What Happens to Rent Stabilized Apartments if the Law Expires Tonight?

rent stabilized apartmentsThe Rent Stabilization Association – the main trade organization for landlords with rent stabilized apartments says, in effect, nothing really changes. Why? Because the state legislature is sure to pass some kind of extension in the next few days that will likely be retroactive to the time of expiration. Beside, every landlord must honor the terms of every lease they have in effect – including rent stabilized leases.

Here is what the Rent Stabilization Association says in their own words:

WHAT  DO I NEED TO KNOW IF RENT STABILIZATION EXPIRES?

If the New York State Legislature does not extend the rent laws by midnight tonight, June 15, 2011, rent stabilization will expire.

Owners need to know that in the event the rent laws expire, the tenants occupying those rent-stabilized units would  REMAIN PROTECTED pursuant to the terms of their leases and the numerous tenant protections contained in various other laws.

Property owners should bear in mind that the rent laws are likely to be renewed and that even if there is a lapse of some number of days, any rent laws that are, eventually, enacted will likely be retroactive in their effect.

Most rent-stabilized apartments are regulated  because of the Emergency Tenant Protection Act (ETPA). The ETPA is one of the laws which may expire. If that occurs, those rent-stabilized apartments would become de-regulated. Owners should also be aware that two relatively small segments of the rent-regulated universe would remain regulated regardless of the expiration of the rent laws:

1.  RENT-CONTROLLED apartments in the City will remain regulated regardless of whether the Legislature acts; their status will not be affected by the events in Albany.

2.  RENT-STABILIZED apartments in the City will remain stabilized if they have been continuously occupied without vacancy since on or before December 31, 1973.

If apartments lose their rent-stabilized status because the laws are not renewed, the tenants occupying those  apartments would remain protected pursuant to the terms of their leases and the numerous tenant protections contained in various other laws, including but not limited to laws prohibiting harassment and illegal eviction.

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Written by Lorenzo

Lorenzo has been hanging around the RDNY.com office for the past 20 years, and, in the process, has become the president of RDNY.com, Rent-Direct.com, and Acmelistings.com. His mission is to build RDNY.com into New York's largest no fee apartment rental service. Before RDNY.com, Lorenzo was a Regional Sales Manager for Time Equities, Inc., one of New York's largest converters of rental buildings to coops and condos. Lorenzo was once a part owner of Swift & Watson Real Estate in NYC's Greenwich Village.

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