Analyzing the New Tenant Protections

Among the many of its sweeping changes, the Act: 1) repealed high-rent vacancy and high-income deregulation, which had allowed rental units to be deregulated if the maximum legal rent had been reached and/or if the tenants earned more than $200,000 for the previous two years; 2) limits the amount a landlord can increase the rent upon obtaining a vacancy in rent stabilized apartments and removes fuel pass-along charges for rent controlled apartments; 3) limits the "owner use" primary residence provision to the use of a single apartment in a rent regulated building and provides tenants with a cause of action should they be evicted as a result of fraud by a landlord regarding the intended use of the apartment; 4) substantially limits the ability of landlords to charge back to tenants for any Major Capital Improvement (MCI) and Apartment Improvement (IAI) Increases for work in the apartment made by landlords; 5) requires landlords (of all leases) to provide written notice if the landlord intends to not renew a lease or if there is a proposed increase of rent greater than 5% percent for the renewal term; 5) limits the collection of credit search fees and the collection of security (and all payments) to one month's rent, and further prohibits the charging of application fees; 7) limits the amount of late fees that may be charged (lesser of 5% or $50.00); and 8) with respect to cooperative or condominium conversions, eliminates plans which allow a non-purchasing tenant to be evicted and now requires 51% of current tenants to approve the non-eviction plan (up from 15%).