Westchester County Rent Stabilization Outside NYC — ETPA Coverage & RSC Rules (2026)

What Is ETPA and Why Does It Apply in Westchester?

The Emergency Tenant Protection Act (ETPA) is not just a New York City regulation. New York State passed ETPA on June 1, 1974, and it applies statewide to certain residential buildings — including those in Westchester County, suburban Rockland County, and other upstate municipalities.

Under ETPA § 223 (NY Real Property Law Article 8), any building with four or more apartments that was built before January 1, 1974 falls under rent stabilization unless a specific exemption applies. The location doesn't matter: Yonkers, New Rochelle, Mount Vernon, White Plains — if the building predates 1974 and has 4+ units, ETPA likely governs.

This creates a major compliance trap for Westchester self-managing landlords who assume rent stabilization only applies to New York City. A 1970s garden apartment complex in Yonkers with 8 units has zero discretion over rent increases. A landlord who raises rent 5% on an ETPA-covered unit when the 2026 board-approved increase was 1.5% has just created rent overcharge liability.

The Rent Stabilization Code (RSC) vs. ETPA: What's the Difference?

The Rent Stabilization Code (RSC) is the regulation that implements ETPA. The RSC contains the detailed rules: registration requirements, lease forms, vacancy bonuses, succession rights, and the dispute resolution process. ETPA is the enabling statute; RSC is the operational framework.

For Westchester landlords, the distinction matters because:

• ETPA sets the legal baseline (pre-1974 buildings with 4+ units are covered).
• RSC § 2520.1 et seq. defines exemptions, registration deadlines, and penalties.
• The Westchester County Rent Guidelines Board (not the state) sets annual increase percentages for non-NYC areas under ETPA.
• The Department of Housing and Community Renewal (DHCR) enforces both statewide.

Non-compliance penalties are severe: DHCR can impose fines up to $1,000 per violation (RSC § 2520.7), and tenants can sue for treble damages in housing court (Real Property Law § 27-2008).

ETPA Coverage: Which Westchester Buildings Are Regulated?

The Four-Part Test for ETPA Applicability

Before you can claim an exemption, confirm whether your building is actually covered. Use this checklist:

1. Building completion date: Was the building completed (Certificate of Occupancy issued) before January 1, 1974?
2. Unit count: Does the building contain four or more residential units?
3. Location: Is the building in New York State outside areas explicitly exempted (primarily NYC, though some NYC buildings have limited ETPA coverage)?
4. Use: Are the units rented to residential tenants (not commercial or office space)?

If the answer to all four questions is yes, ETPA applies — even if no tenant has ever invoked it and even if the building has never been registered.

A 6-unit complex built in 1972 in New Rochelle? Covered. A 4-unit house converted to apartments in 1968 in Westchester? Covered. A 10-unit building in Mount Vernon built in 1975? Not covered (too new).

Critical ETPA Exemptions for Westchester

ETPA has several narrow exemptions codified in RSC § 2520.6. If your Westchester building qualifies for one of these, it is not covered by rent stabilization:

1. Six-Unit or Fewer Building Exemption

Buildings with six residential units or fewer are exempt from ETPA coverage (RSC § 2520.6(b)). This is the most common exemption for small Westchester landlords.

Critical caveat: All units must be residential. If you have a ground-floor commercial space and five residential units above, you likely exceed the exemption threshold depending on how the building was initially classified. Shared utility meters also matter: DHCR counts each separately metered residential unit.

Documentation requirement: Keep your Certificate of Occupancy and current deed showing unit count. If a tenant disputes the exemption, you'll need to prove the building never exceeded six units during ETPA's application period.

2. Owner-Occupied Building Exemption

If you, the owner, occupy one unit in the building as your primary residence, the building may be exempt (RSC § 2520.6(c)) — but only if the building has no more than four residential units total.

Example: A 3-unit house in Scarsdale where you live in one unit and rent two others is exempt. A 5-unit building even if you occupy one unit is not exempt.

Compliance trap: You must occupy the unit continuously. If you move out and rent your unit to a tenant, the exemption is lost retroactively, and ETPA coverage applies to all units going forward (with treble damages possible for prior overcharges).

3. Post-January 1, 1974 Construction Exemption

Any residential building completed after December 31, 1973 is exempt from ETPA, period. This is absolute and does not depend on unit count.

Proof required: Certificate of Occupancy date, construction permits, or tax assessment records showing year built. DHCR will challenge any borderline cases (e.g., buildings with renovation permits or gut-rehabs).

4. Mitchell-Lama and Other Subsidized Housing

Buildings constructed under the Mitchell-Lama program, public housing, or certain state/federal subsidized programs have limited or no ETPA coverage. However, this exemption is narrower than it appears — most converted or refinanced buildings regain ETPA coverage.

Action item: If your Westchester building received state or federal financing before 1974, contact DHCR's Westchester office to verify current status. Do not assume you're exempt.

Rent Increase Limits: The Westchester County Rent Guidelines Board

Who Sets Increases for ETPA Buildings Outside NYC?

The Westchester County Rent Guidelines Board, established under Real Property Law § 231, sets the maximum annual rent increase percentages for ETPA-covered buildings in Westchester and surrounding counties (outside the NYC Rent Guidelines Board's jurisdiction).

The board publishes approved increases each year, typically in June/July for leases beginning September through August. Landlords must comply with these percentages or face rent overcharge liability.

2026 Rent Increase Guidelines for Westchester

As of September 2026, the Westchester County Rent Guidelines Board has set these approved increases for lease renewals:

Lease Term	2026 Approved Increase	Effective Date Range
1-Year Renewal	1.5%	Sept. 2026 – Aug. 2027
2-Year Renewal	2.75%	Sept. 2026 – Aug. 2028
Preferential Rent Increase	Available (see § 2520.6(c))	Subject to individual case review

Important: These are the maximum increases you are permitted to charge. You may increase rent by a lower percentage, but exceeding the board's approved amount is a rent overcharge violation, even if the tenant agrees to the higher increase.

What Happens If You Exceed the Approved Increase?

Charging more than the board-approved percentage triggers rent overcharge liability under Real Property Law § 27-2008. The consequences are harsh:

• Treble damages: The tenant recovers three times the amount overcharged.
• Interest: 9% per annum on the overcharge amount from the date of overcharge.
• Attorney fees: If the tenant wins, you pay their attorney fees and court costs.
• 4-year lookback: Tenants can pursue overcharges going back four years from the complaint filing date (RSC § 2521.1).

Concrete example: You increase rent by 4% (exceeding the 1.5% board limit) on a $1,500/month ETPA unit in January 2026. The overcharge is $45/month. Over 12 months, the overcharge totals $540. The tenant sues in April 2026. You owe: $540 × 3 = $1,620 in damages, plus interest ($45 × 9% = $4.05 for first month), plus their attorney's fees (typically $800–2,000+ in housing court). Your $45/month "extra" income just cost you $2,500+.

RSC Registration: Mandatory, Optional, and the Compliance Trap

Is Registration Required for Westchester ETPA Buildings?

Registration of ETPA buildings with the DHCR is technically optional under RSC § 2520.6. However, "optional" is misleading for compliance purposes.

What the statute says: Failure to register does not void ETPA protection or exempt you from compliance (RSC § 2520.6(f)). A tenant can still invoke rent stabilization rights even if the building was never registered.

What actually happens: If you don't register and a tenant files a rent overcharge complaint, the DHCR or housing court will assume the building is ETPA-covered and require you to prove an exemption. If you cannot produce exemption documentation, you lose.

The "Good Faith" Defense

RSC § 2521.1 allows a landlord to assert a "good faith" defense to rent overcharge claims only if the building was registered before the alleged overcharge occurred. Good faith reduces damages from treble to single damages.

In practice: If your Westchester building is registered and you made a good-faith error in calculating increases (e.g., you misread the board's notice), you owe single damages instead of treble. Without registration, treble damages apply automatically.

Cost-benefit: Registration is free (online via DHCR's portal) and takes 15 minutes. The potential savings in a single overcharge dispute ($1,500+) make registration mandatory from a risk-management standpoint, even though it's technically optional.

How to Register Your Westchester Building

1. Visit www.dhcr.ny.gov and navigate to the Rent Stabilization Registration portal.
2. Create an account with your SSN or EIN.
3. Enter building address, unit count, and certificate of occupancy date.
4. Submit the registration (no fee).
5. DHCR will issue a registration number and confirmation.
6. Keep this confirmation in your compliance file indefinitely.
7. Re-register annually (deadline varies; check DHCR notices).

Annual re-registration must include: current owner information, unit count, number of units occupied by owner, and any changes in building status. Failure to re-register can result in DHCR penalties ($500–$1,000 per year) and loss of the good-faith defense.

Lease Forms and Lease Riders: RSC Compliance Requirements

What Lease Language Is Required?

All leases for ETPA-covered units in Westchester must include specific language notifying the tenant of their rent stabilization rights. This is not optional; it's a statutory requirement (RSC § 2520.6(g)).

The lease must disclose:

• That the unit is subject to rent stabilization.
• The current legal regulated rent (not preferential rent).
• The maximum allowable increase for renewal leases.
• The tenant's right to a succession lease (if applicable).
• Contact information for DHCR tenant complaint hotline.
• Reference to RSC § 2520.1 et seq.

Consequence of non-compliant lease: If your lease omits required disclosures, a tenant can file a "lease violation" complaint with DHCR. DHCR will issue a violation notice, and you'll be forced to re-lease the unit with proper language. If the tenant disputes any increase, the omission strengthens their overcharge claim.

Lease Renewal and the Offer Requirement

When an ETPA lease expires, you must offer the tenant a renewal lease before the lease end date (RSC § 2521.6). The renewal offer must include:

• New lease term (1-year or 2-year).
• New rent amount (within board-approved limits).
• Updated lease rider with current board guidelines.
• 30-day notice before the current lease expires (for 1-year renewal) or 60-day notice (for 2-year renewal).

If you fail to offer renewal: The tenant's lease is automatically converted to month-to-month with rent frozen at the last lease rate. You cannot unilaterally increase rent beyond the frozen amount. To break the tenancy, you must file for non-payment only (after 14 days of non-payment).

Deregulation and High-Rent Exemptions: 2023 Changes Affecting Westchester

What Is Rent Deregulation?

Deregulation removes an ETPA unit from rent stabilization permanently, freeing the landlord from board-approved increase limits. Westchester has three deregulation pathways:

1. Individual Unit Deregulation (IUD) — Income-Based

If a tenant's household income exceeds $203,000 (as of 2026), and the legal regulated rent reaches $2,700/month or more, the unit can be deregulated effective on the next lease renewal or lease expiration (RSC § 2520.6(d)).

2023 change: Previously, high-income deregulation was permanent. Now, under the Housing Stability and Community Renewal Act (passed 2023), deregulation suspends on vacancy. If the high-income tenant moves out, the next tenant gets a new ETPA unit at initial rent (not market rate).

Compliance requirement: Before deregulating a unit, you must obtain:

• Income certification form completed and signed by the tenant.
• Documentation of household income (tax returns, pay stubs, etc.).
• Proof that the legal regulated rent threshold ($2,700+) is met.
• Notice to tenant of pending deregulation 30 days before lease expiration.

Keep all income certification files for 4+ years. If a tenant later disputes deregulation, DHCR will request these documents. Incomplete files result in the unit remaining stabilized and potential overcharge liability.

2. Building-Wide Deregulation (if rents exceed $2,700)

Once all units in a building reach the $2,700 legal regulated rent threshold, the entire building can be deregulated. This is rare in Westchester but possible in high-cost areas near Westchester's southern border.

Do Not Rely on Deregulation Without Documentation

A common Westchester landlord error: assuming a unit is deregulated based on market rate or prior owner statements. If you cannot produce income certification or rent history, a tenant can challenge deregulation status and claim overcharge liability going back four years.

Example: You inherited a Westchester building. The prior owner told you three units were "deregulated." A new tenant challenges this. You cannot locate income docs from the previous tenant. DHCR rules the unit is still stabilized, and you owe treble damages on any rent increases above board limits paid by the current tenant. Your $1,000+ monthly "extra" income now costs $15,000+ in liability.

Succession Rights and Occupant Protections

Who Has Succession Rights in ETPA Units?

If the tenant vacates or passes away, certain family members or occupants have the right to continue the lease at the same rent (with board-approved increases). This is not the same as a traditional lease assignment.

Succession rights apply to:

• Family members (spouse, children, parents, grandparents, siblings) who lived in the unit as primary residence for 2+ years.
• Certain non-related occupants (unmarried partners, roommates) who meet specific criteria under RSC § 2523.5.

Your obligation: You cannot prohibit succession by contract, refuse to recognize a successor, or increase rent beyond board limits. If you try to evict a successor without legal cause, the tenant can sue for illegal eviction damages.

Westchester-specific trap: Many Westchester landlords learn about a successor occupant only when the original tenant moves out. By then, it's too late to object. If you want to challenge succession, you must do so within 10 days of being notified (RSC § 2523.6).

Best practice: When a lease is active, ask in writing whether any occupants live in the unit and their relationships to the tenant. Keep responses on file. If a succession claim arises, you'll have documentation to challenge it if the person doesn't meet criteria.

Enforcement: DHCR Penalties and Tenant Remedies in Westchester

DHCR Violations and Fines

The Department of Housing and Community Renewal can fine Westchester landlords for:

Violation Type	Penalty Range	Example
Failure to register building	$500–$1,000 per year	Unregistered building discovered in compliance audit
Illegal lease language	$500–$1,500 per lease	Lease missing RSC disclosures
Failure to offer renewal	$1,000–$2,000 per unit	Non-renewal resulting in month-to-month conversion
Retaliatory conduct	$2,500–$5,000 plus damages	Evicting tenant after they file DHCR complaint
Rent overcharge	Treble damages (3x overcharge) + 9% interest + attorney fees	$500/mo overcharge × 12 months = $1,620 treble + fees

Tenant's Right to Sue for Treble Damages

A tenant can file a "rent overcharge" complaint directly with DHCR or sue in housing court without filing with DHCR first. The tenant does not need a lawyer to file; many pro bono clinics help Westchester tenants prepare overcharge claims.

Statute of limitations: 4 years from the date the overcharge occurred (RSC § 2521.1). If a tenant was overcharged in September 2022, they have until September 2026 to file. As of September 2026, any September 2022 overcharges are about to age out.

Your rights in an overcharge case: You can assert the good-faith defense (single damages instead of treble) if the building was registered and you can show reasonable reliance on DHCR guidance. You cannot assert good faith if you knowingly violated board limits.

Westchester Compliance Checklist for Self-Managing Landlords

Use this checklist to ensure your Westchester ETPA building is compliant:

Annual Compliance Tasks (September–December)

• ☐ Confirm new board-approved rent increase percentages (published by Westchester County Rent Guidelines Board).
• ☐ Calculate maximum allowable rent for all lease renewals coming 60+ days ahead.
• ☐ Send lease renewal offers 60+ days before expiration (RSC § 2521.6).
• ☐ Include new lease rider with updated board guidelines and legal rent disclosure.
• ☐ Review all active leases for required RSC language; amend any deficient leases immediately.

Building Registration Tasks (Ongoing)

• ☐ Verify building was registered with DHCR (check registration number in your records).
• ☐ Re-register annually before DHCR deadline (typically January–March).
• ☐ Update registration if unit count or owner information changes.
• ☐ Keep all registration confirmations in a compliance file.

Lease Management Tasks (Ongoing)

• ☐ All new leases include RSC disclosures: rent stabilization status, legal rent, maximum increase, DHCR contact info.
• ☐ Maintain a spreadsheet: unit, current tenant, lease expiration, last increase amount, next max increase.
• ☐ Calculate renewal rents using board percentages; document calculation for each unit.
• ☐ Store copies of board notices and lease riders in building file for 6+ years.

Deregulation and Income Compliance (if applicable)

• ☐ Obtain income certification forms for any units at or above $2,700 legal rent threshold.
• ☐ Verify household income against current thresholds ($203,000 for 2026).
• ☐ File deregulation notice 30+ days before lease expiration if income and rent thresholds met.
• ☐ Keep income docs and deregulation notices for minimum 4 years.
• ☐ On tenant vacancy, confirm deregulation status; if in doubt, treat unit as stabilized for next tenant.

Succession and Occupancy Tasks

• ☐ Ask tenants annually in writing: Are there other occupants in the unit? What are their relationships?
• ☐ Keep responses on file.
• ☐ If a tenant gives notice to vacate, ask about potential successors within 7 days.
• ☐ If a successor claim is made, verify their occupancy duration (2+ years) and relationship within 10 days.
• ☐ Document any rejections of succession claims in writing with legal reasons.

Documentation and Record Retention

• ☐ Building certificate of occupancy (proves pre-1974 status).
• ☐ Current unit count and ownership documentation (for exemption proof).
• ☐ DHCR registration number and confirmation letters.
• ☐ Copies of all board guidelines notices (2023–present).
• ☐ All active and expired leases with RSC riders.
• ☐ Income certification documents (if applicable).
• ☐ Rent increase calculations for each unit and lease renewal (show board percentage applied).
• ☐ Tenant succession claims and your responses.
• ☐ Any DHCR correspondence or tenant complaints.

Practical Scenarios: Westchester Rent Stabilization in Action

Scenario 1: The Inherited Building Problem

Situation: You inherit a 6-unit apartment building in Yonkers, built in 1968. The prior owner never registered it with DHCR. A tenant demands a rent reduction, claiming the building is ETPA-covered and their rent was overcharged by $200/month for the past 2 years.

Analysis: The building meets all ETPA criteria: pre-1974 (1968), 6 units, Westchester County. However, the 6-unit threshold exempts buildings with exactly 6 units or fewer. You can claim the exemption — but only if you can prove the building has never had more than 6 units. If the tenant counters that it was once subdivided into 7 units, you lose the exemption.

Compliance response:

1. Request a copy of the Certificate of Occupancy from the Town of Yonkers showing original unit count.
2. If COO shows 6 units, you have a defensible exemption claim. Notify DHCR of the exemption in writing.
3. If COO shows 7+ units or is unavailable, the building is likely ETPA-covered. You owe the overcharge and face treble damages ($1,200 + interest + attorney fees).
4. Register the building immediately (even if you believe it's exempt) to preserve the good-faith defense for future disputes.

Scenario 2: The Rent Increase That Cost You $10,000

Situation: You own a 12-unit ETPA building in New Rochelle. In February 2026, you increase rent by 3