NY A07527

Increases the net annual return threshold for rent-controlled property hardship applications from 6% to 8.5% of the property's assessed valuation

Creates an alternative hardship allowance for building owners who have owned the property (or a related entity with the same principals) for at least three years prior to application

Allows eligible owners to apply to the State Division of Housing and Community Renewal for rent increases above guideline levels when standard increases are insufficient to maintain an 8.5% net annual return

Defines net annual return as earned income minus operating expenses, excluding mortgage interest, amortization, obsolescence allowances, and reserves, but including a depreciation allowance of 2% of building value or the federal tax return depreciation amount (whichever is lower)

Applies to both rent-controlled units under the city rent and rehabilitation law and rent-stabilized units under the Emergency Tenant Protection Act of 1974