DHCR FACT SHEET #6 Division of Housing and Community Renewal FAIR MARKET RENTS In NYC, when a tenant moves out of a rent controlled apartment, the apartment becomes decontrolled. If that apartment is in a building built before January 1, 1974 containing six or more units, it becomes rent stabilized. The owner registers the unit with the NY State Division Of Housing and Community Renewal (DHCR) by completing the Initial Apartment Registration [DHCR form RR- 1] and providing the tenant with a copy. The owner may charge the first stabilized tenant a FAIR MARKET RENT. All future rent increases are subject to limitations under the Rent Stabilization Law, whether the tenant renews the lease or the apartment is rented to another tenant. The Rent Stabilization Law permits the first stabilized tenant after decontrol to challenge the first rent charged after decontrol through a Fair Market Rent Appeal if the tenant believes that the rent set by the owner exceeds the fair market rent. The owner must inform the first rent stabilized tenant of the Initial Legal Registered Rent by certified mail, within 90 days from the date the tenant moves into the apartment. This information is provided on the DHCR RR-1 form. The back of the form contains a notice of the FAIR MARKET RENT APPEAL PROCEDURE. The owner may obtain the Initial Registration Packet from DHCR at 92-31 Union Hall Street, Jamaica, N.Y. 11433 or at a Borough Rent Office. After the tenant receives their copy of the RR-1 form from the owner, the tenant has 90 days to challenge the rent on the Tenant Challenge form (DHCR Form TC-1). If the tenant does not file a Fair Market Rent Appeal within 90 days after receiving the RR-1 form from the owner, the rent set by the owner becomes the Initial Legal Registered Rent for the apartment and is no longer subject to challenge by the occupying tenant or any subsequent tenant. If the tenant does file a Fair Market Rent Appeal, DHCR will issue an order either upholding the rent set by the owner as the Fair Market Rent or reducing it on the grounds that it exceeds the Fair Market Rent. If DHCR reduces the rent, that amount becomes the Adjusted Initial Legal Registered Rent. The DHCR will also order a refund of any amount collected by the owner in excess of the Adjusted Initial Legal Registered Rent. ------------------------------------------------------------ DHCR Fact Sheets (series of thirty) are issued by the New York State Division of Housing and Community Renewal (DHCR) as plain- english informational publications. For official agency policies, see DHCR Policy Statements, Advisory Opinions and Operational Bulletins. Also refer to the Rent Stabilization Code, the Rent Stabilization Law and various Rent Control Statutes. Electronic versions of these documents on TenantNet are for informational purposes only and there is no guarantee they will be accepted by any court (or even DHCR) as true copies of DHCR policy. The reader may obtain true copies of these documents from DHCR. Every attempt has been made to conform to the original Fact Sheets as issued by DHCR; TenantNet makes no representation the enclosed material is current or will be applied as written. The reader is advised that DHCR often fails to properly apply, interpret or enforce housing laws. Since housing laws are complex and often contradictory, it is recommended the reader obtain competent legal advice from a tenant attorney or counseling from a tenant association or community group. (rev. 3/13/96) DHCR documents are public documents; the electronic version of such documents have been developed by TenantNet and any added value, enhancements and/or proprietary features are copyright 1994, 1995 and 1996 by TenantNet. These documents may be freely distributed provided they remain intact as herein presented, including this and the top informational banner referencing TenantNet as the original provider. ------------------------------------------------------------ For more information or assistance, call the DHCR Rent Infoline at (718) 739-6400, or visit your Borough Rent Office. Queens Central Office 92-31 Union Hall St. 4th Fl. Jamaica, NY 11433 (718) 739-6400 Bronx One Fordham Plaza Bronx, NY 10458 (718) 563-5678 Brooklyn 250 Schermerhorn St. 3rd Floor Brooklyn, NY 11201 (718) 780-9246 Lower Manhattan 156 William Street 9th Floor NY, NY 10038 (212) 240-6011, 6012 South side of 110th St. and below Upper Manhattan 163 W. 125th St. 5th Floor NY, NY 10027 (212) 961-8930 North side of 110th St. and above Staten Island 350 St. Mark's Place Room 105 Staten island, NY 10301 (718) 816-0277 Nassau County District Rent Office 50 Clinton Street, 6th Floor Hempstead, NY 11550 (516) 481-9494 Westchester County District Rent Office 55 Church Street, 3rd Floor White Plains, NY 10601 (914) 948-4434 Rockland County District Rent Office 94-96 North Main St. Spring Valley, NY 10977 (914) 425-6575 Albany Regional Office 119 Washington Avenue Albany, NY 12210 (518) 432-0596 Buffalo Regional Office Ellicot Square Building 295 Main St., Room 438 Buffalo, NY 14203 (716) 856-1382 ------------------------------------------------------------