The New York real estate landscape has recently seen significant changes, particularly concerning rent-regulated apartments. With new legislation in place, landlords are now facing stricter penalties for failing to register their rent-stabilized units. This move aims to combat the decline in registered rent-stabilized apartments and ensure compliance among property owners. Let's delve into the details and implications of this new enforcement.

Landlords across New York have registered tens of thousands more rent-regulated apartments than in previous years. This increase follows the enforcement of a law signed by Governor Kathy Hochul in 2023, which imposes heavy penalties on landlords who fail to file their rent-regulated apartments with the state. The law was enacted after investigative reporting revealed a sharp decrease in the number of registered rent-stabilized apartments. Some landlords were found to have removed apartments from regulation and rented them at market rates without proper state approval.

The Division of Housing and Community Renewal (DHCR) is now actively reminding landlords who missed the July 31st registration deadline that they could face fines of $500 per month per apartment—an increase from the previous one-time $10 surcharge, which was rarely enforced. As of the 2024 cycle, around 919,500 apartments have been registered with the state, a significant rise from the 750,000 to 800,000 on-time registrations in past years. The DHCR has also issued 11,300 notices to building owners who missed the deadline, urging them to comply with the new regulations.

While the majority of rent-stabilized property owners have complied with the new registration requirements, some discrepancies remain. The Community Housing Improvement Program (CHIP) has reported that some delinquent notices were sent in error, citing non-existent units. These errors are expected to be resolved promptly with DHCR.

One of the most pressing issues uncovered by investigative reporting was the shrinkage of the state's rent-regulated apartment roster, especially after the passage of the Housing Security and Tenant Protection Act in 2019. This legislation closed many of the loopholes landlords had previously used to deregulate apartments. Despite the challenges in enforcing rent regulations, recent efforts indicate a shift towards more stringent oversight and accountability.

The new enforcement measures for registering rent-regulated apartments in New York represent a significant step towards protecting tenants' rights and ensuring that rent stabilization laws are upheld. While there are still challenges to address, the increased registration numbers demonstrate progress. Property owners are now more aware of their responsibilities, and tenants can feel more secure knowing that the state is taking action to safeguard affordable housing.