Rent Reform: New York's New Laws Explained

what is the new rent law in new york

New York State has introduced new housing laws that will impact the development and operation of multifamily housing in New York City and the state. The new rent laws aim to improve tenant protections, address the housing shortage, and make the state more affordable. The Housing Stability and Tenant Protection Act of 2019 introduced significant updates, including good cause eviction, preventing landlords from evicting tenants without a legitimate reason, and eliminating vacancy decontrol. The new laws also include added safeguards against fraud in rent overcharge cases and aim to provide a safety net for renters navigating New York's competitive housing market.

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Good Cause Eviction law

The Good Cause Eviction Law is a New York State law that went into effect on April 20, 2024. It gives tenants of unregulated (or "market rate") homes in New York City new protections. Under this law, landlords of homes covered by the new Good Cause Eviction requirements cannot end a tenancy or refuse to renew a lease without a "good cause" reason. Tenants can use this law as a defence in Housing Court and to challenge rent increases above a certain level if they are evicted for non-payment of rent.

The Good Cause Eviction Law establishes a "local rent standard", which is the amount of rent increase considered reasonable in a given year based on inflation in the local area. The local rent standard is set every year at the rate of inflation plus 5%, with a maximum of 10% total. A rent increase is considered unreasonable under Good Cause Eviction if the rent increase is higher than the local rent standard. For example, if the inflation rate for the New York City area is 3%, the local rent standard would be 8% (5% + inflation). If a covered tenant’s rent is $1,000 in this situation, an increase of more than 8% (or $80) would be above the local rent standard.

The Good Cause Eviction Law only applies to New York City and localities that opt into the programme. As of April 2025, the following cities and villages have opted in and are covered by the law: Albany, Ithaca, Kingston, Poughkeepsie, Rochester, Beacon, Newburgh, Nyack, Hudson, New Paltz, Rochester, Fishkill, Catskill, Croton-on-Hudson, and Binghamton.

Some homes are not covered by the protections under the Good Cause Eviction Law. These include homes owned by a small landlord (someone who owns 10 units or fewer in New York State) and some buildings owned by a company or LLC. If a landlord files an eviction against a tenant and claims Good Cause Eviction does not apply because they are a small landlord, they must provide the tenant with a list of all the homes they own in New York State.

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Rent increase notices

Notice Periods for Rent Increases:

The notice period for a rent increase depends on the duration of the tenant's occupancy or lease term. If a tenant has lived in the unit or had a lease for less than a year, a 30-day notice is mandatory. For tenants with an occupancy or lease term of at least one year but less than two years, a 60-day notice is required. Tenants who have resided in the unit or had a lease for more than two years are entitled to a 90-day notice. These notice periods provide tenants with ample time to prepare for any rent adjustments.

Written Notice Requirements:

Landlords are legally required to provide tenants with written notice of their intention to increase rent. This notice must be given in advance, allowing tenants to plan and make necessary arrangements. The written notice should specify the amount of the rent increase and the date from which it will take effect. It is important for tenants to carefully review their lease agreements and stay informed about any changes in rent laws to understand their rights and obligations.

Good Cause Eviction Law:

The Good Cause Eviction Law, which came into effect on April 20, 2024, provides additional protections for tenants of unregulated or "market rate" homes in New York City. Under this law, landlords cannot arbitrarily end a tenancy or implement excessive rent increases. The law establishes a "local rent standard," which determines a reasonable rent increase based on inflation in the local area. Tenants can challenge rent increases that exceed this standard, providing a safeguard against unfair rent hikes.

Rent-Controlled and Rent-Stabilized Apartments:

The new rent laws have strengthened protections for tenants in rent-controlled and rent-stabilized apartments. The New York State Division of Housing and Community Renewal (DHCR) enforces these laws, ensuring that rent increases in such apartments are fair and compliant with regulations. Tenants in these apartments can file complaints with the DHCR if they believe their rent increases are unjustified or violate applicable laws.

Housing Accommodations Subject to GCE:

For housing accommodations subject to Good Cause Eviction (GCE), landlords must provide justifications for any rent increase above the Local Rent Standard. This requirement ensures transparency and accountability in rent adjustments. If a landlord elects not to renew a lease, they must also disclose this information in statutory predicate notices and New York Housing Court petitions. These provisions empower tenants to understand their rights and take appropriate actions.

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Housing development

One notable change is the introduction of the Affordable Neighborhoods for New Yorkers Program (485-x), which replaces the expired Affordable New York Housing Program. This new program aims to encourage the development of affordable housing and will be accompanied by a new exemption program for converting office buildings into residences. The state has also eliminated housing density limitations, allowing for the construction of larger residential buildings.

To address the issue of vacant rent-stabilized apartments, the state has made adjustments to the Individual Apartment Improvements Increases (IAIs). The cap for all units has been increased to $30,000, and rent increases under IAIs are now permanent and limited to vacant apartments.

The Good Cause Eviction law, which came into effect on April 20, 2024, provides additional protections for tenants of unregulated or "market rate" homes in New York City. Landlords covered by this law cannot end a tenancy without a "good cause" reason, and tenants can challenge unreasonable rent increases or evictions in Housing Court.

Furthermore, the new laws strengthen protections for tenants in several other ways. For instance, landlords must now provide advance notice of rent increases above a certain threshold or their intention not to renew a lease. They are also required to make reasonable efforts to re-rent an apartment before pursuing former tenants for remaining rent. Tenants facing eviction have more time to gather a defence and are protected from retaliation for complaining about poor living conditions.

Overall, these changes in housing laws aim to balance the interests of landlords and tenants, promoting the development of affordable housing and safeguarding tenants' rights in New York.

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Rent-controlled apartments

One critical law is the Good Cause Eviction Law, which took effect on April 20, 2024. This law applies to unregulated or "market rate" apartments in New York City, providing tenants with new protections. Landlords covered by this law cannot end a tenancy without a "good cause" reason, and tenants can challenge rent increases above a certain level if they are evicted for non-payment. The law establishes a "local rent standard," which determines a reasonable rent increase based on local inflation.

The Housing Stability and Tenant Protection Act (HSTPA) of 2019 also provides tenants with protections. Under this act, landlords must provide written notice if they intend to raise the rent by at least 5% or decide not to renew a lease. Additionally, the HSTPA addresses late rent payments, requiring landlords to notify tenants in writing within 5 days if rent is not paid on time. Tenants facing eviction have more time to gather a defence, and they can request a 14-day adjournment if there are disputed facts.

Another set of laws that impact rent-controlled apartments are the Emergency Tenant Protection Act and the Rent Stabilization Law. These laws affect the rents paid on rent-stabilized apartments for Individual Apartment Improvements (IAIs). The cost of upgrading long-occupied apartments has led to changes, including making rent increases under IAIs permanent and limited to vacant apartments. The new cap for all units is $30,000.

New York has also introduced two new tax exemption programs: the Affordable Neighbourhoods for New Yorkers Program (485-x) and a program to assist with converting office buildings into residences. These programs aim to improve the availability and affordability of housing in the state.

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Tenant protections

New York has introduced several tenant protection measures that strengthen tenants' rights and safeguard them from unfair rent increases and evictions. Here are the key tenant protection provisions:

Good Cause Eviction Law

The Good Cause Eviction Law, which came into effect on April 20, 2024, provides tenants of unregulated or "market rate" homes in New York City with new protections. Under this law, landlords cannot arbitrarily end a tenancy and must demonstrate a "good cause" reason for eviction. Tenants can use this law as a defence in Housing Court and challenge rent increases above a certain level if they are facing eviction for non-payment of rent. The law establishes a "local rent standard," which determines a reasonable rent increase based on local inflation rates.

Notice Period for Rent Increases and Lease Non-Renewal

Landlords are required to provide advance notice to tenants if they intend to increase rent by at least 5% or not renew their lease. The notice period depends on the duration of the tenant's occupancy or lease term: 30 days for tenants with less than a year of occupancy or no lease, 60 days for tenants with 1-2 years of occupancy or a lease of the same duration, and 90 days for tenants with over two years of occupancy or a lease of at least two years. If a landlord fails to provide the required written notice, tenants have the right to remain in the apartment at their current rent until the proper notice is given and the applicable time period expires.

Mitigating Damages

The new laws protect tenants who need to move out before their lease ends by requiring landlords to make reasonable efforts to re-rent the apartment before pursuing the former tenant for remaining rent. This process is known as "mitigating damages." Landlords may need to prove that they attempted to find a new tenant before seeking unpaid rent from the previous tenant.

Late Payment of Rent

Previously, tenants received a 3-day notice for late payment. Now, landlords must provide a written notice sent by certified mail if the rent is not paid within 5 days of the due date. Additionally, if rent is paid in full before the court date, the landlord must accept the payment and halt the eviction process.

Protection Against Retaliatory Eviction

The new laws protect tenants from retaliatory evictions after they have complained about poor living conditions. If a tenant has made a complaint within a year of an eviction filing, it creates a presumption that the eviction is in retaliation for the complaint, and this evidence can be used as a defence in court.

Rent Increases for Apartment Improvements

Rent increases based on apartment improvements are regulated. While rent increases under Individual Apartment Improvements (IAIs) were previously capped at $15,000, the new cap for all units is $30,000. These increases apply only to vacant apartments.

Housing Court and Rent Receipts

Tenants can bring cases against property owners in Housing Court to address issues related to repairs and essential services, such as heat and hot water. Additionally, tenants have the right to request rent receipts, especially if rent is paid in person with cash or a money order, in which case an immediate rent receipt is required.

Frequently asked questions

Good Cause Eviction is a New York State law that went into effect on April 20, 2024. It gives tenants of unregulated (or "market rate") homes in New York City new protections. Landlords cannot end a tenancy without a "good cause" reason and tenants can use this law as a defence in Housing Court.

Good cause can include things like failure to pay rent, or unreasonable refusal to allow access to the apartment for repairs or improvements.

Tenants can challenge rent increases above a certain level if they are evicted for non-payment of rent. They can also request a 14-day adjournment to gather a defence if they are facing eviction.

Landlords must provide tenants with written notice if they intend to raise the rent by at least 5% or not renew the lease. The amount of rent increase considered reasonable is based on inflation in the local area.

The Affordable Neighborhoods for New Yorkers Program (485-x) replaces the expired Affordable New York Housing Program. There is also a new program to assist with the conversion of office buildings to residences.

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