Chapter Amendments to Recent Rent Law Modifications Are Enacted

On March 1, 2024, New York Governor Hochul signed into law "Chapter Amendments" to certain Rent Stabilization Law (RSL) and Emergency Tenant Protection Act (ETPA) amendments that were enacted on Dec. 22, 2023. The Chapter Amendments, also made effective as of Dec. 22, 2023, had been directed by the governor at the time the rent law amendments were enacted, and were agreed to by the State Legislature. Among other things, the Chapter Amendments removed retroactive application of a new requirement that owners who claim exemption from rent stabilization of a building substantially rehabilitated after Dec. 31, 1974, must obtain an order from the DHCR approving such claim. In other words, applications to the DHCR are now required for substantial rehab work initiated on or after Jan. 1, 2024.

The Chapter Amendments also amend provisions concerning fraud in connection with improper deregulation of a rent-regulated apartment. The Chapter Amendments require a determination on "whether the owner knowingly engaged in such fraudulent scheme after a consideration of the totality of the circumstances." By considering the totality of the circumstances, the amendment eliminates from the original amendments to the law mistakes or misunderstandings being considered fraud during the calculation of legal regulated rents. 

State Senate Bill 8011 (Chapter Amendments), L 2024, ch 95, § 3, effective December 22, 2023 [4-page document]