NYC rent stabilization applies to buildings built before:
Audio Lesson
Duration: 2:55
Question & Answer
Review the question and all answer choices
1947
Option A (1947) is incorrect because this predates the major expansion of rent stabilization laws. While some protections existed earlier, the 1947 cutoff is too early and doesn't reflect the current application of rent stabilization.
1974
1990
Option C (1990) is incorrect because buildings constructed after 1974 but before 1994 may be subject to rent stabilization if they received tax benefits, but the general cutoff for pre-existing buildings remains 1974.
2000
Option D (2000) is incorrect because this is too recent. Buildings constructed after 1974 have different rules, and post-2000 construction is generally not subject to rent stabilization unless specific conditions apply.
Why is this correct?
Answer B is correct because NYC rent stabilization laws were significantly expanded in 1974 to cover more buildings. Buildings constructed before this date with 6+ units are generally subject to rent stabilization, making this the accurate cutoff date for this regulatory framework.
Deep Analysis
AI-powered in-depth explanation of this concept
Understanding NYC rent stabilization is crucial for real estate professionals working in New York City, as it directly impacts property values, investment strategies, and tenant relations. This question tests knowledge of the historical cutoff for buildings subject to rent stabilization laws. The core concept is that rent stabilization generally applies to buildings with 6+ units built before 1974. To arrive at the correct answer, one must recognize that rent stabilization was established in the 1960s and expanded over time, with the 1974 cutoff representing a significant expansion of the program. This question is challenging because rent stabilization laws have changed multiple times over the decades, creating potential confusion about which buildings are covered. The concept connects to broader real estate knowledge about government intervention in housing markets, tenant protection laws, and property valuation methods.
Knowledge Background
Essential context and foundational knowledge
Rent stabilization in NYC originated in the 1960s as a response to housing shortages and rising rents. The system was designed to protect tenants from excessive rent increases while providing landlords with a fair return on their investments. The 1974 expansion significantly increased the number of buildings covered by these regulations. Understanding these historical cutoff dates is essential because they determine which properties fall under rent stabilization, which affects rental rates, property management practices, and investment decisions.
Think of NYC rent stabilization like a 'historical museum' - only buildings constructed before the '1974 wing' was added are included in the main exhibit.
When you see a question about rent stabilization eligibility, visualize this museum with 1974 as the dividing line between the old and new sections.
For rent stabilization questions, remember the key cutoff date: '74 is for rent stabilization. Buildings with 6+ units before this date are generally covered.
Real World Application
How this concept applies in actual real estate practice
A real estate agent shows a 12-unit brownstone in Greenwich Village to potential investors. The property was built in 1968. The agent must inform investors that this building is subject to rent stabilization laws, which limit how much they can increase rents annually. If the building had been built in 1975, it would not be subject to these restrictions, potentially making it a more valuable investment. Understanding this cutoff date helps the agent provide accurate investment advice and comply with disclosure requirements.
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