No state in the country has a more complex or consequential body of landlord-tenant law than New York. The Housing Stability and Tenant Protection Act of 2019 (HSTPA) — one of the most sweeping overhauls of New York rental law in decades — fundamentally changed the rights of tenants in rent-stabilized apartments, eliminated deregulation pathways that landlords had used for years, and imposed strict new limits on security deposits and fees. If you own or rent a residential unit in New York, understanding HSTPA is not optional.

HSTPA 2019: The End of High-Rent Deregulation

Before HSTPA, New York's rent stabilization system had two major deregulation pathways. First, "luxury deregulation" allowed landlords to remove apartments from rent stabilization once the legal regulated rent reached a threshold — $2,733.75 before HSTPA. Second, "vacancy decontrol" allowed landlords to raise rents significantly when a rent-stabilized tenant vacated, sometimes enough to push the unit above the deregulation threshold in a single vacancy.

HSTPA eliminated both pathways entirely. There is no longer any rent threshold at which a rent-stabilized apartment can be deregulated. A unit is stabilized because of its characteristics — typically being in a building with 6 or more units built before 1974 in New York City, or in a municipality that has opted into stabilization — not because of the rent level. Owner-occupied or owner's family-occupied units may apply for high-income high-rent exemptions, but the standard deregulation pathway is gone.

Retroactive Effect: HSTPA also applies retroactively to apartments that were deregulated under the old high-rent threshold. Tenants who believe their apartment was improperly deregulated before June 2019 may have a claim to have it re-regulated. The statute of limitations for challenging improper deregulation is six years from the deregulation date — a window that remains open for many apartments.

RGB Guideline Increases: 2024 and 2026 Rates

The New York City Rent Guidelines Board (RGB) sets the maximum permissible rent increases for rent-stabilized apartments in New York City each year. For lease renewals commencing between October 1, 2023 and September 30, 2024, the RGB set increases of 2.75% for one-year leases and 5.25% for two-year leases. These rates reflected the post-COVID inflationary environment while remaining lower than the 3.25%/5% increases set in 2022.

For the 2025–2026 period, the RGB's final order must be consulted directly, as rates are set each spring and become effective October 1. Landlords must verify the current applicable guideline order before setting any renewal rent. The failure to comply with the guideline increase — even inadvertently — can result in overcharge liability, which under HSTPA carries treble damages for willful overcharges and a 6-year lookback period.

In Nassau, Rockland, and Westchester counties (the "suburban" rent stabilization areas), increases are set by separate local rent guidelines boards following a similar process. The applicable board depends on the municipality where the unit is located.

DHCR-Required Riders and Lease Provisions

All rent-stabilized leases must include a rider approved by the New York State Division of Housing and Community Renewal (DHCR). The DHCR rider provides tenants with a summary of their rights under the Rent Stabilization Law and Rent Stabilization Code, including the right to renew the lease, the right to receive a copy of the most recent DHCR registration, and the formula for calculating permissible rent increases.

Landlords must attach the DHCR rider to every initial and renewal lease for stabilized apartments. Failure to include the rider does not void the lease, but it creates liability and can affect the landlord's ability to raise the rent. The DHCR updates the standard rider periodically, and landlords should use the most current version available on the DHCR website.

In addition to the DHCR rider, New York City landlords must register all rent-stabilized apartments annually with DHCR by July 31 of each year. The registration includes the apartment's legal regulated rent, the current tenant's name, and the amount of any preferential rent. Failure to register bars the landlord from collecting rent increases until registration is completed.

Preferential Rent: New Rules Under HSTPA

A "preferential rent" is a rent below the legal regulated rent that a landlord voluntarily charges a tenant. Before HSTPA, preferential rents were temporary — when the tenant moved out or the lease was renewed, the landlord could revert to the full legal regulated rent. HSTPA made preferential rents permanent for the duration of the tenancy.

Under HSTPA, if a landlord charges a preferential rent, that preferential rent becomes the base rent for all purposes — including guideline increase calculations — for as long as the tenant remains in the apartment. The landlord cannot revert to the higher legal regulated rent during the same tenancy. Only when the tenant vacates can the landlord charge the legal regulated rent (or the legal regulated rent with permissible vacancy increases) to a new tenant.

This change has significant financial implications for landlords who have been charging below-market rents in anticipation of a future reversion. Any landlord with stabilized apartments should audit their rent registrations to understand the gap between preferential and legal regulated rents and plan accordingly for turnover.

Security Deposit Reform: One Month Cap and 14-Day Return

HSTPA imposed major reforms on security deposit practices in New York. For all residential leases (not just rent-stabilized), the maximum security deposit is now one month's rent. Pre-HSTPA, landlords could collect as much as the market would bear (though convention was typically one to two months' rent). The one-month cap applies universally — landlords cannot circumvent it by calling the payment a "last month's rent" deposit or an "amenity fee."

HSTPA also shortened the security deposit return deadline from the pre-existing (and often ignored) standard to 14 calendar days after the tenant vacates. Within that 14-day window, the landlord must either return the deposit in full or provide an itemized statement of deductions accompanied by any remaining balance. Deductions are only permitted for unpaid rent and damage beyond normal wear and tear.

Failure to Return Within 14 Days: If a landlord fails to return the deposit or provide the itemized statement within 14 days, the landlord forfeits the right to retain any portion of the deposit — even for legitimate deductions. The tenant can recover the full deposit amount plus potential damages. This is a strict rule with no grace period. Document the move-out date and schedule your walkthrough inspection promptly.

NYC HPD Registration Requirement

New York City landlords with properties containing three or more units must register with the New York City Department of Housing Preservation and Development (HPD). Registration must be filed annually by September 1 and must include the names and addresses of the property owner and managing agent. Local Law 44 of 2010 requires HPD to maintain a publicly searchable database of building registrations and code violations.

Failure to register with HPD creates significant legal exposure. Under New York City Administrative Code Section 27-2098, an unregistered landlord cannot sue a tenant to recover rent in Housing Court. This is not a technical bar — courts have dismissed non-payment eviction proceedings against landlords who failed to maintain current HPD registration. Before filing any eviction or rent collection proceeding, confirm that your HPD registration is current.

Free Market Leases: What HSTPA Changed

Not all New York apartments are rent-stabilized. Units in buildings with fewer than six units, newly constructed buildings (receiving a tax abatement like 421-a or 485-x that requires stabilization, or post-abatement free market), and owner-occupied one- to two-unit dwellings operate as free market rentals. Free market leases have no rent increase limits under state law (though local laws may apply in certain municipalities).

For free market leases, HSTPA's one-month security deposit cap still applies statewide for residential tenancies. The 14-day return deadline also applies. These provisions are not limited to stabilized units. Landlords operating free market units should update their lease templates and security deposit practices to reflect the new limits, even if they are not subject to rent stabilization.

Application Fees: HSTPA also limits application fees for residential rental units to a maximum of $20. This cap applies to all residential lease applications regardless of market segment. Background check fees above $20 are prohibited, even if a landlord uses a third-party screening service that charges more. Landlords must absorb costs above the $20 cap.

Notice Requirements for Non-Renewal and Termination

HSTPA substantially strengthened notice requirements for non-renewal and termination of residential tenancies in New York. For tenants who have resided in a unit for fewer than one year, the landlord must provide 30 days' notice of non-renewal. For tenants who have resided in a unit for one to two years, 60 days' notice is required. For tenants who have resided in a unit for two or more years, 90 days' notice is required. These requirements apply to all residential tenancies, not just stabilized units.

Failure to provide proper notice may prevent a landlord from proceeding with a holdover eviction. A landlord who seeks to evict a tenant after the lease term ends without providing the required advance non-renewal notice may find the eviction proceeding dismissed. Landlords should calendar non-renewal notice deadlines well in advance of intended lease termination dates.