Regulation Takes Effect to Protect Tenants

ALBANY, NY (11/21/2007)(readMedia)--

"Unique and Peculiar" Loophole Closed to Preserve Affordable Housing Regulation Takes Effect to Protect Tens of Thousands of Tenants in Rent Stabilized Apartment.

The “unique and peculiar” loophole that could have removed tens of thousands of rent stabilized apartments from the State's affordable housing portfolio is closed effective today. Governor Eliot Spitzer took action earlier this year to close the loophole and prevent landlords leaving Mitchell-Lama, or other government-sponsored affordable housing programs, from immediately and drastically increasing rents to market rate.

Deborah VanAmerongen, Commissioner of the Division of Housing & Community Renewal (DHCR) commended Governor Spitzer for his commitment to preserving affordable housing. “If this inequity in the law had not been addressed, right away the rents of 4,400 affordable apartments could have jumped dramatically,” VanAmerongen said.

The unique and peculiar provision allowed landlords to apply for rent increases for apartments with artificially low rents for "unique and peculiar" reasons. For example, if a building manager enjoyed a lower than normal rent as part of his compensation, the landlord could use the unique and peculiar clause to increase the apartment's rent when they were re-rented.

Some landlords, however, attempted to use the loophole in order to bring apartments leaving the Mitchell-Lama or other regulation programs immediately up to market rate, claiming their decision to end their participation in Mitchell-Lama, or other government program, qualifies as unique and peculiar circumstances.

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