Does section 581-a apply only to residential rental properties that are subject to New York State regulatory agreements?
A. No. DHCR rules provide that section 581-a applies to residential rental properties subject to “any agreement, including but not limited to a contract or covenant, between the property owner(s) and the municipal, state or federal government, or an instrumentality thereof, which requires the property owner(s) to rent at least twenty percent of the residential units to tenants who qualify in accordance with an income test” (9 NYCRR ยง2656.2(b)).
