Law 0653-A, which extends the Rent Stabilization of 1969, is now firmly in force in New York City. For tenants in the Big Apple, this means that the protections of housing rent regulation can continue without obstacles. until April 1, 2027.
New Yorkers who live in these types of units maintain their right to renew their leases and be protected from certain evictions and disproportionate rent increases.
This rule was a response from the municipality to the worrying data from the Vacant Housing Survey, which highlights that the rate of residential units available for rent dropped to a historic 1.4%.
The laws regarding rent-stabilized housing were due to expire this coming April 1, but will now remain in effect for three more years.
The City is thus recognizing a housing emergency, since the number of empty housing units is less than 5%.
This legislation, which was approved by the City Council and signed this week by Mayor Eric Adams, specifically protects the continuation of rent regulation in New York City, which offers some stability to almost one million households that are under this umbrella.
“Extending rent stabilization protects some of the most vulnerable tenants from unaffordable costs,” explained Adolfo Carrión Jr, commissioner of the Department of Housing and Preservation Development (HPD).
The rent regulation system has been in place for decades, to protect hundreds of people from the rapidly rising market.
Evictions and affordability
In this first quarter of 2024, if anything defines the Big Apple, it is a housing tragedy, with increasing evictions, a record number of homeless people and an almost zero supply of affordable housing.
The most recent unoccupied housing survey points to the lowest housing availability recorded since the 1960s. Almost 90% of low-income households are severely rent-burdened, meaning almost all of their income is spent They go to pay the rent.
“Low-income and working-class New Yorkers are leaving in record numbers. The ability of New Yorkers to pay for their homes must be increased to be able to stay and contribute to economic vitality,” said Bronx Councilwoman Pierina Sánchez, one of the sponsors of this legislation.
In this sense, Mayor Adams asked the government and state legislators to “say yes” to the flexibility plans to offer and build more than 13,000 affordable homes, in spaces that are not allowed by cumbersome zoning regulations.
Stabilized rents increase
Rent stabilization generally applies to buildings with at least six units that were built before 1974, where one apartment was rented after June 1971. It also includes newer buildings that receive tax breaks because they have units that rent to a price lower than the market.
Each year, the Rent Guidelines Board approves the percentages by which landlords can legally increase rents for stabilized units.
This board, which regulates the rents of approximately one million homes, approved in 2023 increases in one-year leases by 3%, and in two-year leases by 2.75% for the first year and 3.2% for the second. anus.
This followed increases in one-year leases of 3.25 per cent and two-year leases of 5 per cent the previous year, the highest figures in almost a decade.
It’s an emergency:
- The vacancy rate of rental units fell 4.54% in the last two years, highlighting a deep shortage of housing available for rent.
- 60,000 housing units were added to the market in the last two years, yet the supply has not yet managed to meet the demands of the city’s new 275,000 homes.
- 3.39% is the vacancy rate for the most expensive homes, located in luxury buildings.
- 1% are vacant apartments that rent around $2,400.
- 86% of households earning less than $50,000 without rental assistance are struggling with the heavy burden of paying more than 30% of their income on rent.
- 86% of families earning less than $25,000, without rental assistance, spend well over half of their income on rent.
Source: 2023 NYC Housing Vacancy Survey