Rent Regulation: Glossary of Terms
RENT REGULATION AFTER 50 YEARS
An Overview of New York State's Rent Regulated Housing 1993
NEW YORK STATE DIVISION OF HOUSING & COMMUNITY RENEWAL
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GLOSSARY OF RENT REGULATION TERMS
It is important to note that this glossary is not intended as a
substitute for the definitions, interpretations, etc., contained
in the respective rent regulatory statutes, codes, and
regulations themselves, or any administrative or court decision
construing such statutes, codes, and regulations, or any order of
the New York City or County Rent Guidelines Boards.
Alternative Hardship Increase: See "Hardship".
Ancillary Services: In New York City, rent stabilization services
which are not contained within the individual housing
accommodation which may include, but are not limited to; garage
facilities, laundry facilities, recreational facilities, and
security. If these services were provided by the owner on the
base date, or were provided or required by law to be provided
thereafter, the owner must continue to maintain them.
Annual Registration: See "Registration".
Apartment Services Registration: See "Registration".
Article 78 Proceeding: An action commenced in Supreme Court (the
basic New York trial level court), to review a governmental act
already taken, such as the determination of a case or, to compel
or stop an action by the government from taking place. If
requesting review, it must be brought within sixty days of final
DHCR action. It is named after an article of the Civil Practice
Law and Rules.
Assignments: The transfer of a tenant's legal interest (the
lease) in an apartment to another person. Unless specified in the
lease, a tenant may not assign his/her lease without written
consent of the owner. Owner's consent may be unconditionally
withheld without cause. However, an owner who unreasonably
refuses to grant permission to assign the lease, must release the
tenant from the lease upon request of the tenant upon 30 days
notice. If the owner reasonably withholds consent, the lease may
not be assigned and the tenant will not be released from the
lease.
A lease assignment conveys to another person all of the tenant's
rights to occupy the apartment, whereas a sublet contemplates a
temporary absence by the prime tenant with full intent to return
to the apartment.
Base Dates: The date upon which a unit becomes subject to rent
regulation and the date which determines the "base" for
determining what services the owner must provide and what the
lawful rent is.
The base date for essential services for apartments subject
to rent control inside New York City is April 30, 1962.
The base date for essential services for apartments subject
to rent control elsewhere in New York State is March 1,
1950.
The base date for required building-wide and individual
services for housing accommodations subject to the Rent
Stabilization Law on June 30,1974 is May 31, 1968.
The base date for housing accommodations subject to the Rent
Stabilization Law on June 30, 1971, and exempted thereafter
as a result of a vacancy prior to June 30, 1974, is: for
building-wide services, May 31, 1968, for individual
dwelling unit services, May 29, 1974.
The base date for housing accommodations which became
subject to the Rent Stabilization Law on or after July 1,
1974 pursuant to the Emergency Tenant Protection Act is May
29, 1974.
Building Services Registration: See "Registration".
Class A Multiple Dwelling: As defined under the Multiple Dwelling
Law, a multiple dwelling building which is generally occupied as
a permanent residence. The class includes such buildings as
apartment houses, apartment hotels, maisonette apartments, and
all other multiple dwellings except class B dwellings.
Class B Multiple Dwelling: A multiple dwelling which is occupied,
as a rule, transiently, as the more or less temporary abode of
individuals or families. This class includes such buildings as
hotels, lodging houses, rooming houses, boarding schools,
furnished room houses, college and school dormitories.
Comparative Hardship Increase: See "Hardship".
Complaint: The initial filing in a tenant-initiated proceeding.
Compliance: Owners are required to adhere to orders issued by
DHCR. Orders of the Office of Rent Administration are enforced by
the ORA's Compliance Unit.
Concession: An agreement between owner and tenant, whereby the
tenant is allowed to pay a lower rent than would otherwise be
lawful for a limited time but not for the whole term of the
lease.
Conditional Rental: A rental agreement which contains various
prerequisites or qualifications. Clauses in leases for regulated
apartments which condition rental on such things as requiring the
prospective tenant to agree not to use the apartment as a primary
residence; to only use it for commercial occupancy; or to
purchase furniture or other personal property; are illegal.
Condominium: A form of property ownership in which units are
individually owned and the owners acquire shares in an
association which owns and cares for common areas.
Consolidation: The merger, for processing and/or decision of
proceedings, usually applicable to the same building or
development, which have common issues of law and fact.
Cooperative: A form of property ownership in which a building or
complex is owned by a corporation. Shares in the corporation are
allocated per apartment and the owners of those shares, who are
called proprietary lessees, may either live in the apartment for
which the shares are allocated or rent that apartment to a sub-
tenant.
County Rent Guidelines Boards: As established by the Emergency
Tenant Protection Act (ETPA), a nine member group consisting of
public, owner and tenant members. The Board determines annual
rent adjustments to which an owner is entitled for new or renewal
leases and for various surcharges and adjustments for
municipalities covered by rent stabilization in the ETPA counties
(Westchester, Nassau and Rockland).
Deemed Denial: By statute, PARs not decided within 90 days (or
such additional period as is extended by the parties) are deemed
denied, and the petitioner is entitled to commence an Article 78
proceeding.
Disabled Persons: Eligible disabled persons are tenants and/or
spouses of tenants who have an impairment resulting from
anatomical, physiological or psychological conditions,
demonstrable by medically acceptable clinical and laboratory
diagnostic techniques, which is expected to be permanent and
prevent the person from engaging in any substantial, gainful
employment.
Disabled Persons' Special Rights: The law grants certain
protections for disabled tenants, which include the right to
refuse to purchase their apartments in a building under a
Cooperative or Condominium Eviction Plan. In addition, an owner
cannot evict a disabled tenant or the spouse of a disabled tenant
from a rent stabilized apartment in New York City for the purpose
of owner occupancy unless the owner provides an equivalent or
superior apartment at the same or lower stabilized rent in an
area near the tenant's present apartment. Also an owner cannot
evict a disabled tenant from a rent stabilized apartment outside
New York City or any rent controlled apartment statewide for
purposes of owner occupancy.
Electrical Inclusion Adjustment: An adjustment to the Legal
Regulated Rent promulgated by the New York City Rent Guidelines
Board for housing accommodations in which the rent includes
electrical service. These adjustments were promulgated between
1974 and 1984.
Electrical Inclusion Building: A building where the electrical
charge is included in the rent and tenants do not pay their
electrical charge directly to the public utility.
Electrical Exclusion Building: A building where tenants pay their
electrical charge directly to the public utility. This charge is
not included in the rent.
Emergency Tenant Protection Act of 1974 (ETPA): Chapter 576 Laws
of 1974: In Nassau, Rockland and Westchester counties, rent
stabilization applies to non-rent controlled apartments in
buildings of six or more units built before January 1, 1974 in
localities that have declared an emergency and adopted ETPA. In
order for rents to be placed under regulation, there has to be a
rental vacancy rate of less than 5% for all or any class or
classes of rental housing accommodations. Some municipalities
limit ETPA to buildings of a specific size, for instance,
buildings with 20 or more units.
Certain types of housing accommodations are not included in the
provisions of ETPA, for example: housing accommodations in
buildings containing less than six dwelling units; rent
controlled apartments; motor courts; tourist homes; non-profit
units; all governmentally supervised housing; and housing
accommodations in buildings completed on, or after, January 1,
1974 unless they are receiving special consideration, such as tax
abatements, for agreeing to be subject to ETPA.
Each municipality declaring an emergency and adopting local
legislation pays the cost of administering ETPA (in either
Nassau, Rockland or Westchester County). In turn, each
municipality can charge the owners of subject housing
accommodations a fee (up to $10 per unit per year).
The county rent guidelines boards (one each in Nassau, Rockland,
and Westchester counties) set maximum allowable rates for rent
increases in stabilized apartments once a year and effective for
leases beginning on or after October 1st of each year.
Escalator Clause: A clause specifying a certain increase in rent
by amount or percentage, per year. These increases may not be
included in leases commencing on or after April 1, 1984, where
the effect would be to raise the rent charged above the legal
regulated rent, except in certain specified circumstances, such
as the annual 2.2 percent increase provided in leases for units
built under Sec. 421-a (see definition).
Essential Services: Under rent control, the owner must provide
and maintain all services furnished or required to be furnished
on the base date (see definition). These services are called
essential services and may include, but are not limited to:
repairs, decorating and maintenance, the furnishing of light,
heat, hot and cold water, elevator service, kitchen, bath and
laundry facilities and privileges, janitor service, and removal
of refuse.
Essential services for apartments can be building-wide, such as
heat, hot water, elevator service, and maintenance of public
areas of the building. The service may also be something
furnished within an individual apartment, such as a refrigerator,
stove, air conditioning equipment, or painting.
Eviction: An action by a building owner in a court of competent
jurisdiction to obtain possession of a tenant's housing
accommodation.
Fair Market Rents: In New York City, when a tenant voluntarily
vacates a rent controlled apartment, the apartment becomes
decontrolled. If that apartment is in a building containing six
or more units, the apartment becomes rent stabilized. The owner
may charge the first stabilized tenant a fair market rent. All
future rent increases are subject to limitations under the Rent
Stabilization Law, whether the same tenant renews the lease or
the apartment is rented to another tenant.
The Rent Stabilization Law permits the first stabilized tenant
after decontrol to challenge the first rent charged after
decontrol, through a Fair Market Rent Appeal, if the tenant
believes that the rent set by the owner exceeds the fair market
rent for the apartment. The Appeal is decided taking into
consideration the Fair Market Rent Special Guideline and rents
for comparable apartments.
Fair Market Rent Special Guideline: The percentage increase above
the prior rent controlled tenant's Maximum Base Rent (MBR) or
Maximum Collectible Rent (MCR). This is determined each year by
the New York City Rent Guidelines Board as applicable to the
determination of Fair Market Rent Appeals.
Fees, Administrative: The Rent Stabilization Law and the
Emergency Tenant Protection Act permit municipalities to charge a
fee to owners of housing accommodations subject to the RSL or
ETPA. The fee is paid directly to the municipality (in New York
City, to the Department of Finance). DHCR receives payment from
the municipalities to defray the cost of administering these
laws.
All apartments covered by the RSL and ETPA, including temporarily
exempt apartments (see definition), are subject to the fee. Only
housing accommodations which are permanently exempt (see
definition) from the RSL and ETPA are exempt from this fee.
Fees, Attorney's: A lease provision which provides that owners
are entitled to recover reasonable attorneys' fees from tenants
when they successfully sue the tenant concerning terms of the
lease. If there is such a clause in the lease, the owner will be
required to pay the tenant's attorney's fees if the tenant is
successful in defending the owner's court action.
Fees, Brokerage: A commission charged for the service of helping
to find an apartment for a prospective tenant. The amount of the
commission, usually a percentage of the first year's rent, is not
set by law and is negotiated between the parties. The broker must
assist the tenant in finding and obtaining an apartment before
the commission is charged. The fee is illegal if in connection
with the renting of a stabilized apartment, if it is paid to the
owner or an associate, agent or employee of the owner.
Fees, Late: A lease provision providing for an additional
reasonable payment when the rent is tendered after a specified
date.
Final Order: A final order is an order of a Rent Administrator,
not timely and properly appealed to the Commissioner pursuant to
regulations for filing a PAR, or an order of the Commissioner. An
order is final as of the date of its issuance by the Rent
Administrator, unless a petition for administrative review (PAR)
is filed against such order. Despite the filing of a PAR by
either the owner or the tenant, an order adjusting, fixing or
establishing a maximum or legal regulated rent shall continue to
remain in effect until further order. An order, or provision of
an order, other than one adjusting, fixing or establishing a
maximum or legal regulated rent is automatically stayed upon the
filing of a PAR, but the Commissioner may issue a specific order
granting or revoking a stay.
First Rent: The owner of a stabilized housing accommodation may
be entitled to charge a market rent when first renting the
apartment after performing qualifying rehabilitation and
alteration to an apartment. Subsequent rents are subject to
guideline increases. "First Rents" will be granted when a housing
accommodation has been created which can be said not to have
existed on the "base date." Examples where first rents apply are:
where one apartment has been divided into two; two apartments
have been combined into one; or a bedroom from another apartment
has been added on to the subject apartment. Rearranging walls
within the original apartment does not constitute a
rehabilitation qualifying for a "first rent." First Rents are
also applicable to newly created apartments, such as one created
from open space where a previously temporarily occupied apartment
such as one which was owner occupied or commercial in nature is
rented for the first time to a residential tenant after a
prolonged period of exempt occupancy.
Fractional Terms: Under rent stabilization, any lease or tenancy
for a period up to and including one year shall be deemed a one
year lease or tenancy, and a period over one year and up to and
including two years shall be deemed a two year lease. Under ETPA,
where the tenant vacates prior to the expiration of the lease,
the base for computing the rent adjustment for the new tenant is
set by adjusting the prior lease rent to the maximum rent that
would be permissible, if the last lease with the prior tenant had
been for a term ending on the date such prior tenant vacated the
housing accommodation.
Fuel Cost Adjustment: The New York City Rent Control Law allows
separate adjustments based on the changes, up or down, in the
price of various types of heating fuels. The 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
New York City are subject to this FUEL COST ADJUSTMENT. Early
rent stabilized New York City Rent Guidelines Board orders also
contained supplementary guidelines adjustments denominating fuel
cost adjustments.
Garden-Type Maisonette Dwelling Complex: Such complexes may
consist of attached, detached, or semi-attached dwelling units,
containing six or more housing accommodations having common
facilities such as a sewer line, water main, or heating plant and
operated as a unit under common ownership. They are subject to
regulation even though Certificates of Occupancy were issued for
portions of the complex as one- or two-family dwellings.
Guideline Rent Increases: The percentage increase of the Legal
Regulated Rent that is allowed when a new or renewal lease is
signed. This percentage is determined by the New York City and
County Rent Guidelines Boards for leases signed between October 1
of the current year and September 30 of the following year. The
percentage increase allowed by each guidelines board is dependent
on the term of the lease and whether the lease is a vacancy or
renewal lease. Sometimes additional factors such as the amount of
the rent, whether or not electricity is included in the rent and
the past rental history have also resulted in varying
adjustments.
Harassment: A course of action by an owner intended to cause
tenants to vacate their apartments or to give up rights granted
them by the rent laws and regulations.
An owner, or anyone acting for the owner, may not interfere with
the tenant's privacy, comfort, or quiet enjoyment of the
apartment. Interference includes intentionally reducing services
or engaging in baseless court proceedings.
Hardship: Rent increase provisions under rent control and rent
stabilization that allow an owner to apply for an additional
rental increase to enable the owner to either meet a property's
cash flow requirements or to receive a minimum net financial
return. When owners are unable to earn a "fair return" from their
properties because of administratively imposed restrictions on
rent levels, these provisions are intended to provide economic
relief.
Hardship Alternative: A rent adjustment provision provided to
owners of rent stabilized buildings, not owned as cooperatives or
condominiums, who, as determined by DHCR, are not receiving a
total annual gross income that exceeds total annual operating
expenses by a sum equal to at least five percent of the annual
gross rent income.
Hardship Comparative: A rent adjustment provision provided to
owners of rent stabilized buildings, who, as determined by DHCR,
are receiving insufficient average annual net income over a three-
year period as compared to a previous three year period. For New
York City, criteria include requirements that the net income is
below the 1968-1970 (or a subsequent 3 year test period) level
and that the owner is not now receiving an 8.5% return on that
portion of the fair market value of the property that exceeds the
unpaid principal amount of the mortgage indebtedness.
Hardship Rent Control: In New York City, a rent adjustment
provision provided to owners of rent controlled buildings, who,
as determined by DHCR, are not receiving a total annual gross
income that exceeds operating and maintenance expenses and a
return of 8.5% of the current assessed value multiplied by the
current equalization ratio.
Outside of New York City a rent adjustment provision provided to
owners of rent controlled buildings, who, as determined by DHCR,
are not receiving a total annual gross income that exceeds
operating and maintenance expenses and a return of 7.5% of
property valuation defined as the current assessed value adjusted
by the 1954 equalization rate.
Heat and Hot Water Services: By law, building owners must provide
New York City multiple dwelling tenants with the following levels
of heat and hot water (with similar standards for municipalities
outside New York City):
Heat must be provided from October 1 through May 31:
Between 6 a.m. and 10 p.m. heat must register 68 degrees
Fahrenheit when the outside temperature falls below 55
degrees;
Between 10 p.m. and 6 a.m. heat must register 55 degrees
Fahrenheit when the outside temperature falls below 40
degrees;
Hot water must be provided 24 hours a day for every day of
the year, and must register at or above a constant
temperature of 120 degrees at the tap.
High-Income High-Rent Decontrol: The Rent Regulation Reform Act
of 1993 deregulated, upon expiration of the stabilized tenant's
lease, units for which the lawful regulated rent is $2,000 per
month or more as of October 1, 1993, and for which the total
Federal Adjusted Gross Income of all of the tenants occupying the
apartment as primary residents on other than a temporary basis
was in excess of $250,000 in each of the two calendar years
preceding the owner's application for deregulation. Deregulation
for rent controlled tenants generally occurs on March 1st of the
year following the owner's petition for deregulation. In 1994,
New York City allowed for the deregulation of apartments that
rent for $2,000 or more after October 1,1993.
High-Rent Vacancy Decontrol: The Rent Regulation Reform Act of
1993 deregulated all vacant apartments for which the lawful
regulated rent was $2,000 or more between July 7, 1993 and
October 1, 1993, as well as those apartments which were occupied
and which meet this rental level, but only upon the vacancy of
the tenant. In 1994, New York City allowed for deregulation of
all vacant units renting for $2,000 or more and vacated after
April 1, 1994.
Holdover Tenant: A tenant who has stayed in occupancy past the
expiration of the lease or past the time to quit the premises
specified by statute, administrative decision, or court decision.
Horizontal Multiple Dwelling: A dwelling complex, which may
consist of attached, detached, or semi-attached dwelling units,
containing six or more housing accommodations having common
facilities such as a sewer line, water main, or heating plant and
operated as a unit under common ownership. These units are
generally subject to regulation even though Certificates of
Occupancy were issued for portions of the complex as one- or two-
family dwellings.
Hotel: Under rent stabilization, a multiple dwelling which
provides all of the following services included in the rent:
(1) Maid service, consisting of general house-cleaning at a
frequency of at least once a week;
(2) Linen service, consisting of providing clean linens at a
frequency of at least once a week;
(3) Furniture and furnishings, including at a minimum a bed,
lamp, storage facilities for clothing, chair and mirror in a
bedroom; such furniture to be maintained by the hotel owner
in reasonable condition; and
(4) Lobby staffed 24 hours a day, seven days a week by at least
one employee.
Under rent control, any establishment which on March 1, 1950 was
and still is commonly regarded as a hotel, and which customarily
provides hotel services such as maid service, furnishing and
laundering of linen, telephone and secretarial or desk use and
upkeep of furniture and fixtures, and bellboy service; provided,
however, that the term hotel shall not include any establishment
which is commonly regarded in the city as a rooming house.
Hotel Occupant: Under rent stabilization, any person residing in
a housing accommodation in a hotel who is not a permanent tenant.
Such person shall not be considered a tenant for the purposes of
the Rent Stabilization Code, but shall be entitled to become a
permanent tenant under certain circumstances.
Hotel Permanent Tenant: Under rent stabilization, for housing
accommodations located in hotels, an individual or such
individual's family members residing with such individual, who
have continuously resided in the same building as a principal
residence for a period of at least six months. In addition, a
hotel occupant who requests a lease of six months or more, or who
is in occupancy pursuant to a lease of six months or more shall
be a permanent tenant even if actual occupancy is less than six
months.
Under rent control a tenant, subtenant, lessee, sublessee or
other person entitled to possession or to the use or occupancy of
any housing accommodation within a hotel, who has resided in such
hotel continuously since December 2, 1949.
Housing Accommodation: Under rent stabilization, that part of any
building or structure, occupied or intended to be occupied by one
or more individuals as a residence, home, dwelling unit or
apartment, and all services, privileges, furnishings, furniture
and facilities supplied in connection with the occupation
thereof. Under rent control and the Emergency Tenant Protection
Act, any building or structure, permanent or temporary, or any
part thereof, occupied or intended to be occupied by one or more
individuals as a residence home, sleeping place, boarding house,
lodging house or hotel, together with the land and building
appurtenant thereto, and all services, privileges, furnishings,
furniture and facilities supplied in connection with the
occupation thereof.
Housing Maintenance Code: The code, enforced by the New York City
Department of Housing Preservation and Development which provides
for protection of the health and safety of apartment dwellers by
setting standards for the operation, preservation and condition
of buildings.
Illusory Sublets: A sublet which occurs when the named prime
tenant, does not and usually has never maintained the apartment
as a primary residence and the sublet is intended to evade the
Rent Laws and deprive the subtenant of his/her rights.
Independent Contractor: An independent contractor, unlike an
employee or agent, selects the materials and methods for
accomplishing a task and, with respect to such materials and
methods, is not subject to the hiring party's direction and
control. The independent contractor does not appear on the hiring
party's payroll.
Individual Apartment Improvement Rent Increases: An increase in
rental based on increased services, new equipment, or
improvements. This increase is in addition to the regular annual
Rent Guidelines Board increases for rent stabilized apartments,
and Maximum Base Rent increases for rent controlled apartments.
If owners add new services, improvements, or new equipment to an
occupied rent regulated apartment, they must get the tenant's
written consent to pay the increase. The owner may charge the
tenant a rent increase equal to 1/40 of the cost of the new
equipment, including installation costs but not finance charges.
An order from DHCR is not required before the owner may collect
this type of rent increase.
For rent controlled apartments statewide, notification to DHCR is
required before the increase can be collected.
If any apartment is vacant, the owner does not have to get
written consent of a tenant to make the improvement and pass-on
the 1/40th increase.
Initial Legal Registered Rent: Under rent stabilization, the
lawful rent for the use and occupancy of housing accommodations
under the Rent Stabilization Law or the Emergency Tenant
Protection Act, as first registered with the DHCR, which has not
been challenged pursuant to regulation, or if challenged, has
been determined by the DHCR.
Initial Registration: See "Registration".
Initial Stabilized Lease: The lease with the first rent
stabilized tenant of an apartment.
In Rem: In Rem units include those located in structures owned by
the City of New York as a result of an in rem proceeding
initiated by the City after the owner failed to pay tax on the
property for one or more years. Though many of these units in
multiple dwellings had previously been subject to either rent
control or rent stabilization, they are exempt from both
regulatory systems during the period of city ownership.
Interest: The legal rate of interest is set in the Civil Practice
Law and Rules and is currently set at 9 percent.
Interim Lease: A lease for a housing accommodation executed in
connection with an agreement to purchase such housing
accommodation or the shares allocated thereto pursuant to a valid
co-op/condo plan and which terminates tenancy rights upon the co-
op/condo closing.
J-51 Program: A program governed by Sections 11-243 and 11-244 of
the New York City Administrative Code (formerly numbered J-51)
under which, in order to encourage development and rehabilitation
property tax abatements and exemptions are granted. In
consideration of receiving these tax abatements and at least for
the duration of the abatements, the owner of these buildings
agrees to place under rent stabilization, those apartments which
would not otherwise be subject to rent stabilization (e.g., those
in buildings with fewer than 6 apartments or buildings
constructed after 12/31/73).
This program provides real estate tax exemptions and abatements
to existing residential buildings which are renovated or
rehabilitated in ways which conform to the requirements of the
statute. It also provides these benefits to residential buildings
which were converted from commercial structures.
Judicial Sale: A sale of property brought about by legal action
generally ensuing from a property owner's failure to pay debts,
including a mortgage, or taxes.
Key Money: An illegal additional sum above the lawful rent and
allowable security deposit for preference in renting a vacant
apartment.
Lease: A lease is both a contract and a conveyance of an interest
in property which establishes the conditions, rent and terms of
tenancy. Possession of the property for a specified period is
exchanged for rent. See "Vacancy Lease" and "Renewal Lease."
Lease Rider: A supplement to a lease containing additional terms,
conditions or advisements. (See Rent Stabilization Lease Rider)
Lessee: A person to whom a property is rented under a lease.
Lessor: One who rents property to another under a lease.
Legal Regulated Rent: Under rent stabilization, the initial legal
registered rent as adjusted in accordance with the Rent
Stabilization Code, or the rent shown in the annual registration
statement filed 4 years prior to the most recent registration
statement (or if more recently filed, the initial registration
statement), plus in each case, any subsequent lawful increases
and adjustments. Under the Emergency Tenant Protection Act, rents
may be formulated in terms of rents and other charges and
allowances.
Loft Board: A New York City agency which regulates lofts. Lofts
are governed by Article 7-C of the Multiple Dwelling Law, and are
not (until brought up to Code) within DHCR's rent regulatory
jurisdiction.
Major Capital Improvements (MCI): When owners make improvements
or installations to a building subject to the rent stabilization
or rent control laws, they may be permitted to increase the
building's rent based on the actual, verified cost of the
improvement.
An improvement or installation which is:
a. deemed depreciable under the Internal Revenue Code, other
than for ordinary repairs; and
b. for the operation, preservation, and maintenance of the
structure; and
c. an improvement to the building or to the building complex
which inures directly or indirectly to the benefit of all
tenants, and which includes the same work performed in all
similar components of the building or building complex,
unless the owner can satisfactorily demonstrate to the DHCR
that certain of such similar components did not require
improvement; and
d. replaces an item which meets the requirements set forth in
DHCR's useful life schedule, except with DHCR approval of a
waiver.
To be eligible for a rent increase, the MCI must be a new
installation and not a repair to old equipment. For example, an
owner may receive an MCI increase for a new boiler or a new roof
but not for a repaired or rebuilt one. Other building-wide work
may qualify as an MCIs as well, such as "pointing and water-
proofing" a complete building where necessary. The Rent
Stabilization Code also stipulates that applications for MCI rent
increases must be filed within two years of completion of the
installation.
Maximum Base Rent Program (MBR): The Maximum Base Rent Program is
the mechanism for authorizing rent increases for New York City
apartments subject to rent control so as to ensure adequate
income for their operation and maintenance.
New York City Local Law 30 (1970) stipulates that Maximum Base
Rents be established for rent controlled apartments according to
a formula calculated to reflect real estate taxes, water and
sewer charges, operating and maintenance expenses, return on
capital value and vacancy and collection loss allowance. The
Maximum Base Rent is updated every two years by a factor that
incorporates changes in these operating costs.
Maximum Collectible Rent (MCR): The rent that rent controlled
tenants actually pay or are obligated to pay to the owner.
In any one calendar year, the collectible rent shall be increased
by no more than 7.5% until the MBR is reached. Other increases
not associated with the MBR system are possible in the same year,
in addition to the 7.5%, such as fuel cost adjustments and
approved increases for individual apartment improvements and/or
major capital improvements.
The MCR generally is less than the MBR. For example, if a
tenant's rent (MCR) on 12/31/87 was $200, and his/her MBR was
$233, then on 1/1/88 (effective date of MBR) his/her rent (MCR)
would rise 7.5% to $215 and the MBR ceiling would rise by 16.4%
(1988/89 MBR factor) to $271.22. On 1/1/89, the MBR would remain
the same (since MBRs cover a two year period), but the MCR would
rise by another 7.5% to $231.12.
Month-to-Month Tenants: Tenants including regulated tenants (but
not rent control tenants who are referred to as statutory
tenants) who do not have leases and pay rent on a monthly basis.
Multi-Tier Rent: Housing developments receiving assistance or
financing from governmental agencies or public benefit
corporations, or existing regulation under the Private Housing
Finance Law or other state or federal laws, may, by agreement
between DHCR and such other government agencies, register higher
and lower initial legal regulated rents for units subject to
occupancy and rent restrictions under the previous regulatory or
governmental financing plan. This dual level of rents is referred
to as "multi-tier." These rents may then be adjusted according to
the RSL or RSC but cannot be challenged under the Fair Market
Rent Appeal.
New York City Conciliation and Appeals Board (CAB): This Board
was the independent, quasi-governmental agency which administered
the Rent Stabilization Law and the Emergency Tenant Protection
Act in New York City until April 1, 1984. Since April 1, 1984,
DHCR has assumed the functions that were performed by the CAB.
New York City Rent Guidelines Board: See "Rent Guidelines Board,
New York City."
New Law Tenement: A "class A" multiple dwelling constructed
between 1901 and 1929 and subject to the regulations of the
Tenement House Law. Distinguished from the old law tenement in
terms of reduction of hazardous conditions and improved access to
light and air.
Notice of Appearances: The form that must be filed whenever an
attorney or other authorized representative appears for a party
who is involved in a proceeding before the DHCR. An attorney who
appears for such party may instead use the letterhead stationery
of his or her office as a notice of appearance if the information
contained therein substantially conforms to the information
required by the DHCR prescribed form.
Occupant: Under rent stabilization a person, other than a tenant
or a member of a tenant's immediate family, occupying a premises
with the consent of the tenant. Such person shall not be
considered a tenant for the purposes of the Rent Stabilization
Code.
Office of Rent Administration (ORA): The office within DHCR that
administers the four rent regulatory systems; rent control and
rent stabilization for New York City, and rent control and rent
stabilization for various municipalities outside New York City.
Old Law Tenement: A "class A" multiple dwelling constructed
before 1901 and subject to the regulations of the Tenement House
Law.
Omnibus Housing Act: The law signed by Governor Mario M. Cuomo on
June 30, 1983, as Chapter 403, mandated that DHCR assume
responsibility for the administration of rent control and rent
stabilization in New York City commencing April 1, 1984. In
assuming this responsibility, DHCR phased out the regulatory
functions of the entities formerly responsible for those systems
-- the Conciliation and Appeals Board (C.A.B.) which had
administered rent stabilization, and the Division of Rent Control
of the New York City Department of Housing Preservation and
Development's (HPD) Office of Rent and Housing Maintenance, which
had administered rent control. It also made many changes in rent
and landlord-tenant laws, including the initiation of a system of
registration of rents and services by owners with DHCR.
Overcharge: Any additional charges or fees for a service already
included in the rent or in excess of the lawful rent. Examples
includes illegal brokerage fee; excess security; tax abatement
overcharge; excess rent charge; collection of guideline(s)
increase when a service reduction is outstanding.
Owner: A fee owner, lessor, sublessor, assignee, net lessee, or a
proprietary lessee of a housing accommodation in a structure or
premises owned by a cooperative corporation or association, or an
owner of a condominium unit or the sponsor of such corporation or
association or condominium development, or any other person or
entity, or agent of same, receiving or entitled to receive rent
for the use or occupation of any housing accommodation.
Permanently Exempt Housing (from the RSL or ETPA): These include:
(1) A rent controlled apartment.
(2) Housing accommodations owned by the United States, the State
of New York, any political subdivision, agency or
instrumentality thereof, any municipality or any public
housing authority.
(3) Housing accommodations for which rentals are fixed by DHCR,
HPD or UDC pursuant to laws other than the RSL and/or ETPA
and which do not become subject to the RSL and Code after
the establishment of initial rents pursuant to such other
laws.
(4) A building containing fewer than six housing accommodations
on the date the building otherwise would have been first
subject to the RSL. (which do not go to six or more units
thereafter).
(5) Housing accommodations in buildings completed or buildings
substantially rehabilitated as family units on or after
January 1, 1974, except such buildings which are made
subject to stabilization by provisions of the RSL or any
other statute.
(6) Housing accommodations owned by a hospital, convent,
monastery, asylum, public institution, or college or school
dormitory or any institution operated exclusively for
charitable or educational purposes on a non-profit basis,
and occupied by a tenant whose initial occupancy is
contingent upon an affiliation with such institution.
(7) Under RSL, rooms or other housing accommodations in hotels
where such housing accommodations were rented on May 31,
1968 for more than $350.00 per month or $88.00 per week or
are contained in a hotel which was constructed after July 1,
1969. Under ETPA, all hotel rooms are exempt.
(8) Housing accommodations in any motor court, any trailer, or
trailer space used exclusively for transient occupancy or
any part thereof; or any tourist home serving transients
exclusively.
(9) Housing accommodations in buildings operated exclusively for
charitable purposes on a non-profit basis.
(10) Housing accommodations contained in buildings owned as
cooperatives or condominiums not occupied by non-purchasing
tenants, under RSL, or not occupied by non-purchasing
tenants or subsequent rental tenants who moved in before
July 7, 1993, under ETPA.
(11) Housing accommodations used exclusively for professional,
commercial or other nonresidential purposes in accordance
with the certificate of occupancy.
(12) Housing accommodations in buildings completed or
substantially rehabilitated as family units on or after
January 1, 1974 or located in a building containing less
than six housing accommodations, and made subject to the RSL
and Code solely as a condition of receiving "J-51" Tax
benefits or Article XVIII PHFL funding; and thereafter
receipt of such tax benefits and supervisory period has
concluded and such housing accommodations became vacant; or,
each lease and each renewal of the tenant in occupancy when
the benefit or supervisory period concluded includes a
notice informing such tenant that the housing accommodations
shall become deregulated upon the expiration of the last
lease entered into during the tax benefit or supervisory
period and states the approximate date on which such
benefits and supervisory period are scheduled to expire.
(13) Same as Item 12 except that the benefit in question is
granted under Section 421-a of the Real Property Tax Law and
the housing accommodations became vacant after the
expiration of the benefit period; or, for housing
accommodations which first became subject to rent
stabilization pursuant to 421-a after July 3, 1984 each
lease and each renewal of the tenant in occupancy at the
time the period of exemption pursuant to 421-a expires,
contain the same notice as that discussed in Item 12, above.
(14) Housing accommodations which would be subject to the RSL and
Code solely by reason of the Loft Law but are exempted from
the Loft Law under Sections 286(6) and 286(12) of the MDL.
(15) High-rent or high-income decontrolled housing accommodations
(see definitions).
The owner is required to file an annual apartment registration as
of the April 1st date, following the permanent exemption and need
not file subsequent registrations for that apartment.
Petition for Administrative Review: An appeal from an
Administrator's Order. An owner, tenant, or other party aggrieved
by a Rent Administrator's order may file a Petition for
Administrative Review (PAR) with DHCR. The petition must specify
the alleged errors and list the issues upon which the order
should be reviewed. The scope of review in the PAR proceeding is
generally limited to the facts or evidence which were both
presented to the Rent Administrator and raised in the PAR. A PAR
must be filed within 35 days after the Administrator's order is
issued.
Plain English Lease: Leases must use words with common and
everyday meanings and must be clear and coherent.
Preferential Rent: A rent charged by an owner to a tenant which
is less than the established legal regulated rent, where there
exists a special relationship between the owner and tenant for
example, familial or employer/employee.
Owners must base all renewal lease increases on the preferential
rent until the tenant vacates the apartment. The next tenant may
be charged the higher legal regulated rent previously established
plus the most recent applicable guidelines increases and other
such increases as are permitted as for example, that for new
equipment. (also see "Concession")
Primary Residence: For an apartment to remain in its rent
regulated status (stabilized or controlled), the tenant must
occupy it as his or her primary residence. The test as to whether
a tenant is occupying the apartment as a primary residence
includes, but is not limited to, consideration of the following
factors: Does the tenant file a New York City Resident Tax Return
from the subject address or show a valid reason for not filing,
such as an income below taxable level? Does the tenant meet the
definition of "resident" for tax purposes, either domicile or
residence for 183 days of the year? What do the tenant's driver's
license, voter registration card, or other such documents show as
to the tenant's address? Does the tenant sublet or assign the
apartment? Primary residence issues are now determined by the
courts.
Prime Tenant: (See "Sublets")
Registration: All rent stabilized housing accommodations in New
York State must be registered with DHCR. Owners are required to
provide annual information on individual apartments, building
status and types of units.
Registration, Annual: Owners are required to register all rent
stabilized apartments with DHCR by filing an Annual Apartment
Registration Form which lists rents, tenancy and services in
effect on April 1st of each year.
Registration, Apartment Services: On the initial apartment
registration form, owners must specify services provided to an
apartment, such as a stove or refrigerator. Additionally, on the
annual apartment registration form, changes in services resulting
in rent increases or decreases must be recorded.
Registration, Building Services: Owners must specify services
provided for the building, such as elevator service, on the
initial building registration form.
Registration. Initial: The initial registration of a rent
stabilized apartment with DHCR. By June 30, 1984 owners were
required to file an initial registration for each stabilized
apartment they owned, with data as of April 1, 1984.
Subsequently, owners are required to file an initial
registration, within 90 days, after an apartment first becomes
subject to the Rent Stabilization Law. The owner is required to
provide the current tenant a copy of this registration and retain
proof that the tenant received it. A building registration form,
which includes a listing of building-wide services, must also be
completed at the time of the initial registration of apartments.
Registration, Tenant Challenge: A tenant challenge claiming that
the Initial Legal Registered Rent filed by the owner is above the
legal rent for the rent stabilized apartment. This claim must be
made to DHCR within 90 days of the tenant's receipt of his/her
copy of the Initial Apartment Registration form filed by the
owner.
Renewal Lease: The lease of a tenant in occupancy renewing the
terms of the first, vacancy lease entered into between the tenant
and owner for an additional term. Tenants in rent stabilized
apartments, including those tenants who receive a New York City
Senior Citizen Rent Increase Exemption (SCRIE), have the right to
select a lease renewal for a one or two year term.
The renewal lease must be on the same terms and conditions as the
expiring lease unless a change is necessary to comply with a
specific law or regulation or is otherwise authorized by the rent
regulation.
The owner may charge the tenant a Rent Guidelines Board
authorized increase based on the length of the renewal lease term
selected by the tenant. The law permits the owner to raise the
rent during the lease term if the Rent Guidelines rate was not
finalized when the tenant signed the lease renewal offer. A space
appears on the Renewal Lease Form for the owner to either enter
the rent increase or check the box indicating that the authorized
increase is unknown at the time of the offer (which must be 120-
150 days in New York City and 90-120 days in the ETPA counties
before the expiration date of the existing lease).
A renewal lease should go into effect on or after the date that
it is signed and returned to the tenant and on the day following
expiration of the prior lease. In general, the lease and any rent
increase may not begin retroactively.
Penalties are imposed when an owner does not timely offer the
tenant a renewal lease or timely return to the tenant an executed
copy thereof.
Rent: Consideration, charge, fee or other thing of value,
including any bonus, benefit or gratuity demanded or received
for, or in connection with, the use or occupation of housing
accommodations or the transfer of a lease for such housing
accommodations.
Rent Control: The rent regulation program which generally applies
to residential buildings constructed before February, 1947 in
municipalities for which an end to the postwar rental housing
emergency has not been declared. A total of 51 municipalities
have rent control, including New York City, Albany, Buffalo and
various cities, towns, and villages in Albany, Erie, Nassau,
Rensselaer, Schenectady, and Westchester counties.
For an apartment to be under rent control, the tenant must
generally have been living there continuously since before July
1, 1971 (succession rights, see definition). When a rent
controlled apartment becomes vacant, it either becomes rent
stabilized or is removed from regulation, generally becoming
stabilized if the building has six or more units and if the
community has adopted ETPA. Formerly controlled apartments may
have been decontrolled on various other grounds.
Rent control limits the rent an owner may charge for an apartment
and restricts the right of an owner to evict tenants. It also
obligates the owner to provide essential services and equipment.
Outside New York City, DHCR determines maximum allowable rates of
rent increases. Owners may apply for these increases every two
years. Inside New York City rent increases are governed by the
MBR system.
Rent Guidelines Board. New York City: The Board appointed by the
Mayor and consisting of two members who represent tenants, two
members who represent the real estate industry and five public
members who promulgate rent guidelines orders establishing rent
increases for the guidelines year running October 1-September 30
of the following year. For ETPA counties see "County Rent
Guidelines Board."
Rent Guideline Orders: Rent guideline orders are issued by the
rent guidelines boards annually, usually about July 1. For the
most part, they establish the percentage increases which may be
given to rent stabilized/ETPA apartments upon lease renewal and
for new leases. These increases are based on the review of
operating expenses and other cost of living data.
Rent Reductions Due to Decreased Services: Tenants in rent-
regulated apartments can file individual and building-wide
complaints if required or essential services are not being
provided. That action could result in a rent reduction.
If the evidence indicates that the owner failed to maintain
required services, DHCR issues a rent reduction order which also
directs the owner to restore the services. A reduction in rent
starts on the "effective date" specified in the Order and remains
in effect until DHCR issues an order restoring the rent upon an
owner's application for same. In addition, in rent stabilized
apartments, the order finding a reduction in services bars the
owner from collecting any further increases in rent until full
services are restored. For a rent stabilized apartment located in
New York City, DHCR is required to reduce the rent where DHCR
finds a diminution of service.
The rent reduction consists of a percentage equal to the
guidelines increase including any vacancy allowance or other
applicable allowance in effect on the effective date of the
Order.
If a tenant lives in a rent controlled apartment, the rent
reduction, a specific dollar amount, becomes effective the first
day of the month following DHCR's issuance of the order.
Rent Stabilization: In New York City, rent stabilized apartments
are generally those apartments in buildings of six or more units
built between February 1, 1947 and January 1, 1974. Tenants in
buildings built before February 1, 1947, who moved in after June
30, 1971 are also covered by rent stabilization. A third category
of rent stabilized apartments covers buildings subject to
regulation by virtue of various governmental supervision or tax
benefit programs; in some cases, a building with as few as three
units may be stabilized. Generally, these buildings are
stabilized only while the tax benefits or governmental
supervision continues.
Outside New York City, rent stabilization applies to non-rent
controlled apartments in buildings of six or more units built
before January 1, 1974 in the localities that adopted the
Emergency Tenant Protection Act (ETPA) in Nassau, Westchester and
Rockland counties. Some municipalities limit ETPA to buildings of
a specific size but never less than six units.
As does rent control, stabilization provides other protections to
tenants besides regulation of rental amounts. Tenants are
entitled to receive required services, to have their leases
renewed, and not to be evicted except on grounds allowed by law.
Leases may be entered into and renewed for one or two year terms,
at the tenant's choice.
Rent Stabilization Code: The Rent Stabilization Code is the body
of regulations used by DHCR to implement the Rent Stabilization
Law and ETPA in New York City. These regulations affect nearly 1
million rent stabilized apartments in New York City.
Chapter 888 of the Laws of 1985 authorized the Division of
Housing and Community Renewal to amend the Rent Stabilization
Code for New York City. The current Rent Stabilization Code
became effective on May 1, 1987.
Rent Stabilization Lease Rider: By law, an owner must include a
copy of the Rent Stabilization Rider with a tenant's lease. The
Rider describes the rights and obligations of tenants and owners
under the Rent Stabilization Law. The Rider is only
informational; its provisions do not modify or become part of the
lease. Nor does it replace or modify the Rent Stabilization Law
or Code, or any order from the Division of Housing and Community
Renewal (DHCR) or the New York City Rent Guidelines Board.
The Rider informs a rent stabilized tenant signing a vacancy
lease of the legal regulated rent in effect immediately prior to
the vacancy and explains how the present rent was computed.
Rental Vacancy Rate: The percentage of the total rental units in
an area that are vacant and available for occupancy.
Required Services: Under rent stabilization, an owner must
maintain all services required by the Rent Stabilization Law, or
the ETPA, on the base date. (see "Base Date") These services are
called required services and include, but are not limited to:
repairs, decorating and maintenance, the furnishing of light,
heat, hot and cold water, elevator services, janitorial services
and removal of refuse.
Required services for apartments can be building-wide, such as
heat, hot water, elevator service, and maintenance of public
areas of the building. The service may also be something
furnished within an individual apartment, such as a refrigerator,
stove, air conditioning equipment, or painting.
When an owner provides equipment or services, such as a
refrigerator or an air conditioner, the owner must maintain it in
good working order. Defective equipment must be repaired or
replaced. The owner does not have to replace defective equipment
with brand new equipment.
The defective equipment can be replaced with reconditioned or
used equipment, provided the equipment is in good working order.
The owner is not entitled to any increase in rent based on the
cost of replacement with reconditioned or used equipment or new
equipment when the owner cannot locate serviceable, equivalent
used equipment.
If an appliance is replaced with a new one, the owner may be
entitled to a rent increase. Official approval by DHCR is not
necessary in rent stabilized apartments in New York City.
However, the tenant's written consent is required before the
owner may collect the increase. In such cases, the owner may
charge the tenant a rent increase equal to 1/40th of the cost of
the new equipment, including installation costs, but not
including finance charges.
If an installation of new equipment is done while the apartment
is vacant, the new tenant's consent is not required for the owner
to collect a 1/40th increase.
Room: The definition of a room for MCI purposes only is as
follows:
(1) A windowless kitchen containing at least 59 square feet or a
kitchen of any size with a window. In either case, a kitchen
must be enclosed by at least three sides, excluding the
side(s) that contain(s) the entranceway.
(2) An enclosed area with window containing at least 60 square
feet.
(3) An enclosed area without window containing at least 80
square feet.
Bathrooms, walk-in closets, porches, terraces and hallways are
not rooms.
An "enclosed area" is an area bounded by ceiling-to-floor walls,
one or more of which may contain an entranceway.
Rooming House: Under rent control, in addition to its customary
usage, a building or portion of a building, other than an
apartment rented for single-room occupancy, in which housing
accommodations are rented, on a short-term basis of daily, weekly
or monthly occupancy, to more than two occupants for whom rent is
paid, not members of the landlord's immediate family. The term
shall include boarding houses, dormitories, trailers not a part
of a motor court, residence clubs, tourist homes and all other
establishments of a similar nature, except a hotel or a motor
court.
Section 421-a Program: Under this section of the Real Property
Tax Law, new multiple dwellings in New York City receive, under
certain conditions, property tax abatements. For the duration of
the abatements, at least, the apartments are rent regulated. This
program provides real estate tax exemptions and abatements to
newly constructed units.
Security Deposit: Money that a tenant deposits with the owner of
the apartment to insure against the cost of repair for any
damages to the apartment that the tenant is responsible for.
The amount of a security deposit is limited to no more than one
month's rent. However, if two months' security deposit was
collected from a tenant by the owner when the apartment first
came under rent stabilization, and the same tenant is still
occupying the apartment, the two months' requirement is valid.
The next tenant cannot be required to deposit more than one
month's rent as security.
When a lease is renewed at a higher rental amount, the owner can
collect additional money from the tenant to bring the security
deposit up to the new monthly rent. Even though tenants may be
exempt from paying a lease increase because of their Senior
Citizen Rent Increase Exemption (SCRIE), they must still pay the
increased security.
The security deposit must be kept by the owner in an interest-
bearing account in a New York State bank. The owner must notify
the tenant of the name and address of the bank and credit the
tenant the full annual interest, less up to 1% of the security
deposit per year for the owner's administrative costs. The tenant
can choose whether the interest is to be subtracted from the
rent, held in trust until the end of the tenancy, or paid in a
lump sum at the end of each year.
Senior Citizens' Special Rights: The law grants certain
exemptions from rent increases to tenants who are senior
citizens.
If a New York City tenant or tenant's spouse is 62 years of age
or over (living in a rent regulated apartment) and the combined
household income is $16,500 per year or less and they are paying
at least 1/3 of their income toward their rent, the tenant may
apply for the SENIOR CITIZEN RENT INCREASE EXEMPTION (SCRIE). In
New York City, the Department for the Aging (DFTA) administers
the SCRIE program. In the counties outside of New York City,
covered by the Emergency Tenant Protection Act, the Division of
Housing and Community Renewal administers the SCRIE program.
Outside of New York City, Senior Citizen Rent Increase Exemption
is a local option, and communities have different income
eligibility limits and regulations.
If a New York City tenant qualifies for this program, the tenant
is exempt from future rent guidelines increases, Maximum Base
Rent increases, fuel cost adjustments, MCI increases, and
increases based on the owner's economic hardship. New York City
senior citizen tenants may also carry this exemption from one
apartment to another upon moving, upon the proper application
being made to DFTA.
Other rights for New York City senior citizens include:
1. If a building is being converted to cooperative or
condominium ownership under an Eviction Plan, an "eligible
senior citizen" can nevertheless refuse to purchase the
apartment and remain in occupancy as a fully protected rent
regulated tenant with the right to either lease renewal or
protections against eviction.
"Eligible senior citizens" are tenants who are primary
residents in the apartment and are at least 62 years of age
or have a spouse 62 years of age or older on the date the
Attorney General accepts the Eviction Plan for filing.
To take advantage of this benefit, an eligible senior
citizen in New York City must elect, on forms provided by
the Attorney General, to become a "non-purchasing" tenant
within 60 days of the date that the Final Offering Plan is
presented to the tenants. Outside New York City, there is no
formal election requirement.
2. An owner cannot evict a tenant from rent stabilized
apartments in New York City for the purpose of owner
occupancy when either the tenant or the tenant's spouse is a
senior citizen, unless the owner provides an equivalent or
superior apartment at the same or lower regulated rent in an
area near the tenant's present apartment.
3. For rent stabilized apartments outside New York City and
rent controlled apartments statewide, an owner cannot evict
a tenant, where any member of the tenant's household is a
senior citizen, on the basis of owner occupancy.
4. New York City senior citizens with a currently valid Rent
Increase Exemption Order are not required to pay any portion
of a fuel cost increase that would raise their total rent to
over 1/3 of their household disposable income. Senior
citizens who apply for and are granted a SCRIE order within
90 days after receipt of the owner's fuel cost adjustment
report, are retroactively exempt from paying any portion of
the most recent fuel cost adjustments that would raise their
total rent to over 1/3 of their total household disposable
income.
5. A senior citizen may terminate his/her lease, without
penalty, in order to move into a health care facility or
senior citizen housing complex. If the senior citizen
terminates the lease in order to move into a health care
facility, the owner must receive at least 30 days notice,
and 60 days notice to the owner is required if the tenant
moves into a senior citizen housing complex.
Shelter Allowance: A rental grant provided to households
receiving public assistance under the Aid to Families with
Dependent Children (AFDC) program.
Single-Room Occupancy Housing (SRO): Residential properties in
which some or all dwelling units do not contain bathroom or
kitchen facilities.
Under rent control, the occupancy by one or two persons of a
single room, or of two or more rooms which are joined together,
separated from all other rooms within an apartment in a multiple
dwelling, so that the occupant or occupants thereof reside
separately and independently of the other occupant or occupants
of the same apartment.
Small Building Owners' Assistance Unit: The Unit of ORA providing
special assistance to owners of rent regulated buildings with a
total of 50 units or less.
DHCR's Small Building Owners' Assistance Unit has an office at 92-
31 Union Hall Street, 4th Floor, Jamaica, Queens, and offers its
services at the Borough and District Rent Offices throughout the
State. The Unit's services include advice and assistance with:
* preparation of forms for allowable rent increases;
* lease renewal procedures;
* application for major capital improvement rent increases
(MCI);
* application for hardship rent increases;
* responses to tenant objections to building registration
information;
* responses to Fair Market Rent Appeals;
* responses to tenant complaints; and
* preparation of Petitions for Administrative Review of an
Administrator's Order.
State Rent Commission: The Temporary State Housing Rent
Commission created by the Emergency Housing Rent Control Law.
DHCR now performs the Commission's functions.
Stay: A preservation of the current state of affairs while a
proceeding, such as a PAR, is pending. Parties may apply to the
Commissioner for a stay, or a stay may come into effect
automatically. For example, where a PAR is filed against a rent
overcharge order, under the Rent Stabilization Code, the rent
level set in the Administrator's order prevails during the
pendancy of the PAR, but there is an automatic stay of that part
of the order which directs the owner to refund past overcharges.
Such stay continues until the PAR is decided. However, the
Commissioner may grant or vacate a stay under appropriate
circumstances.
Sublet: The temporary transfer of a tenant's legal interest in an
apartment to another person. A tenant who sublets an apartment to
another person is the prime tenant. The person to whom the
apartment is sublet is the subtenant. In a sublet situation, the
prime tenant must abide by the rent stabilization rules that
govern the building owner.
Succession Rights: For rent stabilized and rent controlled
apartments throughout New York State, any "family member" of the
tenant (see definition of "Family Member") may have the right to
a renewal lease (rent stabilization) or protection from eviction
(rent control) when the tenant dies or permanently leaves the
apartment.
The right to a renewal lease is granted if such family member
resided with the tenant as a primary resident in the apartment
for two (2) years immediately prior to the death of the tenant,
or permanent leaving of the apartment, by the tenant (1 year for
family members who are senior citizens or disabled persons -- see
definitions below). The family member may also be granted the
right to a renewal lease if he/she resided with the tenant from
the inception of the tenancy or from the commencement of the
relationship. Consideration is given to absences from the
apartment for military service, schooling and other grounds.
"Family Member" is defined as a husband, wife, son,
daughter, stepson, stepdaughter, father, mother, stepfather,
stepmother, brother, sister, nephew, niece, uncle, aunt,
grandfather, grandmother, grandson, granddaughter, father-in-
law, mother-in-law, son-in-law or daughter-in-law of the
tenant or permanent tenant.
"Tenant" relates to any person or persons named on a lease
or rental agreement who is obligated to pay rent for the use
of the housing accommodation.
"Permanent tenant" relates to individuals who have
continuously resided in housing accommodations located in
hotels as a primary residence for a period of at least six
months, or a hotel tenant in occupancy pursuant to or
entitled to a lease.
The definition of family member has been further expanded to
include any other person(s) residing with the tenant or permanent
tenant in the housing accommodation as a primary resident, who
can prove emotional and financial commitment and interdependence
between such person(s) and the tenant.
"Disabled person" is a person who has an impairment which results
from anatomical, physiological or psychological conditions, other
than addiction to alcohol, gambling, or any controlled substance,
which is demonstrable by medically acceptable clinical and
laboratory diagnostic techniques, and which is expected to be
permanent and which prevent such person from engaging in any
substantial gainful employment.
Supplementary Adjustment: A rent increase that has been allowed
in certain years in addition to a regular Guidelines Increase for
apartments. The supplementary adjustment amount is established
for that guideline year by the New York City or County Rent
Guidelines Boards based upon the date the lease was signed, the
term of the lease and the county.
Surcharge: An added charge which is paid by the tenant but not
included in the legal regulated rent and is not compounded by
guidelines adjustments. Examples of surcharges are: the $5.00 a
month charge for an air conditioner that protrudes beyond the
window line; the electrical charge for air conditioners in
electrical inclusion buildings (see definition); and for the
installation of window guards.
Temporarily Exempt Housing Accommodations: A temporarily exempt
accommodation is one which is not presently occupied by a rent
stabilized tenant, but may be covered by rent stabilization if
the tenancy changes. For example, the accommodation:
(a) Is occupied by the owner or members of the owner's immediate
family.
(b) Is occupied by an employee who is not paying rent.
(c) Is rented solely for business or professional use.
(d) Is in a hotel or SRO and houses a transient occupant.
(e) Is occupied by a tenant not using the unit as his or her
primary residence, as determined by a court of competent
jurisdiction.
(f) Is owned by a non-profit institution and is occupied by a
tenant who is affiliated with that institution, in a
building which also contains non-affiliated tenants.
The owner is required to register these apartments on an annual
basis.
Tenant: Under rent stabilization, any person or persons named on
a lease as lessee or lessees, or who is or are a party or parties
to a rental agreement and obligated to pay rent for the use or
occupancy of a housing accommodation. Under rent control and the
Emergency Tenant Protection Act a tenant, subtenant, lessee,
sublessee or other person entitled to the possession or to the
use or occupancy of any housing accommodation.
Transient Occupancy: Among the criteria that must be met for
hotel rooms, tourist homes, and motor courts to be exempt from
rent regulation is that they are used for transient occupancy.
Whether occupancy is transient depends on a number of factors,
including whether rates are charged by the day, week, or month,
and the proportions of occupants who stay for various lengths of
time.
Treble Damages: The total amount that the tenant is awarded when
the owner has been found to have willfully collected any rent in
excess of the legal regulated rent. DHCR imposes treble damages
only for rent stabilized apartments.
Treble damages will not be imposed if:
(a) the owner can prove by a preponderance of the evidence that
the overcharge was not willful.
(b) purchase of a building occurred at a judicial or bankruptcy
sale, where complete prior rent records were not available
and that is the basis for the overcharge.
(c) an owner adjusts the rent on his or her own within the time
afforded to interpose an answer to the proceeding and
submits proof to the DHCR that he or she has tendered, in
good faith, to the tenant a full refund of all excess rent
collected, plus interest.
(d) the overcharge is caused by the hyper-technical nature of
the rent computation.
(e) there is a roll back of the rent caused by the determination
of a fair market rent appeal.
Treble damages will not be imposed on any portion of the
overcharge occurring more than two years before the complaint is
filed or upon an overcharge which occurred prior to April 1,
1984.
Useful Life Schedule: A listing of the expected life of
installations which qualify as major capital improvements or
individual apartment improvements as recognized by the DHCR.
Vacancy Allowance: An adjustment to the legal regulated rent
promulgated by the Rent Guideline Boards upon the renting of a
vacant stabilized unit. When an apartment is rented to a new
tenant the owner is allowed to increase the last tenant's rent by
the most recently approved guidelines adjustment for the 1 or 2
year lease term, whichever the new tenant chooses, and generally
plus an adjustment called the vacancy allowance. The rent
increase for a renewal lease however, will generally only be the
adjustment for a 1 or 2 year lease.
Vacancy Decontrol: Voluntarily vacated rent controlled apartments
are decontrolled and either become stabilized or are removed from
rent regulation. When rent controlled apartments become vacant in
New York City and municipalities adopting ETPA, they generally go
into the stabilization system if the building contains 6 or more
housing accommodations.
Vacancy Lease: When a person rents a rent stabilized apartment
for the first time, this is a VACANCY LEASE. This written lease
is a contract between the owner and the tenant which includes:
the terms and conditions of the lease, the length of the lease
and the rights and responsibilities of the tenant and the owner.
The Rent Stabilization Law gives the new tenant (also called the
vacancy tenant) the choice of a one or two year lease term. The
rent the owner can charge may not be more than the last legal
regulated rent plus all increases authorized by the Rent
Stabilization Code, including increases for improvements to the
vacant apartment.
Vacate Order: A vacate order is an order issued by a governmental
agency, such as the New York City Department of Housing
Preservation and Development or local Housing Department, the
Fire Department, the Health Department, or the Buildings
Department, which requires that tenants vacate the building
because it has been found to be unlivable. Orders are usually
effective until the health, safety or Building Code violations in
the building have been cleared.
Warranty of Habitability: Real Property Law Section 235-b
entitles tenants to a livable, safe and sanitary apartment and
building and remedies are specified when these conditions are not
met.
Window Guards: The New York City Health Code [S.131.15] requires
owners of multiple dwellings (3 apartments or more) in New York
City to provide, install, and maintain window guards when a child
(or children) ten years old or younger lives there. Tenants with
no children -- or none living at home -- may also request and
receive window guards if they want them for any reason.
Window guards approved by the New York City Department of Health
(DOH) must be properly installed according to DOH specifications
in all windows, including bathroom windows, except any window
providing access to fire escapes and any window providing a
secondary exit from a first floor apartment in a building which
has fire escapes.
An owner of a rent stabilized or rent controlled apartment may
collect a temporary surcharge from the tenant. The maximum amount
of this temporary surcharge may not exceed $10 per window guard.
The tenant may choose to pay at one time, or in equal monthly
installments over a one, two, or three year period. This charge
does not become a part of the base rent for the apartment.