Changes to NYS Housing Laws Enacted in the FY24 Budget

Please Note: The changes described here are not all-inclusive and will be updated over time. Information on HCR’s website – including relevant forms – will be updated over the next several months to reflect these changes.

DHCR will issue new rules and an operational bulletin to detail the changes described below.

Part FF of Chapter 56 of the laws of 2024 was signed into law on April 20, 2024. The effective date of such law is October 17, 2024. The law establishes two different methods for applying for IAI rent increases.

Under the first method, any owner can recover up to $30,000 of IAI-eligible work over a 15-year period. This cap was increased from the $15,000 limit over a 15-year period, established by the Housing Stability and Tenant Protection Act of 2019 (HSTPA). In addition, the rent increase is now permanent.

The permitted increases in legal rent are calculated the same way as they were in HSTPA. In a building that contains 35 or fewer apartments, the permitted rent increase in the legal regulated rent is 1/168th of the total cost incurred by an owner. For IAI increases in a building with more than 35 apartments, the permitted increase is 1/180th of the total cost of the improvements. 

Under the second method, there is a new IAI cap of $50,000 for vacant apartments that were timely registered as vacant with DHCR in the 2022, 2023, and 2024 registration cycles, or which became vacant and the tenant immediately prior to such vacancy was in occupancy for 25 years or longer. This method requires prior certification for eligibility from DHCR. The amortization rates to calculate the permitted rent increase for IAIs under this method have been established as 1/144th (for buildings of 35 or fewer units) and 1/156th (for buildings of more than 35 units), and the rent increase is permanent.

The following new procedures for the second method are also being put into effect:

• Prior to undertaking the IAI, the owner must submit to DHCR evidence demonstrating that the improvement was necessary due to a substandard condition or exceeding an item’s useful life, which includes photos of areas, aspects, or appliances that will be improved, and any necessary permits required to undertake the improvements.
• The owner(s) filing the application must submit an affirmation that they are free and clear of any DHCR or a court of competent jurisdiction findings of Harassment or willful Rent Overcharge within the previous five years in all rent regulated buildings they own.
• After the installation of the IAI, the owner must pay a fee equal to one percent of the claimed IAI costs and submit to DHCR evidence that the work was completed, including photos of the completed work, itemized receipts, and proof of payment.