New Good Cause Eviction Law Notice Issued by DHCR

DHCR has issued its annual notice (the “Annual Notice”) under the Good Cause Eviction Law (“GCE”) setting forth the permitted percentage rent increase and fair market rent exemption thresholds, linked here Good Cause Eviction Law Required DHCR Notice.

The Annual Notice specifies the Consumer Price Index (“CPI”) percentage which is used to calculate the threshold for presumptively unreasonable rent increases.

The Annual Notice states that “as of May 4, 2026”, DHCR has determined that the CPI percentage in New York City is 3.38%, resulting in a new Local Rent Standard in New York City of 8.38%. Any rent increase above 8.38% will be deemed presumptively unreasonable. This new Local Rent Standard is lower than the prior standard of 8.79%.

The Annual Notice also sets forth new high rent thresholds, broken down by bedroom size, pursuant to DHCR’s interpretation of the statute’s 245% HUD FMR exemption from GCE. The amounts are higher in New York City than DHCR’s previous figures, which will result in fewer exemptions.

If you have any questions about GCE or the Annual Notice, or how the Annual Notice may be applied to pending lease offers or litigation in light of the facially retroactive effective date, please reach out to members Deborah E. Riegel or Zachary J. Rothken, who authored the above, or your trusted R&E attorney.