The Housing Stability and Tenant Protection Act (HSTPA), passed in 2019, significantly changed the rules governing rental housing across New York. Many property owners quickly discovered that long-standing practices no longer applied. Because the law affects rent increases, eviction procedures, and lease terms, many owners consult a New York City landlord lawyer to stay compliant while protecting their investments.
Rent Laws Are Now Permanent
One of the most profound changes introduced by HSTPA is that these regulations no longer have an expiration date. In the past, rent laws were subject to periodic renewal, giving owners some hope that the rules might eventually shift back in their favor. Now, these rules are the new normal indefinitely.
Furthermore, the law also removed certain pathways for rent stabilization. Previously, if a unit’s rent reached a certain threshold or a tenant’s income exceeded a specific limit, the apartment could be deregulated and move to market rate. HSTPA eliminated high-rent and high-income deregulation. For landlords, this means that once a building is stabilized, it is likely to stay that way regardless of how much the neighborhood changes or how much the tenant earns.
No More Automatic Rent Hikes When a Tenant Leaves
The act also eliminated the vacancy bonus. Before 2019, when a tenant moved out of a rent-stabilized apartment, the landlord could automatically increase the rent. This allowed owners to keep up with the rising costs of property taxes, utilities, and labor. Now, that bonus is gone. When a tenant leaves, landlords can no longer apply the automatic vacancy bonus, which previously allowed a significant rent increase between tenants. For many long-term owners, this has turned a sustainable business model into a struggle to break even.
The Reality of Renovations and Repairs
HSTPA also changed how landlords fund building upgrades. Individual Apartment Improvements (IAIs) and Major Capital Improvements (MCIs) are now subject to stricter limits. If you renovate a kitchen or bathroom, the rent increase you can charge is capped at a relatively low level. Similarly, MCI increases, used for things like new roofs or boilers, are now capped at 2% per year and expire after 30 years. These changes have affected how some owners evaluate whether large upgrades are financially practical.
New Rules for Fees and Deposits
The day-to-day housekeeping for landlords has also changed. Security deposits are capped at one month’s rent, and late fees cannot exceed $50 or 5% of the rent. Additionally, application fees are limited to $20. Landlords must now provide specific notice periods of 30, 60, or 90 days if they intend to raise the rent by more than 5% or if they choose not to renew a lease, depending on how long the tenant has lived in the unit.
A Slower Path Through Housing Court
The eviction process now takes more time. Landlords must provide a 14-day written notice for a rent demand, a significant jump from the old 3-day rule. If a case goes to court, tenants have more time to respond, and judges have broader discretion to delay eviction in certain hardship situations, sometimes for up to one year.
Owning property in NYC today requires a much sharper eye on compliance and detailed recordkeeping. Understanding how HSTPA affects rent increases, lease renewals, and enforcement procedures is now an essential part of managing residential property in the city.