Bill > A07527

This bill provides an alternative hardship allowance for landlords in New York City rent-controlled apartments, modifying existing rent regulations to allow property owners to request rent increases when their annual net income is less than 8.5 percent of the property's equalized assessed value. Specifically, the bill changes the current hardship threshold from 6 percent to 8.5 percent and creates a new application process for owners who have owned a building for at least three years. Landlords can apply to the state Division of Housing and Community Renewal for rent increases beyond standard guideline increases if they can demonstrate that their current rental income is insufficient. The calculation of net annual return involves complex accounting methods, including subtracting operating expenses and allowing for a depreciation allowance of 2 percent of the building's value or the amount shown on the most recent federal tax return, whichever is lower. The bill also specifies that no depreciation allowance will be included if the buildings have been fully depreciated for tax purposes. The legislation is tied to the continuation of the public emergency housing rent control provisions and will remain in effect only as long as those emergency provisions are active.

Housing and Urban Affairs

https://www.nysenate.gov/legislation/bills/2025/A7527