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



This Policy Statement sets forth the procedures to be followed in
buildings managed by 7-A Administrators where service or
overcharge complaints are filed, non-compliance cases are
pending, and cases where there is a finding of harassment. This
Statement also sets forth the procedure for registration of
buildings managed by 7-A Administrators.


Some courts have ruled that the DHCR does not have jurisdiction
to impose penalties upon 7-A Administrators for failure to
maintain services because the expenditure of money by 7-A
Administrators to operate their buildings is subject to the
supervision of the Housing Court which appointed the
Administrator. However, DHCR must process complaints alleging
decreases in services pursuant to and in compliance with Section
26-514 of the Rent Stabilization Law, applicable case law, and
Policy Statement 90-2.

Where a building managed by a 7-A Administrator is the subject of
a service decrease complaint, DHCR will forward a copy of the
complaint to the 7-A Administrator and the New York City
Department of Housing Preservation and Development (HPD) 7-A
Counseling and Assistance (C & A) Unit. DHCR will process the
case, and, if a decrease in service is found, issue an order
directing restoration of the service as well as reducing the rent
in compliance with the Rent Laws. The DHCR will then forward a
copy of its order to the 7-A Administrator and HPD's C & A Unit.

Thereafter, in the event that a tenant files an Affirmation of
Non-Compliance, all relevant information will be forwarded to the
7-A Administrator and HPD's 7-A C & A Unit. The DHCR will not
initiate compliance proceedings or prosecute the 7-A
Administrator for failure to comply with the order.


An Application for Rent Restoration filed by a 7-A Administrator
will be expedited where the 7-A Administrator indicates on the
application his or her name and the designation "7-A
Administrator." DHCR will also expedite such cases upon request
at any time.


When DHCR determines that there has been an overcharge, it will
issue an order establishing the legal regulated rent to be paid
by the tenant, calculate the overcharge, and determine the
applicability of treble damages. The DHCR order will be sent to
the tenant, the owner, the 7-A Administrator, and HPD's 7-A C & A
Unit. The order will direct the owner to refund the part of the
overcharge collected by such owner prior to the appointment of
the 7-A Administrator, plus applicable treble damages, or will
permit the tenant to either docket such amount in the same manner
as a judgment of the Supreme Court or to deduct such amount from
the rent after the court removes the building from 7-A

The order will also direct the 7-A Administrator to refund to the
tenant that part of the overcharge collected by the 7-A
Administrator or permit the tenant to withhold that portion from
his or her rent as provided for in the collectibility
instructions which accompany the order. Treble damages will not
be assessed on overcharges collected by the 7-A Administrator as
a result of overcharges caused by the owner. However, if the DHCR
finds that the 7-A Administrator willfully caused the overcharge
he or she collected, the order will refer the issue of imposition
of treble damages against the 7-A Administrator to the appointing


7-A Administrators, acting as owners, are required to comply with
all initial and annual registration requirements. The failure to
properly and timely comply with the initial or annual rent
registration as required by Section 2528.4 of the Rent
Stabilization Code shall, until such times as said registrations
are completed, bar an owner or a 7-A Administrator from applying
for or collecting any rent in excess of:

A)  the legal regulated rent in effect on the date that the
    housing accommodation became subject to the registration
    requirements of the Rent Stabilization Code, if no initial
    registration has taken place; or

B)  the legal regulated rent in effect on April first of the year
    for which an annual registration was required to be filed, or
    such other date of that year as may be determined by the DHCR
    pursuant to Code Section 2528.3 (Annual Registration

The late filing of a registration shall result in the
elimination, prospectively, of such penalty. Therefore, if a
building or an apartment was not properly and timely registered
prior to appointment of the 7-A Administrator, the 7-A
Administrator is required to register the building or apartment
for all years in which a proper registration was not filed.
However, if the increases in the legal regulated rent were lawful
except for the failure to file a timely registration, the 7-A
Administrator, upon the service and filing of a late
registration, shall not be found to have collected an overcharge
at any time prior to the filing of the late registration. If an
overcharge complaint results from the owner's or 7-A
Administrator's failure to properly register, and the 7-A
Administrator does not file any required late registration prior
to the issuance of an order by the DHCR freezing the rent as
specified above, the procedure for refunding any overcharges as
explained in Section III of this policy statement will be


If the DHCR receives a Vacate Order from a governmental agency
describing conditions which make the building or a part of the
building uninhabitable, or otherwise determines that such
conditions exist, the DHCR will open a proceeding to reduce the
legal rent of the tenant(s) of record in the building or the
affected apartment(s) to $1.00 per month, per unit, and provide
the owner and the 7-A Administrator with 20 days in which to
provide evidence that the Vacate Order has been rescinded or
revoked, or that there is a plan approved by the court or HPD for
correcting the conditions which caused the vacate order to be
issued. When DHCR is made aware that a 7-A Administrator is
managing the building, a copy of the Notice of Commencement of
Proceeding will be sent to the 7-A Administrator and the 7-A C &
A Unit of HPD.

If evidence is not provided that the Vacate Order has been
revoked or rescinded or that there is a plan approved by the
court or HPD to correct such conditions, or the tenant has
actually vacated pursuant to such order, the DHCR will establish
the legal rent for the affected tenant(s) at $1.00 per month, per
unit, to maintain the tenant's right to reoccupy the subject
apartment. Where a 7-A Administrator has been appointed, in
addition to sending a copy of such order to the owner, DHCR will
also send a copy of such order to the 7-A Administrator and HPD.


If the Housing Court installs a 7-A Administrator to manage a
building against which there is a finding of harassment, the
restrictions against rent increases may be lifted, as determined
by the DHCR after an expeditious hearing, upon application by the
7-A Administrator.

If DHCR receives a complaint of harassment against a 7-A
Administrator, a copy of the complaint will be sent to the 7-A
Administrator and to the 7-A C & A Unit. The DHCR will not
proceed with an administrative hearing against a 7-A
Administrator without notification to the appointing court and
HPD's 7-A C & A Unit.

September 10, 1993

Joseph A. D'Agosta
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

One Fordham Plaza
Bronx, NY 10458
(718) 563-5678

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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