Noah Patel
On June 14, 2019, New York Governor Andrew M. Cuomo signed into law the Housing Stability and Tenant Protection Act of 2019, which he described as the most sweeping, aggressive protections in state history. The new legislation aimed to strengthen rent control laws and protect tenants across the state. It included measures such as limiting rent increases, repealing vacancy bonuses, reforming rent increases for major capital improvements, and providing eviction protections. Cuomo's decision came after a long-running campaign by tenant activists and housing justice organizations advocating for new rent regulations and stronger tenant protections in New York.
| Characteristics | Values |
|---|---|
| Date | June 14, 2019 |
| Name of the law | Housing Stability and Tenant Protection Act of 2019 |
| Extent | Statewide |
| Rent regulation laws | Extended and made permanent |
| High-rent vacancy deregulation | Repealed |
| Vacancy and longevity bonuses | Repealed |
| Rent increases for major capital improvements | Reformed |
| Individual Apartment Improvement increases | Reformed |
| Owner use provision | Limited to a single unit |
| Tenants' overcharge complaints | Reformed |
| Mobile and manufactured home tenants | Cap on rent increases and protections against evictions |
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What You'll Learn
The Housing Stability and Tenant Protection Act of 2019
On June 14, 2019, Governor Andrew M. Cuomo signed into law the Housing Stability and Tenant Protection Act of 2019, which Cuomo described as "the most sweeping, aggressive protections in state history". The Act, also known as HSTPA, extends and strengthens rent protections for tenants across the state.
The HSTPA makes the rules permanent, ending the need to extend the measure every four to eight years. It repeals high-rent vacancy deregulation and vacancy and longevity bonuses. It also reforms rent increases for major capital improvements and individual apartment improvements. Under the new law, landlords can raise the rent by only up to 2%. In other counties, rent increases for major capital improvements have been lowered from 15% to 2%. The new law also imposes stricter guidelines on what qualifies as a major capital improvement and requires strict enforcement by mandating the Department of Homes and Community Renewal to inspect 25% of MCIs.
The HSTPA also protects long-term tenants from eviction under the "owner use" exception if they have lived at that residence for at least 15 years. It institutes new limits on the amount spent on major capital improvements (MCIs) and individual apartment improvements (IAIs) that can be recovered through increased rent. Tenant groups contended that landlords routinely abused these provisions to "jack up rents and push out tenants".
The Act also permits other New York municipalities outside New York City with a vacancy rate of 5% or less to be governed by the rent regulation law.
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Vacancy and longevity bonuses repealed
On June 14, 2019, New York Governor Andrew Cuomo signed the Housing Stability and Tenant Protection Act of 2019 into law, implementing the most sweeping rent control and stabilisation reforms in the state's history. The new legislation repealed vacancy and longevity bonuses, which had previously allowed landlords of rent-regulated units to increase rents automatically upon vacancy or after long periods without a vacancy increase.
The statutory vacancy bonus enabled landlords to increase rents by up to 20% when a tenant vacated a unit. This bonus was a significant concern for tenants, as it contributed to escalating rents and housing instability. By repealing this bonus, the new law addressed a critical issue for renters in New York.
The vacancy longevity bonus, on the other hand, allowed landlords of rent-regulated units to claim additional increases if they had not raised rents for vacancy in over eight years. This bonus could result in substantial rent hikes, as it was calculated as 0.6% multiplied by the number of years since the last vacancy. The repeal of this bonus was a significant victory for tenant advocates, as it removed another mechanism for sudden and substantial rent increases.
The Housing Stability and Tenant Protection Act of 2019 also included other critical provisions to protect tenants and reform the rent stabilisation system. These provisions included reforms to Major Capital Improvement (MCI) and Individual Apartment Improvement (IAI) increases, stronger tenant protections statewide, and an expansion of the Emergency Tenant Protection Act. Additionally, the new law prohibited landlords from discontinuing "preferential rents" or raising rents to the full legal amount upon lease renewal, providing further stability for tenants.
The repeal of vacancy and longevity bonuses was a crucial aspect of the Housing Stability and Tenant Protection Act of 2019, demonstrating Governor Cuomo's commitment to strengthening tenant protections and addressing the challenges faced by renters in New York. These reforms represented a significant step forward in the ongoing efforts to make housing more affordable and secure for New Yorkers.
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Rent increases for Major Capital Improvements (MCI)
On June 14, 2019, Governor Andrew M. Cuomo signed into law the Housing Stability and Tenant Protection Act of 2019, which included reforms for rent increases for Major Capital Improvements (MCI).
Under the previous laws, when owners made improvements or installations to a building subject to rent stabilization or rent control laws, they could apply to the Division of Housing and Community Renewal (DHCR) to raise tenants' rent by up to six percent. This was a temporary increase, and owners had to file an application with DHCR to collect the increase. The verified costs of an MCI could be passed on to rent-regulated tenants through this temporary increase in their monthly rent.
The new law imposes stricter guidelines on what qualifies as an MCI and enforces them by requiring the Department of Homes and Community Renewal to inspect 25% of MCIs. The new law also lowers the allowable rent increase for MCIs from 15% to 2% and stipulates that rent increases for MCIs will expire after 30 years. This change means that rent increases due to MCIs will no longer be a permanent part of the legal rent.
The DHCR has a list of jobs that qualify for MCI increases, and there are specific criteria for what constitutes an MCI. For example, the work must not be for the "operation, preservation, and maintenance of the building" and must be necessary, not cosmetic. Additionally, the improvement must benefit all tenants and be building-wide. The landlord must also complete the work within two years of applying for the increase, and the system being replaced must have outlived its useful life.
The complexity of the MCI process can be challenging for tenants, and it has been criticized as a tactic used by landlords to drive up rents and displacement.
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Individual Apartment Improvement (IAI) increases
On June 14, 2019, Governor Andrew M. Cuomo signed the Housing Stability and Tenant Protection Act of 2019 into law, which included reforms for Individual Apartment Improvement (IAI) increases. This law introduced several changes to rent regulations and tenant protections in New York State, including reforms for IAI-related rent increases.
Individual Apartment Improvements (IAI) refer to improvements, equipment installations, or increased services made in an apartment that is subject to rent stabilization or rent control laws. Under New York's Rent Stabilization laws, landlords or owners may increase rents when they make qualified Individual Apartment Improvements. However, they must follow specific rules and guidelines when doing so.
Prior to the new law, there were concerns about the abuse of the IAI provision by landlords. According to a 2014 audit by the Tenant Protection Unit, in 40% of cases, landlords lacked proof of apartment improvements to justify rent increases. This abuse undermines the goals of the rent regulation system by encouraging landlord fraud and speculative real estate investments.
The Housing Stability and Tenant Protection Act of 2019 introduced the following reforms for IAI increases:
- Limitation on IAI expenses: Landlords can make up to three individual apartment improvements over a 15-year period, with a maximum expense of $15,000 during this period.
- Temporary nature of IAI increases: Similar to Major Capital Improvement (MCI) increases, IAI-related rent increases will now expire after 30 years. This means that landlords can temporarily increase rent due to IAIs, but the increase must be removed from the rent 30 years after it became effective.
- Notification and documentation requirements: To collect a rent increase for an IAI, owners of rent-controlled and rent-stabilized apartments must notify the Division of Housing and Community Renewal (DHCR) by filing a notification form and providing before-and-after photographs on the Owner's Rent Regulation Application (ORRA) system.
- Tenant dispute resolution: The law continues to provide an avenue for tenants to dispute rent increases they believe are unlawful or unjustified. Tenants can file overcharge complaints with the Homes and Community Renewal (HCR) agency, which administers rent laws and can determine if tenants are being overcharged.
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Owner use provision limited to one unit
On June 14, 2019, Governor Andrew M. Cuomo signed into law the Housing Stability and Tenant Protection Act of 2019, which he described as "the most sweeping, aggressive protections in state history". The new legislation includes an amendment to the "owner use" provision, which previously allowed landlords to refuse to renew a rent-stabilized tenant's lease if they wanted the apartment for personal use or for a member of their immediate family to occupy. Under the new law, the "owner use" provision is limited to a single unit, and landlords are required to use it as their primary residence. This reform also protects long-term tenants from eviction under this exception if they have lived in the unit for at least 15 years.
The "owner use" provision has been a point of contention in New York City's housing market, where rent-stabilized apartments are in high demand. Under the previous laws, landlords could evict tenants from rent-stabilized apartments if they or their immediate family members wanted to move into the unit. This led to concerns about landlords abusing this provision to remove tenants and potentially increase rents. By limiting the "owner use" provision to a single unit and requiring it to be the landlord's primary residence, Governor Cuomo's reform aims to protect tenants' rights and prevent unfair evictions.
The Housing Stability and Tenant Protection Act of 2019 includes several other significant provisions. Firstly, it makes the rent control laws permanent, ending the need for frequent extensions. Secondly, it repeals high-rent vacancy deregulation, vacancy bonuses, and longevity bonuses, which previously allowed landlords to increase rents significantly when units became vacant. Thirdly, it reforms rent increases for Major Capital Improvements (MCIs) and Individual Apartment Improvements (IAIs), imposing stricter guidelines and lower caps on these increases. These reforms aim to prevent excessive rent hikes and provide long-term stability for tenants.
The impact of the limited "owner use" provision is twofold. Firstly, it restricts landlords from arbitrarily evicting tenants from multiple units for personal use, ensuring that only one unit can be designated for such purposes. This helps maintain the stability and availability of rent-stabilized housing in the market. Secondly, by requiring the landlord to use the unit as their primary residence, it discourages speculative evictions where landlords might evict tenants with no intention of actually occupying the unit themselves. This provision adds an extra layer of protection for tenants by ensuring that any eviction for personal use is bona fide and not merely a pretext for other motives.
Overall, the limitation of the "owner use" provision to a single unit and the requirement for it to be the landlord's primary residence are significant steps in Governor Cuomo's rent law reform. This aspect of the Housing Stability and Tenant Protection Act of 2019 aims to strike a balance between the rights and needs of landlords and tenants, ultimately fostering a more equitable and stable rental environment in New York.
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Frequently asked questions
Yes, Governor Cuomo signed the Housing Stability and Tenant Protection Act of 2019 into law on June 14, 2019.
The Act aimed to provide the "strongest tenant protections in history", making rent regulations permanent and expanding them statewide. It also repealed vacancy and longevity bonuses and reformed rent increases for major capital improvements.
Under the Act, landlords can only raise rents by up to 2%, and rent increases for major capital improvements have been lowered from 15% to 2%. It also imposes stricter guidelines on what qualifies as a major capital improvement and limits individual apartment improvement increases over a 15-year period.
Landlords and building owners protested the reforms, arguing that they would be forced to stop investing in building improvements and sell their buildings. Tenant advocates generally supported the Act, with one spokesperson calling it a "huge step forward" in protecting rent-regulated tenants.
