2015 NY State Rent Laws Summary!
The summary is as follows:
•Luxury Decontrol – The rent threshold for deregulation is increased from $2,500 to $2,700. That amount is indexed to the one-year lease renewal rate adopted by the Rent Guidelines Board. The indexing is effective January 1, 2016.
•MCIs – The amortization period, currently at 84 months is extended to 96 months for buildings with 35 or fewer units and to 108 months for buildings with 36 or more units. MCI increases remain permanent.
•Vacancy Allowance – The statutory vacancy allowance is modified if the prior tenant was paying a preferential rent. Under the modified vacancy increase, the legal rent may be adjusted by 5% if the last vacancy lease commenced less than two years ago, 10% of the previous legal regulated rent if the last vacancy lease commenced less than three years ago, 15% of the legal regulated rent if the last vacancy lease commenced less than four years ago, and 20% of the legal regulated rent if the last vacancy lease commenced four or more years ago. The vacancy allowance remains unchanged in other situations.
•Preferential Rents – remain adjustable upon lease renewal. Vacancy increases applicable after charging a preferential rent are adjusted as stated above.
•Duration – the rent laws are extended for four years through June 15, 2019.
•J-51 – extended four years through June 15, 2019.
•Tenant Protection Unit – not established in statute.
•Retroactivity – the law contains language of retroactivity dating back to June 15, 2015.
I would like to personally thank the many AOAC, CHIP and RSA members and staff for all their hard work. Collectively we fought for fair laws and although the current statue is not in the landlords favor, we must continue to support our fellow landlords and real estate industry.
Carmelo Milio, CPM
Trion Real Estate Management