City announces changes to NYC Rent Freeze Program

By Maria Rocha-Buschel

The de Blasio administration announced last Wednesday that the city will now be able to freeze rents at the preferential level for tenants eligible for the Senior Citizen Rent Increase Exemption (SCRIE) and Disabled Rent Increase Exemption (DRIE).

“For far too long, thousands of low-income older adults and people with disabilities with preferential were unable to benefit from NYC’s Rent Freeze Programs,” said State Senator Liz Kruger, who is also the prime sponsor of preferential rent legislation. “I am extremely happy that New York State’s new rent laws finally eliminated the preferential rent loophole, making it possible for tenants with preferential rents to benefit from SCRIE and DRIE.”

The legal rent of a rent-stabilized apartment is based on the unique history of the unit and is the maximum legal rent for each apartment. Preferential rent is rent that a landlord charged to a rent-regulated tenant that is lower than the legal rent.

SCRIE and DRIE, known collectively as the NYC Rent Freeze Program, is administered by the Department of Finance and helps eligible seniors and New Yorkers with disabilities stay in affordable housing by freezing their rent. The programs are available to eligible tenants living in rent-regulated apartments. To qualify for SCRIE, residents must be at least 62 years old, the head of household on the lease, have a combined household income of $50,000 or less and spend more than one-third of their monthly household income on rent. DRIE is available to tenants who are  at least 18 years old, are named on the lease, have a combined household income of $50,000 or less and must be awarded one of the following: Federal Supplemental Security Income (SSI); Federal Social Security Disability Insurance (SSDI); U.S. Department of Veterans Affairs disability pension or disability compensation; disability-related Medicaid if the applicant has received either SSI or SSDI in the past; or the United States Postal Service (USPS) disability pension or disability compensation.

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Could a lawsuit really undo the rent regs?

Blaine Schwadel

By Sabina Mollot

Ever since the new rent regulations — all 74 pages of them — were signed into law by Governor Andrew Cuomo on Friday, real estate attorneys have been scrambling to determine what this means for the city’s property owners.

There has been at least one published report in the Commercial Observer suggesting there could be an industry-backed lawsuit, and Blaine Schwadel of Rosenberg & Estis, a law firm representing owners and lenders, said he’s pretty sure there will be some kind of legal action taken.

This reporter was unable to determine what group, if any, was behind the rumor of a planned suit, but Schwadel said there’s at least been talk.

“I have heard that various real estate groups, RSA (Rent Stabilization Association), REBNY (Real Estate Board of New York) and CHIP (Community Housing Improvement Program) are having discussions about how to challenge it,” said Schwadel.

But, he warned, “There have been very few successful challenges to rent regulations in the past.”

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