new york penal law 180 56 rent gouging in the second degree

Hey friend! If you’re a New York landlord dealing with charges under Penal Law 180.56 for rent gouging in the second degree, I understand your concern. But don’t stress! This article will explain the law, penalties, and possible defenses so you know how to protect your rights. I’m here to educate and support you.

What is Rent Gouging in New York?

Rent gouging laws prohibit landlords from improperly influencing renters to pay inflated or unreasonable rents[1]. Under NY Penal Law 180.56, second degree rent gouging involves[2]:

• Soliciting, accepting, or agreeing to inflated rent payments
• Making false or misleading statements to persuade renters
• Using other tactics like harassment, threats, or retaliation

The key is landlords can’t use illegal methods to pressure tenants into paying excessive rents.

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Legal Scenario: What Would You Do?

Scenario

You own a rent-stabilized apartment building in Manhattan and recently raised rents by 15% after a tenant moved out, believing vacancy decontrol allowed it. Now you've received a criminal complaint alleging you violated New York Penal Law § 180.56 for rent gouging in the second degree.

Can I really face criminal charges just for raising the rent on my own property?

Attorney's Answer

Yes — under New York Penal Law § 180.56, rent gouging in the second degree is a Class A misdemeanor, which means you could face up to one year in jail and fines if convicted. The statute targets landlords who charge rent that exceeds the legal regulated rent by more than the threshold set under the rent stabilization framework. However, there are strong defenses available, including demonstrating that you had a good-faith belief the unit was lawfully deregulated or that the increase was authorized under a Major Capital Improvement (MCI) order from the DHCR. An experienced attorney can challenge the prosecution's evidence on the applicable legal rent calculation and potentially negotiate a dismissal or reduction of the charges.

This is general information only. Contact us for advice specific to your situation.

What Are the Penalties Under Penal Law 180.56?

Rent gouging in the second degree is a Class A misdemeanor in New York[3]. Potential penalties include:

• Up to 1 year in jail
• Fines up to $1,000
• Permanent criminal record