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 ------------------------------------------------------------ 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. ------------------------------------------------------------ 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 ------------------------------------------------------------