BBG News

Significant Rent Regulation Amendments Proposed by the DHCR

Sep 1, 2022

On August 31, 2022, the NYS Division of Housing and Community Renewal (DHCR) proposed significant amendments to the Rent Stabilization Code and other related codes (“Codes”). Please note: the amendments have not been adopted yet and will be the subject to public comment and hearings starting in November.

While many of the amendments align the Codes with the statutory language of the Housing Stability and Tenant Protection Act of 2019 (“HSTPA”) some of the more notable proposed changes are as follows:

  • The ability to exempt a building from rent regulation via “Substantial Rehabilitation” has become a more onerous process;
  • The provisions concerning “first rents” after two or more apartments have been combined, have been dramatically altered. For example:
  • when two rent-stabilized apartments are combined, the new legal rent is the combined legal rents of the two apartments, plus applicable increases;
  • when a rent-stabilized apartment is combined with a non-regulated apartment, the combined unit is now rent-regulated;
  • where the space of a non-regulated apartment is increased by adding space from a regulated apartment, both apartments are rent-regulated;
  • when the space of a vacant apartment is increased, the rent for the new space shall be the prior legal rent, plus an increase equal to the percentage increase of the space, as well as other applicable increases;
  • when the space of a vacant apartment is decreased, the rent for the new space shall be the prior legal rent, plus a decrease equal to the percentage decrease of the space, as well as other applicable increases;
  • For claims filed before June 14, 2019, the base date is four years prior to the filing date of such claim, except where a special provision of the Code allows a further look-back. For claims filed on or after June 14, 2019, the base date shall be June 14, 2015.
  • Where cooperative or condominium buildings are “de-converted” the proposed amendments address the regulation of these units, as well as the setting of rents.
  • The process for an occupant to obtain succession rights in a rent-stabilized apartment has been liberalized in the proposed amendments.
  • The amendments propose a useful life schedule for Major Capital Improvements and redefine what “rent” is.

There are many more amendments. If adopted, these amendments will intensely impact the ownership and management of rent-regulated housing accommodations.

Contact Us

Should you have any questions regarding the new amendments, please do not hesitate to contact your BBG attorney of record or email us at

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