Update: DHCR Revises Good Cause Eviction Law Notice

Dear Clients:

We are writing to provide an important update to our July 16, 2026 email wherein we advised you that DHCR issued its annual notice (the “Annual Notice”) required under the Good Cause Eviction Law (“GCE”) setting forth the permitted percentage rent increase and fair market rent exemption thresholds.

When DHCR initially posted the Annual Notice in mid-July, the notice stated DHCR had determined that the Consumer Price Index percentage in New York City is 3.38%, resulting in a new Local Rent Standard in New York City of 8.38%, and set 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 and indicated that this determination was made “as of May 4, 2026.” The reference to the May 4, 2026 date created uncertainty regarding the potential retroactive application of the updated figures.

DHCR has now removed the prior notice and issued a revised Annual Notice. The revised Annual Notice states that it was “initially posted on DHCR’s website on July 16, 2026” and “revised and reposted to identify the initial posting date on August 17, 2026.” This revision clarifies when the updated GCE figures were initially posted and addresses the ambiguity with respect to the period between May 4 and July 16, 2026.

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