DISTRICT OFFICE: 230 West 72nd Street, Suite 2F, New York, NY 10023 • 212-873-6368 • RosenthalL@assembly.state.ny.us

Q1. Is my apartment rent-regulated? What is the difference between a rent-regulated apartment that is rent-controlled versus rent-stabilized?

Your apartment is probably “rent-controlled” if your building was built before February 1, 1947, contains three or more apartments, and you or a family member moved in before July 1, 1971. Generally, rent-controlled tenants have only one old, original lease or no lease.

Your apartment is probably “rent-stabilized” if your building contains six or more apartments and a) was built between 1947 and 1973; or b) built before 1947 and you moved in after June 30, 1971. Rent-stabilized tenants have leases that they have the right to renew every one or two years.

Some apartments that meet the general criteria for rent regulation are exempt due to the timing of past vacancies, the high rent level of the apartment or the high income of the tenant (see Question 11), or as a result of a substantial rehabilitation after 1973.

Apartments in buildings constructed after 1973 are not rent regulated unless the owners received assistance under a tax benefit program. The most common of these are called “J-51” or “421-a” but there are other city and state loan programs that can require units in a building be rent regulated. Stabilization protections for these apartments are based on when the tenant moved in, when the building was built or rehabilitated and specific lease clauses. Special rules also apply to buildings owned by non-profit institutions.

Q2. What happens if I move into an apartment that was previously rent-controlled?

Vacant apartments renting for $2,000 a month or more are no longer rent regulated. All other rent-controlled apartments switch over to rent stabilization when a new tenant moves in. The first new rent is set by the owner, who is required to notify tenants if they are the first occupants of an apartment that was previously rent-controlled.

Tenants who believe their new rent is not based on rents for similar apartments in the neighborhood have until the earlier of 90 days from receipt of the notification or four years from the time the unit was no longer rent-controlled to challenge the rent by filing a Fair Market Rent Appeal (RA-89) with DHCR.

Q3. How are rent increases determined for rent-controlled apartments?

Increases for rent-controlled apartments are computed from two figures: the Maximum Base Rent (MBR), which is a maximum ceiling for rents, and the Maximum Collectible Rent (MCR), which is the amount an owner can actually collect from a tenant. New MBRs are computed for each rent-controlled apartment in the city every two years.

However, the annual MCR increase cannot exceed 7.5% annually (unless there is an MCI increase – see Question 5), and there are also some conditions owners must meet in terms of correcting violations, providing essential services like heat and water, and maintaining the apartment in order to qualify for the increase.

Landlords are required to serve notice to tenants when they apply for an MBR increase and tenants can challenge an MBR increase order using form RA-94.

Q4. How are increases determined for rent-stabilized apartments?

Increases for stabilized apartments are established annually by the NYC Rent Guidelines Board, whose members are appointed by the Mayor. For renewal leases taking effect on or after October 1, 2008 and on or before September 30, 2009, the maximum increases are: 4.5% for a one-year lease and 8.5% for a two-year lease.

The Rent Guidelines Board also approved a surcharge for tenants who have lived in their apartments for six years or more of 4.5% or $45 per year for one-year leases, whichever is greater, and 8.5% or $85 per year for two-year leases, whichever is greater. This affects tenants who pay less than $1,000 per month in rent.

Owners of apartments that are being sublet may collect an additional 10% increase under the guidelines.

Q5. What additional increases can affect regulated apartments?

SURCHARGES: Owners of rent-controlled apartments can apply for increased labor and fuel costs. Tenants must be notified of filings for these increases and have the opportunity to challenge the request. No passalongs are permitted for rent-stabilized apartments. Surcharges are permitted, however, for air conditioners, washers, dryers and dishwashers. Owners of stabilized apartments built with 421-a tax benefits are authorized to collect a special surcharge of the apartment’s initial rent each year for the length of the benefit period.

NEW APPLIANCES: Your rent can be increased if the owner provides you with a new appliance, new equipment or furnishings or new services. But your written consent (and an owner’s notification to DHCR, if you are a rent-controlled tenant) is necessary before such increase goes into effect. A tenant does not have to accept new appliances and pay an increase. In the event that an appliance breaks down, the law requires the owner to repair it or replace it with a used or reconditioned appliance in good working order. If a tenant opts for a new appliance, an owner is entitled to collect a permanent monthly rent increase equal to 1/40th of its cost, but only with the tenant’s written consent. Owners are also entitled to add 1/40th of the cost of new equipment or improvements to the legal rent for vacant apartments.

MAJOR CAPITAL IMPROVEMENTS (MCIs): Eligible MCIs, the cost of which become a permanent addition to monthly rents, must contribute to the operation, maintenance and preservation of the building, and directly or indirectly benefit all the tenants. The most common improvements are new roofs, elevators, boilers or windows in every apartment. Completion of the improvements may entitle the owner to increase your rent, subject to approval by DHCR. DHCR may reject MCI applications if owners have failed to maintain all required services in the building or there are current “immediately hazardous” violations in effect. Under its rules, DHCR may grant increases conditioned on correction of violations within a reasonable time frame. The costs of MCIs paid for out of the reserve fund of a cooperative corporation or condominium association, unless reimbursed by a special assessment on unit owners, and those paid from grants from governmental entities, cannot be passed on to tenants living in regulated apartments in such buildings. MCI increases are permanent additions to your monthly rent of 1/84th of the total cost of the improvement, divided by the total number of rooms in your building, and then multiplied by the total number of rooms in your apartment. For controlled tenants, MCI increases are capped at 15% of the rent in any one year; for stabilized tenants, the ceiling is 6%. Because of the agency’s delay in processing MCI applications, DHCR has been allowing owners of rent-stabilized units to collect an additional temporary increase retroactive to the date that the tenants were served with the owner’s MCI application. When DHCR begins processing an MCI application, tenants receive an official notice outlining the work done and the increase sought. Tenants then have 30 days to challenge the application. Do not pay any MCI increase until you have received a copy of the order authorizing the increase from DHCR.

Q6. How can I find out what my legal rent is supposed to be?

You have the right to know the maximum amount of rent the owner can charge. Rent-controlled tenants receive a Notice of Increase in MBR and MCR Computation (RN-26S or RN-26) notices from the owner. If you disagree with the calculations, the MBR Order can be challenged by filing the Challenge Re: Maximum Base Rent Order (RA-94 MBR). DHCR would then determine the legal MBR and MCR.

For new rent-stabilized tenants, owners are required to include a special DHCR lease rider that discloses the rent paid by the last tenant. Owners are also required to register the rent for every rent-stabilized apartment with DHCR annually, and provide all tenants with a copy of the registration (Annual Apartment Registration form, RR-2A).

Tenants can also find out their last registered rent from DHCR by contacting the Manhattan Borough Rent Office and providing proof of identity and occupancy (copy of lease, rent receipt or bill; rent-controlled tenants can show a utility bill).

If, after checking with the owner, you believe you are being overcharged, you may file a Rent Overcharge complaint with DHCR (RA-89). Tenants have four years to file an overcharge complaint; late challenges will be dismissed.

Q7. What lease renewal options apply to rent-stabilized apartments?

Tenants have the right to renew their lease at their option for a one- or two-year period at the RGB’s approved renewal guideline then in effect, under the same terms and conditions as their original lease. One exception is if tenants are paying a preferential rent (see Question 8). Owners must use a lease renewal form promulgated by DHCR. New tenants also have the right to choose a one- or two-year lease.

Q8. What is a “Preferential Rent?”

An owner may charge less than the legal regulated rent. This is often referred to as a “preferential rent.” In the past, the rent for renewal leases of a tenant paying a preferential rent was based on the amount of the preferential rent. As a result of changes to the law made in 2003, tenants who are paying preferential rents may have their rent increased up to the legal regulated rent upon renewal.

Q9. What should I do if the owner won’t renew my lease?

Owners must offer renewal leases between 150 and 90 days prior to the expiration of your current lease, or state a reason why they are not renewing it. If you don’t receive a timely renewal notification, remind the owner of his or her obligation in a certified letter, return receipt requested. If no renewal is forthcoming, file an Owner’s Failure to Renew Lease complaint with DHCR (RA-90). Until you receive a signed renewal lease, you cannot be charged more than the rent in your current lease.

Q10. How do the laws on rent deregulation of high-rent or high-income units work?

HIGH-RENT VACANT APARTMENTS: As a general rule, many rent-stabilized or rent-controlled apartments becoming vacant after July 6, 1993 with a legal, regulated rent of $2,000 or more per month are deregulated. An exception is that apartments that meet the deregulation criteria but are regulated solely as a result of receiving either J-51 or 421-a property tax breaks remain regulated until the owner stops receiving the tax benefits. Deregulation provisions also do not apply when DHCR finds that an owner harassed a tenant in order to vacate the apartment. Another important exception is “succession” where the tenant of record dies or vacates the apartment, but that person’s family member, whether “traditional” or “non-traditional,” continues to live in the apartment (see Question 22).

Owners who deregulate an apartment must, within 30 days of occupancy or the signing of a lease, provide the first new tenant with a detailed notice showing how the rent reached the deregulation threshold and a DHCR phone number and address to verify the new rent.

HIGH-INCOME TENANT/HIGH-RENT OCCUPIED UNITS: Owners are also permitted to apply to DHCR for a decontrol or destabilization order for occupied apartments if: 1) the combined federal adjusted gross annual income of apartment occupants is over $175,000 for each of the previous two calendar years, and 2) the legal rent for the apartment is $2,000 or more per month.

In order to apply for a decontrol/destabilization order, an owner must send the tenant an Income Certification Form (ICF) by May 1. Owners can apply annually, and tenants must respond to an ICF within 30 days. The ICF asks for the names of all occupants and whether their combined income exceeded $175,000 in each of the previous two years. For this survey, “apartment occupants” includes all people using the apartment as their primary residence; it does not include temporary occupants, subtenants, or live-in employees. If a tenant reports a total occupant income of over $175,000 for each of the previous two years, owners may file a Petition by Owner for High-Income Rent Deregulation with DHCR by June 30 of that year. Within 30 days of the filing of the form, DHCR must issue an order removing the apartment from rent control or stabilization. If a tenant fails to return the form, owners may file a Petition For Deregulation, and DHCR will then attempt to obtain income information from the tenant. If a tenant doesn’t respond to the request or shows income exceeding $175,000, DHCR must issue a decontrol/destabilization order. If a tenant reports income below the threshold, an owner has until June 30 to request that DHCR verify the information with the state Department of Taxation and Finance. If DHCR finds that the household income exceeds the threshold, it will issue an order of decontrol/destabilization. If DHCR issues such an order, a rent-controlled apartment will be deregulated on June 1 of the year after the filing of the income certification form in which the tenant concedes high income, or on March1 in cases where the tenant disputed high income or failed to respond in a timely manner to DHCR’s request for financial information. Rent-stabilized apartments will be deregulated at the expiration of the current lease. Owners who obtain decontrol orders are obligated to offer to continue to rent the apartment to the current tenant at a fair market rent. As is the case with the vacancy decontrol provisions, units that are regulate solely as a result of receiving 421-a or J-51 tax benefits cannot be deregulated until the benefits expire.

Q11. What is the maximum security deposit an owner can demand?

The owner may collect a security deposit limited to one month’s rent from regulated tenants who moved in after May 31, 1968. There are no rules governing the size of security deposits for free-market apartments.

Q12. Am I entitled to interest payments on my security deposit?

Owners of buildings with six or more apartments must place all security deposits in interest-bearing accounts in a New York State bank. The owner must provide the tenant with the name and location of the bank. Tenants may opt to receive the interest (less 1% of the rate it earned for administrative costs) annually, apply it toward the rent, or take a lump sum when they move out.

Q13. How often must an owner paint my apartment?

Once every three years and owners cannot demand deposits or collect additional fees for fulfilling this obligation.

Q14. What responsibilities to landlords have in terms of heat and hot water?

During the heating season (October 1 through May 31), owners must provide heat as follows: between 6 AM and 10 PM, if the temperature outside is 55 degrees or less, apartments must be heated to at least 68 degrees. Between 10 PM and 6 AM, if the temperature is 40 degrees or less, apartments must be heated to at least 55 degrees.

Owners must supply hot water throughout the year at a constant minimum temperature of 120 degrees.

If the owner fails to provide heat or hot water, keep an accurate daily record of this and report it to the NYC Department of Housing Preservation and Development’s (HPD) Central Complaint Bureau by calling 311. For lack of heat, be sure to record the temperature outside and inside. My office can provide you with special Heat Sheets that will help you keep track of this information.

Q15. What can tenants do in an emergency when there is no heat?

Tenants have the right in an emergency to purchase fuel oil for their building and deduct the cost from their rent, provided they follow a specified procedure. For detailed information call HPD at 311, or call my office.

Q16. What are my rights to sublet my apartment?

Rent-stabilized tenants have the right to sublet their apartments for two years out of any four-year period subject to the owner’s consent, which cannot be unreasonably withheld. Unless provided for in an old lease or some special agreement with the owner, rent-controlled tenants have no legal right to sublet their apartments.

A tenant may sublet an apartment if the owner unreasonably withholds consent or fails to respond to a request to sublet. A tenant cannot sublet if the owner reasonably withholds consent. “Reasonable” objections can include things such as the past rental history of the prospective subtenant, or information indicating a tenant’s intention not to re-occupy the apartment.

Rent charged to a subtenant by the prime tenant cannot exceed the legal rent plus up to a 10% surcharge, payable to the tenant, if the apartment is furnished. The owner is also entitled to collect an additional 10% adjustment under this year’s RGB order for a sublet apartment. The sublet term may exceed the term of the lease, provided the lease is renewed by the prime tenant. Tenants must continue to maintain their apartments as their primary residences, and must intend to re-occupy them. Tenants who overcharge a subtenant are subject to the same stiff penalties as owners who overcharge.

It’s also important to know that under DHCR regulations, the fact that you are subletting your apartment can be used against you if an owner brings a primary residence challenge.

Q17. Am I allowed to move out of my apartment before the lease is up?

Only senior citizens over age 62 who have been accepted for residency in certain adult care facilities or designated senior housing can terminate a lease without penalty; 30 days notice to the owner is required in the manner outlined in the statute. For all other renters, a lease is a legally binding contract, and tenants may be held liable for the rent for the balance of the lease term if an owner brings an action in court. While many owners may be pleased about a tenant leaving before the lease is up since it may mean additional rent increases through a vacancy lease or apartment improvements, tenants should be wary of counting on this to protect them from legal action. The best bet is to discuss the situation with the owner well in advance of the time you want to move out.

Q18. What other rights do tenants have?

The Warranty of Habitability Law, the Housing Maintenance Code, the Multiple Dwelling Law and other laws guarantee tenants certain essential services and protections.

Tenants have the right to a safe, well-maintained, livable apartment, to organize and hold tenants’ meetings in their building and to make complaints about lack of services without reprisals or harassment.

Owners must: identify and register with HPD the name of both the owner and agent authorized to make emergency repairs; post a phone number in the building where the owner/agent can be reached at all times; provide regular extermination services if needed; provide daily garbage disposal by compactor or in a sufficient number of covered garbage cans; keep public areas of the building and lot clean and free of vermin; provide janitorial services; and keep the building in good repair. In apartments, this means walls, ceilings, floors, windows, plumbing, heating, fixtures, doors, functioning locks on each apartment, owner-installed and maintained appliances, adequate lighting in building public areas, peepholes on apartment entrance doors, elevator mirrors and locks on all main building doors.

Q19. Does my building have to have a superintendent living on the premises?

For buildings of nine or more units, a super must live on the premises or within 200 feet of the building.

Q20. What right does the owner have to enter my apartment?

Owners must have access to your apartment in an emergency that might result in damage to the building or other apartments, such as a broken water pipe or gas leak.

Owners are also permitted to enter apartments with reasonable notice to inspect and make needed repairs. If your lease requires you to give the owner a key to a lock you installed, you must do so.

Q21. What if I don’t receive proper services or repairs?

If you have a problem with building services or need repairs, first speak to the owner or the agent. If they fail to respond to your complaint, put it in writing and mail it by certified mail, return receipt requested. Keep copies of all correspondence and records of conversations. If the owner does not act in a reasonable period of time (determined by the urgency of the problem), consider taking other steps:

(1) Seek a rent reduction. File an application with DHCR for a Rent Reduction Based on Decreased Service(s). DHCR has the authority to order a rent reduction until services are restored. If the problem is just with your apartment (cracked plaster, peeling paint, inoperable appliances, broken plumbing, etc.), file an individual complaint; if the problem is building-wide (no heat and hot water, roaches or vermin, leaking roof, common areas in disrepair), file a building-wide complaint with your neighbors. In filing either complaint, remember to be thorough and specific in describing all the problems in your apartment or building; make sure to check the box on the form indicating that you want a rent reduction; and personally sign the complaint. However, if DHCR determines that certain conditions are “de minimis” in nature because they do not constitute a failure to maintain a required service, an order for a rent reduction might not be issued.Request a Code Enforcement Inspection.

(2) Call HPD’s Central Complaint Bureau at 311. The agency will send inspectors to examine your problem, and can issue orders to correct violations.

(3) Go to Housing Court. If your problem is serious, you may want to bring an action in Housing Court. If your problem involves building-wide services, it is a good idea to undertake any legal action through a formal tenants’ association, although you may pursue an individual action. To bring an owner to court, three forms, obtainable from the Housing Court must be completed: an Order to Show Cause, an affidavit detailing the complaint and an Affidavit of Service. The $35.00 filing fee per action may be recovered if you win your case. If you cannot afford the fee, you may apply to have it waived. Once the proper forms have been filled out and the papers are served, you will be notified of a hearing date. Judges can levy fines, issue orders to correct violations and appoint special administrators to run problem buildings.

(4) Two other tactics have been used successfully by tenants but involve greater risks and commitments of time and energy: withholding rent and “repair and deduct.” In the former, tenants withhold rent until needed repairs are made or services provided; in the latter, tenants undertake to make the repairs themselves, and deduct the cost from their rent. There is no statutory authority for repair and deduct. Decisions to use these methods should be carefully considered, as they could result in eviction proceedings based on non-payment of rent. It is advisable to consult an attorney before undertaking either of these courses of action.

When tenants are involved in eviction proceedings where rent is owed and when the tenant has requested two adjournments, or in any event where more than 30 days have elapsed since the parties first appeared in court, the judge must, upon an application by the landlord or his or her attorney, direct the tenant to deposit with the court all rent from the date of service of the court papers as well as future rents as they become due. When the apartment is in a building with 12 or fewer units, the judge must require the tenant(s) to pay the undisputed amount, if any, directly to the landlord, and deposit any amount remaining in dispute with the court. Tenants who fail to make the required payments may lose the ability to make certain arguments to the court in defense of their non-payment of rent, or the trial date may be accelerated.

Q22. What are the owner’s obligations in buildings where lead-based paint might have been used?

The City’s Childhood Lead Poisoning Act of 2003 (Local Law 1 of 2004) took effect on August 2, 2004. Under the law, building owners or managers must inquire if a child under six years of age resides in the apartment, conduct inspections to determine whether there are lead hazards in those units and remediate all lead hazards in apartments occupied by children under six. Owners must also make all apartments lead safe upon vacancies. The new law applies to apartments and common areas in buildings built before 1960 or between 1960 and 1978 which contain three or more apartments, where the owner had actual knowledge that lead paint is present. A tenant can file a complaint regarding lead paint with HPD by calling 311.

Q23. Who has the right to stay in an apartment when the statutory or lease-signing tenant moves away or dies?

To claim “succession rights” a “family member” who has resided in the apartment with the statutory or lease-signing tenant as a primary resident for a period of either 1) two years immediately prior to the death or departure of the prime tenant; or 2) if for less than such period, then since the inception of the tenancy or the commencement of the relationship, is entitled to remain in the apartment and/or to be offered a renewal lease. “Senior citizens” and “disabled persons” who have resided in the apartment as primary residents for a period of either one year immediately prior to the death or departure of the named tenant or the inception of the tenancy or commencement of the relationship qualify for succession rights.

“Family member” includes the 1) husband, wife, son, daughter, stepson, stepdaughter, father, mother, stepfather, stepmother, brother, sister, grandfather, grandmother, grandson, granddaughter, father-in-law, mother-in-law, daughter-in-law or son-in-law of the tenant or 2) any other person residing with the tenant who can prove emotional and financial commitment and interdependence. Under the regulations, a tenant may at any time advise the owner, or the owner may request at the time a renewal lease is offered, the names of all persons residing in the apartment and whether they meet any of the standards and definitions listed above, or, with the passing of time, would be entitled to succession rights. A tenant’s failure to provide such information places on any family member who subsequently seeks to exercise their right of succession the burden of proving that they are entitled to such right. A tenant has the right at any time to have a spouse added to a lease or a renewal lease.

Q24. May I have an unrelated roommate who has not signed my lease?

Provided a tenant continues to occupy the apartment as their primary residence, a tenant named on a lease, or a statutory tenant, has the right to have one unrelated roommate and that roommate’s dependent children reside with them. Immediate family members of the named tenant do not count as roommates. When more than one person is named on the lease, however, the total number of roommates and named tenants may not exceed the number of tenants named on the lease. Tenants who take in a roommate are required to notify the owner or respond to a request from the owner about who is living in the apartment within 30 days of a formal request for such information. Under DHCR regulations, an owner can begin eviction proceedings against a tenant for charging a roommate more than a proportionate share of the rent, and the roommate may be able to collect treble damages from the prime tenant for any illegal overcharge.

Q25. Can I add my roommate’s name to the lease?

Roommates can be added to leases only with the owner’s consent.

Q26. What is meant by “primary residence?”

Your “primary residence” loosely means the place where you make your home. No hard and fast definition exists, but based on past court cases and guidelines in DHCR regulations, courts will consider the following factors in determining primary residence challenges: (1) the use of another residence for more than half the year; (2) the use of another address on a tax return, motor vehicle registration, driver’s license, voter registration, or other forms filed with public agencies; and (3) the subletting of the apartment. Primary residence is not something to trifle with. Tenants not maintaining their primary residence in an apartment are not protected by rent control or rent stabilization.

Q27. What are the provisions of the window guard law?

If you have children ten years old or younger, the owner is required to install guards in the windows of y our apartment and in the public hallways of the building. Windows on fire escapes may not be blocked. Tenants can be assessed a one time charge of $10 per guard.

Q28. May I keep pets in my apartment?

If your lease specifically permits pets or is silent on the issue, you may have pets. Lease clauses banning pets are binding. However, “no pet” clauses are void if owners don’t act to enforce them within three months of the time the tenant began openly keeping a pet.

Q29. What are the eligibility requirements for the Senior Citizen Rent Increase Exemption (SCRIE)?

The City’s SCRIE program freezes rents for rent-controlled or rent-stabilized tenants and provides property tax relief for the owner in return. To be eligible for SCRIE, you must be 62 years of age or older, be named on the lease or be the older spouse of the person who is named on the lease, have a household income (after taxes) of $28,000 or less and be paying more than one-third of your income for rent. The income threshold increases to $29,000 after 7/1/09. You must apply for SCRIE and recertify your eligibility every two years. Tenants who experience a permanent decrease in income of more than 20% can apply to have their benefits recalculated. Under the law, tenants with SCRIE cannot lose their eligibility because of increases in income due to Cost of Living Adjustments (COLAs). Figures show that only a fraction of eligible recipients are receiving SCRIE benefits to which they are entitled. If you or someone you know may be eligible for SCRIE, please call for or pick up an application in my office.

Q30. What are the eligibility requirements for the Disabled Rent Increase Exemption (DRIE)?

The City’s DRIE program freezes rents for eligible tenants living in rent-controlled and rent-stabilized apartments, Mitchell-Lama housing, apartments built with certain city or federal mortgage subsidies, and co-operative housing. To be eligible for DRIE you must be at least 18 years of age, be named on the lease or be the spouse or registered domestic partner of the leaseholder.

You also must receive one the of the following benefits: Supplemental Security Income (SSI), Social Security Disability Insurance (SSDI), Veterans’ disability pension or other disability compensation, or disability-related Medicaid benefits.

Similar to SCRIE, applicants’ rent must exceed one-third of household income. Eligibility varies by household size and source of income but in general the income limit for single individuals is $18,396 and $26,460 for couples, with certain deductions allowed in some circumstances.

If you or someone you know may be eligible for DRIE, please call for or pick up an application in my office or call 311.

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