When Mayor Mamdani was on the campaign trail, unsurprisingly, one of his most talked-about policy points was implementing a rent freeze. For a lot of New Yorkers, this is a policy that can impact their futures in many ways. Let’s take a look at the history of rent freezes, how it is put into action, and what it means for New Yorkers.
History of the Rent Freeze
In order to understand the history of rent freezes, let’s first define some terms. A rent freeze is a form of rent control. Rent control is a way for residential housing to have price ceilings. This is one affordable measure to limit landlords from raising the rent.
Between 1919 and 1924, during World War I, cities across the nation adopted rent and eviction-control laws to combat rent profiteering. The modern structure we understand when it comes to controlling the rent has its origins in the Great Depression. With a national economic crisis, the federal government called for emergency price control.
It was not until 1973 that Berkeley became the first city in California to have rent control since World War 2. Other cities in the country took notice. Cities with large tenant populations adopted the practice, as did some smaller population areas. However, in the 1990s, like Boston and Cambridge in Massachusetts, state referendums ended rent control programs.
Historically, the times in United States history that have been prime for rent control have been some of the most dire times. Most recently, during the pandemic, Oakland, CA, implemented a moratorium to prevent evictions until February 2021.
New York Rent Control History
In 1942, President Roosevelt signed the Emergency Price Control Act into law. The economy was booming due to the war, and this act helped prevent inflation by imposing price controls on goods and services, including rent. Following this, in New York City, groups such as the UTL (United Tenants League), the Citizens Housing Council, and Consumer organizations worked with Mayor La Guardia to freeze rents. The OPA (Office of Price Administration) was initially hesitant because the city’s vacancy rate hovered at 7.5 percent. On November 1st, 1943, the OPA froze rents in the city at the prices of the units as of March 1, 1943.
The state of New York has the longest and richest history when it comes to rent control. To this day, the majority of units in New York City are covered by rent control in some capacity. The rental market prior to the Rent Stabilization Law of 1969 was dire. There was an inadequate amount of inventory, and when there was, the conditions were not ideal. Especially for the elderly. The new Law provides over one million units with protections against rent increases and for renters’ rights. Under the law, landlords are required to offer eligible tenants the choice of a one- or two-year lease renewal. The law also caps rent renewal increases at 3 percent for one-year leases and 4.5 percent for two-year leases. Tenants can also file for rent reductions if they believe their service or repair needs have not been met. The RSL is constantly being updated. It was updated in 2019 to strengthen protections for tenants by limiting vacancy decontrol and expanding eligibility.
Qualification
Rent-controlled apartments apply to residents who have continuously lived in an apartment since July 1, 1971, or to qualifying family members who succeeded to such tenancy. When a tenancy is not continuous under these conditions, the controlled unit becomes stabilized, unless the building has fewer than six units. When a family vacates their rent-controlled unit, the apartment becomes decontrolled. Generally speaking, rent control does not apply to units built after the year 1947.
Rent-stabilized units are for properties in New York City and Nassau, Rockland, and Westchester counties. Stabilized units apply to buildings with six or more units that were built before 1974 and are not subject to rent control. Units that are converted into co-ops and condos, and vacated after July 7, 1993, may not be subject to rent stabilization. Each municipality must declare a housing emergency, and the rental vacancy rate must be less than 5% for all classes of rental housing accommodations, as demonstrated by a housing vacancy survey.
For rent-stabilized housing, the rent guidelines board meets every year to set the rent landlords can charge. Building owners can free their buildings from the rent-stabilized status at this time.
Pertinence for New Yorkers
New Yorkers who want to check whether their current housing unit qualifies as a stabilized unit have some options. The first action you should take is to look at your lease. Landlords are supposed to specify the status of the building.
If your lease does not say whether your unit is or isn’t stabilized, you can fill out this form offered by NYS Homes and Community Renewal to look into the rent history. This is an agency that regulated stabilized apartments. This process takes about 20 days, so this is not the fastest way to find out. This is the most official way to find out your building registration status. Under current year, you should see RS listed, which confirms that you have a stabilized unit.
If you feel that your building is not properly registered can take action and confirm the correct information. You can send a letter to the following address asking for an “Administrative Determination” of your apartment’s status. In the letter, make your case as to why you feel the building registration status is incorrect. Send the letter to the address below:
Director, Multi-Service Unit
Property Management Bureau
92-31 Union Hall Street
Jamaica, NY 11433
Some additional resources for those who are looking to protect their tenant rights include:
Non-Profit Legal Aid Organizations
Legal Services NYC
The Legal Aid Society
Met Council on Housing
New York Legal Assistance Group
Collins, Dobkin, & Miller LLP
Himmelstein Gribben & Joseph LLP
When looking for an apartment, make sure to ask the broker and the landlord before signing a new lease. Our elite agents on Renthop have experience with stabilized buildings. We hope to provide you with your ideal apartment that fits into your financial situation. This is just one way to perfect your rental search.
