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 #27 - Air Conditioners
                             [Revised 1/96]

Electrical Inclusion Buildings

     For rent controlled and rent stabilized apartments, where the rent
includes the use of electricity, an owner may charge a tenant a surcharge for
the use of electricity for each air conditioner that has been installed.

     On October 1st of each year after the air conditioner has been installed
the surcharge will be adjusted upward or downward for rent stabilized and rent
controlled apartments with electricity included in the rent. Each annual
adjustment of this electrical surcharge will be based on the increase or
decrease in electrical cost stated in the Price Index of Operating Costs for
Rent Stabilized Apartment Houses in New York City.  The Price Index is
prepared by the New York City Rent Guidelines Board, or an independent company
chosen by the Board. This annual adjustment applies to air conditioners
installed after October 1, 1985.  If an owner collected a rent increase for
the electricity consumed by an air conditioner installed in a rent stabilized
apartment before October 1, 1985, that rent increase remains in effect and is
not affected by this annual adjustment, because that rent increase is already
part of the rent and subject to guidelines increases applicable to rent
stabilized leases.

Electrical Exclusion Buildings - Tenant Provides New Air Conditioner

     When the tenant in a rent controlled or rent stabilized apartment in an
electrical exclusion building, which is a building in which the tenant pays a
public utility for electricity, purchases and installs an air conditioner unit
that protrudes beyond the window line, the owner may collect a five dollar
($5.00 ) per-month surcharge for each unit installed.  Once installed and
after the $5.00 surcharge has been collected, the tenant may not, without the
owner's permission remove the air conditioner and demand that the surcharge be
dropped.

Owner Provides New Air Conditioner

     When the owner purchases and installs a new air conditioner in an
occupied rent controlled or rent stabilized apartment, after having obtained
the written consent from the tenant, the owner may charge the tenant one
fortieth (1/40th) of the cost of the unit, including the installation cost,
but excluding the finance charges. When the owner purchases and installs a new
air conditioner in a vacant apartment, tenant consent is not required for the
owner to collect the increase from the next tenant. This charge becomes part
of the Maximum Base Rent (MBR) of a rent controlled apartment or the legal
regulated rent of a rent stabilized apartment.

Adjustments To Rent

     For rent stabilized apartments, where the air conditioner was installed
on or after October 1, 1985, the five dollar ($5.00) per-month surcharge and
the monthly surcharge for electrical inclusion buildings, do not become part
of the legal regulated rent for the purpose of computing other rent stabilized
increases. Only the 1/40th charge for a new air conditioner purchased and
installed by an owner becomes part of the legal regulated rent.

     For rent controlled apartments, the five dollar ($5.00) per-month
surcharge and the monthly electrical inclusion surcharge become part of the
Maximum Collectible Rent (MCR), but they do not affect the compounding of the
Maximum Base Rent (MBR). Only the 1/40th charge for a new air conditioner
purchased and installed by an owner becomes part of the MBR.

Collection Procedure For Rent Stabilized Apartments

     An owner may collect from a rent stabilized tenant any of the charges
for an air conditioner without obtaining a DHCR order. An owner must charge a
tenant for an air conditioner at the time the units are initially installed,
or within a reasonable period of time after its installation.  If the owner
fails to charge the tenant within a reasonable period of time after the
installation, the owner waives the right to collect the charge.

Collection Procedure For Rent Controlled Apartments

     Where an owner purchases and installs a new air conditioner in a rent
controlled apartment, the owner is not required to obtain a DHCR order
allowing the owner to collect the 1/40th charge. However, before the owner may
collect this charge, the owner must file with DHCR an "Owner's Notice of a
Rent Increase Based on Increased Services/New Furnishings/Equipment/Painting:
and Tenant's Statement of Consent," (DHCR Form RN-79b, Part A).

     Before collecting either the five dollar ($5.00) per-month surcharge or
the monthly electrical inclusion surcharge from rent controlled tenants, the
owner must apply to DHCR for permission to collect the surcharge by filing the
"Owner's Application for Air Conditioner Charges," (DHCR Form RN-79b, Part B).
Either surcharge may not be collected until DHCR issues an order authorizing
the surcharge.

     For both rent controlled and rent stabilized apartments, the five dollar
($5.00) per-month surcharge and the electrical inclusion surcharge are payable
by the tenant each month of the year.

     The permissible surcharges for air conditioners that were installed
before October 1, 1985 will be determined by the rules in effect before
October 1, 1985.

     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



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