The Rent Freeze Program freezes rent at either the tenant's prior legal rent amount or one-third of the monthly total household income, whichever is greater.
Some landlords charge rent-regulated tenants less than the legal regulated rent amount. This is often referred to as preferential rent.
The tenant's rent will not be frozen at the preferential rent amount unless:
August 2019 Preferential Rent Freeze Policy Update
Under the new rent regulation laws passed in 2019, tenants who have a preferential rent agreement can continue to pay their preferential rent amount for the duration of their tenancy. There is an exception where the building is subject to a regulatory agreement and it receives federal rental assistance.
Changes for leases beginning on or after June 14, 2019:
Landlords
Landlords will see that their tax abatement credits will be based upon the preferential rent amounts. The credit will be the difference between the frozen rent amount and the preferential rent amount.
Applicants
New applicants must provide a prior and current lease that clearly indicate the preferential rent amounts. If the amounts are not listed on your lease, be sure to attach your preferential rent lease riders.
If you are already participating in the program, please do not submit a request for an adjustment until it is time for you to renew. Adjustments to your frozen rent will be reviewed upon your next renewal. If your preferential rent is listed in a separate lease rider provide the rider along with your lease.
Exemptible Increases are covered and paid for by the Rent Freeze Program.
These must be approved by the appropriate State or City agency and include:
Non-Exemptible Increases
Non-Exemptible Increases can’t be considered for an exemption and won't be paid for by the Rent Freeze Program.
These include:
Landlords in the Rent Freeze Program receive a tax abatement credit (TAC) applied to their property tax bill in the same amount as the increase that the tenant is exempted from paying. The TAC is the difference between the preferential rent and the frozen rent amount that the program has calculated for the tenant to pay.
When a Rent Freeze application is approved or renewed, both the building owner or landlord and the tenant will receive an Approval Order which will provide details about what the tenant is responsible for paying, the amount of the TAC, and the exemption period. Your order will also include the tenant's SCRIE or DRIE docket number. Make sure to keep the number for future reference.
The Department of Finance (DOF) maintains an account for participating landlords to track credits and debits. DOF applies credits from the account to offset property taxes. The owner’s property tax bill shows any SCRIE or DRIE credit or debit activity.
Every month, SCRIE or DRIE credits and debits will be posted to the landlord’s account. First, DOF applies credit balances from your account to automatically offset any taxes that are due for the next period. Then if there are any credits left over, DOF automatically offsets any unpaid taxes that are past due. If there are still credits remaining, they will be left in the account to offset potential debit adjustments.
If an account balance falls below zero because of a debit adjustment, DOF will add the debit balance to the next tax period and issue an adjusted property tax bill.
Once the transaction is verified, the landlord will get a confirmation notice that includes tenant ID, exemption period, and transaction identification number for cross-referencing.
You can ask DOF to apply your SCRIE or DRIE credits to a property account or apply for a refund. For information, visit the Property Tax Payment Assistance page.
You can view TAC information online or request a copy by mail.
If you believe the amount of the Tax Abatement Credit (TAC) is incorrect, you can request an adjustment.
Reasons for TAC adjustments include:
You can get the application online or by mail.
If you are a landlord or managing agent participating in the Rent Freeze Program, you can notify DOF if your tenant is ineligible for the benefit.
Tenants may be ineligible due to:
You can get the notification form online or by mail.
Landlords can raise the legal rent in accordance with guidelines put out by the New York City Rent Guidelines Board, Housing Preservation and Development (HPD) or Division of Housing and Community Renewal (HCR).
They must issue valid, current leases to all rent-stabilized tenants, or valid, current HCR-issued rental orders to all rent-controlled tenants. For DRIE Mitchell-Lama tenants, landlords are required to provide a letter specifying the start date and the amount of the rent increase.
By law, the landlord is required to continue a tenant’s SCRIE or DRIE benefit for 180 days (6 months) after the current benefit expires, even if the tenant hasn't renewed yet. The benefit expiration date is the same as the lease expiration date. If the tenant’s renewal application isn't approved, it's the tenant’s responsibility to pay the landlord the difference between the frozen rent amount and the legal rent for the 6-month grace period following the lease expiration.
In general, tenants in rent-stabilized apartments must be offered renewal leases for one or two years. An owner can refuse to renew a lease for several reasons, including:
However, when the owner doesn’t offer the tenant a renewal lease for one of these reasons, the owner must give the tenant written notice of non-renewal by mail or personal delivery 90 to 150 days before the existing lease expires.
You can learn more about the laws for rent stabilized and rent controlled apartments and how to contact HCR for more assistance on the Rent Regulated Apartments page.
Landlords and managers should keep the Department of Finance informed of any changes in the building ownership or management so that Rent Freeze notices and other correspondence can be sent to the correct person.
Fill out and submit a Property Change Form for Managing Agent or Building Owner Information if you want to:
Forms
You can get the form online, in person, or by mail.
Online
Through the Landlord Express Access Portal (LEAP), you can:
Logging In
Get Help
The LEAP User Guide can help you use the system. If you need more help, you can also contact the Department of Finance on their website.
