NEW YORK CITY — New legislation approved by the City Council will help clarify guidelines for tenants who pay discounted rents and qualify for the city’s rent freeze programs.
The bill changes the way the city communicates with New Yorkers eligible for the Senior Citizen Rent Increase Exemption or Disability Rent Increase Exemption programs, requiring that the Department of Finance include a notice explaining legal and preferential rents on certain documents.
For some rent-regulated tenants, landlords give residents discounted rent, also known as “preferential” — meaning an amount less than the legal regulated rent.
Some low-income seniors and tenants with disabilities who pay preferential rent are “falling through the rent freeze safety net” according to Councilman Robert Cornegy, one of the bill's sponsors.
These residents are often at a high-risk of displacement because it’s not clearly explained that under the programs, their rent may be frozen at a higher, legally regulated amount and not their preferential rent.
A resident paying a monthly preferential rent of $1,125 who qualifies for SCRIE could have their rent frozen at the registered rent on her lease, an amount that may be upwards of $2,300 and at a rate she cannot afford.
Under the bill, notices on documents related to the city’s rent freeze program must include:
- The rent amount on which the benefit calculation was based
- An explanation of why that amount was chosen in the calculation
- The legal regulated rent
- An explanation that the tenant may continue to pay a preferential rent in specific circumstances
- A statement that the tenant can obtain their rent registration history and file a complaint with the State Division of Housing and Community Renewal if they believe they are being overcharged
- Contact information for the agency
The legislation would provide help to tenants by giving an explanation of preferential rent and its significance to rent freeze eligibility.
It also requires that the Finance Department track both preferential and legal regulated rents of applications in its database.
Nearly a quarter of rent-regulated tenants throughout the city pay preferential rent, according to the New York City Independent Budget Office.
Tuesday’s legislation is a “striking blow in favor of clarity” in the city’s administrations of SCRIE and DRIE, Cornegy said.
“Low income seniors and New Yorkers with disabilities shouldn’t have their fears about being priced out of their homes compounded by confusion about their eligibility for a critical safety net program,” the councilman said in a statement.
The bill is sponsored by a group of 26 councilmembers, including Margaret Chin, Laurie Cumbo, Brad Lander, Stephen Levin and Jimmy Van Bramer.
The law goes into effect 90 days after being signed into law by Mayor Bill de Blasio.
