Proposed Regulation Amendments of Rent Stabilization and Control

July 19, 2013

One of the most pressing problems in Yonkers and across Westchester is the lack of affordable housing, so I am pleased to see the tenor of the proposed amendments is attentive to tenants’ needs. Almost 50% of the approximately 26,000 rent stabilized units in Westchester are in Yonkers, so these proposals have a tremendous impact on my constituents. With almost 600 apartments becoming permanently exempt each year, in one of the most expensive regions of the country, there is a shortage of affordable housing, and these proposed amendments are a positive step in increasing information and enforcement of rent laws.

I am particularly pleased with the proposed limitation on the use of Major Capital Improvement rent increases. As it stands now, owners of rent regulated buildings can permanently increase rent in order to re-coup the cost of a building-wide improvement or replacing a building system. While it might be reasonable to allow owners to pass a portion of these costs of major improvements along to tenants, tenants’ increases should not be permanent. Once the cost of the improvement has been recovered, tenants’ rents should return to their prior rates. Although the proposed amendments do not allow the rates to return to their prior rates, I am pleased that they begin to provide some limitations, excluding the cost of conversion from master-metering to individual metering from inclusion in major capital improvements – a cost that can be passed along to residents. Moreover, the proposed regulations ensure that an MCI will not be approved if the owner has failed to provide all required services to the unit or there is a hazardous situation in violation of county, state or federal laws. While we need to go further in adjusting the regulations surrounding MCI, these proposals are an important step in stemming the loss of affordable housing and ensuring accountability.

I am also particularly pleased that the proposed regulations increase the information available to tenants. For example, tenants will be provided additional information in their leases regarding how rent was calculated, including details and documentation regarding any individual apartment improvement (IAI) rent increase. In addition, owners must provide information to tenants regarding rights of owners, duties of tenants, and explanation of adjustment from previous regulated rent. All this information goes a long way in increasing accountability and transparency.

Finally, and possibly most importantly, I am pleased that the proposed regulations provide that the Tenant Protection Unit formally becomes a distinct unit of DHCR, with the charge of investigating and prosecuting violations of the rent laws, which too often are not enforced. This should go a long way in ensuring increases are warranted and legitimate, ensuring responsible landlords are treated fairly, and tenants know TPU is there to prosecute violations of the law.

Low-income tenants – with and without protections – continue to struggle in this difficult economic environment. We must continually revisit our rent regulations to ensure housing costs are affordable for low and moderate income constituents.

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