N.Y.C. Admin. Code tit. 26, ch. 4 § 26-507
Application to certain multiple dwellings purchased from the city (New York City Rent Stabilization Law of 1969)
Operative Text
a. Notwithstanding the provisions of any local law or regulation promulgated pursuant to the rent stabilization law of nineteen hundred sixty-nine or the emergency tenant protection act of nineteen seventy-four, upon the sale in any manner authorized by law of a multiple dwelling which was previously subject to the provisions of any such laws or acts which was acquired by the city in a tax foreclosure proceeding or pursuant to article nineteen-A of the real property actions and proceedings law, all dwelling units within the multiple dwelling shall be subject to the rent stabilization law of nineteen hundred sixty-nine, as amended, at the last rent charged by the city, or on behalf of the city, for such dwelling unit. b. If a unit which was subject to this chapter at the time the city so acquired title is occupied by a tenant who was in occupancy at the time of acquisition and remains in occupancy at the time of sale, such tenant shall be offered a one or two year lease at the rent provided in this section as soon as practical at the sale of the multiple dwelling. c. This section shall not apply to redemptions from city ownership pursuant to chapter four of title eleven of the code.
Under N.Y.C. Admin. Code § 26-507, when New York City sells a multiple dwelling it acquired through tax foreclosure or a related legal proceeding, every apartment in that building automatically becomes subject to rent stabilization. The starting rent for each unit is set at whatever rent the city (or its agent) was last charging for that unit. This rule applies regardless of whether the building was previously covered by rent stabilization or the Emergency Tenant Protection Act, effectively resetting the regulatory status of the property at the moment of sale.
Plain English — not legal advice.
Operators who purchase a multiple dwelling from New York City under the circumstances described in § 26-507 must register and treat all units as rent-stabilized from the date of acquisition, using the city's last-charged rent as the legal regulated rent. For any tenant who was in occupancy when the city took title and remains in the building at the time of sale, § 26-507(b) requires that a one- or two-year lease at the stabilized rent be offered as soon as practicable after the sale closes. Compliant operators typically document the city's last-charged rent for each unit before closing and prepare lease offers in advance to meet this obligation promptly.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Under § 26-507, tenants who were living in a building when the city acquired it through tax foreclosure and who remain there at the time the city sells the building have a specific right: they must be offered a one- or two-year lease at the rent stabilization rate established by the city's last-charged rent. If a new owner fails to provide this lease offer, tenants may raise this as a violation before the New York City Department of Housing Preservation and Development or the New York State Division of Housing and Community Renewal, or consult a tenant-rights organization familiar with rent stabilization proceedings. Tenants in buildings redeemed from city ownership under Chapter 4 of Title 11 of the Administrative Code should be aware that § 26-507(c) explicitly excludes those situations from this provision's protections.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated October 14, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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