Q: Our apartment is covered by the Good Cause Eviction law. Last year, shortly after the law took effect, the landlord’s agent tried to raise our rent 16 percent on a one-year lease. We told them about the allowable limit under the law, which was 8.82 percent. They immediately lowered it to that limit for the one-year lease. But now they want a 20 percent increase on our new lease. We’re not aware of any reason we would no longer be covered by this law. Can they simply ignore the limits and try to charge whatever they want unless the tenant speaks up? What can we do?
A: It sounds like you need to alert your landlord, again, to your protections under the Good Cause Eviction law, which applies to New York City and other state municipalities that opt into it.
The law generally prevents certain landlords from raising market-rate rents beyond 5 percent plus the local rate of inflation, up to 10 percent. The inflation figure changes yearly, and is published by the New York State Division of Housing & Community Renewal. On Feb. 19, the state published a notice stating that the Consumer Price Index rose by 3.79 percent in New York City in the past year, making the legal increase there 8.79 percent.
Some homes are exempt from the law, including those owned by small landlords (in New York City this means someone who owns 10 units or fewer in New York State) and apartments in condo or co-op buildings. Landlords can also argue to a court that they need to raise the rent beyond the local standard because of significant repairs or tax bills.
The ultimate decider on whether a rent increase is permissible under the law is a judge in housing court or another court, said Jonathan Steckler, who represents landlords at the firm Goldberg, Lustig & Steckler. Landlords who have an exemption to the law must provide that information to tenants at the first lease, the lease renewal, or before suing a tenant in court.
“Many landlords will either offer leases with improper rent increases either out of error or in hopes tenants won’t notice,” said Ami Shah, deputy director of citywide housing at Legal Services NYC.
You should remind your landlord’s agent in writing of your protection under the Good Cause Eviction law, and that the proposed increase is illegal. Mention in your letter that this also happened last year, and that you expect it won’t be an ongoing issue. Your landlord should provide a new, legal lease renewal with an appropriate rent increase, Ms. Shah said.
For weekly email updates on residential real estate news, sign up here.