a rent history by contacting the HCR's Office of Rent Administration by email ([email protected]) or by calling 833-499-0343. You must provide the full address, including the apartment number, but you do not need to provide your name or email address.
- Check the Lease: It may be explicitly written on your lease that the apartment is rent-stabilized. Additionally, your rent amount might not be a round number, which could be an indication that the apartment is rent-stabilized.
- Building Characteristics: Rent-stabilized apartments are typically located in buildings with six or more units, built before 1974, or newer buildings receiving tax exemptions. They are also unlikely to be co-ops or condos.
- Contact the NYS Homes and Community Renewal (HCR): The HCR is the state agency that administers rent laws. You can contact them to confirm if your apartment is rent-stabilized. They provide a list of definitions and explanations of rent regulation and building status terms.
- Other Tools: JustFix.nyc offers a tool to look up building records from various city agencies. The Association for Neighborhood and Housing Development (ANHD) provides a comprehensive portal that aggregates information about buildings, including complaints, violations, permits, litigation, evictions, and financing.
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Benefits of rent stabilization
Rent stabilization is a form of rent regulation that helps combat the housing crisis in New York City by ensuring that some units remain affordable. Almost half of all rental apartments in New York City are rent-stabilized, and they make up about 28% of the overall housing stock and 44% of all rentals. Here are some of the benefits of rent stabilization:
Affordable Housing
Rent stabilization helps keep existing housing affordable by enacting restrictions that limit the amount that can be charged for rent. These restrictions also limit rent increases, often setting an allowable annual percentage increase. For example, in 2023, the Rent Guidelines Board approved increases on one-year leases by 3% and on two-year leases by 2.75% for the first year and 3.2% for the second year.
Protection Against Wrongful Eviction
Rent stabilization provides tenants with protection against wrongful eviction. For instance, in California, state law prohibits unjustified evictions.
Encourage a Variety of Income Levels
Rent stabilization can help encourage a variety of income levels within a neighborhood. While critics argue that it subsidizes the rents of high-income households, tenant advocates and housing policy researchers disagree, believing that it promotes equitable housing outcomes.
Tenant Retention
Rent stabilization can increase tenant retention, allowing tenants to remain in their homes and communities. This can help preserve neighborhood-specific capital, such as a network of friends and family, proximity to a job, or children enrolled in local schools.
Additional Protections and Rights
Rent-stabilized tenants are entitled to additional protections and rights. For example, if certain family members living in a rent-stabilized unit pass away or permanently leave the apartment, you may be able to take over the lease with "succession rights." Additionally, older adults or individuals with disabilities may qualify for a rent freeze.
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Frequently asked questions
Buildings with six or more units, built before 1974, are generally rent-stabilized. Newer buildings that receive tax breaks because they have units that rent below the market rate can also be rent-stabilized.
You can request your rent history from the Division of Housing and Community Renewal. If your apartment is rent-stabilized, you will receive the rent history in the mail. You can also contact HCR's Office of Rent Administration by phone or email.
Rent-controlled apartments are a separate system and are usually in buildings with fewer than six units. For an apartment to be rent-controlled, a tenant or family member must have been living there since at least July 1971, and the building must have been built before 1947.
Yes, landlords can increase the rent on rent-stabilized apartments, but only by a percentage decided each year by the Rent Guidelines Board.
Rent stabilization helps to keep rents affordable and ensures that tenants receive required services from their landlords, as well as lease renewals. Tenants in rent-stabilized apartments are also entitled to additional protections and rights.
