REBNY Introduces a Primary Residence Rider for NYC Landlords

New York City landlords now have a new tool for documenting tenant occupancy under the city’s Non-Primary Residence Property Surcharge, commonly known as the Pied-à-Terre Tax.

The Real Estate Board of New York has created a Primary Residence Rider for use with the REBNY Residential Lease. The rider is designed for situations in which a tenant will use the apartment as a primary residence, potentially allowing the owner to claim an exemption from the surcharge.

The rider could become an important part of the lease file. It is not, however, a substitute for the exemption application or the supporting documents required by the New York City Department of Finance.

What Is the NYC Pied-à-Terre Tax?

The new surcharge applies to certain high value New York City homes that are not used as a primary residence. It began with the fiscal year that started July 1, 2026.

For the 2026 to 2027 and 2027 to 2028 property tax years, the New York City Department of Finance says the surcharge may apply to:

1. Condominium and cooperative units with a Department of Finance market value of $1 million or more.
2. One, two, and three family homes with a Department of Finance market value above $5 million.

The relevant figure is the Department of Finance market value. It is not necessarily the owner’s purchase price, asking price, or estimate of the property’s current resale value.

When Can a Tenant Create an Exemption?

A property will generally not be subject to the surcharge when it is used as the primary residence of a qualifying tenant or subtenant.

For that exemption, the tenant must be a natural person. A corporation, limited liability company, partnership, or other legal entity cannot establish primary residence.

The occupancy must also be supported by a legitimate lease negotiated at arm’s length for a term of at least one year. The city evaluates primary residence as of the applicable taxable status date. For the current rules, that date is generally January 5 in the calendar year immediately before the fiscal year in which the surcharge is applied.

The New York City Tax Commission guidance provides additional detail on primary residence claims and the appeal process.

What Does the REBNY Primary Residence Rider Do?

REBNY created the rider to help owners document that the tenant intends to use the property as a primary residence.

According to guidance REBNY circulated to members, the rider requires the tenant to provide documentation supporting primary residence. It also includes an indemnification provision addressing losses that may result if the tenant fails to use or document the apartment as agreed.

The tenant must sign the rider, and the signature must be notarized.

The rider may be presented when a new lease is signed or when an existing lease is renewed. It is available through NYC Lease, REBNY’s lease platform, with the purchase of a REBNY Residential Lease.

Timing matters. A rider signed after the applicable taxable status date may not, by itself, establish how the apartment was used on that earlier date.

What Documentation May the Owner Need?

The rider is only one part of the paper trail. The Department of Finance may request additional proof showing that the apartment is the tenant’s primary residence.

Its current guidance asks for primary residence documentation such as a recent federal or state tax return, a driver’s license, or another form of identification issued by the Department of Motor Vehicles.

For tenant occupied homes, the city may also request:

1. A copy of the current lease and an additional rental document, such as a utility bill, proof of rent payment, or a renter’s insurance policy.
2. A tenant or subtenant affidavit and two additional rental documents.

Owners should review the city’s complete exemption requirements and documentation list before filing.

Can a Landlord Require the Tenant to Sign?

The rider is a contract term. It requires the tenant’s agreement and signature.

A landlord cannot unilaterally add it to a lease that is already in effect. As the New York Attorney General’s tenant rights guide explains, an existing lease generally cannot be changed unless both parties agree.

If a tenant declines to sign the rider at the beginning of a new lease or during a renewal, the owner should consult legal counsel before deciding how to proceed. The answer may depend on the lease, the property’s regulatory status, fair housing requirements, and other tenant protection laws.

What Should Affected Owners Do Now?

Owners who received a Department of Finance notice should act promptly. The city has extended the current exemption application deadline to September 18, 2026.

An affected owner should:

1. Confirm the Department of Finance market value assigned to the property.
2. Determine whether the unit qualifies for a primary residence exemption.
3. Review the lease term and the identity of the tenant or tenants.
4. Assemble the required occupancy documents.
5. Discuss the REBNY Primary Residence Rider with legal counsel before adding it to a lease or renewal.
6. File any required exemption application by the deadline shown on the Department of Finance notice.

The Bottom Line

The REBNY Primary Residence Rider gives New York City landlords a more structured way to document a tenant based exemption from the Pied à Terre Tax.

It can strengthen the lease file by addressing intended primary residence use, documentation, and responsibility if the tenant does not comply. It does not guarantee that the Department of Finance will approve an exemption.

For owners of potentially affected condominiums, cooperative units, and townhouses, the right approach begins with careful lease drafting, complete records, and advice from qualified legal and tax professionals.

About the Lundgren Team

The Lundgren Team at SERHANT., led by Nile Lundgren, specializes in luxury and new development sales across New York City, South Florida, and Connecticut. The team has represented buyers, sellers, and developers in hundreds of transactions totaling more than $500 million in sales.

Thinking about buying, selling, investing, or making a smarter real estate move? Contact Nile Lundgren and the Lundgren Team to start the conversation.

This article is provided for general informational purposes only. It is not legal or tax advice. Property owners should consult their attorney, tax advisor, and the New York City Department of Finance regarding their specific circumstances.

Sources and Verification

1. New York City Department of Finance: Non Primary Residence Property Surcharge
2. New York City Tax Commission: Surcharge Appeal Guidance
3. New York City Department of Finance: Final Surcharge Rules
4. REBNY: NYC Lease Platform
5. REBNY: Launch of NYC Lease
6. New York Attorney General: Residential Tenants’ Rights Guide
7. New York City Mayor’s Office: Exemption Application Deadline Extension