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 92-1 PENALTIES FOR FAILURE TO PAY BILLED ADMINISTRATIVE FEES FOR NEW YORK CITY RENT STABILIZED ACCOMMODATIONS OR FOR APARTMENTS COVERED BY THE EMERGENCY TENANT PROTECTION ACT This Policy Statement is being issued to establish DHCR's policies with respect to enforcement of the legally mandated penalties for failure to pay the administrative fees billed by New York City or the municipalities which have adopted the Emergency Tenant Protection Act (ETPA). Section 26-517.1 of the Rent Stabilization Law and Section 8 of the Emergency Tenant Protection Act provide for the imposition of a fee on owners of housing accommodations subject to the RSL and ETPA to assist DHCR in defraying the cost of administering such laws. Pursuant to DHCR Policy Statement 89-7 (approved June 21, 1989), the administrative fee is assessed against all regulated accommodations including accommodations which are temporarily exempt from rent stabilization. For example, an apartment which is occupied by the building's owner or by the building's superintendent, or a stabilized hotel or SRO accommodation which is occupied by a transient tenant is temporarily exempt from stabilization but the owner will be billed the administrative fee for such housing accommodations. When advised by the municipal agency charged with collecting the annual administrative fee that an owner has not paid the fee, the DHCR will send a notice to the owner with a copy of the bill. The owner must pay the billed fee, together with any additional charges or interest, to the municipal agency and submit proof of such payment to the DHCR within 60 days of the date of the notice or the DHCR shall issue an order subjecting the owner to the penalties prescribed by law, as described below. Failure to pay the billed fee will result in a DHCR order fixing the rent for the subject housing accommodation at the level registered with the DHCR as of the April 1st before the due date of the original administrative fee billing. The owner will be precluded from collecting any rent in excess of such level from the first rent payment date following the due date stated in the original administrative fee billing. If the owner has collected a rent in excess of the frozen rent, the owner shall be liable to the tenant for a penalty equal to three times the amount of such overcharge. In addition, until the fee is paid, the owner is barred from applying for or collecting any further rent increases. The rent as established above shall remain in effect until the owner has paid the delinquent amount to the municipal agency charged with collecting the administrative fee. Upon submission of proof of payment (the canceled check in the precise amount of the bill issued by the municipal agency and made payable to such agency) to DHCR, the DHCR will issue a notice lifting the penalty. DATED: January 23, 1992 Joseph A. D'Agosta Acting 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 ------------------------------------------------------------