DHCR FACT SHEET #27
Division of Housing and Community Renewal
ELECTRICAL INCLUSION BUILDINGS
In rent controlled and rent stabilized apartments, where tenants
pay their electrical charge to the owner as part of the monthly
rent (electrical inclusion buildings), owners may charge tenants
a surcharge for each air-conditioner that has been installed.
On October 1st of each year after the air conditioner has been
installed the surcharges will be adjusted upward or downward for
rent stabilized and rent controlled apartments with electricity
included in the rent. Each annual adjustment of this electrical
charge will be based on the increase or decrease in electrical
cost stated in the Price Index of Operating Costs for Rent
Stabilized Apartment Houses in New York City. The Price Index is
prepared by the New York City Rent Guidelines Board, or an
independent company chosen by the Board. This adjustment applies
to air conditioners installed after October 1, 1985. It there has
been an increase for an air conditioner installed before October
1,1985 that increase remains in effect and is not increased by
this adjustment, because it is already part of the rent and
subject to usual guidelines increases.
ELECTRICAL EXCLUSION BUILDINGS
TENANT PROVIDES NEW AIR CONDITIONER
When the tenant in a rent controlled or rent stabilized
electrical exclusion building purchases and installs an air
conditioner unit that protrudes beyond the window line, owners
may collect five dollars ($5.00 ) per month surcharge for each
unit installed. Once installed and after the $5.00 charge has
been established, the tenant may not, without the owner's
permission, demand that the charge be dropped it the tenant
removes the air conditioner.
OWNER PROVIDES NEW AIR CONDITIONER
When the owner purchases and installs a brand new air
conditioning unit, after obtaining written consents from rent
stabilized and rent controlled tenants, the owner may charge
tenants one fortieth (1/40th) of the cost of each air
This 1/40th of the cost charge will become part of the Maximum
Base Rent (MBR), or legal regulated rent.
ADJUSTMENTS TO RENT
Under the rent stabilization law and code, the five-dollar
($5.00) surcharge and the annual charge for electrical inclusion
buildings (after 1985) do not become part of the legal regulated
rent for the purpose of computing rent guidelines or other
increases rent stabilized apartments. Only the 1/40th charge for
brand new air conditioners purchased and installed by the owner
will become part of the legal regulated rent.
When the tenant installs an air conditioning unit in a rent
controlled apartment, the five-dollar (55.00) per month surcharge
and the electrical inclusion charge (increased or decreased
annually) become part of the Maximum Collectible Rent (MCR), but
they do not affect the compounding of the Maximum Base Rent.
COLLECTION PROCEDURE FOR RENT STABILIZED APARTMENTS
Owners collecting air conditioner charges from rent stabilized
tenants need not obtain a DHCR order to collect the additional
charge. Owners must charge tenants for air conditioners at the
time the units are initially installed, or within a reasonable
period of time. It the owner tails to charge the tenant within a
reasonable period of time after the installation, the owner
waives the right to collect the surcharge.
COLLECTION PROCEDURE FOR RENT CONTROLLED APARTMENTS
Before collecting charges from rent controlled tenants. the
owners must apply to the DHCR by submitting the Owner's
Application for a Rent Increase Based on Increased Services,
Furnishings or Equipment [DHCR form RA-79B]. The rent increase
may not be collected until an order increasing the rent is issued
The air conditioner surcharges are payable by the tenant
throughout the entire year.
The amount charged for all air conditioners which were installed
before October 1, 1985 will be determined by the laws in effect
during that period.
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
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
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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
One Fordham Plaza
Bronx, NY 10458
250 Schermerhorn St.
Brooklyn, NY 11201
156 William Street
NY, NY 10038
(212) 240-6011, 6012
South side of 110th St. and below
163 W. 125th St.
NY, NY 10027
North side of 110th St. and above
350 St. Mark's Place
Staten island, NY 10301
Nassau County District Rent Office
50 Clinton Street, 6th Floor
Hempstead, NY 11550
Westchester County District Rent Office
55 Church Street, 3rd Floor
White Plains, NY 10601
Rockland County District Rent Office
94-96 North Main St.
Spring Valley, NY 10977
Albany Regional Office
119 Washington Avenue
Albany, NY 12210
Buffalo Regional Office
Ellicot Square Building
295 Main St., Room 438
Buffalo, NY 14203