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New York Rent Laws
Rent Stab Code (1987) - Table of Contents
NYC Rent Stabilization Code (1987)
Please note: This version of the NYC Rent Stabilziation Code is from 1987 and is not current. The code has been amended several times since 1987. Although much remains the same, there are significant changes that have occurred. This version of the code is maintained for archival purposes.
The RENT STABILIZATION CODE (RSC) is issued by the New York State
Division of Housing and Community Renewal (DHCR) and is a
codification of the laws and procedures of the RENT STABILIZATION
LAW (RSL). Since 1969, Rent Stabilization has gradually replaced
Rent Control as the rent regulatory scheme applicable to
regulated apartments in New York City.
Also see: DHCR Policy Statements, DHCR Operational Bulletins,
DHCR Advisory Opinions, and various Rent Control Statutes.
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.
The reader is advised to obtain true copies of these documents.
Every attempt has been made to conform to the original document;
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.
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NEW YORK STATE
RENT STABILIZATION CODE
[19 NYCRR Parts 2520-2530.1]*
* Statutory authority: N.Y.C. Admin. Code, 26-511(b),
26-518(a).
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TABLE OF CONTENTS
Part 2520. Scope
2521. Legal Registered and Regulated Rents
2522. Rent Adjustments
2523. Notices and Records
2524. Evictions
2525. Prohibitions
2526. Enforcement
2527. Proceedings Before the DHCR
2528. Registration of Housing Accommodations
2529. Administrative Review
2530. Judicial Review
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PART 2520 -- SCOPE
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TABLE OF CONTENTS
Section 2520.1. Statutory authority.
2520.2. Amendment of codes.
2520.3. Construction and implementation.
2520.4. Delegation of authority.
2520.5. Designations.
2520.6. Definitions.
2520.7. Effective date.
2520.8. Amendment or revocation.
2520.9. Filing of amendments.
2520.10 Separability.
2520.11 Applicability.
2520.12 Effect of this Code on leases and
other rental agreements.
2520.13 Waiver of benefit void.
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Sec. 2520.1. STATUTORY AUTHORITY.
This Subchapter is promulgated and adopted pursuant to the powers
granted to the Division of Housing and Community Renewal by
chapter 888 of the Laws of New York for the year 1985.
Sec. 2520.2. AMENDMENT OF CODES.
Sections I through 66, inclusive, of the code of the Rent
Stabilization Association of New York City, Inc., and sections I
through 64, inclusive, of the code of the Metropolitan Hotel
Industry Stabilization Association, Inc., as last amended, are
hereby further amended by deleting such sections in their
entirety and sections 2520.1 through 2530.1 of this Subchapter,
inclusive, are hereby adopted, and this Code shall hereafter be
known as the Rent Stabilization Code. Chapter VIII of this
Subtitle is hereby redesignated to be known as Rent Stabilization
Regulations and divided into Subchapter A--Emergency Tenant
Protection Regulations, consisting of existing Parts 2500-2510;
and Subchapter B--Rent Stabilization Code, consisting of new
Parts 2520-2530.
Sec. 2520.3. CONSTRUCTION AND IMPLEMENTATION.
This Code shall be construed so as to carry out the intent of the
Rent Stabilization Law to ensure that such statute shall not be
subverted or rendered ineffective, directly or indirectly, and to
prevent the exaction of unjust, unreasonable and oppressive rents
and rental agreements, and to forestall profiteering, speculation
and other disruptive practices tending to produce threats to the
public health, safety and general welfare; and that the policy
herein expressed shall be implemented with due regard for the
preservation of regulated rental housing.
Sec. 2520.4. DELEGATION OF AUTHORITY.
The Commissioner of Housing and Community Renewal may delegate to
a deputy commissioner, an assistant commissioner, a rent
administrator or any other person or persons, the authority to
carry out any of the duties and powers granted to him by the New
York City Rent Stabilization Law or this Code, and the Emergency
Tenant Protection Act of Nineteen Seventy-four as amended.
Sec. 2520.5. DESIGNATIONS.
When used in this Code, unless a different meaning clearly
appears from the context, the following terms shall mean and
include:
(a) RSL. Title 26 of the Administrative Code of the City of New
York, sections 26-501 through 26-520, as recodified by
chapter 907 of the Laws of New York for the year 1985,
constituting the New York City Rent Stabilization Law.
(b) ETPA. The Emergency Tenant Protection Act of Nineteen
Seventy-four.
(c) State Rent Law. The New York State Emergency Housing Rent
Control Law, commonly referred to as the State Rent Control
Law.
(d) City Rent Law. Title 26 of the Administrative Code of the
City of New York, sections 26-401 through 26-415, as
recodified by chapter 907 of the Laws of New York for the
year 1985, constituting the New York City Rent and
Rehabilitation Law, commonly referred to as the City Rent
Control Law.
(e) PHFL. The Private Housing Finance Law.
(f) MDL. The Multiple Dwelling Law.
(g) City Rent and Eviction Regulations. Regulations adopted and
promulgated by the State Division of Housing and Community
Renewal pursuant to the City Rent Law, Parts 2200-2210 of
Title 9 NYCRR, officially known as the Official Compilation
of Codes, Rules and Regulations of the State of New York.
(h) DHCR. State Division of Housing and Community Renewal in the
Executive Department.
(i) Commissioner. Commissioner of the DHCR.
(j) City Rent Agency. DHCR as defined in the City Rent Law.
(k) HPD. New York City Department of Housing Preservation and
Development.
(l) Loft Board. The board created in the City of New York
pursuant to article 7-C of the MDL, to resolve complaints of
owners of interim multiple dwellings and of residential
occupants of such buildings qualified for the protection of
MDL article 7-C, and to act upon hardship applications made
pursuant to such article.
(m) Rent Guidelines Board. The board created in the City of New
York pursuant to the RSL to establish guidelines annually
for rent adjustments for leases or other rental agreements.
(n) Office of Rent Administration. The office of the DHCR
designated by the commissioner to administer the ETPA, the
RSL and the City and State Rent Laws.
(o) District Rent Office. The local rent administration office
of the DHCR for a particular rent area in the City of New
York.
(p) Rent Administrator. The person designated by the
commissioner to issue orders based on complaints or
applications made to the DHCR.
Sec. 2520.6. DEFINITIONS.
(a) Housing accommodation. 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. The term housing accommodation Will also
apply to any plot or parcel of land which had been regulated
pursuant to the City Rent Law prior to July 1, 1971 and
which became subject to the RSL after June 30, 1974.
(b) Hotel. Any Class A- or Class B multiple dwelling which
provides all of the services included in the rent as set
forth in section 2521.3 of this Title.
(c) 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.
(d) Tenant. 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.
(e) Initial legal registered rent. The lawful rent for the use
and occupancy of housing accommodations under the RSL or the
ETPA, as first registered with the DHCR in accordance with
the RSL, ETPA and this Code, which has not been challenged
pursuant to Part 2526 of this Title, or if challenged, has
been determined by the DHCR.
(f) Legal regulated rent. The initial legal registered rent as
adjusted in accordance with this Code or the rent shown in
the annual registration statement filed four 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.
(g) Vacancy lease. The first lease or rental agreement for a
housing accommodation that is entered into between an owner
and a tenant.
(h) Renewal lease. Any extension of a tenant's lawful occupancy
of a housing accommodation pursuant to section 2523.5 of
this Title.
(i) 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 cooperative corporation or association or
condominium development, or any other person or entity
receiving or entitled to receive rent for the use or
occupation of any housing accommodation, or an agent of any
of the foregoing, but such agent shall only commence a
proceeding pursuant to section 2524.5 of this Title, in the
name of such foregoing principals.
(j) Permanent tenant. 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 pursuant to section
2522.5(a)(2) of this Title, 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. Unless
otherwise specified, reference in this Code to "tenant"
shall include permanent tenant with respect to hotels.
(k) Subtenant or sublessee. Any person lawfully occupying the
housing accommodation pursuant to an agreement with the
tenant by authority of the lease or by virtue of rights
afforded pursuant to section 226-b of the Real Property Law.
Such person shall be entitled to all of the benefits of and
be subject to all of the obligations of this Code except the
right to renew, and the right to purchase upon conversion to
cooperative or condominium ownership.
(l) Occupant. Any person occupying a housing accommodation as
defined in and pursuant to section 235-f of the Real
Property Law. Such person shall not be considered a tenant
for the purposes of this Code.
(m) Hotel occupant. 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
this Code, but shall be entitled to become a permanent
tenant as defined in subdivision (j) of this section, upon
compliance with the procedure set forth in such subdivision.
(n) Immediate family. A husband, wife, son, daughter, stepson,
stepdaughter, father, mother, stepfather, stepmother,
brother, sister, grandfather, grandmother, grandson or
granddaughter of the owner.
(o) Family member.
(1) 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; or
(2) Any other person residing with the tenant or permanent
tenant in the housing accommodation as a primary or
principal residence, respectively, who can prove
emotional and financial commitment, and interdependence
between such person and the tenant or permanent tenant.
Although no single factor shall be solely
determinative, evidence which is to be considered in
determining whether such emotional and financial
commitment and interdependence existed, may include
without limitation, such factors as listed below. In no
event would evidence of a sexual relationship between
such persons be required or considered.
(i) longevity of the relationship;
(ii) sharing of or relying upon each other for
payment of household or family expenses, and/or
other common necessities of life;
(iii) intermingling of finances as evidenced by,
among other things, joint ownership of bank
accounts, personal and real property, credit
cards, loan obligations, sharing a household
budget for purposes of receiving government
benefits, etc.;
(iv) engaging in family-type activities by jointly
attending family functions, holidays and
celebrations, social and recreational
activities, etc.;
(v) formalizing of legal obligations, intentions,
and responsibilities to each other by such
means as executing wills naming each other as
executor and/or beneficiary, granting each
other a power of attorney and/or conferring
upon each other authority to make health care
decisions each for the other, entering into a
personal relationship contract, making a
domestic partnership declaration, or serving as
a representative payee for purposes of public
benefits, etc.;
(vi) holding themselves out as family members to
other family members, friends, members of the
community or religious institutions, or society
in general, through their words or actions;
(vii) regularly performing family functions, such as
caring for each other or each other's extended
family members, and/or relying upon each other
for daily family services;
(viii) engaging in any other pattern of behavior,
agreement, or other action which evidences the
intention of creating a long-term, emotionally
committed relationship.
(p) Senior citizen. A person who is 62 years of age or older.
(q) Disabled person. Except as provided pursuant to paragraph
(4) of subdivision (b) of section 2523.5 of this Title
(Renewal of Lease), a person who has an impairment which
results from anatomical, physiological or psychological
conditions, other than addiction to alcohol, gambling, or
any controlled sub-stance, which are demonstrable by
medically acceptable clinical and laboratory diagnostic
techniques, and which are expected to be permanent and which
prevent such person from engaging in any substantial gainful
employment.
(r) Required services.
(1) That space and those services which the owner was
maintaining or was required to maintain on the
applicable base dates set forth below, and any
additional space or services provided or required to be
provided thereafter by applicable law. These may
include, but are not limited to, the following:
repairs, decorating and maintenance, the furnishing of
light, heat, hot and cold water, elevator services,
janitorial services and removal of refuse.
(2) For housing accommodations located in hotels in
addition to the definition set forth in paragraph (1)
of this subdivision, required services shall also
include the services set forth in section 2521.3 of
this Title, and any other services provided, or
required to be provided by applicable law on the
applicable base dates set forth below, including but
not limited to telephone switchboard, bellhop,
secretarial, and front desk services.
(3) Ancillary services. That space and those required
services not contained within the individual housing
accommodation which the owner was providing on the
applicable base dates set forth below, and any
additional space and services provided or required to
be provided thereafter by applicable law. These may
include, but are not limited to, garage facilities,
laundry facilities, recreational facilities, and
security. Such ancillary services are subject to the
following provisions:
(i) No owner shall require a tenant or prospective
tenant to lease, rent or pay for an ancillary
service, other than security, as a condition of
renting a housing accommodation.
(ii) Where an ancillary service is provided to a
tenant pursuant to a lease or rental agreement
separate and apart from the lease or rental
agreement for the housing accommodation
occupied by the tenant, the tenant shall not be
required to renew such lease, or rental
agreement, for the ancillary service upon the
expiration of such lease or rental agreement.
(iii) Where an ancillary service is provided to a
tenant pursuant to a lease or rental agreement
for a housing accommodation, whether at a
charge separate and apart from the rental of
the housing accommodation, or included in the
legal regulated rent, the tenant may be
required to renew the rental term for the
ancillary service upon the renewal of the lease
for the housing accommodation. However, where
the owner requires a tenant to continue such
ancillary service, the owner may not
unreasonably withhold consent to the tenant to
sublet for the term of each renewal lease, the
space or other facility constituting the
ancillary service.
(iv) For housing accommodations located in hotels,
where telephone switchboard service is not
provided or required to be provided pursuant to
paragraph (2) of this subdivision, an owner
shall not deny a permanent tenant permission to
install a private telephone, provided that such
installation shall not cause undue economic
hardship to the owner, nor shall an owner cause
the removal of a pay telephone from the
premises.
(4) The base dates for required services shall be:
(i) for housing accommodations subject to the RSL
on June 30, 1974, for building-wide and
individual dwelling unit services: May 31,
1968;
(ii) for housing accommodations subject to the RSL
pursuant to section 421-a of the Real Property
Tax Law, for building wide and individual
dwelling unit services: the date of issuance of
the initial Certificate of Occupancy;
(iii) for housing accommodations subject to the RSL
on June 30, 1971, and exempted thereafter as a
result of a vacancy prior to June 30, 1974, for
building- wide services: May 31, 1968; for
individual dwelling unit services: May 29,
1974;
(iv) for dwelling units which became subject to the
RSL on July 1, 1974, pursuant to section 423 of
the Real Property Tax Law, for building-wide
and individual unit services: May 29, 1974,
except that for housing accommodations in the
Riverton Apartments at East 138th Street,
Manhattan, which became subject to the RSL on
July 1, 1974, pursuant to an initial legal
regulated rent date of June 30, 1973, for
building-wide and individual dwelling unit
services: June 30, 1973;
(v) for housing accommodations which are subject to
this Code solely as a condition of receiving or
continuing to receive benefits pursuant to
section 11-243 (formerly J51-2.5) or 11-244
(formerly J51-5.0) of the Administrative Code
of the City of New York, as amended, for
building-wide and individual unit services:
January 1, 1976, or the date of the issuance of
a Certificate of Reasonable Cost, whichever is
later;
(vi) for housing accommodations for which rents are
established by governmental agencies pursuant
to the PHFL, or which are first made subject to
this Code pursuant to the PHFL, the building-
wide and individual unit services which were
required for approval in connection with the
establishment of initial rents pursuant to the
PHFL: the effective date of the initial rents;
(vii) for housing accommodations whose rentals were
previously regulated under the PHFL or any
other State or Federal law, other than the RSL
or the City Rent Law: the date such regulation
ends;
(viii) for housing accommodations contained in Class B
multiple dwelling units, including single room
occupancy facilities, rooming houses or rooming
units made subject to the ETPA on June 4, 1981,
for building-wide and individual dwelling unit
services: June 4, 1981;
(ix) for housing accommodations which are first made
subject to this Code pursuant to article 7-C of
the MDL, for building-wide and individual
dwelling unit services: the effective date of
the initial rents established by the Loft
Board;
(x) for all other housing accommodations not
subject to the RSL on June 30, 1974, which
become subject to the RSL on or after July 1,
1974 pursuant to the ETPA, for building-wide
and individual dwelling unit services: May 29,
1974.
A service as defined in paragraph (3) of this
subdivision for which there is or was a separate
charge, shall not be subject to the provisions of this
Code where no common ownership between the operator of
such service and the owner exists or existed on the
applicable base date, or at any time subsequent
thereto, and such service is or was provided on the
applicable base date and at all times thereafter by an
independent contractor pursuant to a contract or
agreement with the owner. Where, however, on the
applicable base date or at any time subsequent thereto,
there is or was a separate charge, and there is or was
common ownership, directly or indirectly, between the
operator of such service and the owner, or the service
was provided by the owner, any increase, other than the
charge provided in the initial agreement with a tenant
to lease, rent or pay for such service, shall conform
to the applicable rent guidelines rate. However,
notwithstanding such common ownership, where such
service was not provided primarily for the use of
tenants in the building or building complex on the
applicable base date or at any time subsequent thereto,
such increases shall not be subject to any guidelines
limitations.
(5) Each housing accommodation must be painted at least
once every three years in compliance with title 27 of
the Administrative Code of the City of New York (the
Housing Maintenance Code). In no event shall a tenant
be required to pay a painting deposit or to contribute
to the cost of the painting except to the extent the
owner agrees to provide services in connection with the
painting which are not required, and the tenant
consents in writing to pay therefor. Any painting
deposit previously required shall be returned to the
tenant on renewal of his or her lease.
(s) Documents. Records, books, accounts, correspondence,
memoranda and other documents, and copies, including
microphotographic copies, of any of the foregoing.
(t) Final order. A final order shall be an order of a rent
administrator not appealed to the commissioner within the
period authorized pursuant to section 2529.2 of this Title,
or an order of the commissioner.
Sec. 2520.7. EFFECTIVE DATE.
In accordance with the provisions of the State Administrative
Procedure Act, this Code shall be effective May 1 , 1987, and all
amendments to this Code shall become effective in accordance with
the State Administrative Procedure Act. Where implementation of a
provision would require new or significantly revised filing
procedures or notice requirements, the DHCR may postpone
implementation of such provision, as required, for up to 180 days
after the effective date of this Code, by an advisory opinion
issued pursuant to section 2527.11 of this Title, which shall be
available to the public on such effective date. Where such
postponement is deemed necessary, current filing procedures,
notice requirements, or forms, if any, may be utilized until
revision thereof.
Sec. 2520.8. AMENDMENT OR REVOCATION.
Any provision of this Code may be amended or revoked at any time
in accordance with the procedure set forth in chapter 888 of the
Laws of New York for the year 1985, or as otherwise provided by
the State Administrative Procedure Act.
Sec. 2520.9. FILING OF AMENDMENTS.
Such amendment or revocation shall be filed with the Secretary of
State and shall take effect upon the date of filing unless
otherwise specified therein or as otherwise provided by the State
Administrative Procedure Act.
Sec. 2520.10. SEPARABILITY.
If any provision of this Code or the application of such
provision to any person or circumstance shall be held invalid,
the validity of the remainder of this Code and the applicability
of such provision to other persons or circumstances shall not be
affected thereby.
Sec. 2520.11. APPLICABILITY.
This Code shall apply to all or any class or classes of housing
accommodations made subject to regulation pursuant to the RSL or
any other provision of law, except the following housing
accommodations for so long as they maintain the status indicated
below:
(a) housing accommodations subject to the City Rent Law;
(b) housing accommodations owned, operated or leased by the
United States, the State of New York, any political
subdivision, agency or instrumentality thereof, any
municipality or any public housing authority;
(c) housing accommodations for which rentals are fixed by the
DHCR or HPD, unless, after the establishment of initial
rents, the housing accommodations are made subject to the
RSL pursuant to applicable law, or housing accommodations
subject to the supervision of the DHCR or HPD under other
provisions of law or the New York State Urban Development
Corporation, or buildings aided by government insurance
under any provision of the National Housing Act to the
extent the RSL or any regulation or order issued thereunder
is inconsistent with such act. However, housing
accommodations in buildings completed or substantially
rehabilitated prior to January 1, 1974, and whose rentals
were previously regulated under the PHFL or any other State
or Federal law, other than the RSL or the City Rent Law,
shall become subject to the ETPA, the RSL and this Code,
upon the termination of such regulation. An owner of such
housing accommodations shall not be eligible for a rent
adjustment pursuant to section 2522.4(b) or (c) of this
Title, for a period of three years, where such owner would
not qualify for such rent adjustment in the absence of a
voluntary dissolution, termination, or reconstitution
pursuant to the PHFL or other State or Federal laws;
(d) buildings containing fewer than six housing accommodations
on the date the building first became subject to the RSL,
unless such buildings are otherwise subject to this Code
pursuant to the RSL or other statutes and regulations; for
the purposes of this subdivision, a building shall be deemed
to contain six or more housing accommodations if it was part
of a multiple family garden-type maisonette dwelling complex
containing six or more housing accommodations having common
facilities such as a sewer line, water main or heating plant
and was operated as a unit under common ownership on the
date the building or complex first became subject to the
RSL, notwithstanding that Certificates of Occupancy were
issued for portions thereof as one- or two-family dwellings;
(e) 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 this Code by provision of the RSL or any other
statute;
(f) housing accommodations owned, operated, or leased or rented
pursuant to governmental funding, 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 nonprofit basis, and
occupied by a tenant whose initial occupancy is contingent
upon an affiliation with such institution; however, a
housing accommodation occupied by a nonaffiliated tenant
shall be subject to the RSL and this Code;
(g) rooms or other housing accommodations in hotels where such
housing accommodations (1) are used for transient occupancy;
(2) were rented on May 31, 1968 for more than $350 per month
or $88 per week; or (3) are contained in a hotel which was
constructed after July 1, 1969;
(h) any motor court, or any part thereof, any trailer, or
trailer space used exclusively for transient occupancy or
any part thereof; or any tourist home serving transient
guests exclusively, or any part thereof. The term "tourist
home" shall mean a rooming house which caters primarily to
transient guests and is known in the community as a tourist
home;
(i) nonhousekeeping, furnished housing accommodations, located
within a single dwelling unit not used as a rooming or
boarding house, but only if:
(1) no more than two tenants for whom rent is paid (husband
and wife being considered one tenant for this purpose),
who are not members of the owner's immediate family,
live in such dwelling unit; and
(2) the remaining portion of such dwelling unit is occupied
by the owner or his or her immediate family; provided
that this exemption shall not apply where the tenancy
commenced prior to July l, 1971;
(j) housing accommodations in buildings operated exclusively for
charitable purposes on a nonprofit basis;
(k) housing accommodations which are not occupied by the tenant,
not including subtenants or occupants, as his or her primary
residence as determined by a court of competent
jurisdiction;
(l) housing accommodations contained in buildings owned as
cooperatives or condominiums on or before June 30, 1974; or
thereafter, as provided in section 352-eeee of the General
Business Law in accordance with section 2522.5(h) of this
Title;
(m) housing accommodations occupied by domestic servants,
superintendents, caretakers, managers or other employees to
whom the space is provided as part or all of their
compensation without payment of rent and who are employed
for the purpose of rendering services in connection with the
premises of which the housing accommodation is a part;
(n) housing accommodations used exclusively for professional,
commercial, or other nonresidential purposes;
(o) 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 which were originally
made subject to regulation solely as a condition of
receiving tax benefits pursuant to section 11-243 (formerly
J51-2.5) or section 11-244 (formerly J51-5.0) of the
Administrative Code of the City of New York, as amended, or
article XVIII of the PHFL; and thereafter receipt of such
tax benefits has concluded pursuant to these sections or
article XVIII, and:
(1) for housing accommodations which were subject to the
RSL pursuant to section 11-243(formerly J51-2.5) or
section 11-244 (formerly J51-5.0) or PHFL article XVIII
became vacant; or
(2) for housing accommodations which received benefits
pursuant to section 11-243 (formerly J51-2.5) or
section 11-244 (formerly J51-5.0) or article XVIII of
the PHFL, each lease and each renewal thereof of the
tenant in residence at the time of the expiration of
the tax benefit period includes a notice, in at least
12-point type informing such tenant that the housing
accommodation shall become deregulated upon the
expiration of the last lease or rental agreement
entered into during the tax benefit period, and states
the approximate date on which such tax benefit period
is scheduled to expire;
(p) 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 which were originally
made subject to regulation solely as a condition of
receiving tax benefits pursuant to section 421-a of the Real
Property Tax Law, as amended, and:
(1) the housing accommodations which were subject to the
RSL pursuant to section 421-a became vacant; or
(2) for housing accommodations which first became subject
to the rent stabilization requirements of section 42 I-
a after July 3, 1984, where each lease and each renewal
thereof of the tenant in occupancy at the time the
period of tax exemption pursuant to section 421-a
expires, contains a notice in at least 12-point type
informing such tenant that the housing accommodation
shall become deregulated upon the expiration of the
last lease or rental agreement entered into during the
tax benefit period and states the approximate date on
which such tax benefit period is scheduled to expire;
(q) housing accommodations which would otherwise be subject to
rent regulation solely by reason of the provisions of
article 7-C of the MDL requiring rent regulation, but which
are exempted from such provisions pursuant to section 286(6)
and 286(12) of the MDL;
(r) housing accommodations exempted pursuant to any other
provision of law.
Sec. 2520.12. EFFECT OF THIS CODE ON LEASES AND OTHER
RENTAL AGREEMENTS.
The provisions of any lease or other rental agreement shall
remain in force pursuant to the terms thereof, except insofar as
those provisions are inconsistent with the ETPA, the RSL or this
Code, and in such event such provisions shall be void and
unenforceable. For housing accommodations made subject to the RSL
and this Code pursuant to section 2520.11 (c) of this Part, where
such leases or rental agreements are so inconsistent as to render
them ineffective in defining the rights and duties of tenants and
owners, the DHCR may order the provision of new leases consistent
with the ETPA, the RSL and this Code. No renewal lease or vacancy
lease offered to a tenant shall contain any right of cancellation
or eviction by the owner during the term thereof except as
provided for by the ETPA, the RSL or this Code
Sec. 2520.13. WAIVER OF BENEFIT VOID.
An agreement by the tenant to waive the benefit of any provision
of the RSL or this Code is void; provided, however, that based
upon a negotiated settlement between the parties and with the
approval of the DHCR, or a court of competent jurisdiction where
a tenant is represented by counsel, a tenant may withdraw, with
prejudice, any complaint pending before the DHCR. Such settlement
shall not be binding upon any subsequent tenant, except to the
extent that the complaint being settled is subject to the time
limitations set forth in the RSL and this Code.
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PART 2521 -- LEGAL REGISTERED AND REGULATED RENTS
-----------------------------
TABLE OF CONTENTS
Section 2521.1. Initial legal registered rents for housing
accommodations.
2521.2. Legal regulated rents for housing
accommodations.
2521.3. Classification of buildings.
-----------------------------
Sec. 2521.1. INITIAL LEGAL REGISTERED RENTS FOR HOUSING
ACCOMMODATIONS.
(a) (1) For housing accommodations which on March 31, 1984
were subject to the City Rent Law, and became vacant
after that date, and which are no longer subject to the
City Rent Law, and are rented thereafter subject to the
RSL, the initial legal registered rent shall be the
rent agreed to by the owner and the tenant and reserved
in a lease or provided for in a rental agreement
subject to the provisions of this Code, provided that
such rent is registered with the DHCR pursuant to Part
2528 of this Title, and subject to a tenant's right to
a Fair Market Rent Appeal to adjust such rent pursuant
to section 2522.3 of this Title.
(2) For housing accommodations which on March 31, 1984
were subject to the penalties provided in former
section YY51-4.0 of the Administrative Code of the City
of New York, and which become vacant thereafter, the
initial legal registered rent for the first rent
stabilized tenant shall be the rent established by the
DHCR for the prior tenant, increased by the guidelines
rate of rent adjustments applicable to the new lease
plus such other rent increases as are authorized
pursuant to section 2522.4 of this Title, and shall not
be subject to a Fair Market Rent Appeal pursuant to
section 2522.3 of this Title.
(b) For those housing accommodations for which the tenant files
a timely challenge in accordance with section
2526.1(a)(3)(ii) of this Title to the initial legal
registered rent, such rent shall be determined by the DHCR
as follows:
(1) For housing accommodations other than in hotels, the
rent charged paid on April 1, 1980, plus the lawful
increases charged and paid up to March 31, 1984; for
housing accommodations not required to be registered by
June 30, 1984, the rent charged and paid four years
prior to the date the housing accommodation was first
required to be registered plus such lawful increases
and adjustments charged and paid up to the date
immediately prior to the registration date as
determined by the DHCR.
(2) For housing accommodations located in hotels, the rent
charged and paid on April 1, 1980 plus the lawful
increases charged and paid up to March 31, 1984; or for
housing accommodations not required to be registered by
June 30, 1984, the rent charged and paid four years
prior to the date the housing accommodation was first
required to be registered plus such lawful increases
and adjustments charged and paid up to the date
immediately prior to the registration date as
determined by the DHCR; provided, however, that with
respect to any vacancy lease or vacancy rental
agreement entered into prior to August 15, 1983,
following a voluntary vacancy, the initial legal
registered rent shall be the rent charged and paid upon
such renting, plus subsequent lawful increases and
adjustments charged and paid from April 1, 1980 up to
March 31, 1984. If any vacant housing accommodation is
rented on or after August 15, 1983, the initial legal
registered rent shall be the lawful rent paid by the
most recent prior tenant plus any subsequent lawful
increases and adjustments, or if there has never been a
prior tenant, the initial legal registered rent shall
be the rent paid by the most recent hotel occupant,
plus any subsequent lawful increases and adjustments.
(c) For all other housing accommodations subject to the RSL
where a timely challenge was not made as provided for in
subdivision (b) of this section, the initial legal
registered rent shall be:
(1) for those housing accommodations required to be
registered by June 30, 1984, the rent charged and paid
as of April 1, 1984; or
(2) for those housing accommodations not required to be
registered by June 30, 1984, the rent charged and paid
on the date the housing accommodation became subject to
the registration requirements of the DHCR.
(d) (1) Notwithstanding the provisions of subdivision (c)
of this section, the initial legal registered rent for
a housing accommodation for which an overcharge
complaint or a Fair Market Rent Appeal was filed by a
tenant prior to April 1 , 1984, and not finally
determined prior thereto, shall be the April 1, 1984
rent as subsequently determined by the DHCR. Such
determination will be based upon the law or code
provision in effect on March 31, 1984.
(2) Upon determination of the initial legal registered rent
in paragraph (1) of this subdivision, legal regulated
rents subsequent to April 1, 1984 shall be determined
in accordance with section 2521.2(a) of this Part.
(e) The initial legal registered rent for a housing
accommodation first made subject to the RSL and this Code
pursuant to article 7-C of the MDL shall be the rent
established by the Loft Board under section 286(4) of the
MDL applicable to a lease offered pursuant to MDL section
286(3). Such rent shall not be subject to the proceedings
described in section 2522.3 of this Title. Notwithstanding
that the rent charged and paid during the first lease term
may have been less than such initial legal registered rent,
the owner may request that the next lease rental be the
initial legal registered rent plus the allowable increase
established by the Rent Guidelines Board, and such other
rent increases as are authorized pursuant to section 2522.4
of this Title.
(f) Notwithstanding the provisions of any outstanding lease or
other rental agreement, the initial legal registered rent
for a housing accommodation in a multiple dwelling for which
a loan is made under the PHFL shall be the initial rent
established pursuant to such law. Such rent, whether or not
the housing accommodation was previously subject to the RSL,
shall not be subject to the proceeding described in section
2522.3 of this Title. Such rent for housing accommodations
occupied prior to the granting of the loan made pursuant to
the PHFL shall take effect on the date specified in the
order establishing the rent. Notwithstanding any other
provision of the RSL or this Code, the owner of such housing
accommodation shall offer any tenant in occupancy on such
effective date or upon initial occupancy a one- or two-year
lease at the tenant's option at such rent, which offer shall
be made as soon as practicable after such rent is
established, whether or not the rent has taken or is then
permitted to take effect; and refusal of such tenant to sign
such lease, at such rent, and otherwise upon the same terms
and conditions as the expiring lease, if any, shall
constitute grounds for an action or proceeding to evict and
recover possession of the housing accommodation; provided,
however, that following the tenant's receipt of the offer of
such lease at such rent as lawfully established, a tenant in
occupancy on such date shall be allowed 30 days to sign such
lease and, if during such 30-day period, such tenant gives
the owner written notice of an intention to terminate such
tenancy and pays the rent established pursuant to law for
such month and for any extended period, the tenant shall not
be required to surrender the housing accommodation until 60
days after receipt of such offer. Notwithstanding that the
rent charged and paid during the first lease term may have
been less than such initial legal registered rent, the owner
may request that the next lease rental be the initial legal
registered rent plus the allowable increase established by
the Rent Guidelines Board.
(g) Notwithstanding any other provision of this Code, the
initial legal registered rent for a housing accommodation
first made subject to the RSL and this Code pursuant to
article XIV of the PHFL or section 2429 of article 8 of the
Public Authorities Law shall be the rent established
pursuant to law which reflects the improvements or
rehabilitation and shall be subject to subsequent adjustment
by the DHCR. Such rent shall not be subject to the
proceedings described in section 2522.3 of this Title.
Notwithstanding any other provision of the RSL or this Code:
the owner of such housing accommodation shall offer a tenant
in occupancy who first became subject to the RSL and this
Code on the effective date of such rent a one- or two-year
lease at the tenant's option at such rent, which offer shall
be made as soon as practicable after such rent is effective;
and refusal of such tenant to sign such lease at such rent,
and otherwise upon the same terms and conditions as the
expiring lease, if any, shall constitute grounds for an
action or proceeding to evict and recover possession of the
housing accommodation; provided, however, that following
tenant's receipt of the offer of such lease at such rent, a
tenant in occupancy on such effective date shall be allowed
30 days to sign such lease and, if during such 30-day
period, such tenant gives the owner written notice of an
intention to terminate such tenancy and pays the rent
established pursuant to law while in occupancy, the tenant
shall not be required to surrender the housing accommodation
until 60 days after receipt of such offer. Notwithstanding
that the rent charged and paid during the first lease term
may have been less than such initial legal registered rent,
the owner may request that the next lease rental be the
initial legal registered rent plus the allowable increase
established by the Rent Guidelines Board.
(h) If a housing accommodation is rehabilitated pursuant to
either article XIV of the PHFL or section 2429 of article 8
of the Public Authorities Law, and article XV of the PHFL,
the provisions in subdivision (f) of this section shall
apply, rather than the provisions of subdivision (g), if HPD
elects to establish rents for the housing accommodation
pursuant to article XV of the PHFL.
(i) The initial legal registered rent for a housing
accommodation constructed pursuant to section 421-a of the
Real Property Tax Law shall be the initial adjusted monthly
rent charged and paid but not higher than the rent approved
by HPD pursuant to such section for the housing
accommodation or the lawful rent charged and paid on April
1, 1984, whichever is later.
(j) The initial legal registered rent for housing accommodations
subject this Code solely as a condition of receiving or
continuing to receive benefits pursuant to section 11-243
(formerly J51-2.5) or 11-244 (formerly J51-5.0) of the
Administrative Code, as amended, shall be the rent charged
the initial rent-stabilized tenant or the lawful rent
charged and paid on April 1, 1984, whichever is later, and
shall not be subject to a Fair Market Rent Appeal pursuant
to section 2522.3 of this Title. However, as to any housing
accommodation which previously received tax benefits
pursuant to section 11-243 (formerly J51-2.5) or 11-244
(formerly J51-5.0), was not covered by the provisions of the
RSL on June 18, 1985, and was made subject to such law by
the provisions of chapters 288 and 289 of the Laws of New
York for the year 1985 (as amended), the initial legal
registered rent shall be the rent charged and paid on May
30, 1985, or the maximum rent which could have been charged
if the housing accommodation had been continuously subject
to the RSL for the entire tenancy of the tenant in occupancy
on May 30, 1985, whichever is greater.
(k) Notwithstanding the provisions of the RSL or any other
provision of this Code, the initial legal registered rent
upon completion of the rehabilitation of a Class B multiple
dwelling, Class A multiple dwelling used for single-room
occupancy purposes, lodging house or a substantially vacant
building intended to be used after rehabilitation for single-
room occupancy purposes for which a loan is made for such
rehabilitation on or after September 1, 1985, under article
VIII or VIII-A of the PHFL, shall be the initial rent
established by HPD pursuant to such law. Such rent, whether
or not the housing accommodation was previously subject to
the RSL, shall not be subject to the proceeding described in
section 2522.3 of this Title. Such rent shall take effect on
the date specified in the order establishing the rent.
Notwithstanding the provisions of the RSL or any other
provision of this Code, the owner of such housing
accommodation shall offer any tenant in occupancy on such
effective date a one or two-year lease, at the tenant's
option, at such rent, which offer shall be made as soon as
practicable after such rent is established. Refusal of such
tenant to sign such lease at such rent, and otherwise upon
the same terms and conditions as the expiring lease, if any,
shall constitute grounds for an action or proceeding to
evict and recover possession of the housing accommodation;
provided, however, that following the tenant's receipt of
the offer of such lease at such rent as lawfully
established, a tenant in occupancy on such date shall be
allowed 30 days to sign such lease and, if during such 30-
day period, such tenant gives the owner written notice of an
intention to terminate such tenancy and pay the rent
established pursuant to law for such month and for any
extended period, the tenant shall not be required to
surrender the housing accommodation until 60 days after
receipt of such lease offer. Notwithstanding that the rent
charged and paid during the first lease term may have been
less than such initial legal registered rent, the owner may
request that the next lease rental be the initial legal
registered rent plus the allowable increase established by
the Rent Guidelines Board, and such other rent increases as
are authorized pursuant to section 2522.4 of this Title.
(l) For housing accommodations whose rentals were previously
regulated under the PHFL, or any other State or Federal law,
other than the RSL or the City Rent Law, upon the
termination of such regulation, the initial legal registered
rent shall be the rent charged to and paid by the tenant in
occupancy on the date such regulation ends. For housing
accommodations which are vacant on the date the building
first became subject to the RSL and this Code, such rent
shall be the rent charged and paid by the most recent
tenant, in addition to rental subsidies, if any, which shall
be subject to vacancy guidelines increases, and shall not be
subject to a Fair Market Rent Appeal pursuant to section
2522.3 of this Title.
(m) Notwithstanding any other provision of this Code, except as
provided in paragraph (2) of this subdivision, governmental
agencies or public benefit corporations may enter into an
agreement with the DHCR, which shall be incorporated into an
order of the DHCR, setting forth the conditions under which:
(1) projects receiving assistance or financing from such
agencies may register higher and lower initial legal
rents for units subject to occupancy and rent
restrictions by such agencies, which rents may then be
adjusted pursuant to the RSL and this Code, and shall
not be subject to the proceedings described in section
2522.3 of this Title; or
(2) projects whose rentals were previously regulated under
the PHFL or any other State or Federal law, other than
the RSL or the City Rent Law, upon the date when such
regulation ends, may register higher and lower initial
legal rents for units which have been subject to
occupancy and rent restrictions pursuant to such laws,
which rents may then be adjusted pursuant to the RSL
and this Code, and shall not be subject to the
proceedings described in section 2522.3 of this Title.
Where the DHCR was the agency regulating rentals
pursuant to the PHFL, such terms and conditions shall
be incorporated into an order of the DHCR.
Such agreement or order shall also set forth the conditions
under which the higher and lower legal regulated rents may
be charged, with due consideration of equities as set forth
in section 2522.7 of this Title.
Sec. 2521.2. LEGAL REGULATED RENTS FOR HOUSING ACCOMMODATIONS.
(a) The legal regulated rent shall be the initial legal
registered rent first established pursuant to section 2521.1
of this Part, and thereafter shall be the initial legal
registered rent as it may be adjusted pursuant to the RSL
and this Code, or the rent stated in the annual registration
statement filed four years prior to the most recent
registration statement as adjusted pursuant to the RSL and
this Code, whichever is later.
(b) Where the legal regulated rent is established and a rent
lower than the legal regulated rent is charged and paid by
the tenant, upon vacancy of such tenant, the legal regulated
rent previously established plus the most recent applicable
guidelines increases, plus such other rent increases as are
authorized pursuant to section 2522.4 of this Title, may be
charged a new tenant.
Sec. 2521.3. CLASSIFICATION OF BUILDINGS.
(a) Upon application by a tenant or owner, the DHCR shall issue
an order determining a building's classification based upon
the services provided and other relevant factors. Except as
provided in subdivisions (c) and (d) of this section, if it
is determined that such building is not a hotel, the DHCR
shall classify the building as an apartment building unless
the owner restores sufficient services to maintain a hotel
classification in accordance with subdivision (b) of this
section. If the building is reclassified, then the housing
accommodations therein shall thereafter be subject to the
provisions of this Code applicable to apartment buildings,
at the legal regulated rent for each housing accommodation
as determined by the order of the DHCR, plus lawful
increases and adjustments allowed pursuant to this Code. In
order for an owner to retain or continue the building's
classification as a hotel, he or she must provide, in
addition to any other services he or she is or was providing
pursuant to section 2520.6(r) of this Title, all four of the
following services:
(1) maid service, consisting of general housecleaning 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, lamps, 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.
(b) A building's classification as a hotel will not be retained
or continued where the DHCR determines that 51 percent of
the permanent tenants are not receiving maid and linen
service, except that all tenants receiving such services
shall be entitled to receive the services for the duration
of their occupancy. Where an owner is providing maid and
linen service to 51 percent of the permanent tenants and the
owner wishes to maintain the building's classification as a
hotel, the owner shall be afforded 90 days to restore all
four hotel services described above, without any additional
rent increase for such services, to all of the buildings
permanent tenants, except that those tenants whose housing
accommodations were rented to them as apartment (not hotel)
housing accommodations shall have the option of rejecting
restoration of hotel services and be subject to the RSL,
pursuant to the provisions of this Code applicable to
apartment buildings, until they vacate, at which time the
owner shall be required to restore hotel services to the
housing accommodations.
(c) Notwithstanding the provisions of subdivision (a) of this
section, single-room occupancy facilities such as single-
room occupancy hotels or rooming houses, as defined in the
MDL, shall not be subject to reclassification pursuant to
this section. However, such housing accommodations shall be
included in the definition of hotel as set forth in section
2520.6(b) of this Title for all other purposes of this Code,
except that the four minimum services enumerated in such
section shall not be required to be provided unless such
services were provided on the applicable base dates pursuant
to section 2520.6(r)(4) of this Title.
(d) Notwithstanding the provisions of subdivision (a) of this
section, the DHCR may decline to reclassify a hotel to
apartment building status if it finds that the owner has
reduced any of the four hotel services listed in such
subdivision (a) for the purpose of reclassification of the
building.
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PART 2522 -- RENT ADJUSTMENTS
-----------------------------
TABLE OF CONTENTS
Section 2522.1. Legal regulated rent adjustments.
2522.2. Effective date of adjustment of legal
regulated rents.
2522.3. Fair Market Rent Appeal.
2522.4. Adjustment of legal regulated rent.
2522.5. Lease agreements.
2522.6. Orders where the legal regulated rent or
other facts are in dispute, in doubt, or not
known, or where the legal regulated rent must
be fixed.
2522.7. Consideration of equities.
-----------------------------
Sec. 2522.1. LEGAL REGULATED RENT ADJUSTMENTS.
Legal regulated rents may be increased or decreased only as
hereinafter specified.
Sec. 2522.2. EFFECTIVE DATE OF ADJUSTMENT OF LEGAL REGULATED
RENTS.
The legal regulated rent shall be adjusted effective the first
rent payment date occurring 30 days after the filing of the
application, unless otherwise set forth in the order, or as set
forth in a Notice of Eligibility pursuant to section
2522.4(a)(3)(ii) of this Part, or on the effective date of a
lease or other rental agreement providing for the Rent Guidelines
Board annual rate of adjustments. No rent adjustment may take
place during a lease term unless a clause in the lease authorizes
such increase.
Sec. 2522.3. FAIR MARKET RENT APPEAL.
(a) Except as provided in section 2521.1(a)(2) of this Title, an
appeal of the initial legal registered rent on the ground
that it exceeds the fair market rent for the housing
accommodation may be filed with the DHCR by the tenant of a
housing accommodation which was subject to the City Rent Law
on December 31, 1973. If the housing accommodation was
registered in accordance with Part 2528 of this Title, this
right is limited to the first tenant taking occupancy on or
after April 1, 1984, except where such tenant had vacated
the housing accommodation prior to the service by the owner
of the Notice of initial Legal Registered Rent as required
by section 2523.1 of this Title. In such event, any
subsequent tenant in occupancy shall also have a right to
file a Fair Market Rent Appeal until the owner mails the
required notice and 90 days shall have elapsed without the
filing of an appeal by a tenant continuing in occupancy
during said 90-day period. Once a Fair Market Rent Appeal is
filed, no subsequent tenant may file such appeal.
Notwithstanding the above, where the first tenant taking
occupancy after December 31, 1973, of a housing
accommodation previously subject to the City Rent Law, was
served with the notice required by section 26 of the former
code of the Rent Stabilization Association of New York City,
Inc., the time within which such tenant may file a Fair
Market Rent Appeal is limited to 90 days after such notice
was mailed to the tenant by the owner by certified mail.
(b) The tenant need only allege in such appeal:
(1) that the initial legal registered rent is in excess of
the fair market rent; and
(2) such facts which, to the best of his or her information
and belief, support such allegation.
(c) Such appeal shall be dismissed where:
(1) the housing accommodation was subject to the City Rent
Law prior to July 1, 1971, and the initial legal
registered rent does not exceed the maximum rent as
calculated pursuant to the City Rent Law for the period
commencing January 1, 1974 and ending December 31,
1975, whether or not the housing accommodation was
subject to the City Rent Law on that date, plus the
appropriate guidelines allowance permissible for
renewal leases pursuant to Guidelines Board Order No. 6
issued June 28, 1974 and effective July 1, 1974, and
Order No. 6C issued February 7, 1975 and effective July
1, 1974, for any lease or other rental agreement
commencing on or after January 1, 1974; or
(2) the appeal is filed more than 90 days after the
certified mailing to the tenant of the initial
apartment registration, together with the notice
pursuant to section 2523.1 of this Title.
(d) The order shall direct the affected owner to make the refund
of any excess rent to the tenant in cash, check or money
order, and to the extent the present owner is liable for all
or any part of the refund, such present owner may credit
such refund against future rents over a period not in excess
of six months. If the refund exceeds the total rent due for
six months, the tenant at his or her option may continue to
abate his or her rent until the refund is fully credited, or
request the present owner to refund any balance outstanding
at the end of such six-month period.
(e) In determining Fair Market Rent Appeals, consideration shall
be given to the applicable guidelines promulgated for such
purposes by the Rent Guidelines Board and to rents generally
prevailing for substantially similar housing accommodations
in buildings located in the same area as the housing
accommodation involved. The rents for these comparable
housing accommodations may be considered where such rents
are:
(1) legal regulated rents, for which the time to file a
Fair Market Rent Appeal has expired and no Fair Market
Rent Appeal is then pending, or the Fair Market Rent
Appeal has been finally determined, charged pursuant to
a lease commencing within a four-year period prior to,
or a one-year period subsequent to, the commencement
date of the initial lease for the housing accommodation
involved; and
(2) at the owner's option, market rents in effect for other
comparable housing accommodations on the date of the
initial lease for the housing accommodation involved as
submitted by the owner.
(f) Where the rents of the comparable housing accommodations
being considered are legal regulated rents, for which the
time to file a Fair Market Rent Appeal has expired, and such
rents are charged pursuant to a lease ending more than one
year prior to the commencement date of the initial lease for
the subject housing accommodation, such rents shall be
updated by guidelines increases for one-year renewal leases,
commencing with the expiration of the initial lease for the
comparable housing accommodation to a date within 12 months
prior to the renting of the housing accommodation involved
Sec. 2522.4. ADJUSTMENT OF LEGAL REGULATED RENT.
(a) INCREASED SPACE AND SERVICES, NEW EQUIPMENT, NEW FURNITURE
OR FURNISHINGS; MAJOR CAPITAL IMPROVEMENTS; OTHER
ADJUSTMENTS.
(1) An owner is entitled to a rent increase where there has
been a substantial increase, other than an increase for
which an adjustment may be claimed pursuant to
paragraph (2) of this subdivision, of dwelling space or
an increase in the services, or installation of new
equipment or improvements, or new furniture or
furnishings, provided in or to the tenant's housing
accommodation, on written tenant consent to the rent
increase. In the case of vacant housing accommodations,
tenant consent shall not be required.
(2) An owner may file an application to increase the legal
regulated rents of the building or building complex on
forms prescribed by the DHCR, which the DHCR shall
serve upon all affected tenants, on one or more of the
following grounds:
(i) There has been a major capital improvement,
including an installation, which must meet all
of the following criteria:
(a) deemed depreciable under the Internal Revenue
Code, other than for ordinary repairs;
(b) is for the operation, preservation and
maintenance of the structure;
(c) is 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) the item being replaced meets the
requirements set forth in the useful life
schedule, except with DHCR approval of a
waiver. Pursuant to section 2527.11 of this
Title, the DHCR shall issue a useful life
schedule in accordance with manufacturing
industry standards, which shall also set
forth the conditions under which a useful
life requirement may be waived.
(ii) There has been other necessary work performed in
connection with, and directly related to a major
capital improvement, which may be included in
the computation of an increase in the legal
regulated rent only if such other necessary work
was completed within a reasonable time after the
completion of the major capital improvement to
which it relates. Such other necessary work
must:
(a) improve, restore or preserve the quality of
the structure; and
(b) have been completed subsequent to, or
contemporaneously with, the completion of the
work for the major capital improvement.
(iii) With approval by the DHCR, there has been an
increase in services or improvement, other than
repairs, on a building-wide basis, which the
owner can demonstrate are necessary in order to
comply with a specific requirement of law.
(iv) With approval by the DHCR, there have been other
improvements made or services provided to the
building or building complex, other than those
specified in subparagraphs (i)-(iii) of this
paragraph, with the express consent of the
tenants in occupancy of at least 75 percent of
the housing accommodations.
(3) An owner who files a complete application with the DHCR
for an increase authorized pursuant to subparagraph
(2)(i) of this subdivision which meets the requirements
of such subparagraph may begin to collect such increase
in the legal regulated rent prior to the issuance of an
order granting the increase, provided that:
(i) to be complete, such application must:
(a) contain an itemized list of the work
performed;
(b) contain a certification of the cost of such
work from the contractors, architect,
certified public accountant, engineer or
governmental agency; and that the item meets
the requirements set forth in the useful life
schedule, or a copy of a DHCR approval of a
waiver of such useful life requirement is
attached;
(c) contain proof of payment for such work the
cost of which is certified pursuant to clause
(b) of this subparagraph;
(d) contain the owner's sworn affidavit as to the
completion of the installation or improvement
in accordance with the itemization list and
the certified costs, that all applicable
governmental codes and regulations have been
complied with, the installation or
improvement has been properly performed in a
workmanlike manner, and the truthfulness of
all information submitted with the
application;
(e) contain copies of all necessary governmental
agency approvals or self-certification by a
duly licensed architect or engineer as may be
permitted by such governmental agency; and
(f) be for an improvement or installation of an
item which is included on the following
schedule, or such other improvement or
installation to the building or building
complex for the operation, preservation and
maintenance of the structure as may be deemed
necessary by the DHCR for the continued
viability of the building as specified in an
operational bulletin issued pursuant to
section 2527.11 of this Title.
-----------------------------
SCHEDULE OF MAJOR CAPITAL IMPROVEMENTS
1. Air conditioner--new central system; or individual units set
in sleeves in the exterior wall of every housing
accommodation; or, air conditioning circuits and outlets in
each living room and/or bedroom (see Rewiring).
2. Aluminum siding--installed in a uniform manner on all
exposed sides of the building (see Resurfacing).
3. Bathroom modernization--complete renovation, including new
sinks, toilets, bathtubs and/or showers and all required
trims in every housing accommodation.
4. Boiler and/or burner--new unit(s) including electrical work
and additional components needed for the installation.
5. Boiler room--new room where none existed before; or
enlargement of existing one to accommodate new boiler.
6. Catwalk--complete replacement.
7. Chimney--complete replacement, or new one where none existed
before, including additional components needed for the
installation.
8. Courtyard and walkways--concrete resurfacing of entire
original area within the property lines of the premises.
9. Doors--new lobby front entrance and/or vestibule doors; or
entrance to every housing accommodation, or fireproof doors
for public hallways, basement, boiler room and roof
bulkhead.
10. Elevator upgrading--including new controllers and selectors;
or new electronic dispatch overlay system; or new elevator
where none existed before, including additional components
needed for the installation.
11. Fire escapes--complete new replacement, including new
landings.
12. Gas heating units--new individual units with connecting
pipes to every housing accommodation.
13. Hot water heater--new unit for central heating system.
14. Incinerator upgrading--including a new scrubber.
15. Intercom system--new replacement; or one where one existed
before, with automatic door locks and push-button speaker
boxes and/or telephone communication, including security
locks on all entrances to the building.
16. Kitchen modernization--complete renovation, in eluding new
sinks, counter tops and cabinets in every housing
accommodation.
17. Mailboxes--new replacements and relocated from outer
vestibule to an area behind locked doors to increase
security.
18. Painting and waterproofing--as necessary on exposed sides of
the building.
19. Parapet--complete replacement.
20. Repiping--new hot and/or cold water risers, returns, and
branches to fixtures in every housing accommodation,
including shower bodies, and/or new hot and/or new cold
water overhead mains, with all necessary valves in basement.
21. Resurfacing of exterior walls--consisting of brick or
masonry facing on entire area of all exposed sides of the
building.
22. Rewiring--new copper risers and feeders extending from
property box in basement to every housing accommodation;
must be of sufficient capacity (220 volts) to accommodate
the installation of air conditioner circuits in living room
and/or bedroom.
23. Roof--complete replacement or roof cap on existing roof
installed after thorough scraping and leveling as necessary.
24. Solar heating system--new central system, including
additional components needed for the system.
25. Structural steel--complete new replacement of all beams
including footing and foundation.
26. Television system--new security monitoring system, including
additional components needed for the system.
27. Waste compactor--new installation(s) serving entire
building.
28. Waste compactor room--new room where none existed before.
29. Water tank--new installation(s) serving entire building.
30. Windows--new aluminum framed windows. Wood framed windows
allowed only for landmark buildings.
-----------------------------
(ii) The owner or his or her representative has
personally filed the completed application with
the DHCR, the DHCR has served such application
upon all affected tenants, the owner has
thereafter received a Notice of Eligibility from
the DHCR stating that the application is
complete, and the DHCR has served such Notice of
Eligibility upon such tenants. For the purposes
of an application filed pursuant to this
paragraph, the DHCR shall, within 90 days of
such filing, fully review such application to
insure completion pursuant to subparagraph (i)
of this paragraph and shall conduct inspections
where appropriate, and thereafter shall provide
an owner with a Notice of Eligibility stating
that the application is complete, and the
effective date of the notice for the purposes of
collecting the increase, or a notice of
deficiency determining that the application is
incomplete, and setting forth the grounds for
such determination. A Notice of Eligibility
shall be subject to a tenant challenge and
subsequent audit by the DHCR. A tenant may file
a challenge to the owner's eligibility to
collect the rent increase within 60 days after
the DHCR has served the tenant with a copy of
the Notice of Eligibility by setting forth the
grounds of his or her challenge in an answer
filed with the DHCR.
(iii) An owner, who on the effective date of this
Code, has an application pending before the DHCR
for an increase pursuant to subparagraph (2)(i)
of this subdivision, may begin to collect such
increase upon compliance with the procedure set
forth in subparagraphs (i) and (ii) of this
paragraph, provided that the retroactive
collectibility of the increase shall be no
earlier than the first rent payment date one
year prior to the filing of an application
completed pursuant to such subparagraphs (i) and
(ii), and shall not be collected until the DHCR
has issued an order granting the increase.
(iv) An owner who is found by the DHCR to have
knowingly filed a false affidavit pursuant to
clause (i)(d) of this paragraph shall not be
entitled to file any future application under
this paragraph, and shall be denied the increase
for which the owner submitted the application.
Any increased rent shall be returned to the
tenant and, in addition to any penalty contained
in any other provision of law, the DHCR may also
impose treble damages for the rent increase
collected pursuant to the Notice of Eligibility
described in subparagraph (ii) of this
paragraph.
(4) The increase in the monthly stabilization rent for the
affected housing accommodations when authorized
pursuant to paragraph (1) of the subdivision shall be
l/40th of the total cost, including installation but
excluding finance charges; and any increase pursuant to
paragraphs (2) and (3) shall be 1/60th of the total
cost, including installation but excluding finance
charges as allocated in accordance with paragraph (12)
of this subdivision. For increases pursuant to
subparagraphs (2)(iii) and (iv) of this subdivision, in
the discretion of the DHCR, an appropriate charge may
be imposed in lieu of an amortization charge when an
amortization charge is insignificant or inappropriate.
(5) Such increases shall not be collectible during the term
of a lease then in effect, unless a specific provision
in the tenant's lease authorizes an increase during its
term pursuant to an order issued by the DHCR, except
that increases pursuant to paragraph (1) of this
subdivision may be collected upon installation.
(6) The determination of the appropriate adjustment of a
legal regulated rent shall take into consideration all
factors bearing on the equities involved, subject to
the general limitation that the adjustment can be put
into effect without dislocation and hardship
inconsistent with the purposes of the RSL, and
including as a factor a return of the actual cost to
the owner, exclusive of interest or other carrying
charges, and the increase in the rental value of the
housing accommodations.
(7) Except for applications made pursuant to paragraph (3)
of this subdivision, an owner may apply for the DHCR's
advisory prior opinion pursuant to section 2527.11 of
this Title, as to whether the proposed work qualifies
for an increase in the legal regulated rent.
(8) No increase pursuant to paragraphs (2) and (3) of this
subdivision shall be granted by the DHCR, unless an
application is filed no later than two years after the
completion of the installation or improvement unless
the applicant can demonstrate that the application
could not be made within two years due to delay, beyond
the applicant's control, in obtaining required
governmental approvals for which the applicant has
applied within such two-year period. No increase
pursuant to paragraphs (2) and (3) of this subdivision
shall be granted within the useful life of an
improvement or installation for which an increase was
previously granted except with prior DHCR approval for
required improvements. In addition, an increase
pursuant to paragraphs (2) and (3) shall not be
collectible from a tenant to whom there has been issued
a currently valid senior citizen rent increase
exemption pursuant to section 26-509 of the
Administrative Code of the City of New York, to the
extent such increase causes the legal regulated rent of
the housing accommodation to exceed one third of the
aggregate disposable income of all members of the
household residing in the housing accommodation. The
collection of any increase in the legal regulated rent
for any housing accommodation pursuant to paragraphs
(2) and (3) shall not exceed six percent in any year
from the effective date of the Notice of Eligibility or
of the order granting the increase over the rent set
forth in the schedule of gross rents with
collectibility of any dollar excess above said sum to
be spread forward in similar increments and added to
the legal regulated rent as established or set in
future years. In no event shall more than one six-
percent increase in the legal regulated rent pursuant
to paragraphs (2) and (3) be collected in the same year
for the permanent, prospective rent increase, and no
more than an additional six-percent increase for the
temporary retroactive portion of such rent increase.
(9) An increase for an improvement made pursuant to
paragraphs (2) and (3) of this subdivision shall not be
granted by the DHCR to the extent that, after a plan
for the conversion of a building to cooperative or
condominium ownership is declared effective, such
improvement is paid for out of the cash reserve fund of
the cooperative corporation or condominium association.
Nothing in this paragraph shall prevent an owner from
applying for, and the DHCR from granting, an increase
for such improvement to the extent that the cost
thereof is otherwise paid for by an owner.
(10) The DHCR shall not grant an application pursuant to
this subdivision for an increase for any improvement
made pursuant to paragraphs (2) and (3) of this
subdivision to the extent that the cost of such
improvement is paid for by an owner with funds received
pursuant to a grant from any governmental agency or
entity. A low interest loan or subsidy shall not be
considered a grant for the purposes of this paragraph.
Nothing in this paragraph shall prevent an owner from
applying for, and the DHCR from granting, an increase
for such improvement to the extent that the cost
thereof is otherwise paid for by an owner.
(11) An owner who is entitled to a rent increase based upon
the installation of new equipment, or new furniture or
furnishings pursuant to paragraph (1) of this
subdivision shall not be entitled to a further rent
increase based upon the installation of similar
equipment, or new furniture or furnishings within the
useful life of such new equipment, or new furniture or
furnishings.
(12) Rent adjustments pursuant to paragraphs (2) and (3) of
this subdivision and subdivisions (b) and (c) of this
section shall be allocated as follows: The DHCR shall
determine the dollar amount of the monthly rent
adjustment. Such dollar amount shall be divided by the
total number of rooms in the building. The amount so
derived shall then be added to the rent chargeable to
each housing accommodation in accordance with the
number of rooms contained in such housing
accommodation.
(13) The DHCR shall not grant an owner's application for a
rental adjustment pursuant to this subdivision, in
whole or in part, if it is determined by the DHCR prior
to the granting of approval to collect such adjustment
that the owner is not maintaining all required
services, or that there are current immediately
hazardous violations of any municipal, county, State or
Federal law which relate to the maintenance of such
services. However, as determined by the DHCR, such
application may be granted upon condition that such
services will be restored within a reasonable time, and
certain tenant-caused violations may be excepted.
(14) In the case of an improvement constituting a moderate
rehabilitation as defined in subdivision 2.1(6) of the
Rules and Regulations Governing Tax Exemption and Tax
Abatement pursuant to title 11 of the Administrative
Code of the City of New York, an owner may elect that
the total cost for such improvement be deemed to be the
amount certified by the Tax Abatement/Tax Exemption
Unit of HPD in the certificate of eligibility issued by
such office with respect to such improvement. Such
election shall be binding on the DHCR and shall waive
any claim for a rent increase by reason of any
difference between the total cash paid by the owner and
such lesser certified amount.
(b) COMPARATIVE HARDSHIP.
(1) An owner may file an application on forms prescribed by
the DHCR, and the DHCR shall grant, on the application
of an owner, appropriate rent adjustments as
hereinafter provided, where the gross rental income is
insufficient to yield to the owner an average annual
net income (which shall be computed without regard to
debt service, financing costs or management fees), for
the three-year period ending on or within six months of
the date of the filing of the owner's application,
equal to the annual average net income of the property
for:
(i) the period 1968-1970; or
(ii) the first three years of operation, if the
building was completed after 1 968; or
(iii) the first three fiscal years after a transfer of
title to a new owner who acquired title to the
building as a result of a bona fide sale of the
entire building, and who has been unable to
obtain requisite records for the fiscal years
between 1968 through 1970, despite diligent
efforts to obtain the same from predecessors in
title, provided that such new owner submits
financial data for not less than six years of
continuous and uninterrupted operation of the
property under his or her ownership.
(2) Notwithstanding anything to the contrary herein, no
increase granted pursuant to this subdivision shall,
when added to the annual gross rents as determined by
the DHCR, exceed the sum of:
(i) the annual operating expenses;
(ii) an allowance for management services as
determined by the DHCR;
(iii) actual annual mortgage debt service (interest
and amortization) on its indebtedness to a
lending institution, an insurance company, a
retirement fund or welfare fund under the
supervision of the banking or insurance laws of
the State of New York or the United States; and
(iv) 8 1/2 percent of that portion of the fair
market value of the property which exceeds the
unpaid principal amount of the mortgage
indebtedness referred to in subparagraph (iii)
of this paragraph. Fair market value for this
subparagraph shall be six times the annual gross
rent.
(3) Restrictions.
(i) The collection of any increase in the legal
regulated rent for any housing accommodation
pursuant to this subdivision shall not exceed
six percent in any year from the effective date
of the order granting the increase over the rent
set forth in the schedule of gross rents, with
collectibility of any dollar excess above said
sum to be spread forward in similar increments
and added to the legal regulated rent as
established or set in future years.
(ii) If the building was previously granted a
hardship increase, such increase must have
become effective more than 36 months prior to
the filing date of the application .
(iii) The owner has resolved all legal objections to
any real estate taxes and water and sewer
charges for the test period. However, if there
is a pending certiorari proceeding relating to
the real estate tax expense for the test period,
an owner may be permitted to file a hardship
application. In such cases, the amount of real
estate tax expense that will be recognized for
purposes of the test period will be based upon
the amount of proposed assessed value set forth
by the owner in the certiorari petition;
provided, however, that the owner submits proof
of actual payment of all taxes due on the
owner's proposed assessed value, in accordance
with applicable law. If after such tax objection
is resolved, the owner's actual and reasonable
tax expense allocable to the test period exceeds
the amount the DHCR used in determining the
hardship application, an additional increase may
be granted prospectively by the DHCR in its
discretion. The DHCR may also, in its
discretion, accept reasonable alternatives as to
unresolved water and sewer charges.
(iv) The DHCR shall not grant an owner an increase as
provided, in whole or in part, if it is
determined prior to the granting of approval to
collect an increase pursuant to this subdivision
that the owner is not maintaining all required
services or there are current immediately
hazardous violations of any municipal, county,
State or Federal law which relate to the
maintenance of such services. However, as
determined by the DHCR, where the DHCR
determines that insufficient income is the cause
of such failure to maintain required services,
hardship increases may be granted upon condition
that such services will be restored within a
reasonable time, and certain tenant-caused
violations may be excepted.
(v) In buildings that also contain housing
accommodations subject to the City Rent Law,
appropriate adjustments for both income and
expenses will be made by the DHCR in order to
calculate the pro rat a share for those housing
accommodations subject to this application.
(vi) The DHCR shall set a rental value for any
housing accommodation occupied by the owner or
managing agent, a person related to, or an
employee of the owner or managing agent, or
unoccupied at the owner's choice for more than
one month at the last legal regulated rent plus
the minimum number of guidelines increases. If
no such legal regulated rent existed or is
known, the DHCR shall impute a rent equal to the
average of rents for similar or comparable
housing accommodations subject to this Code in
the building during the test period.
(vii) Each owner who files an application for a
hardship rent increase shall be required to
maintain all records as submitted with the
subject application, and further be required to
retain same for a period of three years after
the effective date of the order.
(viii)Each application under this subdivision shall be
certified by the owner or his or her duly
authorized agent as to its accuracy and
compliance with this subdivision under the
penalties of perjury.
(ix) The maximum amount of hardship increase to which
an owner shall be entitled shall be the
difference between the average annual net income
for the three-year base period and the average
annual net income for the three-year current
period.
(4) Right of tenant to cancel lease where rent increase
based upon hardship is granted. In the event that an
order is issued increasing the legal regulated rent
because of owner hardship, the tenant may within 30
days of his or her receipt of a copy of the DHCR order,
cancel his or her lease on 60 days' written notice to
the owner. Until such tenant vacates, he or she
continues in occupancy at the approved increase in
rent.
(c) ALTERNATIVE HARDSHIP.
As an alternative to the hardship application provided under
subdivision (b) of this section, owners of buildings, not owned
as cooperatives or condominiums, acquired by the same owner or a
related entity owned by the same principals three years prior to
the date of application, may apply to the DHCR, on forms
prescribed by the DHCR, for increases in excess of the level of
applicable guidelines increases established under the RSL, based
on a finding by the DHCR that such guidelines increases are not
sufficient to enable the owner to maintain an annual gross rent
income collectible for such building which exceeds the annual
operating expenses of such building by a sum equal to at least
five percent of such annual gross rent income collectible,
subject to the definitions and restrictions provided for herein.
(1) DEFINITIONS. The following terms shall mean:
(i) Annual gross rental income collectible shall
consist of the actual income receivable per
annum arising out of the operation and ownership
of the property, including but not limited to
rental from housing accommodations, stores,
professional or business use, garages, parking
spaces, and income from easements or air rights,
washing machines, vending machines and signs,
plus the rent calculated under subparagraph
(2)(vi) of this subdivision.
In ascertaining income receivable, the DHCR
shall determine what efforts, if any, the owner
has followed in collecting unpaid rent.
(ii) Operating expenses shall consist of the actual,
reasonable costs of fuel, labor, utilities,
taxes (other than income or corporate franchise
taxes), fees (not including attorney's fees
related to refinancing of the mortgage),
permits, necessary contracted services and non
capital repairs for which an owner is not
eligible for an increase pursuant to this Part,
insurance, parts and supplies, reasonable
management fees, mortgage interest, and other
reasonable and necessary administrative costs
applicable to the operation and maintenance of
the property.
(iii) Mortgage interest shall be deemed to mean
interest on that portion of the principal of an
institutional or a bona fide mortgage, including
an allocable portion of the charges related to
the refinancing of the balance of an existing
mortgage or a purchase-money mortgage. Criteria
to be considered in determining a bona fide
mortgage other than an institutional mortgage
shall include, but shall not be limited to, the
following: the condition of the property, the
location of the property, the existing mortgage
market at the time the mortgage is placed, the
principal amount of the mortgage, the term of
the mortgage, the amortization rate, security
and other terms and conditions of the mortgage.
(iv) Institutional mortgage shall include a mortgage
given to any insurance company, licensed by the
State of New York or authorized to do business
in the State of New York, or any commercial
bank, trust company, savings bank or savings and
loan association (which must be licensed under
the laws of any jurisdiction within the United
States and authorized to do business in the
State of New York). The DHCR may determine in
its discretion that any other mortgage issued by
a duly licensed lending institution is an
institutional mortgage.
(v) Owner's equity shall mean the sum of:
(a) the purchase price of the property less the
principal of any mortgage or loan used to
finance the purchase of the property;
(b) the cost of any capital improvement for which
the owner has not collected an increase in
rent less the principal of any mortgage or
loan used to finance said improvement;
(c) any repayment of the principal of any
mortgage or loan used to finance the purchase
of the property or any capital improvement
for which the owner has not collected an
increase in rent; and
(d) any increase in the equalized assessed value
of the property which occurred subsequent to
the first valuation of the property after
purchase by the owner.
(vi) Threshold income shall mean that annual gross
rental income collectible for such building
which exceeds the annual operating expense for
such building by a sum equal to five percent of
such annual gross rental income collectible.
(vii) Test year shall mean any one of the following:
(a) the most recent calendar year (January 1st to
December 31st); or
(b) the most recent fiscal year (one year ending
on the last day of a month other than
December 31st, provided that books of account
are maintained and closed accordingly; or
(c) any 12 consecutive months ending within 90
days prior to the date of filing of the
hardship application. Such period must end on
the last day of a month. Nothing herein shall
prevent the DHCR from comparing and adjusting
expenses and income during the test year with
expenses and income occurring during the
three years prior to the date of application
in order to determine the reasonableness of
such expenses and income.
(2) RESTRICTIONS. No owner may file an application, nor may
an owner be granted an increase in excess of the level
of applicable guidelines increases, unless:
(i) the collection of any increase in the legal
regulated rent for any housing accommodation
pursuant to this subdivision shall not exceed
six percent in any year from the effective date
of the order granting the increase over the rent
set forth in the schedule of gross rents, with
collectibility of any dollar excess above said
sum to be spread forward in similar increments
and added to the legal regulated rent as
established or set in future years;
(ii) if the building was previously granted a
hardship increase, such increase must have
become effective more than 36 months prior to
the filing date of the application;
(iii) the owner has resolved all regal objections to
any real estate taxes and water and sewer
charges for the test year. However, if there is
a pending certiorari proceeding relating to the
real estate tax expense for the test year, an
owner may be permitted to file a hardship
application. In such cases, the amount of real
estate tax expense that will be recognized for
purposes of the test year will be based upon the
amount of proposed assessed value set forth by
the owner in the certiorari petition; provided,
however, that the owner submits proof of actual
payment of all taxes due on the proposed
assessed value, in accordance with applicable
law. If after such tax objection is resolved,
the owner's actual and reasonable tax expense
allocable to the test year exceeds the amount
the DHCR used in determining the hardship
application, an additional increase may be
granted prospectively by the DHCR in its
discretion. The DHCR may also, in its
discretion, accept reasonable alternatives as to
unresolved water and sewer charges;
(iv) the DHCR shall not grant an owner an increase as
provided, in whole or in part, if it is
determined prior to the granting of approval to
collect an increase pursuant to this subdivision
that the owner is not maintaining all required
services or there are current immediately
hazardous violations of any municipal, county,
State or Federal law which relate to the
maintenance of such services. However, as
determined by the DHCR, where the DHCR
determines that insufficient income is the cause
of such failure to maintain required services,
hardship increases may be granted upon condition
that such services will be restored within a
reasonable time, and certain tenant-caused
violations may be excepted;
(v) in buildings that also contain housing
accommodations subject to the City Rent Law,
appropriate adjustments for both income and
expenses will be made by the DHCR in order to
calculate the pro rata share for those housing
accommodations subject to this application;
(vi) the DHCR shall set a rental value for any
housing accommodation occupied by the owner or
managing agent, or a person related to, or an
employee of the owner or managing agent, or
unoccupied at the owner's choice for more than
one month at the last regulated rent plus the
minimum number of guidelines increases or, if no
such regulated rent existed or is known, the
DHCR shall impute a rent equal to the average of
rents for similar or comparable housing
accommodations subject to this Code in the
building during the test year;
(vii) each owner who files an application for a
hardship rent increase shall be required to
maintain all records as submitted with the
subject application, and further be required to
retain same for a period of three years after
the effective date of the order;
(viii)each application under this subdivision shall be
certified by the owner or his or her duly
authorized agent as to its accuracy and
compliance with this subdivision, under the
penalty of perjury;
(ix) the annual gross rent income collectible for the
test year does not exceed the annual operating
expenses of such building by a sum equal to at
least five percent of such annual gross rental
income collectible;
(x) the owner or a related entity owned by the same
principals acquired the building at least 36
months prior to the date of application. A
cooperative corporation or the board of managers
of a condominium association shall not be
considered the owner of the building, nor are
individual shareholders or unit owners building
owners for the purpose of eligibility for the
alternative hardship, and as such are not
permitted to file alternative hardship
applications:
(xi) the owner's equity in the building exceeds five
percent of the sum of:
(a) the arm's-length purchase price of the
property;
(b) the cost of any capital improvements for
which the owner has not collected an increase
in rent pursuant to paragraph (a)(2) of this
section;
(c) any repayment of principal of any mortgage or
loan used to finance the purchase of the
property or any capital improvements for
which the owner has not obtained an
adjustment in rent pursuant to paragraph
(a)(2) of this section; and
(d) any increase in the equalized assessed value
of the property which occurred subsequent to
the first valuation of the property after
purchase by the owner; and
(xii) the maximum amount of hardship increase to which
an owner shall be entitled shall be the
difference between the threshold income and the
annual gross rent income collectible for the
test year.
(3) RIGHT OF TENANT TO CANCEL LEASE WHERE RENT INCREASE
BASED UPON HARDSHIP IS GRANTED. In the event that an
order is issued increasing the legal regulated rent
because of owner hardship, the tenant may within 30
days of his or her receipt of a copy of the DHCR order,
cancel his or her lease on 60 days' written notice to
the owner. Until such tenant vacates, he or she
continues in occupancy at the approved increase in
rent.
(d) An owner may file an application to decrease required
services for a reduction of the legal regulated rent on
forms prescribed by the DHCR on the grounds that:
(1) the owner and tenant, by mutual voluntary written
agreement, consent to a decrease in dwelling space, or
a decrease in the services, furniture, furnishings or
equipment provided in the housing accommodation; or
(2) such decrease is required for the operation of the
building in accordance with the specific requirements
of law; or
(3) such decrease is not inconsistent with the RSL or this
Code.
No such reduction in rent or decrease in services shall take
place prior to the approval by the DHCR of the owner's
application, except that a service decrease pursuant to
paragraph (2) of this subdivision may take place prior to
such approval.
(e) An owner may file an application to modify or substitute
required services, at no change in the legal regulated rent,
on forms prescribed by the DHCR on the grounds that:
(1) the owner and tenant, by mutual voluntary written
agreement, consent to a modification or substitution of
the required services provided in the housing
accommodation;
(2) such modification or substitution is required for the
operation of the building in accordance with the
specific requirements of law; or
(3) such modification or substitution is not inconsistent
with the RSL or this Code.
No such modification or substitution of required
services shall take place prior to the approval of the
owner's application by the DHCR, except that a service
modification or substitution pursuant to paragraph (2)
of this subdivision may take place prior to such
approval.
(f) Pursuant to section 452(7) of the PHFL, as an alternative to
the rental adjustments for which an owner may file an
application under subdivision (a) of this section, upon the
completion of the rehabilitation of a multiple dwelling
which is aided by a loan made pursuant to article VIII-A of
the PHFL, HPD may adjust the rent for each housing
accommodation within the multiple dwelling pursuant to such
law.
Any work required pursuant to or as a condition of an
article VIII-A loan for which a rent adjustment is granted
under section 452(7) of the PHFL is not eligible for an
increase pursuant to paragraph (a)(2) or (3) of this
section.
Sec. 2522.5. LEASE AGREEMENTS.
(a) VACANCY LEASE OR RENTAL.
(1) For housing accommodations other than hotels, upon the
renting of a vacant housing accommodation, the owner
shall provide to the tenant a copy of the fully
executed lease for a one- or two-year term, at the
tenant's option (except where a mortgage or mortgage
commitment existing as of April 1, 1969 prohibits the
granting of one-year lease terms), bearing the
signature of the owner and tenant and the beginning and
ending dates of the lease term, within 30 days from the
owner's receipt of the vacancy lease signed by the
tenant. Such lease shall conform to the intent of
section 5-702 of the General Obligations Law (plain
English). The rent provided therein may not exceed the
last legal regulated rent in addition to all increases
authorized by this Code. For a housing accommodation
subject to the City Rent Law which becomes vacant after
March 31, 1984, the owner may not increase the rent
charged in the initial lease or other rental agreement
pursuant to annual guidelines for a period of one year
or until the expiration date of the initial lease or
rental agreement, whichever is later.
(2) For housing accommodations in hotels rented to an
occupant who has never had a lease, such occupant may
at any time during his or her occupancy request a lease
and the owner must, within 15 days after such request,
grant a lease commencing on the date such request was
made at a rent which does not exceed the legal
regulated rent, for a term of at least six months. The
hotel occupant who requests such a lease becomes a
permanent tenant but the lease need not be renewed.
Notwithstanding the above, an owner shall not refuse to
grant a lease or to extend or continue a tenancy in
order to prevent the hotel occupant from becoming a
permanent tenant, except to the extent that the owner
may be permitted to do so by law pursuant to a warrant
of eviction, or other order of a court of competent
jurisdiction, or a governmental vacate order.
(3) In addition, where a hotel occupant has not requested a
lease, an owner shall not refuse to extend or continue
a tenancy solely in order to prevent the hotel occupant
from becoming a permanent tenant.
(b) RENEWAL LEASE
(1) For housing accommodations other than hotels, upon such
notice as is required by section 2523.5 of this Title,
the tenant shall have the right of selecting at his or
her option a renewal of his or her lease for a one- or
two-year term; except that where a mortgage or a
mortgage commitment existing as of April 1, 1969
prohibits the granting of one-year lease terms or the
tenant is the recipient of a Senior Citizen Rent
Increase Exemption pursuant to section 26-509 of the
Administrative Code of the City of New York, the tenant
may not select a one-year lease. The owner shall
furnish to the tenant signing a renewal lease form,
pursuant to section 2523.5 of this Title, a copy of the
fully executed renewal lease form, bearing the
signatures of the owner and tenant, and the beginning
and ending dates of the lease term, within 30 days from
the owner's receipt of the renewal lease form signed by
the tenant. Such renewal lease form shall conform to
the intent of section 5-702 of the General Obligations
Law.
(2) Upon complaint by the tenant that he or she was not
served with a copy of the fully executed vacancy lease
or renewal lease form pursuant to paragraph (1) of
subdivision (a) or paragraph (1) of this subdivision,
the DHCR shall order the owner to furnish the copy of
the vacancy lease or renewal lease form. In addition to
any other penalties provided under this Code,
noncompliance by the owner within 20 days of such order
shall result in the denial of any rent guideline
increases for vacancy or renewal leases until the fully
executed copy of the vacancy lease or renewal lease
form is furnished by the owner to the tenant.
(c) LEASE RIDER AND NOTICE OF RIGHTS.
(1) For housing accommodations subject to this Code, an
owner shall furnish to each tenant signing a vacancy or
renewal lease, a rider in a form promulgated or
approved by the DHCR, in larger type than the lease,
describing the rights and duties of owners and tenants
as provided for under the RSL. Such rider shall conform
to the plain English requirements of section 5-702 of
the General Obligations Law, shall also be available in
Spanish, and shall be attached as an addendum to the
lease. Upon the face of each lease, in bold print,
shall appear the following: "ATTACHED RIDER SETS FORTH
RIGHTS AND OBLIGATIONS OF TENANTS AND LANDLORDS UNDER
THE RENT STABILIZATION LAW." ("LOS DERECHOS Y
RESPONSABILIDADES DE INQUILINOS Y CASEROS ESTAN
DISPONIBLE EN ESPANOL").
(i) For vacancy leases, such rider shall in addition
also include a notice of the prior legal regulated
rent, if any, which was in effect immediately
prior to the vacancy, an explanation of how the
rental amount provided for in the vacancy lease
has been computed above the amount shown in the
most recent annual registration statement, and a
statement that any increase above the amount set
forth in such registration statement is in
accordance with the adjustments permitted by the
Rent Guidelines Board and this Code.
(ii) For renewal leases, such rider shall be attached
to the form sent to the tenant pursuant to section
2523.5 of this Title.
(2) For housing accommodations in hotels, each owner shall
furnish to each person, at the time of registration, a
Notice of Rights in a form promulgated or approved by
the DHCR, describing the rights and duties of hotel
owners, occupants and tenants as provided for under the
RSL and this Code and a hotel occupant's right to
become a permanent tenant at a legal regulated rent by
requesting a lease for a term of at least six months at
any time during his or her occupancy. Such notice,
which shall conform to the "plain English" requirements
of section 5-702 of the General Obligations Law, shall
also be available in Spanish. Such notice shall be
provided to each hotel occupant in residence on the
effective date of this Code no later than 90 days from
such effective date. An owner who violates the RSL and
this Code by failing to furnish this Notice of Rights,
and/or by engaging in any conduct which compels a
person to rent as a hotel occupant, prevents a hotel
occupant from becoming a permanent tenant, or results
in a hotel occupant vacating a housing accommodation,
shall be subject to a loss of a guidelines adjustment
pursuant to paragraph (3) of this subdivision as well
as penalties pursuant to section 2526.2(b) and (c)(1)
of this Title, and may be subject to a penalty pursuant
to section 2526.2(c)(2) of this Title, in an amount no
less than $1,000.
(3) Upon complaint by the tenant, permanent tenant or hotel
occupant that he or she was not furnished with a copy
of the lease rider pursuant to paragraph (1) or the
notice pursuant to paragraph (2) of this subdivision,
the DHCR shall order the owner to furnish the rider or
notice. In addition to such other penalties provided
for pursuant to section 2526.2 of this Title, if the
owner fails to comply within 20 days of such order, the
owner shall not be entitled to collect any guidelines
lease adjustment authorized for any current lease from
the commencement date of such lease. The furnishing of
the rider or notice by the owner to the tenant or hotel
occupant shall result in the elimination,
prospectively, of such penalty. With respect to housing
accommodations in hotels, noncompliance by the owner
shall not prevent the hotel occupant from becoming a
permanent tenant.
(d) LIMITATIONS.
No provision may be made in any vacancy or renewal lease for
adjustment of the legal regulated rent reserved in the lease
except as follows:
(1) if the applicable rent guidelines rate has not been
fixed by the execution date of the vacancy lease or the
renewal offer, the lease may make provision for the
rent increase, if any, pursuant to the said rate when
filed, to become effective as of the commencement date
of the lease term, unless the Rent Guidelines Board
shall have fixed a later effective date for the said
rate, in which event the adjustment may only be
effective as of the later date;
(2) where such lease provides that the rental reserved
therein may be increased pursuant to an order issued by
the DHCR; or
(3) where such lease provides that a rent increase shall be
in the amount, if any, authorized by the DHCR in the
event an application is filed to establish a hardship
pursuant to section 2522.4(b) or (c) of this Part; and
(4) in the case of a vacancy lease, where an application
for a rent adjustment pursuant to section 2522.4(a)(2)
or (3), (b) or (c) of this Part is pending before the
DHCR, such lease also recites that such application is
pending before the DHCR and the basis for the
adjustment, and that the increase which is the subject
of such application, if granted, may be effective
during the term of the lease.
(e) ESCALATOR CLAUSES.
(1) Regardless of whether an escalator clause was contained
in the last effective lease or other rental agreement
prior to April 1, 1984, no renewal lease or vacancy
lease commencing on or after April 1, 1984 shall
provide for any escalator clause, except that nothing
herein shall prohibit the use of escalator clauses
otherwise required by any other statute or regulation
affecting the housing accommodation.
(2) For buildings receiving benefits pursuant to section
421-a of the Real Property Tax Law and the regulations
promulgated pursuant thereto, such clauses may provide
for an annual or other periodic rent increase over the
initial rent at an average rate of not more than 2.2
percent of the amount of such initial rent per annum
not to exceed the maximum cumulative amount, if any,
permitted under the 421-a program rules and
regulations. After the tax benefits end, such
additional 2.2 percent charges shall no longer be added
but the owner may continue to collect the cumulative
2.2 percent increases charged prior to the termination
of said tax benefits. Any lease containing the
aforementioned provision shall also include a rider
with an endorsement signed by the tenant acknowledging
the owner's right to include such provision and to
collect such rent increase for the tax benefit period.
Such rider shall state the approximate date of the
expiration of such tax benefits.
(3) Nothing in paragraph (2) of this subdivision shall
prohibit the inclusion of a lease provision for an
annual or other periodic rent increase over the legal
regulated rent at such rate of rental increase as is
provided for and authorized by section 423 of the Real
Property Tax Law. Such additional charges pursuant to
such section 423 shall no longer be added after the tax
benefits end. Any lease containing the aforementioned
provision shall also include a rider with an
endorsement signed by the tenant acknowledging the
owner's right to include such provision and to collect
such rent increase for the tax benefit period. Such
rider shall state the approximate date of the
expiration of such tax benefits.
(4) No additional charge which became effective on or after
November 19, 1982, pursuant to paragraph (2) of this
subdivision, shall become part of the legal regulated
rent.
(f) VACANCY PRIOR TO EXPIRATION OF LEASE TERM.
Where the tenant vacates prior to the expiration of the term of
the lease, and the housing accommodation is rented to a new
tenant pursuant to a lease commencing during the same guidelines
period as the prior lease, the rental provided in the new lease
shall:
(1) be in accordance with and at the guidelines rate of
rent adjustment applicable to the new lease;
(2) shall be computed upon the legal regulated rent charged
and paid on the last day of the immediately preceding
guidelines year; and
(3) may include such other rent increases as are authorized
pursuant to section 2522.4 of this Part.
(g) SAME TERMS AND CONDITIONS.
The lease provided to the tenant by the owner pursuant to
subdivision (b) of this section shall be on the same terms and
conditions as the expired lease, except where the owner can
demonstrate that the change is necessary in order to comply with
a specific requirement of law or regulation applicable to the
building or to leases for housing accommodations subject to the
RSL, or with the approval of the DHCR. Nothing herein may limit
the inclusion of authorized clauses otherwise permitted by this
Code or by order of the DHCR not contained in the expiring lease.
Notwithstanding the foregoing, the tenant shall have the right to
have his or her spouse, whether husband or wife, added to the
lease or any renewal thereof as an additional tenant where said
spouse resides in the housing accommodation as his or her primary
residence.
(h) LEASES FOR HOUSING ACCOMMODATIONS IN COOPERATIVE - OR
CONDOMINIUM-OWNED BUILDINGS, OR IN A BUILDING FOR WHICH THE
ATTORNEY GENERAL HAS ACCEPTED FOR FILING A PLAN TO CONVERT
THE BUILDING TO COOPERATIVE OR CONDOMINIUM OWNERSHIP.
(1) An owner of one or more housing accommodations subject
to this Code may evict the tenant of such housing
accommodation and/or refuse to renew a lease therefor,
if such housing accommodation is in a building, group
of buildings or development which is the subject of an
Eviction Plan for conversion to cooperative or
condominium ownership under General Business Law,
section 352-eeee (hereinafter "section 352-eeee"),
provided:
(i) the Attorney General has accepted for filing a
plan to convert the building, group of buildings
or development to cooperative or condominium
ownership and an amendment declaring the plan
effective as an Eviction Plan has been accepted
for filing and a closing has been held thereunder;
and
(ii) three years have elapsed from the date on which
the Attorney General has accepted for filing an
amendment declaring the plan effective as an
Eviction Plan, and at such time or thereafter the
tenant's lease has expired or has been canceled
pursuant to paragraph (2) of this subdivision.
(2) Until the conditions set forth in paragraph (1) of this
subdivision have been met, a tenant in occupancy of a
housing accommodation subject to this Code shall have
the right to a renewal lease or in the case of a
permanent tenant, to continue his or her tenancy on the
terms and conditions and at the rent and adjustments
thereto as otherwise provided for in this Code.
Notwithstanding the foregoing, any vacancy or renewal
lease, entered into after the plan is accepted for
filing by the Attorney General and such plan has been
presented to the tenants in occupancy, may contain a
provision authorizing the owner to cancel the lease as
of a date not less than three years after the date an
Eviction Plan has been declared effective (providing
that title has passed to the cooperative corporation or
condominium unit owners) on 90 days' notice to the
tenant. In order to cancel a lease pursuant to such
provision, the owner must give the tenant written
notice of such election by certified mail no less than
90 days prior to the date upon which the cancellation
is to become effective.
(3) For the purposes of this section, "filing date" shall
mean the date on which a letter was issued by the
Attorney General accepting a plan for filing.
(4) After the filing date, and prior to the plan being
declared effective, if a housing accommodation subject
to this Code is vacated, such housing accommodation may
only be rented at a rent and upon such terms and
conditions as are authorized under this Code for a
vacancy lease. Notwithstanding the foregoing, if a
vacancy lease herein called an interim lease for such
housing accommodation is executed in connection with an
agreement to purchase such housing accommodation or the
shares allocated thereto, pursuant to any Eviction Plan
or Non- Eviction Plan, as defined by section 352-eeee,
such interim lease:
(i) may provide that once the plan has been declared
effective, if the tenant fails to purchase his or
her housing accommodation or the shares allocated
thereto on the terms set forth in the subscription
or purchase agreement, or otherwise terminates or
defaults on the subscription or purchase
agreement, such tenant may be evicted; and
(ii) may provide for a rental below the legal regulated
rent which may, upon the abandonment or withdrawal
of the plan, be increased to the legal regulated
rent, provided the interim lease or other
agreement clearly notifies the tenant of what that
higher rental will be; If the plan is abandoned or
withdrawn, such
(5) If a housing accommodation which was subject to this
Code is vacated or is rented to a new tenant after any
plan which affects such housing accommodation has been
declared effective, and a closing thereunder has
occurred, such housing accommodation shall not be
subject to this Code.
(6) If a building, group of buildings or development
containing units to which this Code applies is
converted to cooperative or condominium ownership,
whether or not such conversion is pursuant to an
Eviction Plan or a Non- Eviction Plan as defined by
section 352-eeee, the services which shall be required
to be maintained under this Code with respect to
housing accommodations which remain subject to this
Code shall not be diminished or modified without the
approval of the DHCR as provided for in section
2522.4(d) or (e) of this Part.
(7) The provisions of paragraph (h)(1) of this section, and
the right to include a cancellation clause as provided
by paragraph (h)(2), shall not apply to a housing
accommodation of which the tenant is a senior citizen
or disabled person on the filing date. Until such time
as the appropriate agency determines that such tenant
is not eligible for such status, such tenant shall
continue to be subject to the provisions of this Code.
Sec. 2522.6. ORDERS WHERE THE LEGAL REGULATED RENT OR OTHER FACTS
ARE IN DISPUTE, IN DOUBT, OR NOT KNOWN, OR WHERE THE
LEGAL REGULATED RENT MUST BE FIXED.
(a) Where the legal regulated rent or any fact necessary to the
determination of the legal regulated rent, or the dwelling
space, required services or equipment required to be
provided with the housing accommodation is in dispute
between the owner and the tenant, or is in doubt, or is not
known, the DHCR at any time upon written request of either
party, or on its own initiative, may issue an order in
accordance with the applicable provisions of this Code
determining the facts, including the legal regulated rent,
the dwelling space, required services, and equipment
required to be provided with the housing accommodations.
(b) Such order shall determine such facts or establish the legal
regulated rent in accordance with section 2521.2 of this
Title. Where such order establishes the legal regulated
rent, it shall contain a directive that all rent collected
by the owner in excess of the legal regulated rent
established under this section for such period as is
provided in section 2526.1(a) of this Title, or the date of
the commencement of the tenancy, if later, either be
refunded to the tenant, or be enforced in the same manner as
prescribed in section 2526.1(e) and (f) of this Title.
Orders issued pursuant to this section shall be based upon
the law and Code provisions in effect on March 31, 1984, if
the complaint was filed prior to April 1, 1984. However, in
the absence of collusion or any relationship between an
owner and any prior owner, where such owner purchases the
housing accommodations upon a judicial sale and no records
sufficient to establish the legal regulated rent were made
available to such purchaser, such orders shall establish the
legal regulated rent with due consideration of equities
pursuant to section 2522.7 of this Part.
Sec. 2522.7. CONSIDERATION OF EQUITIES.
In issuing any order adjusting or establishing any legal
regulated rent, or in determining any applications by tenants
pursuant to section 2523.5(f) of this Title, or in determining
when a higher or lower legal regulated rent shall be charged
pursuant to an agreement between the DHCR and governmental
agencies or public benefit corporations, the DHCR shall take into
consideration all factors bearing upon the equities involved,
subject to the general limitation that such adjustment,
establishment or determination can be put into effect with due
regard for protecting tenants and the public interest against
unreasonably high rent increases inconsistent with the purposes
of the RSL, for preventing imposition upon the industry of any
industry-wide schedule of rents or minimum rents, and for
preserving the regulated rental housing stock.
-----------------------------------------------------------
PART 2523 -- NOTICES AND RECORDS
-----------------------------
TABLE OF CONTENTS
Section 2523.1. Notice of initial legal registered rent.
2523.2. Certification of services.
2523.3. Failure to file a certification of services.
2523.4. Failure to maintain services.
2523.5. Notice for renewal of lease and renewal
procedure.
2523.6. Notices of appearance by attorney or other
authorized representative.
2523.7. Records and record keeping.
2523.8. Notice of change of ownership.
-----------------------------
Sec. 2523.1. NOTICE OF INITIAL LEGAL REGISTERED RENT.
Every owner of housing accommodations previously subject to the
City Rent Law and thereafter rented to a tenant on or after April
1, 1984, shall within 90 days after the housing accommodations
become subject to the RSL, give notice in writing by certified
mail to the tenant of each such housing accommodation on a form
prescribed by the DHCR for that purpose, reciting the initial
legal registered rent for the housing accommodation and the
tenant's right to file an application for adjustment of the
initial legal registered rent within 90 days of the certified
mailing to the tenant of the notice pursuant to section 2522.3 of
this Title.
Sec. 2523.2. CERTIFICATION OF SERVICES.
Every owner of housing accommodations subject to this Code shall
annually file with the DHCR, on a form which the DHCR shall
prescribe for that purpose, a written certification that he or
she is maintaining and will continue to maintain all services as
required by section 2520.6(r) of this Title, or required to be
furnished by any law, or regulation applicable to the housing
accommodation. Compliance with section 2528.3 of this Title,
shall also be in compliance with this section.
Sec. 2523.3. FAILURE TO FILE A CERTIFICATION OF SERVICES.
No owner shall be entitled to collect a rent adjustment pursuant
to a Rent Guidelines Board Order as authorized under section
2522.5 of this Title, until the owner has filed a proper
certification as required by section 2523.2 of this Part, nor
shall any owner be entitled to a rent restoration based upon a
restoration of services unless such certification is filed
together with his or her application for rent restoration. Such
restoration shall take effect in accordance with section 2522.2
of this Title.
Sec. 2523.4. FAILURE TO MAINTAIN SERVICES.
(a) A tenant may apply to the DHCR for a reduction of the legal
regulated rent to the level in effect prior to the most
recent guidelines adjustment, and the DHCR shall so reduce
the rent for the period for which it is found that the owner
has failed to maintain required services. The Order reducing
the rent shall further bar the owner from applying for or
collecting any further increases in rent until such services
are restored. If the DHCR further finds that the owner has
knowingly filed a false certification, it may, in addition
to abating the rent, assess the owner with the reasonable
costs of the proceeding, including reasonable attorney's
fees, and impose a penalty not in excess of $250 for each
false certification.
(b) Proceedings pending on the effective date of this Code (May
1, 1987) involving tenant complaints of owners' failure to
provide hotel services shall be determined in accordance
with the RSL and Hotel Industry Code in effect immediately
prior to such effective date of this Code.
Sec. 2523.5. NOTICE FOR RENEWAL OF LEASE AND RENEWAL PROCEDURE.
(a) On a form prescribed or a facsimile of such form approved by
the DHCR, dated by the owner, every owner, other than an
owner of hotel accommodations, shall notify the tenant named
in the expiring lease not more than 150 days and not less
than 120 days prior to the end of the tenant's lease term,
by mail or personal delivery, of the expiration of the lease
term, and offer to renew the lease or rental agreement at
the legal regulated rent permitted for such renewal lease
and otherwise on the same terms and conditions as the
expiring lease. The owner shall give such tenant a period of
60 days from the date of service of such notice to accept
the offer and renew such lease. The tenant's acceptance of
such offer shall be entered on the designated part of the
prescribed form, or facsimile thereof, and returned to the
owner by mail or personal delivery. Pursuant to the
provisions of section 2522.5(b)(1) of this Title, the owner
shall furnish to such tenant a copy of the fully executed
renewal lease form bearing the signatures of the owner and
tenant within 30 days of the owner's receipt of the renewal
lease form signed by the tenant. Upon execution by the owner
and delivery to the tenant, such form shall constitute a
binding renewal lease. Upon failure of the owner to deliver
a copy of the fully executed renewal lease form to the
tenant within 30 days from the owner's receipt of such form
signed by the tenant, such tenant shall not be deprived of
any of his or her rights under the RSL and this Code and the
owner shall be barred from commencing any action or
proceeding against the tenant based upon nonrenewal of
lease, pursuant to section 2524.3(f) of this Title. In the
event that such notice is given to the tenant after the
expiration of the lease, the provisions of subdivision (c)
of this section shall govern.
(b) (1) Unless otherwise prohibited by occupancy
restrictions based upon income limitations pursuant to
federal, state or local law, regulations or other
requirements of governmental agencies, if an offer is
made to the tenant pursuant to the provisions of
subdivision (a) and such person has permanently vacated
the housing accommodation, any member of such tenant's
family, as defined in subdivision (o) of section 2520.6
of this Title, who has resided with the tenant in the
housing accommodation as a primary residence for a
period of no less than two (2) years, or where such
person is a "senior citizen," or a "disabled person" as
defined in paragraph (4) of this subdivision, for a
period of no less than one (1) year, immediately prior
to the permanent vacating of the housing accommodation
by the tenant, or from the inception of the tenancy or
commencement of the relationship, if for less than such
periods, shall be entitled to be named as a tenant on
the renewal lease.
(2) The minimum periods of required residency set forth in
this subdivision shall not be deemed to be interrupted
by any period during which the "family member"
temporarily relocates because he or she:
(i) is engaged in active military duty;
(ii) is enrolled as a full time student;
(iii) is not in residence at the housing accommodation
pursuant to a court order not involving any term
or provision of the lease, and not involving any
grounds specified in the Real Property Actions
and Proceedings Law;
(iv) is engaged in employment requiring temporary
relocation from the housing accommodation;
(v) is hospitalized for medical treatment; or
(vi) has such other reasonable grounds that shall be
determined by the DHCR upon application by such
person.
(3) The 60 day period from the date of service of the
Notice for Renewal of Lease for acceptance and renewal
provided to the tenant in subdivision (a) of this
section, shall also apply to the tenant's "family
member."
(4) For the purposes of this subdivision (b), "disabled
person" is defined as 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
are demonstrable by medically acceptable clinical and
laboratory diagnostic techniques, and which are
expected to be permanent and which substantially limit
one or more of such person's major life activities.
(c) Where the owner fails to timely offer a renewal lease or
rental agreement in accordance with subdivision (a) of this
section, the one/ or two-year lease term selected by the
tenant shall commence at the tenant's option, either (1) on
the date a renewal lease would have commenced had a timely
offer been made, or (2) on the first rent payment date
occurring no less than 120 days after the date that the
owner does offer the lease to the tenant. In either event,
the effective date of the increased rent under the renewal
lease shall commence on the first rent payment date
occurring no less than 120 days after such offer is made by
the owner, and the guidelines rate applicable shall be no
greater than the rate in effect on the commencement date of
the lease for which a timely offer should have been made.
(d) Except as provided in Part 2524 of this Title, the failure
to offer a renewal lease pursuant to this section shall not
deprive the tenant of any protections or rights provided by
the RSL and this Code and the tenant shall continue to have
the same rights as if the expiring lease were still in
effect.
(e) On a form prescribed or a facsimile of such form approved by
the DHCR, a tenant may, at any time, advise the owner, or an
owner may request from the tenant, at the time a renewal
lease is offered pursuant to subdivision (a) of this
section, the names of all persons other than the tenant who
are residing in the housing accommodation, and the following
information pertaining to such persons:
(1) if the person is a "family member" as defined in
subdivision (o) of section 2520.6 of this Title; and
(2) if the person is, or upon the passage of the applicable
minimum period of required residency, may become a
person entitled to be named as a tenant on a renewal
lease pursuant to paragraph (1) of subdivision (b) of
this section, and the date of the commencement of such
person's primary residence with the tenant; and
(3) if the person is a "senior citizen" or a "disabled
person" as defined in subdivision (p) of section 2520.6
of this Title, and paragraph (4) of subdivision (b) of
this section.
Failure of the tenant to provide such information to the
owner, regardless of whether the owner requests the
information, shall place upon all such persons not so made
known to the owner, who seek to exercise the right to be
named as a tenant on a renewal lease as provided for in
subdivision (b) of this section, the affirmative obligation
to establish such right.
(f) For any family member who is made known to the owner
pursuant to subdivision (e) of this section, the DHCR may,
upon application by such family member, who is not entitled
to a renewal lease as provided for in subdivision (b) of
this section, determine with due consideration of equities
as set forth in section 2522.7 of this Title, that there are
other reasonable grounds pursuant to which such family
member shall be entitled to a renewal lease.
Sec. 2523.6. NOTICES OF APPEARANCE BY ATTORNEY OR OTHER
AUTHORIZED REPRESENTATIVE.
(a) Whenever an attorney or other authorized representative
appears for a party who is involved in a proceeding before
the DHCR, such person must file a notice of appearance which
shall be on a form prescribed by the DHCR, unless the
application which instituted the proceeding before the DHCR
stated the representation of such person and his or her
mailing address in the space allotted for the mailing
address of the represented party. 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 form. All subsequent written
communications or notices to such party (other than
subpoenas) shall be sent to such attorney or other
authorized representative at the address designated in such
notice of appearance. The service of written communications
and notices upon such attorney or other authorized
representative shall be deemed full and proper service upon
the party or parties so represented. If an authorized
representative appears, such notice of appearance must be
accompanied by a written authorization, duly verified or
affirmed, by the party represented.
(b) Whenever an attorney or other authorized representative
shall represent the same party or parties in more than one
proceeding before the DHCR, separate notices of appearance
and authorizations shall be filed in each proceeding.
(c) Any submission signed by an attorney or other authorized
representative must state that such person has personal
knowledge of the facts contained in such submission, or if
he or she does not have such personal knowledge, the basis
for such person's information.
Sec. 2523.7. RECORDS AND RECORDKEEPING.
(a) Every owner shall keep, preserve, and make available for
examination, records from the date immediately prior to the
date the housing accommodation became subject to the RSL, of
the same kind as he or she has customarily kept relating to
the rents received for housing accommodations, and
individual housing accommodation and building-wide services
provided or required to be provided on the applicable base
date.
(b) Except as provided in subdivision (c) of this section, every
owner subject to this Code shall also keep, preserve, and
make available for examination, records from the date
immediately prior to the date the housing accommodation
became subject to the RSL, showing the rents received for
each housing accommodation, the particular term and number
of tenants for which such rents were charged, and the name
of each tenant, and the individual housing accommodation and
building-wide services provided or required to be provided
on the applicable base date.
(c) Any owner who has duly registered a housing accommodation
pursuant to Part 2528 of this Title shall not be required to
maintain or produce any records relating to rentals of such
accommodation more than four years prior to the initial or
most recent annual registration for such accommodation.
Notwithstanding the above, such owner shall continue to
maintain records for all housing accommodations for which a
complaint of overcharge or a Fair Market Rent Appeal was
filed by a tenant prior to April 1, 1984, or a challenge to
an initial registration is filed, until a final order of the
DHCR is issued.
(d) In the absence of collusion or any relationship between a
prior owner and an owner who purchases upon a judicial sale,
such purchaser shall not be required to comply with the
provisions of subdivisions (a) and (b) of this section for
the period prior to such sale, except where records
sufficient to establish the legal regulated rent are
available to such purchaser. This subdivision shall not be
construed to waive the purchaser's obligation to register
pursuant to Part 2528 of this Title.
Sec. 2523.8. NOTICE OF CHANGE OF OWNERSHIP.
Within 30 days after a change in ownership, the new owner shall
notify the DHCR of such change on a form prescribed by the DHCR.
Such form shall be signed by the new owner, listing the address
of the building or complex, the name, address and telephone
number of the new owner, and the date of the transfer of
ownership.
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PART 2524 -- EVICTIONS
-----------------------------
TABLE OF CONTENTS
Section 2524.1. Restrictions on removal of tenant.
2524.2. Termination notices.
2524.3. Proceedings for eviction--wrongful acts
of tenant.
2524.4. Grounds for refusal to renew lease, or in
hotels, discontinuing a hotel tenancy,
without order of the DHCR.
2524.5. Grounds for refusal to renew lease or
discontinue hotel tenancy and evict which
require approval of the DHCR.
-----------------------------
Sec. 2524.1. RESTRICTIONS ON REMOVAL OF TENANT.
(a) As long as the tenant continues to pay the rent to which the
owner is entitled, no tenant shall be denied a renewal lease
or be removed from any housing accommodation by action to
evict or to recover possession, by exclusion from
possession, or otherwise, nor shall any person attempt such
removal or exclusion from possession, except on one or more
of the grounds specified in this Code.
(b) It shall be unlawful for any person to remove or attempt to
remove any tenant from any housing accommodation or to
refuse to renew the lease or rental agreement for the use of
such housing accommodation, because such tenant has taken,
or proposes to take any action authorized or required by the
RSL or this Code, or any order of the DHCR.
(c) No tenant of any housing accommodation shall be removed or
evicted unless and until such removal or eviction has been
authorized by a court of competent jurisdiction on a ground
authorized in this Part or under the Real Property Actions
and Proceedings Law.
Sec. 2524.2. TERMINATION NOTICES.
(a) Except where the ground for removal or eviction of a tenant
is nonpayment of rent, no tenant shall be removed or evicted
from a housing accommodation by court process, and no action
or proceeding shall be commenced for such purpose upon any
of the grounds permitted in section 2524.3 or 2524.4 of this
Part, unless and until the owner shall have given written
notice to such tenant as hereinafter provided.
(b) Every notice to a tenant to vacate or surrender possession
of a housing accommodation shall state the ground under
section 2524.3 or 2524.4 of this Part, upon which the owner
relies for removal or eviction of the tenant, the facts
necessary to establish the existence of such ground, and the
date when the tenant is required to surrender possession.
(c) Every such notice shall be served upon the tenant:
(1) in the case of a notice based upon subdivision (f) of
section 2524.3 of this Part, at least 15 days prior to
the date specified therein for the surrender of
possession; or
(2) in the case of a notice on any other ground pursuant to
section 2524.3, at least seven calendar days prior to
the date specified therein for the surrender of
possession, or in the case of a notice pursuant to
subdivision (c) of section 2524.4 of this Part, at
least 120 and not more than 150 days prior to the
expiration of the lease term; or
(3) in the case of a notice pursuant to subdivision (a) of
sections 2524.4 and 2524.5 of this Part, at least 120
and not more than 150 days prior to the expiration of
the lease term, or in the case of a hotel permanent
tenant without a lease, at least 120 and not more than
150 days prior to the commencement of a court
proceeding; or
(4) in the case of a notice pursuant to subdivision (b) of
section 2524.4 of this Part, at least 120 and not more
than 150 days prior to the expiration of the lease
term, or within 120 days of the expiration of the
tenant's lease term provided no summary proceeding can
be commenced until the expiration of 120 days from the
service of such notice, accompanied by a form
prescribed by the DHCR advising the tenant of the
penalties set forth in section 2524.4(b) of this Part
for failure to use the housing accommodation for the
charitable or educational purposes for which recovery
is sought.
(d) All notices served pursuant to subdivision (c) of this
section shall be in lieu of any notice in any lease or
rental agreement providing for a lesser time for termination
of tenancy.
Sec. 2524.3. PROCEEDINGS FOR EVICTION--WRONGFUL ACTS OF TENANT.
Without the approval of the DHCR, an action or proceeding to
recover possession of any housing accommodation may only be
commenced after service of the notice required by section 2524.2
of this Part, upon one or more of the following grounds, wherein
wrongful acts of the tenant are established as follows:
(a) The tenant is violating a substantial obligation of his or
her tenancy other than the obligation to surrender
possession of such housing accommodation, and has failed to
cure such violation after written notice by the owner that
the violations cease within 10 days; or the tenant has
willfully violated such an obligation inflicting serious and
substantial injury upon the owner within the three-month
period immediately prior to the commencement of the
proceeding.
(b) The tenant is committing or permitting a nuisance in such
housing accommodation or the building containing such
housing accommodation; or is maliciously, or by reason of
gross negligence, substantially damaging the housing
accommodation; or the tenant engages in a course of conduct,
the primary purpose of which is intended to harass the owner
or other tenants or occupants of the same or an adjacent
building or structure by interfering substantially with
their comfort or safety. The exercise by a tenant of any
rights pursuant to any law or regulation relating to
occupancy of a housing accommodation, including the RSL or
this Code, shall not be deemed a ground for eviction
pursuant to this subdivision.
(c) Occupancy of the housing accommodation by the tenant is
illegal because of the requirements of law and the owner is
subject to civil or criminal penalties therefor, or such
occupancy is in violation of contracts with governmental
agencies.
(d) The tenant is using or permitting such housing accommodation
to be used for immoral or illegal purpose.
(e) The tenant has unreasonably refused the owner access to the
housing accommodation for the purpose of making necessary
repairs or improvements required by law or authorized by the
DHCR, or for the purpose of inspection or showing the
housing accommodation to a prospective purchaser, mortgagee
or prospective mortgagee, or other person having a
legitimate interest therein; provided, however, that in the
latter event such refusal shall not be a ground for removal
or eviction unless the tenant shall have been given at least
five days' notice of the inspection or showing, to be
arranged at the mutual convenience of the tenant and owner
so as to enable the tenant to be present at the inspection
or showing, and that such inspection or showing of the
housing accommodation is not contrary to the provisions of
the tenant's lease or rental agreement.
(f) The tenant has refused, following notice pursuant to section
2523.5 of this Title, to renew an expiring lease in the
manner prescribed in such notice at the legal regulated rent
authorized under this Code and the RSL, and otherwise upon
the same terms and conditions as the expiring lease. This
subdivision does not apply to permanent hotel tenants, nor
may a proceeding be commenced based on this ground prior to
the expiration of the existing lease term.
(g) For housing accommodations in hotels, the tenant has
refused, after at least 20 days' written notice, to move to
a substantially similar housing accommodation in the same
building at the same legal regulated rent where there is a
rehabilitation as set forth in section 2524.5(a)(3) of this
Part, provided:
(1) that the owner has an approved plan to reconstruct,
renovate or improve said housing accommodation or the
building in which it is located;
(2) that the move is reasonably necessary to permit such
reconstruction, renovation or improvement;
(3) that the owner moves the tenant's belongings to the
other housing accommodation at the owner's cost and
expense; and
(4) that the owner offers the tenant the right of
reoccupancy of the reconstructed, renovated or improved
housing accommodation at the same legal regulated rent
unless such rent is otherwise provided for pursuant to
section 2524.5(a)(3) of this Part.
(h) In the event of a sublet, an owner may terminate the tenancy
of the tenant if the tenant is found to have violated the
provisions of section 2525.6 of this Title.
Sec. 2524.4. GROUNDS FOR REFUSAL TO RENEW LEASE, OR IN HOTELS,
DISCONTINUING A HOTEL TENANCY, WITHOUT ORDER OF THE
DHCR.
The owner shall not be required to offer a renewal lease to a
tenant, or in hotels, to continue a hotel tenancy, and may
commence an action or proceeding to recover possession in a court
of competent jurisdiction, upon the expiration of the existing
lease term, if any, after serving the tenant with a notice as
required pursuant to section 2524.2 of this Part, only on one or
more of the following grounds:
(a) Occupancy by owner or member of owner's immediate family.
(1) An owner who seeks to recover possession of a housing
accommodation for such owner's personal use and
occupancy as his or her primary residence in the City
of New York and/or for the use and occupancy of a
member of his or her immediate family as his or her
primary residence in the City of New York, except that
tenants in a noneviction conversion plan pursuant to
section 352-eeee of the General Business Law may not be
evicted on this ground on or after the date the
conversion plan is declared effective.
(2) The provisions of this subdivision shall not apply
where a tenant or the spouse of a tenant lawfully
occupying the housing accommodation is a senior citizen
or disabled person, as previously defined herein,
unless the owner offers to provide and, if requested,
provides an equivalent or superior housing
accommodation at the same or lower regulated rent in a
closely proximate area.
(3) The provisions of this subdivision shall only permit
one of the individual owners of any building, whether
such ownership is by joint tenancy, tenancy in common,
or tenancy by the entirety to recover possession of one
or more dwelling units for personal use and occupancy.
(4) No action or proceeding to recover possession pursuant
to this subdivision shall be commenced in a court of
competent jurisdiction unless the owner shall have
served the tenant with a termination notice in
accordance with subdivisions (a), (b) and (c)(3) of
section 2524.2 of this Part.
(5) The failure of the owner to utilize the housing
accommodation for the purpose intended after the tenant
vacates, or to continue in occupancy for a period of
three years, may result in a forfeiture of the right to
any increases in the legal regulated rent in the
building in which such housing accommodation is
contained for a period of three years, unless the owner
offers and the tenant accepts reoccupancy of such
housing accommodation on the same terms and conditions
as existed at the time the tenant vacated, or the owner
establishes to the satisfaction of the DHCR that
circumstances changed after the tenant vacated which
prevented the owner from utilizing the housing
accommodation for the purpose intended, and in such
event, the housing accommodation may be rented at the
appropriate guidelines without a vacancy allowance.
This paragraph shall not eliminate or create any claim
that the former tenant of the housing accommodation may
or may not have against the owner.
(b) Recovery by a not-for-profit institution.
(1) The owner is a hospital, convent, monastery, asylum,
public institution, college, school dormitory, or any
institution operated exclusively for charitable or
educational purposes on a nonprofit basis, and the
owner, upon notice to the tenant in accordance with
section 2524.2(c)(4) of this Part, requires the housing
accommodation for its own use in connection with its
charitable or educational purposes, and either:
(i) the tenant's initial tenancy commenced after the
owner acquired the property, and the owner
requires the housing accommodation in connection
with its charitable or educational purposes,
including but not limited to housing for
affiliated persons; provided that the owner may
not refuse to renew the lease of a tenant whose
right to occupancy commenced prior to July 1, 1978
pursuant to a written lease or written rental
agreement, and who did not receive notice at the
time of the execution of the lease that the
tenancy was subject to nonrenewal; provided
further that a tenant who was affiliated with the
owning institution at the commencement of his or
her tenancy and whose affiliation terminates
during such tenancy shall not have the right to a
renewal lease; or
(ii) the owner requires the housing accommodation for a
nonresidential use in connection with its
charitable or educational purposes.
(2) In addition to such penalty provided in section 2526.2
of this Title, the failure of the owner without good
cause to utilize or to continue to use the housing
accommodation for the purpose intended after the tenant
vacates, and for four years thereafter, shall result in
a forfeiture of the right to any increases in the legal
regulated rent for the housing accommodation involved
for a four-year period following the recovery of the
housing accommodation from the tenant.
(3) If an owner who recovers a housing accommodation
pursuant to this subdivision, or any successor in
interest, within four years after recovery of the
housing accommodation from the tenant, utilizes such
housing accommodation for purposes other than those
permitted hereunder without good cause, then such owner
or successor shall be liable to the removed tenant for
three times the damages sustained on account of such
removal, plus reasonable attorney's fees and costs as
determined by a court of competent jurisdiction,
provided that such tenant commences an action to
recover such damages within three years from the date
of recovery of the housing accommodation. The damages
sustained by such tenant shall be the difference
between the rent paid by such tenant for the recovered
housing accommodation, and the rental value of a
comparable rent- regulated housing accommodation, plus
the reasonable costs of the removal of the tenant's
property.
(c) Primary residence.
The housing accommodation is not occupied by the tenant, not
including subtenants or occupants, as his or her primary
residence, as determined by a court of competent
jurisdiction; provided, however, that no action or
proceeding shall be commenced seeking to recover possession
on the ground that the housing accommodation is not occupied
by the tenant as his or her primary residence unless the
owner or lessor shall have given 30 days' notice to the
tenant of his or her intention to commence such action or
proceeding on such grounds. Such notice may be combined with
the notice required by section 2524.2(c)(2) of this Title.
For the purposes of this subdivision, where a housing
accommodation is rented to a not-for-profit hospital for
residential use, affiliated subtenants authorized to use
such accommodations by such hospital shall be deemed to be
tenants for primary residence purposes.
Sec. 2524.5. Grounds for refusal to renew lease or discontinue
hotel tenancy and evict which require approval of
the DHCR
(a) The owner shall not be required to offer a renewal lease to
a tenant or continue a hotel tenancy, and shall file on the
prescribed form an application with the DHCR for
authorization to commence an action or proceeding to recover
possession in a court of competent jurisdiction after the
expiration of the existing lease term, upon any one of the
following grounds:
(1) Withdrawal from the rental market. The owner has
established to the satisfaction of the DHCR after a
hearing, that he or she seeks in good faith to withdraw
any or all housing accommodations from both the housing
and nonhousing rental market without any intent to rent
or sell all or any part of the land or structure and:
(i) that he or she requires all or part of the housing
accommodations or the land for his or her own use
in connection with a business which he or she owns
and operates; or
(ii) that substantial violations which constitute fire
hazards or conditions dangerous or detrimental to
the life or health of the tenants have been filed
against the structure containing the housing
accommodations by governmental agencies having
jurisdiction over such matters, and that the cost
of removing such violations would substantially
equal or exceed the assessed valuation of the
structure.
(2) Demolition. The owner has established to the
satisfaction to the DHCR after a hearing that he or she
seeks in good faith to recover possession of the
housing accommodations for the purpose of demolishing
them and constructing a new building, provided that
either he or she has obtained approved plans for a new
building or the DHCR has determined that plans have
been submitted to the city agency having jurisdiction
over the demolition and new construction. However, a
hearing shall not be conducted until the owner has
submitted to the DHCR proof of his or financial ability
to complete the undertaking, together with copies of
the plans that have been submitted to such city agency.
No order shall be issued approving the owner's
application until said plans have been approved by such
city agency, and an order approving the owner's
application shall not be granted unless the owner
proves that all necessary funding for the proposed
construction has been secured.
(3) Other grounds. The owner will eliminate inadequate,
unsafe or unsanitary conditions and demolish or
rehabilitate the dwelling unit pursuant to the
provisions of article VIII, VIII-A, XIV, XV or XVIII of
the PHFL, the Housing New York Program Act, or sections
8 and 17 of the U.S. Housing Act of 1937 (National
Housing Act), on the condition that the owner:
(i) proves that it has a commitment for the required
financing;
(ii) proves that any rehabilitation requires the
temporary removal of the tenant; and
(iii) agrees to offer and will offer the tenants the
right of first occupancy following any
rehabilitation at an initial rent as determined
pursuant to the applicable law and subject to
any terms and conditions established pursuant to
applicable law and regulations.
(b) ELECTION NOT TO RENEW. Once an application is filed under
this section, with notification to all affected tenants
pursuant to section 2524.2 of this Part, the owner may
refuse to renew the affected tenant's lease until a
determination of the owner's application is made by the
DHCR. In such event, the owner may not increase the rent
charged in excess of the rent provided in the expiring
lease. If such application is denied, or withdrawn,
prospective renewal leases must be offered to all affected
tenants within such time and at such guidelines rates as
directed in the DHCR order of denial or withdrawal.
(c) Terms and conditions upon which orders authorizing refusal
to offer renewal leases may be based. The DHCR shall require
an owner to pay all reasonable moving expenses and shall
further condition the order upon the payment of a reasonable
stipend and/or the relocation of the tenant by the owner to
a suitable housing accommodation at the same or lower
regulated rent in a closely proximate area. If no such
housing accommodation is available at the same or lower
regulated rent, the owner may be required to pay the
difference in rent between the subject housing accommodation
and the new housing accommodation to which the tenant is
relocated for such period as the DHCR determines, commencing
with the occupancy of the new housing accommodation by the
tenant.
(d) Any order granting an application pursuant to this section
shall not provide for a stay of eviction which exceeds one
year. In addition, where the order of the DHCR is
conditioned upon the owner's compliance with specified terms
and conditions, if such terms and conditions have not been
complied with, the order may be modified or revoked.
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PART 2525 -- PROHIBITIONS
-----------------------------
TABLE OF CONTENTS
Section 2525.1. General prohibitions.
2525.2. Evasion
2525.3. Conditional rental.
2525.4. Security deposits.
2525.5. Harassment.
2525.6. Subletting; assignment.
-----------------------------
Sec. 2525.1. GENERAL PROHIBITIONS.
It shall be unlawful, regardless of any contract, lease or other
obligation heretofore or hereafter entered into, for any person
to demand or receive any rent for any housing accommodation in
excess of the legal regulated rent, or otherwise to do or omit to
do any act, in violation of any regulation, order or requirement
under the RSL or this Code, or to offer, solicit, attempt or
agree to do any of the foregoing. In addition to the definition
contained in section 2520.6(c) of this Title, the term rent, as
herein before defined, shall also include the payment by a tenant
of a fee or rental commission to an owner or to any person or
real estate broker where such person or real estate broker is an
agent or employee of the owner employed by the owner in
connection with the operation or management of the building in
which the housing accommodation is located, or where the owner or
his or her employee refers the tenant to such person or such real
estate broker employed by the owner in connection with the
operation or management of the building, for the purpose of
renting the housing accommodation, or where there is common
ownership, directly or indirectly, or a financial interest
between the owner and such person or real estate broker.
Sec. 2525.2. EVASION.
(a) The legal regulated rents and other requirements provided in
this Code shall not be evaded, either directly or
indirectly, in connection with the renting or leasing or the
transfer of a lease for housing accommodations by requiring
the tenant to pay, or obligate himself or herself for
membership or other fees, or by modification of the
practices relating to payment of commissions or other
charges, or by modification of the services furnished or
required to be furnished with the housing accommodations, or
otherwise.
(b) (1) Upon the receipt of rent in the form of cash or
any instrument other than the personal check of the
tenant, it shall be the duty of the owner to provide
the tenant with a written receipt containing the
following:
(i) the date;
(ii) the amount;
(iii) the identity of the premises and period for
which paid; and
(iv) the signature and title of the person receiving
the rent.
(2) Where a tenant, in writing, requests that an owner
provide a receipt for rent paid by personal check, it
shall be the duty of the owner to provide the tenant
with the receipt described in paragraph (1) of this
subdivision for each such request made in writing. (3)
The receipt provided pursuant to this subdivision shall
state the name and New York City address of the
managing agent or designee thereof, as required by
section 27-2105 of the Administrative Code of the City
of New York. A failure to comply with the provisions of
this subdivision shall constitute an evasionary
practice.
Sec. 2525.3. CONDITIONAL RENTAL.
(a) No owner or other person shall require a tenant or
prospective tenant to purchase or lease, or agree to
purchase or lease, furniture or any other personal property,
including but not limited to shares to an apartment, prior
to the acceptance for filing by the Attorney General of a
plan of cooperative conversion, as a condition of renting
housing accommodations.
(b) No owner or other person shall require a tenant, prospective
tenant or a prospective permanent tenant to represent or
agree as a condition of renting a housing accommodation that
the housing accommodation shall not be used as the tenant's
or prospective tenant's primary residence, or the
prospective permanent tenant's principal residence.
(c) No owner or other person shall require a tenant or
prospective tenant to sign a lease or other rental agreement
in the name of a corporation or for professional or
commercial use as a condition of renting a housing
accommodation when the housing accommodation is to be used
as the primary residence of the prospective tenant for
residential purposes.
(d) No owner or other person shall engage in any practice,
including but not limited to illusory or collusive rental
practices which deprive a tenant in possession of his or her
rights under this Code.
(e) The term "other person" as used in this section shall
include an agent, or any other employee of an owner, or any
other entity, acting with or without the authority of the
owner.
Sec. 2525.4. SECURITY DEPOSITS.
Regardless of any contract, agreement, lease or other obligation
heretofore or hereafter entered into, no owner, in addition to
the authorized collection of rent, shall demand, receive or
retain a security deposit or advance payment for or in connection
with the use or occupancy of a housing accommodation which
exceeds the rent for one month; provided, however, that where a
greater security deposit was paid by the tenant in continuous
occupancy since the date the housing accommodation became subject
to the RSL, such deposit may continue in effect during the term
of such lease and any renewals thereof with the same tenant. Such
security deposit shall be subject to the following conditions:
(a) the security deposit shall be deposited in an interest-
bearing account in a banking organization in New York State;
(b) the person depositing such security money shall be entitled
to receive, as administrative expenses, a sum equivalent to
one percent per annum upon the security money so deposited;
(c) at the tenant's option, the balance of the interest paid by
the banking organization shall be applied for the rental of
the housing accommodation, or held in trust until repaid, or
annually paid to the tenant; and
(d) the owner otherwise complies with the provisions of article
7 of the General Obligations Law.
Sec. 2525.5. HARASSMENT.
It shall be unlawful for any owner or any person acting on his or
her behalf, directly or indirectly, to engage in any course of
conduct (including but not limited to interruption or
discontinuance of required services, or unwarranted or base less
court proceedings) which interferes with, or disturbs, or is
intended to interfere with or disturb, the privacy, comfort,
peace, repose or quiet enjoyment of the tenant in his or her use
or occupancy of the housing accommodation, or is intended to
cause the tenant to vacate such housing accommodation or waive
any right afforded under this Code.
Sec. 2525.6. SUBLETTING; ASSIGNMENT.
(a) Housing accommodations subject to this Code rented by a
tenant pursuant to an existing lease may be sublet in
accordance with the provisions, and subject to the
limitations, of section 226-b of the Real Property Law,
provided that the additional provisions of this section are
complied with and provided further that the tenant can
establish that at all times he or she has maintained the
housing accommodation as his or her primary residence and
intends to occupy it as such at the expiration of the
sublease.
(b) The rental charged to the subtenant by the tenant shall not
exceed the legal regulated rent plus no more than a 10-
percent surcharge payable to the tenant if the housing
accommodation is sublet fully furnished. Where a tenant
violates the provisions of this subdivision, the subtenant
shall be entitled to treble damages.
(c) The tenant may not sublet a housing accommodation for more
than a total of two years, including the term of the
proposed sublease, out of the four-year period preceding the
termination date of the proposed sublease. The term of
proposed sublease may, if lawful under this section, extend
beyond the term of the tenant's lease, and an owner may not
refuse consent to a sublease solely because it extends
beyond such term. A sublease which so extends shall be
subject to the tenant's right to a renewal lease.
(d) The tenant, rather than the subtenant, retains:
(1) the right to a renewal lease, whether or not the term
of the sublease extends beyond the term of the tenant's
lease; and
(2) the rights and status of a tenant in occupancy with
respect to conversion to condominium or cooperative
ownership.
(e) Upon the consent of the owner to a sublet or an assignment
of any lease, the legal regulated rent payable to the owner
effective upon the date of subletting or assignment may be
increased by the vacancy allowance, if any, provided in the
Rent Guidelines Board Order in effect at the time of the
commencement date of the lease, provided the lease is a
renewal lease. Such increase in the case of an assignment
shall remain part of the legal regulated rent for any
subsequent renewal lease; however, in the case of a
subletting, upon termination of the sublease, the legal
regulated rent shall revert to the legal regulated rent
without the sublet vacancy allowance.
(f) An owner may terminate the tenancy of a tenant who sublets
contrary to the terms of this section, or assigns without
written consent of the owner, but no action or proceeding to
terminate tenancy based upon the nonprimary residence of a
tenant may be commenced prior to the expiration date of his
or her lease.
(g) (1) Notwithstanding the provisions of section 226-b of
the Real Property Law, a not-for-profit hospital shall
have the right to sublet any housing accommodation
leased by it to its affiliated personnel without
requiring the owner's consent to any such sublease and
without being bound by the provisions of subdivisions
(a), (c), (e) and (f) of this section. For the purposes
of this section, where a housing accommodation is
rented to a not-for-profit hospital for residential
use, affiliated subtenants authorized to use such
accommodations by such hospital shall be deemed to be
tenants.
(2) Whenever a not-for-profit hospital executes a renewal
lease for a housing accommodation, the legal regulated
rent shall be increased by a sum equal to 15 percent of
the previous lease rental for such housing
accommodation, hereinafter referred to as a vacancy
surcharge, unless the owner shall have received within
the seven-year period prior to the commencement date of
such renewal lease any vacancy increases or vacancy
surcharges allocable to the said housing accommodation.
In the event the owner shall have received any such
vacancy increases or vacancy surcharges during such
seven-year period, the vacancy surcharge shall be
reduced by the amount received by any such vacancy
increase or vacancy surcharges.
(h) For housing accommodations which are first made subject to
this Code solely by reason of article 7-C of the MDL,
nothing herein shall be deemed to prevent or limit the
rights of tenants to sell improvements pursuant to MDL
section 286(6).
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PART 2526 -- ENFORCEMENT
-----------------------------
TABLE OF CONTENTS
Section 2526.1. Overcharge penalties; fines; assessment of
costs; attorney's fees; rent credits.
2526.2. Orders to enforce the RSL and this Code.
2526.3. Injunctions by Supreme Court.
2526.4. Oaths, subpoenas, hearing officers.
2526.5. Confidentiality of information.
2526.6. Inspection and records.
-----------------------------
Sec. 2526.1. OVERCHARGE PENALTIES; FINES; ASSESSMENT OF COSTS;
ATTORNEY'S FEES; RENT CREDITS.
(a) (1) Any owner who is found by the DHCR, after a
reasonable opportunity to be heard, to have collected
any rent or other consideration in excess of the legal
regulated rent shall be ordered to pay to the tenant a
penalty equal to three times the amount of such excess,
except as provided under subdivision (f) of this
section. If the owner establishes by a preponderance of
the evidence that the overcharge was not willful, the
DHCR shall establish the penalty as the amount of the
overcharge plus interest from the date of the first
overcharge on or after April 1, 1984, at the rate of
interest payable on a judgment pursuant to section 5004
of the Civil Practice Law and Rules, and the order
shall direct such a payment to be made to the tenant.
(2) A complaint pursuant to this section must be filed with
the DHCR within four years of the first overcharge
alleged, and no award of the amount of an overcharge
may be based upon an overcharge having occurred more
than four years before the complaint is filed, provided
that:
(i) a penalty of three times the overcharge may not be
based upon an overcharge having occurred more than
two years before the complaint is filed or upon an
overcharge which occurred prior to April 1, 1984;
and
(ii) any complaint based upon overcharges occurring
prior to the date of filing of the initial rent
registration for a housing accommodation pursuant
to Part 2528 of this Title shall be filed within
90 days of the mailing of notice to the tenant of
such registration.
(3) (i) Except as to complaints filed pursuant to
subparagraph (ii) of this paragraph, the legal
regulated rent for purposes of determining an
overcharge shall be deemed to be the rent shown in
the annual registration statement filed four 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.
(ii) As to complaints filed within 90 days of the
initial registration of a housing accommodation,
the legal regulated rent for purposes of
determining an overcharge shall be deemed to be
the rent charged and paid on April 1, 1980, or for
a housing accommodation not required to be
registered by June 30, 1984, four years prior to
the date the housing accommodation was first
required to be registered (or if the housing
accommodation was subject to the RSL and this Code
for less than four years prior to such initial
registration, the initial legal regulated rent)
plus in each case, any lawful increases and
adjustments. Where the rent charged on such dates
cannot be established, such rent shall be
determined by the DHCR in accordance with section
2522.6 of this Title.
(4) Complaints filed prior to April I, 1 984 shall be
determined in accordance with the RSL and Code
provisions in effect on March 31, 1984, except that an
overcharge collected on or after April 1, 1984 may be
subject to treble damages pursuant to this section.
(b) The DHCR shall determine the owner's liability between or
among two or more tenants found to have been overcharged
during their particular occupancy of a housing
accommodation, and at its discretion, may require the owner
to make diligent efforts to locate prior tenants who are not
parties to the proceeding, and to make refunds to such
tenants or pay the amount of such penalty as a fine.
(c) (1) Any affected tenant shall be given notice of and
an opportunity to join in any proceeding commenced by
the DHCR pursuant to this section.
(2) Where a complainant pursuant to this section vacates
the housing accommodation, and the DHCR continues the
proceeding, the DHCR shall give any affected tenant
notice of and an opportunity to join in such
proceeding.
(d) An owner who is found to have overcharged by the DHCR may be
assessed and ordered to pay to the tenant as an additional
penalty the reasonable costs and attorney's fees of the
proceeding, and except where treble damages are awarded,
interest from the date of the overcharge occurring on or
after April 1, 1984, at the rate of interest payable on a
judgment pursuant to section 5004 of the Civil Practice Law
and Rules.
(e) A tenant may recover any overcharge penalty established by
the DHCR by deducting it from the rent due to the present
owner at a rate not in excess of 20 percent of the amount of
the penalty for any one month's rent. If no such rent credit
has been taken, the order of the DHCR awarding penalties may
be entered, filed and enforced by a tenant in the same
manner as a judgment of the Supreme Court, on a form
prescribed by the DHCR, provided that the amount of the
penalty exceeds $1,000 or the tenant is no longer in
possession. Neither of these remedies is available until the
expiration of the period in which the owner may institute a
proceeding pursuant to Part 2530 of this Title.
(f) Responsibility for overcharges.
(1) For overcharges collected prior to April 1, 1984, an
owner will be held responsible only for his or her
portion of the overcharges, in the absence of collusion
or any relationship between such owner and any prior
owners.
(2) For overcharge complaints filed or overcharges
collected on or after April 1, 1984, a current owner
shall be responsible for all overcharge penalties,
including penalties based upon overcharges collected by
any prior owner. However, in the absence of collusion
or any relationship between such owner and any prior
owner, where no records sufficient to establish the
legal regulated rent were provided at a judicial sale,
a current owner who purchases upon such judicial sale
shall be liable only for his or her portion of the
overcharges, and shall not be liable for treble damages
upon such portion resulting from overcharges caused by
any prior owner. Such penalties shall be subject to the
time limitations set forth in paragraph (a)(2) of this
section.
(3) This subdivision shall not be construed to entitle a
tenant to more than one refund for the same overcharge.
(g) The provisions of this section shall not apply to a
proceeding pursuant to section 2522.3 of this Title.
Sec. 2526.2. ORDERS TO ENFORCE THE RSL AND THIS CODE.
(a) Upon notice and reasonable opportunity to be heard, the DHCR
may issue orders it deems appropriate to enforce the RSL and
this Code.
(b) In addition to any other penalties provided for in this
Code, if the DHCR finds that any owner has knowingly
violated any provision of the RSL or this Code, it may
assess a penalty of up to $250 for each such violation
against the owner.
(c) If the owner is found by the DHCR:
(1) to have violated an order of the DHCR, the DHCR may
impose, by administrative order after holding a
hearing, a penalty in the amount of $250 for the first
such offense and $1,000 for each subsequent offense; or
(2) to have harassed a tenant to obtain a vacancy of a
housing accommodation, the DHCR may impose, by
administrative order after holding a hearing, a penalty
in the amount of up to $1,000 for a first such offense
and up to $2,500 for each subsequent offense or for a
violation consisting of conduct directed at the tenants
of more than one housing accommodation. Such order
shall be deemed a final determination for the purposes
of judicial review pursuant to Part 2530 of this Title.
Such penalty may, upon the expiration of the period for
seeking review pursuant to article 78 of the Civil
Practice Law and Rules, be docketed and enforced in the
manner of a judgment of the Supreme Court; or
(3) not have utilized a housing accommodation for the
purpose intended under section 2524.4(b)(2) of this
Title, the DHCR shall impose, by administrative order
after hearing, a penalty in the amount of up to $1,000
for each such offense.
(d) Any owner who has been found by the DHCR to have refused to
comply with an order of the DHCR or to have harassed a
tenant shall, in addition to being subject to any other
penalties or remedies permitted by law or by this Code, be
barred thereafter from applying for or collecting any
further rent increase for the affected housing
accommodation. The finding by the DHCR that the owner has
complied with such order or that the conduct which resulted
in the finding of harassment has ceased, shall result in the
prospective elimination of the sanctions provided for in
this section.
(e) The failure of any owner to pay any fine, penalty or
assessment authorized by the RSL or this Code shall, until
such fine, penalty or assessment is paid, bar an owner from
applying for or collecting any further rent increases for
such housing accommodation. The late payment of any fine,
penalty or assessment shall result in the prospective
elimination of such sanction.
Sec. 2526.3. INJUNCTIONS BY SUPREME COURT.
The DHCR may commence proceedings in the Supreme Court to enjoin
violations of the RSL, this Code, or orders issued pursuant
thereto. In any such proceedings, the DHCR shall not be required
to post bond.
Sec. 2526.4. OATHS, SUBPOENAS, HEARING OFFICERS.
The DHCR may administer oaths, issue subpoenas, conduct
investigations, make inspections and designate officers to hear
and report.
Sec. 2526.5. CONFIDENTIALITY OF INFORMATION.
The DHCR shall safeguard the confidentiality of information
furnished to it at the request of the person furnishing such
information, unless such information must be made public or
available to a governmental agency in the interest of
establishing a record for the future guidance of persons subject
to the RSL.
Sec. 2526.6. INSPECTION AND RECORDS.
(a) An owner shall, as the DHCR may from time to time require,
furnish information under oath or affirmation or otherwise,
permit inspection and copying of records and other documents
and permit inspection of any housing accommodations.
(b) An owner shall, as the DHCR may from time to time require,
make and keep records and other documents and make reports.
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PART 2527 -- PROCEEDINGS BEFORE THE DHCR
-----------------------------
TABLE OF CONTENTS
Section 2527.1. Proceedings instituted by owner or tenant.
2527.2. Proceedings instituted by the DHCR.
2527.3. Notice to the parties affected.
2527.4. Answer.
2527.5. Preliminary action by the DHCR
2527.6. Determination.
2527.7. Pending proceedings.
2527.8. Modification or revocation of orders.
2527.9. When a notice or paper shall be deemed
served.
2527.10. Amendments to complaint or application.
2527.11. Advisory opinions and Operational Bulletins.
-----------------------------
Sec. 2527.1. PROCEEDINGS INSTITUTED BY OWNER OR TENANT.
A proceeding is instituted by an owner or a tenant with the
filing of an application or complaint for adjustment of rent, or
for other relief provided by the RSL or this Code. Such
application or complaint shall be verified or affirmed by the
applicant or complainant and filed upon the appropriate form
prescribed by the DHCR.
Sec. 2527.2. PROCEEDINGS INSTITUTED BY THE DHCR.
The DHCR may institute a proceeding on its own initiative
whenever the DHCR deems it necessary or appropriate pursuant to
the RSL or this Code.
Sec. 2527.3. NOTICE TO THE PARTIES AFFECTED.
(a) Where the application or complaint or any answer or reply
thereto is made by an owner or tenant, the DHCR shall serve
all parties adversely affected thereby with a copy of such
application, complaint, answer or reply.
(b) Where the proceeding is instituted by the DHCR, it shall
forward to all parties affected thereby a notice setting
forth the proposed action.
(c) Except where an attorney or other authorized representative
appears for the owner, any notice, order or other process or
paper, directed to the person named in the last filed
registration statement as the owner at the address given
therein, or where a notice of change in identity has been
filed, to the person named as owner and at the address given
in the most recent such notice, shall constitute notice to
the person who is then the owner. In addition thereto, the
DHCR shall also serve all parties at the address specified
on the application or complaint.
Sec. 2527.4. ANSWER.
A person who has been served with a notice of a proceeding
accompanied by an application or complaint shall have no less
than 20 days from the date of mailing in which to answer or
reply, except that in exceptional circumstances, the DHCR may
require a shorter period. Every answer or reply shall be verified
or affirmed, and an original and one copy shall be filed with the
DHCR.
Sec. 2527.5. PRELIMINARY ACTION BY THE DHCR.
At any stage of a proceeding the DHCR may:
(a) reject the application or complaint if it is insufficient or
defective;
(b) make investigations of the facts, conduct inspections, hold
conferences, and require the filing of reports, evidence,
affidavits, or other material relevant to the proceeding;
(c) forward to or make available for inspection by either party
any relevant evidence, and afford an opportunity to file a
rebuttal thereto;
(d) for good cause shown, except where prohibited by the RSL,
accept for filing any papers, even though not filed within
the time required by this Code;
(e) require any person to appear or produce documents or both
pursuant to subpoena issued by the DHCR;
(f) consolidate two or more applications, complaints, or
proceedings which have at least one ground in common;
(g) forward to any party a notice of action proposed to be
taken;
(h) grant or order a hearing;
(i) on its own initiative or upon application of any affected
owner or tenant, consolidate proceedings applicable to the
same building or group of buildings or development,
notwithstanding that the housing accommodations affected may
be subject to different regulations; in any such
consolidated proceedings the determination with respect to
any housing accommodation shall be made in accordance with
the appropriate law or regulation applicable to such
accommodations. Proceedings once consolidated may be severed
for good cause shown;
(j) On its own initiative, or at the request of a court of
competent jurisdiction, or for good cause shown upon
application of any affected party, expedite the processing
of a matter; or
(k) sever issues within a proceeding for purposes of issuing an
Order and Determination with respect to certain issues while
reserving other issues for subsequent determination.
Sec. 2527.6. DETERMINATION.
The DHCR, on such terms and conditions as it shall determine,
may:
(a) dismiss the application or complaint if it fails to
substantially comply with the provisions of the RSL or this
Code;
(b) grant or deny the application or complaint in whole or in
part;
(c) issue an appropriate order in a proceeding instituted on
DHCR's own initiative;
(d) issue conditional or provisional orders as may be deemed
appropriate under the circumstances. A copy of any order
issued shall be forwarded to all parties to the proceeding
by the DHCR as the DHCR directs.
Notwithstanding any other provision of this Code, no order shall
be deemed final and binding for purposes of judicial review
except in accordance with Part 2529 of this Title.
Sec. 2527.7. PENDING PROCEEDINGS.
Except as otherwise provided herein, unless undue hardship or
prejudice results therefrom, this Code shall apply to any
proceeding pending before the DHCR, which proceeding commenced on
or after April 1, 1984, or where a provision of this Code is
amended, or an applicable statute is enacted or amended during
the tendency of a proceeding, the determination shall be made in
accordance with the changed provision.
Sec. 2527.8. MODIFICATION OR REVOCATION OF ORDERS.
The DHCR, on application of either party, or on its own
initiative, and upon notice to all parties affected, may issue a
superseding order modifying or revoking any order issued by it
under this or any previous Code where the DHCR finds that such
order was the result of illegality, irregularity in vital matters
or fraud
Sec. 2527.9. WHEN A NOTICE OR PAPER SHALL BE DEEMED SERVED.
(a) Except as otherwise provided by section 2529.2 of this
Title, notices, orders, answers and other papers may be
served personally or by mail. When service, other than by
the DHCR, is made personally or by mail, an affidavit by the
person making the service or mailing shall constitute
sufficient proof of service. When service is by registered
or certified mail, the stamped post-office receipt shall
constitute sufficient proof of service. Once sufficient
proof of service has been submitted to the DHCR, the burden
of proving nonreceipt shall be on the party denying receipt.
(b) Where a notice of appearance has been filed by an attorney,
in accordance with section 2523.6 of this Title, service on
the attorney shall be deemed proper service as if made on
the party or parties represented.
Sec. 2527.10. AMENDMENTS TO COMPLAINT OR APPLICATION.
(a) Right to amend. The DHCR may authorize an amendment to a
complaint or application at any time on good cause shown,
except that an applicant or complainant shall have the right
to amend the application or complaint in writing prior to
the time within which an answer may be filed.
(b) Service. Any amendment to an application or complaint shall
be served upon all affected parties in the same manner as
the original application or complaint.
(c) Amended answer or reply. When an application or complaint is
amended after an answer has been filed, all affected parties
may file an amended answer or reply within the time provided
for the answer or reply.
Sec. 2527.11. ADVISORY OPINIONS AND OPERATIONAL BULLETINS.
(a) The DHCR may render advisory opinions as to the DHCR's
interpretation of the RSL, this Code or procedures, on the
DHCR's own initiative or at the request of a party.
(b) In addition to the advisory opinion issued under subdivision
(a) of this section, the DHCR may take such other required
and appropriate action as it deems necessary for the timely
implementation of the RSL and this Code, and for the
preservation of regulated rental housing in accordance with
section 2520.3 of this Title. Such other action may include
the issuance and updating of schedules, forms, instructions,
and the official interpretative opinions and explanatory
statements of general policy of the commissioner, including
Operational Bulletins, with respect to the RSL and this
Code.
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PART 2528 -- REGISTRATION OF HOUSING ACCOMMODATIONS
-----------------------------
TABLE OF CONTENTS
Section 2528.1. Initial registration.
2528.2. Initial registration requirements.
2528.3. Annual registration requirements.
2528.4. Penalty for failure to register.
2528.5. Confidentiality.
-----------------------------
Sec. 2528.1. INITIAL REGISTRATION.
Each housing accommodation subject to the RSL on April l, 1984,
or thereafter, and not exempted from registration by the DHCR,
shall be registered by the owner thereof with the DHCR within 90
days after such date.
Sec. 2528.2. INITIAL REGISTRATION REQUIREMENTS.
(a) The initial registration shall be made on forms prescribed
or approved by the DHCR, and shall include:
(1) the address of the building or group of buildings or
development in which such housing accommodation is
located and the name of the tenant residing therein;
(2) the number of housing accommodations in the building or
group of buildings or development;
(3) the number of housing accommodations in the building or
group of buildings or development subject to the RSL
and the number of such housing accommodations subject
to the City Rent Law;
(4) the rent charged on April l, 1984, or the rent charged
on the date the housing accommodation became subject to
the requirements of this Part, and any changes in such
rent between such date and the date of registration;
(5) the number of rooms in such housing accommodation; and
(6) all services provided for in the last lease or rental
agreement, provided or required to be provided on the
applicable base date, or thereafter.
(b) Registration of housing accommodations subject to the City
Rent Law immediately prior to the date of filing the initial
registration statement shall include, in addition to the
items set forth in subdivision (a) of this section, where
existing, the maximum rent immediately prior to the date
that such housing accommodations became subject to the RSL
or the requirements of this Part.
(c) Copies of the registration shall be filed in such manner and
in such place or places as the DHCR may designate. In
addition, a copy of the Building Services Registration form
shall be posted in a public area of the building as
prescribed in the DHCR's Instructions for Rent Registration.
(d) One copy of the Initial Apartment Registration form which
pertains to the tenant's housing accommodation shall be sent
by the owner to the tenant by certified mail. Service of
such form pursuant to this subdivision together with the
Notice of Initial Legal Registered Rent shall constitute
proper service of such Notice of Initial Legal Registered
Rent under section 2523.1 of this Title. Provided, however,
that for registrations served prior to the effective date of
this subdivision, any method of service permitted by the
DHCR at the time of service shall be deemed to have the same
effect as service by certified mailing.
Sec. 2528.3. ANNUAL REGISTRATION REQUIREMENTS.
In such manner and at such time as shall be determined by the
DHCR pursuant to section 2527.11 of this Title:
(a) An annual registration shall be filed containing the current
rent for each housing accommodation not otherwise exempt, a
certification of services, and such other information as may
be required by the DHCR pursuant to the RSL.
(b) Upon filing an annual registration, the owner shall provide
each tenant then in occupancy with a copy of that portion of
such annual registration applicable to the tenant's housing
accommodation.
Sec. 2528.4. PENALTY FOR FAILURE TO REGISTER.
The failure to properly and timely comply with the initial or
annual rent registration as required by this Part shall, until
such time as such registration is completed, bar an owner from
applying for or collecting any rent in excess of:
(a) if no initial registration has taken place, the legal
regulated rent in effect on the date that the housing
accommodation became subject to the registration
requirements of this Part; 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 section 2528.3 of this Part.
The late filing of a registration shall result in the
elimination, prospectively of such penalty.
Sec. 2528.5. CONFIDENTIALITY.
Registration information filed with the DHCR pursuant to this
Part shall not be subject to the Freedom of Information Law,
provided that such information relative to a tenant, owner,
lessor or subtenant shall be made available to such party or his
or her authorized representative.
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PART 2529 -- ADMINISTRATIVE REVIEW
-----------------------------
TABLE OF CONTENTS
Section 2529.1. Persons who may file.
2529.2. Time for filing a PAR.
2529.3. Form and content of a PAR.
2529.4. Service and filing of a PAR.
2529.5. Time of filing an answer to a PAR.
2529.6. Scope of review.
2529.7. Action by commissioner.
2529.8. Final determination by the commissioner.
2529.9. Modification or revocation of orders by the
commissioner.
2529.10. Pending PAR proceedings.
2529.11. Time within which the commissioner shall take
final action. .
2529.12. Stays
-----------------------------
Sec. 2529.1. PERSONS WHO MAY FILE.
(a) A petition for administrative review (PAR) of an order
issued by a rent administrator may be filed by a party to
the proceeding, or other necessary party, in the manner
provided in this Part, where such petition alleges the
errors upon which such order is based.
(b) (1) A joint PAR, verified or affirmed by each person
joining therein, may be filed by two or more owners or
tenants, where at least one ground is common to all
persons so filing. The commissioner, in his discretion,
may treat such PAR as joint or several.
(2) A PAR may also be filed by a representative of a party,
including an attorney at law, provided that said
representative duly verifies or affirms the PAR and
provided that such representative includes, at the time
of the filing of the PAR, written evidence of
authorization to act in such representative capacity
for the purpose of filing the PAR.
(c) The commissioner may, in his discretion, consolidate two or
more PAR's which have at least one ground in common
Sec. 2529.2. TIME FOR FILING A PAR.
A PAR against an order of a rent administrator must be filed in
person or by mail with the DHCR within 35 days after the date
such order is issued. A PAR served by mail must be postmarked not
more than 35 days after the date of such order, to be deemed
timely filed. If the prepaid postage on the envelope in which the
PAR is mailed is by private postage meter, and the envelope does
not have an official U.S. Postal Service postmark, then the PAR
will not be considered timely filed unless received within the
aforementioned 35 days or the petitioner submits other adequate
proof of mailing within said 35 days, such as an official Postal
Service receipt or certificate of mailing.
Sec. 2529.3. FORM AND CONTENT OF A PAR.
A PAR may be filed only on a form prescribed by the DHCR, which
shall be verified or affirmed by the party filing same, or his or
her duly designated representative, and which shall have attached
thereto a complete copy of the order to be reviewed.
Sec. 2529.4. SERVICE AND FILING OF A PAR.
(a) Each PAR shall be filed in an original and one copy at the
Division of Housing and Community Renewal, Office of Rent
Administration, 92-31 Union Hall Street, Jamaica, NY 11433,
unless otherwise provided on the form prescribed by the
commissioner for such PAR.
(b) A copy of the PAR shall be served by the DHCR upon the
adverse party.
(c) A PAR will not be accepted for filing unless accompanied by
a complete copy of the order to be reviewed.
Sec. 2529.5. TIME OF FILING AN ANSWER TO A PAR.
Any person served with a PAR as provided in section 2529.4(b) of
this Part may, within 20 days from the date of mailing of a copy
of the PAR by the DHCR pursuant to section 2529.4(b), file a
verified or affirmed answer thereto, by filing the same with the
DHCR. A copy of such answer to the PAR shall be served by the
DHCR upon the adverse party. The commissioner may, in his
discretion, and for good cause shown, extend the time within
which to answer.
Sec. 2529.6. SCOPE OF REVIEW.
Review pursuant to this Part shall be limited to facts or
evidence before a rent administrator as raised in the petition.
Where the petitioner submits with the petition certain facts or
evidence which he or she establishes could not reasonably have
been offered or included in the proceeding prior to the issuance
of the order being appealed, the proceeding may be remanded for
redetermination to the rent administrator to consider such facts
tar evidence.
Sec. 2529.7. ACTION BY COMMISSIONER.
Within a reasonable time after the filing of the PAR and the
answers, if any, the commissioner may:
(a) Reject a par which is timely filed if it is insufficient or
defective, but may provide a specified period of time within
which to perfect the PAR.
(b) Make such investigation of the facts, hold such conferences,
and require the filing of such reports, evidence,
affidavits, or other material relevant to the proceeding as
he may deem necessary or appropriate.
(c) Forward to, or make available for inspection by either
party, any relevant evidence, and afford an opportunity to
file rebuttal thereto.
(d) For good cause shown, accept for filing any papers, other
than a PAR, even though not filed within the time required
by this Part.
(e) Require any person to appear or produce documents, or both,
pursuant to a subpoena issued by the commissioner.
(f) Grant or order a hearing.
Sec. 2529.8. FINAL DETERMINATION BY THE COMMISSIONER.
The commissioner, on such terms and conditions as he determines,
shall:
(a) dismiss the PAR if it fails substantially to comply with the
provisions of the RSL or this Code; or
(b) grant or deny the PAR, in whole or in part, or remand the
proceeding to the rent administrator for further action;
The commissioner shall inform all parties to the PAR of the
grounds upon which such decision is based.
Sec. 2529.9. MODIFICATION OR REVOCATION OF ORDERS BY THE
COMMISSIONER.
The commissioner, on application of either party or on his own
initiative, and upon notice to all parties affected, may, prior
to the date that a proceeding for judicial review has been
commenced in the Supreme Court pursuant to article 78 of the
Civil Practice Law and Rules, issue a superseding order modifying
or revoking any order issued by him under this or any previous
Code where he finds that such order was the result of illegality,
irregularity in vital matters or fraud
Sec. 2529.10. PENDING PAR PROCEEDINGS.
Unless undue hardship or prejudice would result therefrom, this
Code shall apply to any PAR proceeding pending before the DHCR
commenced on or after April l, 1984; or where a provision of this
Code is amended, or an applicable statute is enacted or amended
during the tendency of a PAR, the determination shall be in
accordance with the changed provision.
Sec. 2529.11. TIME WITHIN WHICH THE COMMISSIONER SHALL TAKE
FINAL ACTION.
If the commissioner does not act finally within a period of 90
days after a PAR is filed, or within such extended period as
provided for herein, the PAR may be "deemed denied" by the
petitioner for the purpose of commencing a proceeding pursuant to
section 2530.1 of this Title. The commissioner may, however,
grant one such extension, not to exceed 30 days, with the consent
of the party filing the PAR; any further extension may only be
granted with the consent of all parties to the PAR. Unless a
proceeding for judicial review pursuant to article 78 of the
Civil Practice Law and Rules has been commenced, the commissioner
shall determine a PAR notwithstanding that such 90-day or
extended period has elapsed.
Sec. 2529.12. STAYS.
The filing of a PAR against an order, other than an order
adjusting, fixing or establishing the legal regulated rent, shall
stay such order until the final determination of the PAR by the
commissioner. Notwithstanding the above, that portion of an order
fixing a penalty pursuant to section 2526.1(a) of this Title,
that portion of an order resulting in a retroactive rent
abatement pursuant to section 2523.4 of this Title, that portion
of an order resulting in a retroactive rent decrease pursuant to
section 2522.3 of this Title, and that portion of an order
resulting in a retroactive rent increase pursuant to section
2522.4(a)(2), (3), (b) and (c) of this Title, shall also be
stayed by the timely filing of a PAR against such orders until 60
days have elapsed after the determination of the PAR by the
commissioner. However, nothing herein contained shall limit the
commissioner from granting or vacating a stay under appropriate
circumstances, on such terms and conditions as the commissioner
may deem appropriate.
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PART 2530 -- JUDICIAL REVIEW
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TABLE OF CONTENTS
Section 2530.1. Commencement of proceeding.
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Sec. 2530.1. COMMENCEMENT OF PROCEEDING.
A proceeding for judicial review pursuant to article 78 of the
Civil Practice Law and Rules may be instituted only to review a
final order of the DHCR pursuant to section 2526.2(c)(2) of this
Title; or to review a final order of the commissioner pursuant to
section 2529.8 of this Title; or after the expiration of the 90-
day or extended period within which the commissioner may
determine a PAR pursuant to section 2529.11 of this Title, and
which, therefore, may be "deemed denied" by the petitioner. The
petition for judicial review shall be brought in the Supreme
Court in the county in which the subject housing accommodation is
located and shall be served upon the DHCR and the Attorney
General. A proceeding for judicial review of an order issued
pursuant to section 2526.2(c)(2) or section 2529.8 of this Title
shall be brought within 60 days after the issuance of such order.
A party aggrieved by a PAR order issued after the 90-day or
extended period of time within which the petitioner could deem
his or her petition "denied" pursuant to section 2529.11 of this
Title, shall have 60 days from the date of such order to commence
a proceeding for judicial review, notwithstanding that 60 days
have elapsed after such 90-day or extended 'deemed denial' period
has expired. Service of the petition upon the DHCR shall be made
by personal delivery of a copy thereof to Counsel's Office at the
DHCR's principal office, One Fordham Plaza, Bronx, NY 10458, or
such other address as may be designated by the commissioner, and
to an Assistant Attorney General at an office of the New York
State Attorney General in the City of New York.
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