NYC’s IAI Changes: What You Need to Know
In the ever-evolving landscape of New York City’s real estate market, multifamily investors must stay abreast of regulatory changes that impact their investments, especially considering NYC IAI rules. Part FF of the Budget Legislation brings significant amendments to the Emergency Tenant Protection Act (ETPA) and Rent Stabilization Law (RSL), specifically addressing Individual Apartment Increases (IAIs) for rent-stabilized apartments.
Key Changes to IAIs
The amendment introduces two tiers of IAI increases, each with its own set of criteria and caps on aggregate costs:
Tier One
- Raises the cap on aggregate cost of IAIs to $30,000 over a 15-year period.
- Allows for an unlimited number of separate IAIs within the 15-year period.
- Available for both vacant and occupied apartments with written tenant consent.
- Maximum Tier One IAI increase is $166.67 for buildings with more than 35 apartments and $178.57 for buildings with 35 or fewer apartments.
Tier Two
- Raises the cap on aggregate cost of IAIs to $50,000 over a 15-year period.
- Available only for vacant apartments.
- Requires meeting specific eligibility criteria, including prior certification from DHCR.
- Maximum Tier Two IAI increase is $320.51 for buildings with more than 35 apartments and $347.22 for buildings with 35 or fewer apartments.
Pinpointe Group Can Help Navigate NYC IAI Rules
As NYC’s real estate market continues to evolve, partnering with Pinpointe Group ensures that multifamily investors can confidently navigate regulatory changes and maximize the value of their investments.
Stay informed and stay ahead with Pinpointe Group by your side. Contact us today to learn more about how we can help you manage your multifamily properties in NYC. #NYCRealEstate #IAIRegulations #PinpointeGroup #MultifamilyInvesting
