George E. Pataki, Governor         Joseph H. Holland, Commissioner

                   A publication of New York State
               Division of Housing and Community Renewal
                      Office of Rent Administration

                  Fact Sheet #13 - Fuel Cost Adjustment
                             [Revised 3/96]

    The New York City Rent Control Law allows separate rent adjustments based
on the changes, up or down, in the prices of various types of heating fuels.
The rent adjustment will be based on fuel price changes between the beginning
and end of the prior year. Only tenants in rent controlled apartments located
in NYC are subject to this FUEL COST ADJUSTMENT.

    Owners must certify that they are maintaining essential services. If there
is a rent reduction order in effect for the owner's failure to provide heat
and hot water, all collection of FUEL COST ADJUSTMENTS are suspended during
the time of the reduction and for 12 months following the date of a
restoration order. Buildings that have not qualified for Maximum Base Rent
increases may be eligible for FUEL COST ADJUSTMENTS.

    To obtain the rent increase as of January 1st, the owner must complete,
certify, and serve upon each eligible tenant within 60 days after the New York
State Division of Housing and Community Renewal (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). Owners
must also file a master copy of the Report together with Schedule A or B,
where applicable, and a Schedule of Monthly Rent Increases for all the rent
controlled tenants who were served with copies of the Fuel Cost Adjustment
Report.

    FUEL COST ADJUSTMENTS are retroactive to January 1st of each year provided
the owner files the Report within 60 days after DHCR releases the fuel
consumption and price change standards. For Reports filed with DHCR after the
60 day period, the increase is prospective. Where an owner obtained one or
more fuel cost increases previously and the price of fuel decreases, the owner
must file a timely report or the entire fuel cost adjustment will be suspended
for that present year. The annual FUEL COST ADJUSTMENTS, upward or downward,
are cumulative. Decreases in fuel costs can cancel out previous increases.  In
addition, the cumulative fuel cost adjustment can fall to below-zero levels.
While under such circumstances the landlord would not be obligated to refund
any monies to a tenant, the owner would not be entitled to collect any fuel
cost adjustments in future years until the full effect of the fall of the
cumulative fuel cost adjustment to below-zero level was offset by subsequent
price increases.

    If the tenant believes that the owner's request for the fuel cost rent
increase is inaccurate or unjustified, the tenant may challenge the increase.
The tenant should first contact the owner and attempt to resolve the
disagreement. If differences remain, the tenant has 33 days after receipt of
the owner's Report to file the Tenant's Challenge to Owner's Report and
Certification of Fuel Cost Adjustment and Eligibility (FCA), (DHCR Form RAC-
2202.13).

    For more information or assistance, call the DHCR Rent InfoLine (718) 739-
6400, or visit your Borough or County Rent Office.


Central
92-31 Union Hall Street
4th Floor
Jamaica, NY 11433
(718) 739-6400

Brooklyn
250 Schermerhorn Street
3rd Floor
Brooklyn, NY 11201

Upper Manhattan
163 W. 125th Street
5th Floor
New York, NY 10027
North side of 110th St. and above

Nassau County
50 Clinton Street
6th Floor
Hempstead, NY 11550

Westchester County
55 Church Street
White Plains, NY 10601

Lower Manhattan
156 William Street
9th Floor
New York, NY 10038
South side of 110th St. and below

Bronx
1 Fordham Plaza
2nd Floor
Bronx, NY 10458

Staten Island
60 Bay Street
7th Floor
Staten Island, NY 10301

Rockland County
94-96 North Main Street
Spring Valley, NY 10977