The Housing Stability & Tenant Protection Act (HSTPA) of 2019: Key Changes for NYC Renters
The Housing Stability & Tenant Protection Act (HSTPA) of 2019: Key Changes for NYC Renters
Tenant Protection Act Summary: Key Changes for NYC Renters
For anyone navigating New York City's complex rental market, understanding your rights is crucial. The Housing Stability and Tenant Protection Act of 2019 (HSTPA) represented the most significant overhaul of New York's rent laws in decades. Passed to address the city's housing affordability crisis, the HSTPA introduced sweeping changes that offer greater protections to both rent-regulated and market-rate tenants across the state.
This guide breaks down the most important aspects of the HSTPA, from application fees and security deposits to eviction protections and rent regulation reforms, so you can rent with confidence.
FAQs: Understanding Your Financial Protections
The HSTPA brought much-needed clarity to the financial side of renting, capping fees and providing new rules around security deposits.
Q: How much can a landlord charge me for a security deposit?
A: Under the new law, a landlord can only charge you a security deposit that is equal to a maximum of one month's rent. They can no longer require you to pay a security deposit, plus the last month's rent, in advance.
Q: When will I get my security deposit back?
A: Your landlord must return your security deposit within 14 days of you moving out. If they intend to keep any portion of the deposit, they must provide you with an itemized statement explaining the reason for the deduction. Failure to do so means they forfeit their right to keep any part of the deposit.
Q: Are there limits on application fees?
A: Yes. Landlords are now prohibited from charging application or processing fees. The only fee they can charge is for a credit or background check, and that fee is capped at a maximum of $20. They must also provide you with a copy of the report and an invoice from the company that performed it. You also have the right to provide your own credit and background check report, as long as it was conducted within the last 30 days, to avoid the fee entirely.
Q: What is the rule for late fees?
A: A landlord can only charge a late fee if your rent payment is received more than five days after the due date. The late fee itself cannot exceed $50 or 5% of your monthly rent, whichever amount is less.
Strengthened Eviction & Tenant Protections
The law made it much more difficult for landlords to evict tenants and introduced new protections to ensure a more equitable process.
Q: What are my rights if I am late on rent?
A: Your landlord cannot take you to court for non-payment of rent until they have given you a 14-day written rent demand. Additionally, you can have your non-payment case dismissed at any point before an eviction warrant is executed by a marshal, as long as you pay all the rent that is owed.
Q: Can a landlord evict me without a reason?
A: The HSTPA strengthened protections against retaliatory evictions. A landlord cannot evict a tenant simply for making a good-faith complaint about their living conditions or for joining a tenant organization. The law also banned "tenant blacklists," making it illegal for landlords to deny you an apartment based on a past legal conflict with a previous landlord.
Q: What about advance notice for rent increases or non-renewals?
A: For unregulated tenants, the law now requires landlords to provide advance written notice before raising your rent by 5% or more, or before not renewing your lease. The required notice period depends on how long you have lived in the apartment:
Length of Tenancy | Required Notice |
Less than one year | 30 days |
One to two years | 60 days |
Two years or more | 90 days |
Key Changes for Rent-Regulated Apartments
The most significant reforms of the HSTPA were aimed at preserving rent-stabilized and rent-controlled housing. These changes affect an estimated 1 million apartments in NYC.
1. Elimination of Vacancy Bonus and High-Rent Deregulation
Prior to the HSTPA, landlords could increase the rent by up to 20% upon a vacancy, and could remove an apartment from rent stabilization entirely if the rent exceeded a certain threshold. The HSTPA eliminated both of these loopholes, meaning:
Rent-stabilized apartments now remain stabilized, regardless of how high the rent becomes.
Landlords can no longer receive a "vacancy bonus" to raise the rent on a vacant unit.
2. Permanent Preferential Rents
A "preferential rent" is a rent that is lower than the legal maximum a landlord is allowed to charge. Before the HSTPA, landlords could offer a preferential rent to a tenant and then raise it to the full legal amount at the time of lease renewal. The new law makes these preferential rents permanent for the life of that tenancy. While your rent can still be increased annually by the Rent Guidelines Board, it must be based on the lower preferential rent you are paying, not the higher legal one.
3. Reforms to Major Capital Improvements (MCIs) & Individual Apartment Improvements (IAIs)
Landlords were previously able to use these improvements to justify large, permanent rent increases, often leading to tenant displacement. The HSTPA reformed these rules:
The rent increase for an MCI is now capped at 2% and is no longer permanent. The increase must be removed from the rent after 30 years.
The rent increase for an IAI is limited to a maximum of $15,000 in improvements over a 15-year period. The increase also expires after 30 years.
Tips & Takeaways for Renters
Know Your Rights: The HSTPA provides a solid foundation of protections. Be familiar with the rules, especially those concerning security deposits, fees, and eviction notices.
Document Everything: Always get receipts for cash payments. Take photos or video of the apartment before you move in and after you move out. This documentation is invaluable if a dispute arises over your security deposit.
Check Your Rent History: If you are in a rent-stabilized building, you have the right to request your apartment's rent history from the New York State Division of Housing and Community Renewal (DHCR). This can help you ensure you are not being overcharged.
The HSTPA has fundamentally reshaped the NYC rental landscape in favor of tenants. It's an important step toward creating a more stable and affordable housing market for everyone.
Ready to find your next home in NYC? Whether you're a first-time renter or a seasoned resident, the real estate experts at Yeo Real Estate can help you navigate the market and find an apartment that's right for you. Contact us today to get started.