FACT SHEET #5: IN DETAIL
When a person rents a rent stabilized apartment of affordable housing properties to collect
for the first time, the owner and the tenant sign a actual rents that are higher than legal rents, if
VACANCY LEASE. This written lease is a contract the following two conditions are met: a state or
between the owner and the tenant which states municipal agency or other statutorily designated
the terms and conditions of the lease, including party must issue specific approval in a regulatory
the length of the lease, and the rights and agreement, either new or amended, and a
responsibilities of the tenant and the owner. The government program provides rental assistance to
Rent Stabilization Law gives the new tenant, also the apartment. See DHCR Notice RA-LR3 for more
called the vacancy lease tenant, the choice of a details. Often rental assistance may be provided to
one or two-year lease term. owners without an overarching state or municipal
regulatory agreement for the development.
The Housing Stability and Tenant Protection Act In addition, a regulatory agreement may not
(HSTPA) of 2019 effective June 14, 2019 eliminated specifically authorize these higher rents with
the statutory vacancy rate and does not permit respect to all or certain types of rental assistance.
Rent Guidelines Boards to establish a separate Neither of these circumstances establish that an
vacancy rate. Changes to the rent regulations actual rent higher than the legal stabilized rent
effective November 8, 2023 further clarify that can be charged. Owners should be aware that for
the Rent Guidelines Board one or two year lease example, FHEPS or individual section 8 housing
guidelines adjustments shall be applicable to both choice vouchers may not always qualify for an
vacancy and