Yonkers Insider: James G. Dibbini & Associates, P.C.: DHCR Apartment Registration Deadline is July 31st.

 

DHCR Annual Rent Registrations.

Are you an owner of multi-family real property in New York City or Westchester County? If so, you should be familiar with annual rent registrations (ARR) and the New York State Division of Housing and Community Renewal (DHCR). New York State law requires owners of real property subject to the State’s rent stabilization laws to file ARR with the DHCR. Generally, apartment buildings located in New York City and the majority of municipalities in Westchester County built prior to January 1, 1974 and containing six (6) or more units are subject to New York’s rent stabilization laws. These rent stabilization laws mandate owners register the property and each individual rental unit with the DHCR. Failure to properly file ARR can prevent you from collecting annual rent increases, subject you to monetary penalties, prevent you from evicting tenants, and can also delay or prevent a sale or refinance of your property. In the Civil Court of the City of New York and many courts throughout Westchester County, ARR are part of an owner’s prima facie case in non-payment proceedings. Stated differently, if a non-payment proceeding goes to trial, a landlord will not be able to evict a tenant for the failure to pay rent unless certified copies of ARR are submitted to the presiding Judge. In addition, owners and landlords should know the difference between “preferential rent” and “legal rent.” If the legal rent for an individual apartment is more than the amount any tenant is willing to pay for same, the landlord can charge the tenant “preferential rent” while continuing to increase the “legal rent” for said unit. This will enable the landlord to increase the rent with the next tenant to the "legal rent."  Annual registrations must reflect the apartment building and each unit therein as of April first of each year. Annual registrations are accepted by the DHCR beginning on April first and must be submitted no later than July 31 of the registration year. It is also important to be familiar with the reasons why certain buildings and individual apartments are not obligated to file ARR. The most common basis for deregulation of an individual apartment is when the legal rent for that unit has surpassed the Deregulation Rent Threshold (DRT). However, with the passage of the Housing Stability Tenant Protection Act of 2019, effective June 14, 2019, it is no longer permitted. Units destabilized prior to June 14, 2019, will remain destabilized. James G. Dibbini & Associates, P.C. has extensive experience in DHCR matters and can assist you with all DHCR matters, including annual registrations, defending against tenant complaints for loss of services or rent overcharge and completion of applications for exemption based on major capital improvements to the property. Do not expose your company or yourself to rent overcharge claims or a roll-back of tenants’ rents. Call me 914-240-8270 or email us at jdibbini@dibbinilaw.com today for more information.