NY A04680

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

Creates an alternative hardship application process for building owners who acquired properties through the same owner or related entity within three years prior to application.

Allows owners to apply to the State Division of Housing and Community Renewal for rent increases exceeding guideline levels when 8.5% net annual return cannot be achieved.

Defines net annual return as earned income minus operating expenses (excluding mortgage interest, amortization, and obsolescence allowances, but including depreciation up to 2% of building value).

Applies to both the City Rent and Rehabilitation Law and the Emergency Tenant Protection Act of 1974, with amendments taking effect immediately.