New York’s Housing Stability and Tenant Protection Act of 2019 (HSTPA), signed into law on June 14, 2019, was the most sweeping overhaul of New York landlord-tenant law in a generation. It significantly strengthened tenant protections and changed the rules landlords must follow, permanently. If you own rental property in New York and have not updated your practices to reflect HSTPA, you may be operating under outdated assumptions that expose you to legal liability.
Security Deposits Are Now Capped at One Month’s Rent
Under the HSTPA, landlords may no longer collect more than one month’s rent as a security deposit. The practice of requiring last month’s rent upfront, a common way landlords protected themselves, is now prohibited. Additionally, landlords must return the security deposit within 14 days of the tenant vacating, along with an itemized statement of any deductions. Failure to do so can result in the landlord forfeiting the right to make any deductions at all.
Late Fees Are Capped
Landlords may only charge a late fee if rent is received more than five days after the due date. The fee itself cannot exceed $50 or 5% of the monthly rent, whichever is less. Lease provisions providing for larger late fees are unenforceable.
The 14-Day Rent Demand Is Now Mandatory
Before commencing a nonpayment proceeding, a landlord must serve a written 14-day rent demand under RPAPL § 711(2). This was a pre-existing requirement, but the HSTPA reinforced it and made clear that the court may not grant a judgment in a nonpayment proceeding if the tenant pays all rent owed before judgment, a codification of the right to cure under RPAPL § 731.
Longer Notice Periods for Lease Termination and Non-Renewal
Under New York Real Property Law § 226-c, landlords must now provide significantly longer advance notice before a residential tenancy can be terminated or not renewed. The required notice period depends on the length of the tenancy:
- 30 days’ notice: tenant has occupied the premises for less than one year
- 60 days’ notice: tenant has occupied the premises for one to two years
- 90 days’ notice: tenant has occupied the premises for more than two years
These requirements apply to unregulated, market-rate tenants as well as rent-stabilized tenants. Landlords who serve a termination notice without providing the correct advance notice face dismissal of any resulting holdover proceeding.
Strengthened Anti-Retaliation Protections
The HSTPA significantly expanded Real Property Law § 223-b, which protects tenants from retaliatory eviction. Under the amended law, once a tenant raises a retaliation defense, the landlord bears the burden of proving a non-retaliatory motive, even in a nonpayment proceeding. The prior law only created a presumption of retaliation in certain holdover cases; now it applies more broadly and covers habitability complaints made directly to the landlord or its agent, not just to government agencies.
The expansion covers a wide range of tenant conduct, including complaints about building conditions, organizing with other tenants, and contact with government enforcement agencies. A landlord who cannot rebut the presumption of retaliation may be required to offer a new lease and may be liable for attorney fees in a civil action.
Rent Stabilization Protections Were Made Permanent and Expanded
The HSTPA made permanent the rent stabilization laws, which had previously been set to expire. It also eliminated the two most significant pathways for removing apartments from rent stabilization: the high-rent vacancy decontrol threshold, previously $2,775/month, and the high-income decontrol provision. Both loopholes, which had resulted in the loss of an estimated 160,000 stabilized units since 1994, were repealed entirely.
The law also significantly curtailed the ability of landlords to increase regulated rents through Major Capital Improvements (MCIs) and Individual Apartment Improvements (IAIs). MCI rent increases are now capped at 2% and must be removed from the rent roll after 30 years. IAI increases are capped at $15,000 in improvements and limited in frequency.
Additionally, preferential rents in rent-stabilized apartments, where a landlord had been voluntarily charging below the legal regulated rent, can no longer be increased to the legal regulated rent at lease renewal. The preferential rent is now treated as the base for future increases.
Changes to Court Proceedings Under RPAPL
The HSTPA also amended the RPAPL to restructure Housing Court proceedings in ways that generally favor tenants. Among the key changes: holdover petitions are now returnable 10 to 17 days after service, previously 5 to 12 days, giving tenants more time to respond. Courts are required under RPAPL § 745 to conduct specific inquiries when one party is unrepresented, and judges are expected to ensure unrepresented parties understand their rights before a stipulation is entered.
What Landlords Must Do Now
- Update all lease forms to reflect HSTPA changes, including security deposit caps, late fee limits, and proper notice provisions
- Ensure all termination notices provide the correct advance notice period based on tenancy length
- Maintain thorough records of rent payments, rent demands, and all tenant communications
- Be aware of expanded retaliation exposure when responding to tenant complaints
- For rent-stabilized buildings, work with counsel to understand the new limits on rent increases
Mirzakanov Law advises New York landlords on compliance with current law and represents property owners in Housing Court proceedings throughout NYC and Nassau County. Call (212) 400-9285 or contact us online for a free consultation in English, Hebrew, or Russian.