FACT SHEET# 26

Guide to Rent Increases for Rent Stabilized Apartments
5 PAGESAT A GLANCEThis Fact Sheet can beused along with a rent
registration history ofan apartment to assist
in determining if theapartment’s registration
status and rent are lawful.

SUMMARY AND HIGHLIGHTSThe Housing Stability and Tenant Protection Act (HSTPA) of 2019 madechanges to how rents can be raised and changed formulas for vacancy
leases, MCIs, and IAIs. MCI and IAI rent increases are now temporary, andthe amount that can be collected for IAIs is limited.
Options•V acancy leases: HSTPA eliminated the statutory
vacancy rate and does not permit Rent Guidelines
Boards to establish a separate vacancy rate.
•R enewal leases: When a tenant signs a renewal lease,
they can choose between a one or two-year option andthe allowable guideline adjustment is set by the local
rent guidelines board.
• Improvements: Lawful rent increases for IAIs and/orMCIs may be factored into rent increases.

Limitations• Under HSTPA, there are limitations on future MCI
increases, such as: an annual 2% rent increase cap,
only reasonable costs are recoverable, and MCI rent
increases are prohibited in buildings that contain 35% orfewer rent-regulated apartments.
• In buildings with 35 units or less, owners can increase
the rent for an IAI up to 1/168th of the cost of theimprovement.
• In buildings with more than 35 units, owners canincrease the rent for an IAI up to 1/180th of the cost ofthe improvement.
• Owners may collect no more than three IAI increases
within a 15-year period, and the total cost of theimprovements eligible for a rent increase calculation
cannot exceed $15,000.
• The written consent provided by the tenant inoccupancy for an IAI rent increase must be on a DHCRform.

DEFINITIONS

Housing Stability and Tenant
Protection Act (HSTPA) of 2019:
The act, which went into effecton June 14, 2019, made changes
to how rents can be raised andchanged formulas for vacancy
leases, Major Capital Improvements(MCI) and Individual Apartment
Improvements (IAI).
Individual Apartment
Improvements (IAIs): When an
owner installs a new applianceor makes an improvement to anapartment, the owner may beentitled to an IAI rent increase.
Major Capital Improvements(MCIs): Building-wide
improvements such as boilers,
windows and roofs.
Vacancy lease: When a person
rents a rent stabilized apartment
for the first time, the owner and thetenant sign a vacancy lease.

A PUBLICATION OF THE DIVISION OF HOUSING AND COMMUNITY RENEWAL OFFICE OF RENT ADMINISTRATION

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FACT SHEET #26: GUIDE TO RENT INCREASES FOR RENT STABILIZED APARTMENTS

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FACT SHEET #26: IN DETAILIntroduction
This fact sheet will be updated annually toreflect the new lease guideline rates. It can bereviewed along with a rent registration historyof an apartment to assist in determining if theapartment’s registration status and the rent being
charged are lawful. The apartment rent registration
history and a rent overcharge complaint form canbe requested online at www.hcr.ny.gov or at a
Borough Rent Office.
The Housing Stability and Tenant Protection Act(HSTPA) of 2019, which went into effect on June
14, 2019, made changes to how rents can beraised and changed formulas for vacancy leases,
Major Capital Improvements (MCI) and Individual
Apartment Improvements (IAI). MCI and IAI rent
increases are now temporary and the amountthat can be collected for IAIs is limited. HSTPA
eliminates High Rent Vacancy and High Rent High
Income Deregulation and makes preferential
rents the basis for collection for the duration ofthe tenancy. It also extends the rent overcharge
review time period from four to up to six years forcomplaints filed on or after the passage of HSTPA.
Effective December 15, 2022, Private Housing
Finance Law (PHFL) Section 610 allows owners
of affordable housing properties to collectactual rents that are higher than legal rents, if
the following two conditions are met: a state ormunicipal agency or other statutorily designatedparty must issue specific approval in a regulatory
agreement, either new or amended, and agovernment program provides rental assistance tothe apartment. See DHCR Notice RA-LR3 for moredetails. Often rental assistance may be provided toowners without an overarching state or municipal
regulatory agreement for the development.
In addition, a regulatory agreement may not
specifically authorize these higher rents withrespect to all or certain types of rental assistance.
Neither of these circumstances establish that anactual rent higher than the legal stabilized rent
can be charged. Owners should be aware that for
example, FHEPS or individual section 8 housing

choice vouchers may not always qualify for an
actual higher rent.
Vacancy and Renewal Leases
HSTPA eliminated the statutory vacancy rateand does not permit Rent Guidelines Boards toestablish a separate vacancy rate. Changes tothe rent regulations effective November 8, 2023
further clarify that the Rent Guidelines Board oneor two year lease guidelines adjustments shall beapplicable to both vacancy and renewal leases. No
more than one guideline adjustment can be added
to the rent in a calendar year for a vacancy lease.
Renewal lease guideline adjustments are subject
to the limitation of one guideline adjustment in thesame guideline year. A guideline year commences
on October 1 and ends the following September
30. Lawful temporary increases for Major Capital
Improvements (MCI) and Individual Apartment
Improvements (IAI) may also be added to the rent.
A DHCR Rent Stabilization Lease Rider/Addenda
is to be attached to the lease and it should contain
information on how the rent was calculated and on
any related Individual Apartment Improvements.
When a tenant signs a renewal lease, they canchoose between a one or two-year option andthe allowable guideline adjustment is set by thelocal rent guidelines board. (See the Recent Lease
Guideline Rates chart.)
Effective June 14, 2019 owners who are collecting
a preferential rent, upon renewal of the lease,can increase the legal and preferential rents by
the lawful guideline adjustments but only collect
a guideline adjustment based on the preferentialrent. The higher legal regulated rent and related
guideline adjustments can only be collected
when the apartment is vacated and rented to a
subsequent tenant. See Fact Sheet #40 for moredetails.
Individual Apartment Improvements (IAI)
When an owner installs a new appliance or makes

A PUBLICATION OF THE DIVISION OF HOUSING AND COMMUNITY RENEWAL OFFICE OF RENT ADMINISTRATION

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FACT SHEET #26: GUIDE TO RENT INCREASES FOR RENT STABILIZED APARTMENTS

an improvement to an apartment the owner may
be entitled to an IAI rent increase. Tenant writtenconsent for the improvement and rent increaseis only required if the apartment is occupied by atenant at the time of the improvement.
Written consent is not required for a vacantapartment.
In buildings with 35 units or less, the amount therent can be increased for an IAI is limited to 1/168thof the cost of the improvement. In buildings withmore than 35 units, the amount the rent can beincreased for an IAI is limited to 1/180th of the costof the improvement.
No more than three IAI increases can becollected in a 15-year period and the total costof the improvements eligible for a rent increase
calculation cannot exceed $15,000. Work must
be done by a licensed contractor and there is aprohibition on common ownership between thecontractor and the owner. The apartment must
be free and clear of any outstanding hazardous
and immediately hazardous violations. The writtenconsent provided by the tenant in occupancy must
be on a DHCR form. For informational purposes
only, the translated versions of this form areavailable for review on DHCR’s website. Owners
are required to maintain supporting documentationand photographs for all IAI installations, which
commencing June 14, 2020 will be submitted toand stored by DHCR in an electronic format. The
IAI rent increase for improvements collected afterJune 14, 2019 is temporary and must be removed
from the rent in 30 years, and the legal rent must
be adjusted at that time for guideline adjustmentsthat were previously compounded on a rent that
included the IAI.
The DHCR Lease Rider included with a vacancy
lease must notify the tenant of the right to requestfrom the owner by certified mail Individual
Apartment Improvements (IAIs) supporting
documentation at the time the lease is offered orwithin 60 days of the execution of the lease. The
owner shall provide such documentation within
30 days of that request in person or by certified
mail. A tenant who is not provided with that
documentation upon demand may file form RA-90“Tenant’s Complaint of Owner’s Failure to Renew

PAGE 3 OF 5

Lease and/or Failure to Furnish a copy of a Signed
Lease” to receive a DHCR Order that directs thefurnishing of the IAI supporting documentation.
Major Capital Improvements (MCI)
An owner is permitted rent increases torecover the costs of building-wide major capital
improvements, such as the replacement of aboiler or new plumbing. The owner must file anapplication with DHCR and DHCR may issue
an order denying the increase or granting an
increase in part or in whole. After review of an MCI
application DHCR will issue an order and serve iton the owner and all tenants in the building.
Under HSTPA, there are limitations on future
MCI increases, such as: only reasonable costs
are recoverable, and MCI rent increases areprohibited in buildings that contain 35% or fewer
rent regulated apartments. The rent increase
approved by the DHCR order is collectible
prospectively, on the first day of the first month 60days after issuance. There are no retroactive rentincreases. The collection of the increase is limited
to a 2% cap/yearly phase-in. The 2% cap also
applies to MCI rent increases not yet collectedthat were approved on or after June 14, 2012. The
first renewal lease effective after June 14, 2019must reflect no more than a 2% increase. Upon
vacancy, the remaining balance of the increase
can be added to the legal rent. In buildings with35 or fewer units, the cost of the MCI is amortizedover a 12-year period. In buildings with more than
35 units, the cost of the MCI is amortized over
12 ½ years. The building must be free and clearof any outstanding hazardous and immediately
hazardous violations. The MCI rent increase istemporary and it must be removed from the rent
in 30 years and the legal rent must be adjusted
at that time for guideline adjustments that werepreviously compounded on a rent that included
the MCI rent increase. Vacancy lease tenants areto be notified in their lease about pending MCIapplications.

A PUBLICATION OF THE DIVISION OF HOUSING AND COMMUNITY RENEWAL OFFICE OF RENT ADMINISTRATION

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FACT SHEET #26: GUIDE TO RENT INCREASES FOR RENT STABILIZED APARTMENTS

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RECENT LEASE GUIDELINE RATES• Prior to the effective date of the Housing Stability and Tenant Protection Act (HSTPA) of 2019, June 14, 2019,
these guidelines applied only to lease renewals.
• Effective November 8, 2023, the rent regulation amendments clarify that guideline adjustments apply to vacancy
and renewal leases. Prior to this date, the footnote “G” below was used as a notation. In light of this amendment,
the use of this footnote in subsequent guideline years is no longer necessary.
EFFECTIVE DATEOF RENEWAL
LEASE

NYC

NassauRocklandWestchester(tenant pays
either heat orhot water)

Westchester

1 year

2 year

1 year

2 year

1 year

2 year

10/1/189/30/19

1.50%

2.50%

1.00%

2.00%

0.00%

0.00%

10/1/199/30/20

1.50%

2.50%

1.50%G

2.50%G

0.00%

0.00%

G,2
10/1/20- 0.00%G 0.00%
9/30/21
1.00%G,20.00%G

10/1/21G,3
9/30/22 1.50%

2.50%G

10/1/22G
9/30/23 3.25%

5.00%

City ofKingston

1 year

2 year

1 year

2 year

1 year

2 year

2.00%

3.00%

1.60%

2.40%

—

—

0.00%1

1.00%1

0.00%1 0.80%1

—

—

1.75%

2.75%

1.75%

2.75%

—

—

0.00%G

0.00%G 0.00%G 0.00%G

0.00%G

0.00%G 0.00%G——

1.00%G

2.00%G

0.50%G 0.75%G

0.50%G

1.00%G

0.50%G 1.00%G—

—

2.00%

3.50%

0.50%

2.00%G

3.00%G

1.00%

2.00%

2.00%G 3.00%G——

1.00%G 2.00%G
G,510/1/23- 3.00%G 2.75%
0.00%G 0.50%G
9/30/24
3.20%G,5 0.00%G,6 0.00%G,61.00%G

2.00%G

1.00%G 2.00%G 0.00%G 0.00%G

10/1/249/30/25

2.50%

3.50%

2.50%

2.75%

G

5.25%

G

1.50%

G

2.50%

G

2.00%

0.75%

G

3.00%

G,4G,4

3.50%

0.00%

0.00%

The guideline adjustment is authorized for vacancy and renewal leases.
These guideline adjustments apply only to the Village of Ossining within Westchester County.
20% for the first year of the lease and 1% for the second year of the lease.
30% for the first six (6) months of the lease and 1.5% for the final six (6) months of the lease.
4
These guideline adjustments apply only to the Village of Croton-on-Hudson, which expanded its ETPA coverage on
March 27, 2023 to buildings built before 1974 with six or more units. They apply to leases commencing between
March 27, 2023 and September 30, 2023.
5For a two-year lease commencing on or after October 1, 2023 and on or before September 30, 2024, for the first year ofthe lease, 2.75%; and for the second year of the lease, 3.20% of the amount lawfully charged in the first year, excluding
any increases other than the first-year guideline adjustment.
6
These guideline adjustments apply only to the Village of Hempstead within Nassau County.
G
1A PUBLICATION OF THE DIVISION OF HOUSING AND COMMUNITY RENEWAL OFFICE OF RENT ADMINISTRATIONFS-26 (08/2024)

FACT SHEET #26: GUIDE TO RENT INCREASES FOR RENT STABILIZED APARTMENTS

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HISTORICAL VACANCY LEASE RATES• Pursuant to the Housing Stability and Tenant Protection Act of 2019, effective June 14, 2019, there is nolonger a separate statutory vacancy rate or a separate Rent Guidelines Board vacancy rate.
EFFECTIVEDATE OFVACANCY
LEASE

Westchester

NYC
1 year

2 yearNassau1 year

2 yearRockland1 year

2 year

Westchester
1 year

2 year(tenant payseither heat or hotwater)

1 year

2 year

10/1/12 - 9/30/131

18.00% 20.00% 19.00% 20.00% 20.00% 20.00% 19.00% 20.00% 19.00% 20.00%

10/1/13 - 9/30/141

16.25% 20.00% 19.50% 20.00% 18.50% 20.00% 19.00% 20.00% 19.00% 20.00%

10/1/14 - 9/30/151

18.25% 20.00% 19.50% 20.00% 17.50% 20.00% 19.00% 20.00% 19.00% 20.00%

10/1/15 - 9/30/161

18.00% 20.00% 19.50% 20.00% 19.75% 20.00% 19.00% 20.00% 19.00% 20.00%

10/1/16 - 9/30/171

18.00% 20.00% 19.50% 20.00% 20.00% 20.00% 19.00% 20.00% 19.00% 20.00%

10/1/17 - 9/30/181

19.25% 20.00% 20.00% 20.00% 19.50% 20.00% 19.50% 20.00% 19.50% 20.00%

10/1/18 - 6/13/191

19.00% 20.00% 19.00% 20.00% 20.00% 20.00% 19.00% 20.00% 19.00% 20.00%

1

 rior to June 14, 2019, the Rent Act of 2015 provides that if a preferential rent was charged andP
paid by the prior tenant, then the owner is entitled to increase the legal regulated rent by no morethan one of the following vacancy increases:
Last Vacancy Lease
Commenced:
Less than 2 years ago
Less than 3 years ago
Less than 4 years ago
4 or more years ago

Rent Connect:
rent.hcr.ny.gov
 sk a question:A
portal.hcr.ny.gov/app/ask
 or translation help:
F
hcr.ny.gov/languageaccessibility
Our website:
hcr.ny.gov/rent

Vacancy Increase:5%
10%15%20% (for a two-year lease)ORthe % listed for the effective dateand county in the table above(for a one-year lease)

To visit a Borough Rent Office, by appointment only, please contact:
QUEENS
92-31 Union Hall Street
6th Floor
Jamaica, NY 11433
718-482-4041

UPPER MANHATTAN
163 W. 125th Street
5th Floor
New York, NY 10027
212-961-8930

BRONX
1 Fordham Plaza
4th FloorBronx, NY 10458
718-430-0880

BROOKLYN
55 Hanson Place
6th Floor
Brooklyn, NY 11217
718-722-4778

LOWER MANHATTAN
25 Beaver Street
New York, NY 10004
212-480-6238

WESTCHESTER
75 South Broadway
3rd Floor
White Plains, NY 10601
914-948-4434

A PUBLICATION OF THE DIVISION OF HOUSING AND COMMUNITY RENEWAL OFFICE OF RENT ADMINISTRATION

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