Property Management

Under New York's rent stabilization law, the 'Individual Apartment Improvement' (IAI) provision (as amended by HSTPA 2019) allows a landlord to:

APermanently raise the rent above the stabilized level for any improvement
BApply for a limited, temporary rent increase after making qualifying improvements to a vacant apartment, subject to a cap of $15,000 in improvements per apartment over a 15-year period✓ Correct
CDeregulate the apartment after spending more than $40,000 on improvements
DCharge the tenant directly for any improvement costing more than $500

Explanation

The HSTPA 2019 dramatically reduced IAI allowances. Landlords may now apply for a rent increase based on IAIs in vacant apartments, but the improvement costs are capped at $15,000 per apartment over a 15-year period (previously unlimited), and the resulting rent increase is a temporary surcharge amortized over a fixed period, not a permanent increase to the base rent.

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