Rent Stabilization
What to Know When You’re Suing or Being Sued in NY
In one case, a landlord of a residential apartment subject to rent stabilization collected a government tax credit, the J-51 Exemption and Abatement, which required the landlord to abide by rent stabilization laws. Under the laws, the landlord could not overcharge rent and had to include a rent stabilization rider with the lease. The landlord failed to follow the laws and the court awarded the tenant $34,000 in damages plus $102,000 in treble damages.
We provide the key takeaways from that case.
J-51 Exemption and Abatement
The J-51 tax incentive is an exemption and abatement given to property owners who renovate a residential apartment building.
Under this program, all rental units are subject to rent control or stabilization laws during the time the property owner receives the tax benefits.
You can search if the residential building you live in received the J-51 exemption by visiting the nyc.gov website.
Note, the J-51 exemption and abatement program has expired for work completed after June 29, 2020.
Rent Stabilization Rider
The Division of Housing and Community Renewal (DHCR) mandates that owners include a rent stabilization rider in a tenant’s residential lease agreement. See Rent Stabilization Code §§ 2520.11(u) and 2523.1 and 9 NY Codes Rules and Regs § 2503.1.
If the rider is not included in the lease, the owner of the property could have to pay a fine. You can find the rider form on the Homes and Community Renewal forms page.
Rent Stabilization Increase Limits
The Rent Guideline Board lists the rate at which a lease may increase. The rate for October 1, 2021 to September 30, 2022 are as follows:
A one year lease may be increased by 0% for the first 6 months of the lease and 1.5% for the remaining 6 months of the lease; and
A two year lease may be increased by 2.5%.
Rent History
Your apartment’s rent history is helpful to determine if the rent has unlawfully increased.
You can get a copy of your apartment’s rent history from the Homes and Community Renewal website.
Causes of Action for Tenants in Rent Stabilized Apartments
Declaratory Judgment. A tenant may seek a judgment declaring that the tenant’s tenancy is subject to the Rent Stabilization Code and other rent stabilization laws.
Permanent Injunction. A tenant may seek an injunction directing the landlord to issue a proper rent stabilized lease to the tenant and to register the tenancy with the Division of Housing and Community Renewal.
Rent Overcharge. A tenant may seek reimbursement for rent in excess of the legal regulated rent.
Treble Damages. A tenant may seek damages up to three times the amount of the excess rent under 9 NY Codes Rules and Regs § 2526.1 (a) (1).
Attorneys Fees. A tenant may seek attorneys fees under Real Property Law § 234 and 9 NY Codes Rules and Regs § 2526.1 (d).
Cases
The index no. for the case is 155570/2020.
Word of Caution — This post is for educational purposes. Landlord and tenant issues may be very complex and have significant consequences. It is best to always seek advice and help from a licensed lawyer.