I'm not sure what you are referring to, but New York definitely has two levels of rent pricing controls: rent control and rent stabilization. With rent control

I'm not sure what you are referring to, but New York definitely has two levels of rent pricing controls: rent control and rent stabilization. With rent control, the rent never increases, it is fixed for the duration of tenancy, and can even be handed down (once) to a family member. Once that tenant or their heir vacates the apartment, then the rent goes to market rate with no further regulation. With rent stabilization, the city sets an annual percentage increase for the rent, which is typically not as high as the market-rate appreciation rate. When a tenant moves out, the landlord can raise the rent by a vacancy allowance, as well as an adder of 1/40th of any improvements made to the unit. Once the annual rent exceeds $2,500 per month, the unit is considered market-rate, and becomes unregulated (however, regulation continues until the current tenant moves out). SOURCE: I was a landlord in NYC. In my building, I had one rent-controlled unit occupied by a senior citizen who never paid rent (she needed the $100/mo more than I did), and 80% of the other units were rent-stabilized.