Perhaps out of boredom, I decided to research the particulars of rent control and rent stabilization in New York City. I am in no way representing accuracy – and please don’t ever use a blog (especially this one) as a legal reference tool – but these are the basics:
“Rent Control” units represent only about 2% of the total housing stock. It applies to apartments that were constructed prior to 1971, and the tenant has to be living there without interruption since July, 1971. It covers the stories that you hear about elderly folks paying $40 a month for something that could be updated and sold for $10 million. They can be passed down within a family from generation to generation. Once that chain is broken though, rent control disappears. But, breaking that chain can be pretty difficult.
“Rent Stabilization” is far more prevalent and impacts over 1 million apartments in the City (but not co-ops or condos). It applies to buildings with 6 or more units. If you’re a landlord and you make improvements, you can only realize a rent increase that captures 1/60 of your cost. But, once the apartment hits $2,500 per month (based on annual increases subject to regulated guidelines) it becomes deregulated upon vacancy – or, once it hits $2,500 per month and household income is in excess of $200,000 for two consecutive calendar years, it can become deregulated even without vacancy.
Those threshold numbers are based on recent increases – in other words, the politicos are not looking to end the program. And, during the recent election season, the sense one might have gotten is that the candidates would like to make the laws more stringent and onerous. Shocking.
