New York State
Division of Housing and Community Renewal
Rent Administration - Operational Bulletins

New York City Rent Stabilization Code
New York City Rent and Eviction Regulations

Operational Bulletin 95-1 (August 21, 1994)

COLLECTIBILITY OF MCI/OI INCREASES
WHERE THE RENT IS REDUCED BECAUSE OF DIMINUTION OF SERVICES

Implementing
New York City Rent Stabilization Law (RSL)
Emergency Tenant Protection Act of 1974 (ETPA)
New York City Rent and Rehabilitation Law (City Rent Control Law)
Emergency Housing Rent Control Law (State Rent Control Law)

This Operational Bulletin is issued pursuant to section 2527.11 of the Rent
Stabilization  Code, the Emergency Tenant Protection Regulations adopted under the
Emergency Tenant  Protection Act; section 2209.8 of the City Rent and Eviction
Regulations; and section 2109.8 of the State Rent and Eviction Regulations. It is
intended to serve as an explanatory statement of DHCR's general policy regarding
the effect of rent reduction orders upon the collectibility of Major Capital
Improvement (MCI) and Owner Individual Apartment Improvement Rent Increases (OI).

  1. Section 2523.4 of the Rent Stabilization Code authorizes tenants to
  apply to the Division for a reduction of the legal regulated rent to
  the level in effect prior to the most recent guidelines adjustment,
  and provides that such order reducing the rent bars the owner from
  applying for or collecting any further rent increases until the
  services are restored. The issuance of a rent restoration order
  results in the prospective elimination of this sanction.

  2. Section 2503.4 of the Tenant Protection Regulations also authorizes
  tenants to apply to the Division for a reduction of the legal
  regulated rent to the level in effect prior to the most recent
  adjustment.

  3. Similarly, sections 2202.16 and 2102.4 of the City and State Rent
  and Eviction Regulations, respectively, provide authority for the
  Administrator to order decreases in rent controlled maximum rents
  upon a showing of reduction in services.

Effective immediately, the above provisions of the Regulations are to be effectuated
in the following manner:

  A. Where an MCI rent increase application was granted and collection of
  the increase commenced prior to the issuance of a rent reduction order,
  the owner will be permitted to continue to collect the MCI increase
  regardless of the effective date of the rent reduction order, even if
  such date is prior to the effective date of the order granting the MCI
  increase.

  B. Similarly, regardless of its effective date, a rent reduction order
  will not affect the continued collection of an OI increase, if
  collection of the increase began prior to the issuance of the order,
  whether or not DHCR approval was required for the collection of the
  increase.*

  C. No other rent increases may be collected after the effective date of
  the rent reduction order, until a rent restoration order is issued.

* The Rent Regulation Reform Act, effective July 7, 1993, removed OI's from DHCR's
jurisdiction. Prior to that date, owners were required to apply to the Division for
approval of an OI in the ETPA and Rent Control jurisdictions.  Such approval was not
required for owners of rent stabilized housing accommodations located in New York
City. Applications filed before July 7, 1993 were either determined by the Division
before that date, or subsequently dismissed.

Paul A. Roldan
Deputy Commissioner for Rent Administration
Reissued 7/95

Last updated: 09/16/96

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DHCR Operational Bulletins are issued by the New York State
Division of Housing and Community Renewal (DHCR) and update
agency administration of the rent laws.

Electronic versions of the 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 is advised to obtain true copies of
these documents from DHCR. Also see DHCR Policy Statements,
DHCR Advisory Opinions, the Rent Stabilization Code, the Rent
Stabilization Law and various Rent Control Statutes.

Every attempt has been made to conform to the original Operational
Bulletins 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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