High Rent–High Income Deregulation (Prior to the 2019 Housing Stability and Tenant Protection Act)
If a rent-regulated tenant’s rent is Two Thousand Seven Hundred Thirty-Three Dollars and Seventy-Five Cents ($2,733.75) or more per month, and the tenant’s annual income is Two Hundred Thousand Dollars ($200,000.00) or more in each of the two (2) preceding calendar years, the landlord may deregulate the apartment.
Note: There is a complicated procedure for the tenant to preserve their apartment. It is imperative that any tenant who receives an Income Certification Form meet with an attorney, even if their income is nowhere near the statutory requirement for deregulation. This is because if the tenant does not properly complete and return the form, they will lose their rent-regulated rights. This form may be served yearly.
If deregulation succeeds, the landlord must offer the apartment to the tenant in occupancy at “a rent not in excess of the market rent,” which means a rent obtainable in an arm’s-length transaction. It is unclear what the terms of that offer must be—whether a lease is required, whether the same terms as the prior lease must be included, or what the duration of the lease should be.
If a rent-regulated apartment becomes vacant and the legal rent is Two Thousand Seven Hundred Thirty-Three Dollars and Seventy-Five Cents ($2,733.75) or more per month, the apartment may also be subject to deregulation.
Issues of rent control and rent stabilization coverage are highly complicated and time-consuming. Parties should consult with an attorney before proceeding. We offer complimentary, no-obligation consultations, and you are welcome to schedule your consultation by calling us at 212-921-1600.
