Rent regulations come in two forms namely, rent-controlled and rent-stabilized. Some of the people are confused over the two terminologies.

There is a difference between rent control and rent stabilization. Rent control has a different set of regulations than rent stabilization. Also, There are only about 50,000 rent controlled units exist against more than one million stabilized units.

The term "rent regulated" encompasses both rent controlled and rent stabilized units. The Rent Guidelines Board has the responsibility for setting rent adjustments for rent stabilized apartments. It has no jurisdiction over rent controlled apartments. This is the responsibility of the NY State Division of Housing and Community Renewal (DHCR).

Rent Control:

The rent control program generally applies to residential buildings constructed before February 1947 in municipalities that have not declared an end to the postwar rental housing emergency. A total of 51 municipalities have rent control, including New York City, Albany, Buffalo and various cities, towns, and villages in Albany, Erie, Nassau, Rensselaer, Schenectady and Westchester counties.

For an apartment to be under rent control, the tenant (or their lawful successor such as a family member, spouse, or adult lifetime partner) must have been living in that apartment continuously since before July 1, 1971. When a rent controlled apartment becomes vacant, it either becomes rent stabilized, or, if it is in a building with fewer than six units, it is generally removed from regulation.

An apartment in a one- or two-family house must have a tenant in continuous occupancy since April 1, 1953 in order to be subject to rent control. Once it is vacated after that date, it is no longer subject to regulation. Previously controlled apartments may have been decontrolled on various other grounds. On rare occasion, a decontrolled apartment is ordered back under rent control as a penalty for certain violations of the rent laws.

Rent control covers about 50,000 apartments occupied largely by an elderly, low income population who have been in occupancy since July 1, 1971 or by their lawful successors. Apartments under rent control become decontrolled upon vacancy. If the apartment is in a building with six or more units it will generally fall under rent stabilization upon vacancy. If in a building with five or fewer apartments it will "go to market," that is, leave rent regulation and become a market-rate rental. Even if the apartment is in a building with six or more units, and it rents for more than $2,000 it will be fully deregulated. Whether or not the legal rent has surpassed this $2,000 threshold may be determined in what is known as a Fair Market Rent Appeal.

Rent Stabilization:

In NYC, rent stabilized apartments are those apartments in buildings of six or more units built between February 1, 1947 and January 1, 1974.
Tenants in buildings of six or more units built before February 1, 1947 and who moved in after June 30, 1971 are also covered by rent stabilization.
A third category of rent stabilized apartments covers buildings with three or more apartments constructed or extensively renovated since 1974 with special tax benefits. Generally, these buildings are stabilized only while the tax benefits continue.

New York City has a system of rent regulation known as "rent stabilization." The system was enacted in 1969 when rents were rising sharply in many post-war buildings. The system has been extended and amended frequently, and now about 1 million apartments in the City are covered by rent stabilization. Rent stabilized tenants are protected from sharp increases in rent and have the right to renew their leases. The Rent Guidelines Board sets the allowable percentage increase for renewal leases each year.

Exception:
There are numerous exceptions to both of these general categories. For example, if the legal rent exceeded $2,000 following a vacancy the unit may be deregulated. Or, if the unit was in a building converted to a co-op it may be deregulated upon vacancy.