DHCR late registration notices: what owners must do
DHCR now fines owners for missing rent registrations, on top of the old rule that freezes rent until you file.
What the notice means
Every rent-stabilized apartment must be registered with DHCR each year. The registration reports the apartment's status as of April 1 and is due by July 31. A building that newly becomes subject to rent stabilization must file initial registrations within 90 days.
A late registration notice means DHCR's records show apartments that should have been registered and were not. The notice usually states a response deadline and the penalty already accrued.
The two consequences
The fine. Since 2023 the Rent Stabilization Law authorizes DHCR to impose a civil penalty of $500 for each unregistered apartment for each month the registration is late. An 8-unit building that is six months late faces up to $24,000.
The rent freeze. Until a proper registration is filed, the owner cannot collect more than the legal regulated rent shown on the last registration filed, or, if none was ever filed, the rent in effect when the apartment became subject to registration. Filing late lifts the freeze going forward. Where the rents collected were otherwise lawful, a late filing generally means the owner is not found to have overcharged for the unregistered period. If the late filing comes after a tenant has filed an overcharge complaint, DHCR adds a late-filing surcharge.
Decide the building's status before you file
A registration is a statement to DHCR about what the building is and what each apartment rents for. If you believe the building or some apartments are exempt, for example after a substantial rehabilitation, filing a registration that lists them as stabilized works against that position. Decide the status question first. If the answer is that the building is stabilized, register it. If the answer is that it is exempt, DHCR will expect you to prove it.
New owners
If you bought the building after April 1 and the prior owner did not file that year's registration, the filing is yours. Owners must also file DHCR Form RA-44 to report a change in ownership. Missing years from before your purchase still show up as gaps in the building's history, and DHCR will treat them as the building's problem, not the prior owner's.
What to gather
- The DHCR notice and any earlier DHCR correspondence
- The building's DHCR registration history, by apartment
- Every current lease and renewal, and the rent ledger for each apartment since the last registration
- Your deed, and for new owners the closing date
Have Evan review it
Send the DHCR notice, your registration history, and the current leases. I will tell you what has to be filed, at what rents, and whether the building's status needs to be decided first.
Flat fee, quoted in writing before any work begins. Written memo delivered on a fixed date.