Key Legal Updates for NYC Property Owners 

NYC Rent Guidelines Board Lowers Proposed Rent Hikes for Two-Year Leases

In a rare revote on May 27, the NYC Rent Guidelines Board reduced its proposed rent increase range for two-year leases in rent-stabilized apartments from 4.75%–7.75% to 3.75%–7.75%, following strong public and political criticism. The proposed range for one-year leases remains unchanged at 1.75%–4.75%.

A final vote will take place on June 27, 2025, following additional public hearings. Property owners should prepare now by reviewing lease renewal timelines and rent increase strategies.

Court Ruling Calls Lease Legal Fee Clauses Into Question

Separately, a recent appellate decision has cast doubt on the enforceability of broad attorney fee provisions in proprietary leases. The court found that certain vague or expansive clauses may not be upheld, potentially affecting co-op owners and sponsors.

If you manage rent-stabilized or co-op units, now is the time to review your lease language and renewal strategies. Our team at KMWB is here to help you navigate these evolving developments.

See decision here.