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.

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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.
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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

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