New York State
Division of Housing and Community Renewal
Office of Rent Administration
Gertz Plaza, 92-31 Union Hall St.
Jamaica, New York 11433
Public Information: (718)739-6400


POLICY STATEMENT 91-3

EFFECTS OF RENT REDUCTIONS
ON FUEL COST PASSALONG ADJUSTMENTS

This policy statement is being issued to clarify the effect of a
rent reduction order, for failure to maintain essential services,
on a fuel cost passalong adjustment.

The City law (Local Law 20 of 1980) and Amendment 49 to the Rent
and Eviction Regulations which govern the fuel passalong clearly
specify that owners are not allowed to collect a fuel cost
adjustment for a period of twelve months after a rent reduction
was issued for failure to maintain heat or hot water.  However,
owners were collecting fuel cost adjustments while other service
reduction orders, which were not heat and hot water related, were
in effect.

Under the Fuel Cost Adjustment Program, owners must certify that
they are maintaining and will continue to maintain the required
essential services.  These services include, but are not limited
to heat during the part of the year when required by law, hot
water, cold water, superintendent services, maintenance of front
or entrance door security, garbage collection, elevator service,
gas, electricity and other utility services to both public and
required private areas and other utilities and services vital to
life, health and safety.

Therefore, a rent reduction order for failure to maintain an
essential service, as defined above, will bar the collectibility
of any increase in the fuel cost passalong after the effective
date of the rent reduction order, until a rent restoration order
has been issued. If essential services are restored, and an order
is issued by the DHCR restoring the rent, the fuel cost
adjustment will automatically become effective on the date the
rent restoration becomes effective.  However, if the rent
reduction is for a failure to maintain heat or hot water, the
owner is still barred from collecting the fuel cost adjustment
for a period of twelve months.  If the rent reduction has been
granted for failure to provide a service which is not listed
above and cannot be considered detrimental to the health of the
tenant(s), then the fuel cost passalong will be collectible.  The
rent reduction order issued by the DHCR will indicate if the
reduction is for failure to provide an essential service.

The fuel cost adjustment regulations require owners to complete,
certify, and serve upon each eligible tenant within 60 days after
DHCR releases the fuel consumption and price change standards,
the Owner's Report, Certification And Notice of Fuel Cost
Adjustment Eligibility (DHCR form RA 33.10)when there is a
finding of a decrease in the cost of fuel.  Owners must also file
a master copy of the Report together with Schedule A, where
applicable, and a Schedule of Monthly Rent Increases for all the
rent controlled tenants served with copies of the Fuel Cost
Adjustment Report.  This service and filing must be done even
when there is a rent reduction in effect for failure to maintain
essential service barring collection of the adjustment. The rent
adjustment is collectible when the tenant and DHCR are served
with the completed report forms and schedules, and all
outstanding rent reductions for failure to maintain essential
services are restored, by order of the DHCR, for that tenant. The
fuel cost adjustment increase, in the event of a service
restoration, will become effective on the date the rent
restoration becomes effective.


March 20, 1991

Elliot G. Sander
Deputy Commissioner

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DHCR Policy Statements are **promulgated** (i.e., officially
issued) by the New York State Division of Housing and Community
Renewal (DHCR) and represent **official** policy of the agency.

The agency is generally obligated to follow the policy contained
in these and other documents or provide a rational for deviation;
failure to follow the law, policy or practice may form the basis
for an appeal. 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 Advisory Opinions,
DHCR Operational Bulletins, the Rent Stabilization Code, the Rent
Stabilization Law and various Rent Control Statutes.

Every attempt has been made to conform to the original Policy
Statements 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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