NY A05634

Increases the net annual return threshold from 6% to 8.5% of property valuation for hardship allowance eligibility under New York City rent control laws.

Establishes an alternative hardship application process allowing owners of buildings acquired by the same owner or related entity at least three years prior to application to seek rent increases exceeding guideline levels.

Defines net annual return as earned income minus operating expenses (excluding mortgage interest, amortization, and obsolescence allowances, but including 2% depreciation or actual federal tax depreciation, whichever is lower).

Applies alternative hardship provisions to both the administrative code rent stabilization law and the emergency tenant protection act of 1974.

Takes effect immediately, with amendments expiring when the respective rent control statutes expire.