Sometimes people say "rent controlled" but actually MEAN rent stabilized . . . do you know the difference?
There is a difference between rent control and rent stabilization, but the term "rent regulated" encompasses both rent controlled and rent stabilized units. The Rent Guidelines Board has the responsibility for setting rent adjustments for rent stabilized apartments, while the NYS DHCR has jurisdiction over rent controlled apartments.
DHCR - Division of Housing and Community Renewal
Rent Control:
The rent control program generally applies to residential buildings constructed before February 1947 in municipalities that have not declared an end to the postwar rental housing emergency. A total of 51 municipalities have rent control, including New York City, Albany, Buffalo and various cities, towns, and villages in Albany, Erie, Nassau, Rensselaer, Schenectady and Westchester counties.
For an apartment to be under rent control, the tenant (or their lawful successor such as a family member, spouse, or adult lifetime partner) must have been living in that apartment continuously since before July 1, 1971. When a rent controlled apartment becomes vacant, it either becomes rent stabilized, or, if it is in a building with fewer than six units, it is generally removed from regulation.
An apartment in a one- or two-family house must have a tenant in continuous occupancy since April 1, 1953 in order to be subject to rent control. Once it is vacated after that date, it is no longer subject to regulation. Previously controlled apartments may have been decontrolled on various other grounds. On rare occasion, a decontrolled apartment is ordered back under rent control as a penalty for certain violations of the rent laws.
Rent Stabilization:
In NYC, rent stabilized apartments are those apartments in buildings of six or more units built between February 1, 1947 and January 1, 1974.
Tenants in buildings of six or more units built before February 1, 1947, who moved in after June 30, 1971 are also covered by rent stabilization.
A third category of rent stabilized apartments covers buildings with three or more apartments constructed or extensively renovated since 1974 with special tax benefits. Generally, these buildings are stabilized only while the tax benefits continue.
Additional information can be found in the NYC Rent Guidelines Board website.
Peter - This information will bring clarity to the subject for many. I know the rent stabilization is a big issue for both tenants and landlords in NYC and have sparked heated debates.
Hi Peter- This was like a refresher course for me- It was a topic we studied for out Brokers license- You should have taught the course- Thanks..... I am still looking for investments for you.
Jennifer, yes, and now with the oil prices as high as they are, it is really going to be problematic. Luckily there are only about 50,000 rent controlled apartments in NYC but there are still around one million rent stabilized apartments. There were recent increase set for the rent stabilized apartments which were better than most years, but regulating apartment prices while oil and other expenses are going through the roof is still very difficult for landlords.
Barbara, I am a NYS certified real estate instructor, maybe one day I will ;-) thanks.
It is difficult for people in small towns, like me, to understand these two concepts but you did a great job of clarifying.
Barbara, thank you, just consider yourself lucky that you don't have to deal with any of this. It really is frustrating, when on the one side the state wants to control the increases in rent, then on the other side the tax increases are not capped in the same manner. This of course doesn't even take into consideration the oil increases and pretty much everything else.
Peter- Let me know when you are teaxhing- I will take the class :)
Barbara, I look forward to it :-)