The New York City RENT STABILIZATION LAW (RSL) is the fundamental
statute establishing Rent Stabilization regulation in New York
City, and through the Rent Stabilization Code, is administered by
the New York State Division of Housing and Community Renewal
(DHCR).
Established in 1969, the RSL is a modification and successor
regulatory scheme to Rent Control. As Rent Control apartments
become vacant, they normally become subject to Rent
Stabilization.
Also see: Rent Stabilization Code, 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
of DHCR policy. The reader is advised to obtain true copies of
these documents from DHCR.
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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NOTE: THIS DOCUMENT DOES NOT INCLUDE AMENDMENTS TO THE
RENT STABILIZATION LAW FROM 1993. These changes, among others,
created the "High Rent/High Income" method of deregulation,
formalized the 1/40 rent increase for individual apartment
improvements and dismantled the rent registration system.
The amendments will be archived here at a later time.
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NEW YORK CITY
RENT STABILIZATION
[N.Y.C. Admin. Code Sections 26-501 -- 26-520]
RENT STABILIZATION LAW OF
NINETEEN HUNDRED SIXTY-NINE
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TABLE OF CONTENTS
Section 26-501. Findings and declaration of emergency.
26-502. Additional findings and declaration of
emergency.
26-503. Short title.
26-504. Application.
26-505. Application to multiple family complex.
26-506. Application to hotels.
26-507. Application to certain multiple dwellings
purchased from the city.
26-509. Application to department of housing
preservation and development for rent
increase exemptions and equivalent tax
abatement for rent regulated property
occupied by certain senior citizens.
26-510. Rent guidelines board.
26-511. Real estate industry stabilization
association.
26-512. Stabilization provisions.
26-513. Application for adjustment of initial rent.
26-514. Maintenance of services.
26-515. Recovery of possession.
26-516. Enforcement and procedures.
26-517. Rent registration.
26-517.1. Fees.
26-518. Hotel industry stabilization association.
26-519. Suspension of registration.
26-520. Expiration date.
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Sec. 26-501. FINDINGS AND DECLARATION OF EMERGENCY.
The council hereby finds that a serious public emergency
continues to exist in the housing of a considerable number of
persons within the city of New York and will continue to exist
after April first, nineteen hundred seventy-four, that such
emergency necessitated the intervention of federal, state and
local government in order to prevent speculative, unwarranted and
abnormal increases in rents; that there continues to exist an
acute shortage of dwellings which creates a special hardship to
persons and families occupying rental housing; that the
legislation enacted in nineteen hundred seventy-one by the state
of New York removing controls on housing accommodations as they
become vacant, has resulted in sharp increases in rent levels in
many instances; that the existing and proposed cuts in federal
assistance to housing programs threaten a virtual end to the
creation of new housing, thus prolonging the present emergency;
that unless residential rents and evictions continue to be
regulated and controlled disruptive practices and abnormal
conditions will produce serious threats to the public health,
safety and general welfare; that to prevent such perils to health
safety and welfare, preventive action by the council continues to
be imperative that such action is necessary in order to prevent
exactions 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; that the transition from
regulation to a normal market of free bargaining between landlord
and tenant, while still the objective of state and city policy,
must be administered with due regard for such emergency; and that
the policy herein expressed is now administered locally within
the city of New York by an agency of the city itself, pursuant to
the authority conferred by chapter twenty-one of the laws of
nineteen hundred sixty-two.
The council further finds that, prior to the adoption of local
laws sixteen and fifty-one of nineteen hundred sixty-nine, many
owners of housing accommodations in multiple dwellings, not
subject to the provisions of the city rent and rehabilitation law
enacted pursuant to said enabling authority either because they
were constructed after nineteen hundred forty-seven or because
they were decontrolled due to monthly rental of two hundred fifty
dollars or more or for other reasons, were demanding exorbitant
and unconscionable rent increases as a result of the aforesaid
emergency, which led to a continuing restriction of available
housing as evidenced by the nineteen hundred sixty-eight vacancy
survey by the united states bureau of the census; that prior to
the enactment of said local laws, such increases were being
exacted under stress of prevailing conditions of inflation and of
an acute housing shortage resulting from a sharp decline in
private residential construction brought about by a combination
of local and national factors; that such increases and demands
were causing severe hardship to tenants of such accommodations
and were uprooting long-time city residents from their
communities; that recent studies establish that the acute housing
shortage continues to exist; that there has been a further
decline in private residential construction due to existing and
proposed cuts in federal assistance to housing programs, that
unless such accommodations are subjected to reasonable rent and
eviction limitations, disruptive practices and abnormal
conditions will produce serious threats to the public health,
safety and general welfare; and that such conditions constitute a
grave emergency.
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Sec. 26-502. ADDITIONAL FINDINGS AND DECLARATION OF EMERGENCY.
The council hereby finds that a serious public emergency
continues to exist in the housing of a considerable number of
persons within the city of New York and will continue to exist
after April first, nineteen hundred eighty-eight and hereby
reaffirms and repromulgates the findings and declaration set
forth in section 26-501 of this chapter.
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Sec. 26-503. SHORT TITLE.
This law may be cited as the rent stabilization law of nineteen
hundred sixty-nine.
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Sec. 26-504. APPLICATION.
This law shall apply to:
a. Class A multiple dwellings not owned as a cooperative or as
a condominium, except as provided in section three hundred
fifty-two-eeee of the general business law containing six or
more dwelling units which:
(1) were completed after February first, nineteen hundred
forty-seven, except dwelling units (a) owned or leased
by, or financed by loans from, a public agency or
public benefit corporation, (b) subject to rent
regulation under the private housing finance law or any
other state law, (c) aided by government insurance
under any provision of the national housing act, to the
extent this chapter or any regulation or order issued
thereunder is inconsistent therewith, or (d) located in
a building for which a certificate of occupancy is
obtained after March tenth, nineteen hundred sixty-
nine; or (e) any class A multiple dwelling which on
June first, nineteen hundred sixty-eight was and still
is commonly regarded as a hotel, transient hotel or
residential hotel, and which customarily provides hotel
service such as maid service, furnishing and laundering
of linen, telephone and bell boy service, secretarial
or desk service and use and upkeep of furniture and
fixtures, or (f) not occupied by the tenant, not
including subtenants or occupants, as his 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 a housing accommodation
is not occupied by the tenant as his or her primary
residence unless the owner or lessor shall have given
thirty days notice to the tenant of his or her
intention to commence such action or proceeding on such
grounds. For the purposes of this subparagraph 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, or (g) became vacant on
or after June thirtieth, nineteen hundred seventy-one,
or become vacant, provided however that this exemption
shall not apply or become effective with respect to
housing accommodations which the commissioner
determines or finds became vacant because the landlord
or any person acting on his or her behalf, with intent
to cause the tenant to vacate, engaged in any course of
conduct (including but not limited to, interruption or
discontinuance of essential services) which interfered
with or disturbed or was intended to interfere with or
disturb the comfort repose, peace or quiet of the
tenant in his or her use or occupancy of the housing
accommodations and provided further that any housing
accommodations exempted by this paragraph shall be
subject to this law to the extent provided in
subdivision b of this section; or
(2) were decontrolled by the city rent agency pursuant to
section 26-414 of this title; or (3) are exempt from
control by virtue of item one, two, six or seven of
subparagraph (i) of paragraph two of subdivision e of
section 26-403 of this title; and
b. Other housing accommodations in class A or class B multiple
dwellings made subject to this law pursuant to the emergency
tenant protection act of nineteen seventy-four.
c. Dwelling units in a building or structure receiving the
benefits of section 11-243 or section 11-244 of the code or
article eighteen of the private housing finance law, not
owned as a cooperative or as a condominium, except as
provided in section three hundred fifty-two-eeee of the
general business law and not subject t chapter three of this
title. Upon the expiration or termination for any reason of
the benefits of section 11-243 or section 11-244 of the code
or article eighteen of the private housing finance law any
such dwelling unit shall be subject to this chapter until
the occurrence of the first vacancy of such unit after such
benefits are no longer being received or if each lease and
renewal thereof for such unit for the tenant in residence at
the time of the expiration of the tax benefit period has
included a notice in at least twelve point type informing
such tenant that the unit shall become subject to
deregulation upon the expiration of such tax benefit period
and states the approximate date on which such tax benefit
period is scheduled to expire, such dwelling unit shall be
deregulated as of the end of the tax benefit period;
provided, however, that if such dwelling unit would have
been subject to this chapter or the emergency tenant
protection act of nineteen seventy-four in the absence of
this subdivision such dwelling unit shall, upon the
expiration of such benefits, continue to be subject to this
chapter or the emergency tenant protection act of nineteen
seventy-four to the same extent and in the same manner as if
this subdivision had never applied thereto.
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Sec. 26-505. APPLICATION TO MULTIPLE FAMILY COMPLEX.
For purposes of this chapter a class A multiple dwelling shall be
deemed to include a multiple family garden-type maisonette
dwelling complex containing six or more dwelling units having
common facilities such as sewer line, water main, and heating
plant, and operated as a unit under a single ownership on May
sixth, nineteen hundred sixty-nine, notwithstanding that
certificates of occupancy were issued for portions thereof as one-
or two-family dwellings.
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Sec. 26-506. APPLICATION TO HOTELS.
a. Notwithstanding the provisions of section 26-504 of this
chapter to the contrary, and irrespective of any decontrol
pursuant to subparagraph (c) of paragraph two of subdivision
e of section 26-403 of the city rent and rehabilitation law
this law shall apply to dwelling units in all hotels except
hotels erected after July first nineteen hundred sixty-nine,
whether classified as a class A or a class B multiple
dwelling, containing six or more dwelling units, provided
that the rent charged for the individual dwelling units on
May thirty-first, nineteen hundred sixty-eight was not more
than three hundred fifty dollars per month or eighty-eight
dollars per week; and further provided that, notwithstanding
the foregoing, this law shall apply to dwelling units in any
hotel, whether classified as a class A or a class B multiple
dwelling, eligible for benefits pursuant to the provisions
of section 11-244 of the code.
b. Upon application by a tenant or owner, the division of
housing and community renewal, shall determine if such
building is a hotel covered by this law, based upon the
services provided and other relevant factors. If it is
determined that such building is not a hotel, it shall
thereafter be subject to this law pursuant to subdivision b
of section 26-504 of this chapter.
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Sec. 26-507. APPLICATION TO CERTAIN MULTIPLE DWELLINGS
PURCHASED FROM THE CITY.
a. Notwithstanding the provisions of any local law or
regulation promulgated pursuant to the rent stabilization
law of nineteen hundred sixty-nine or the emergency tenant
protection act of nineteen seventy-four, upon the sale in
any manner authorized by law of a multiple dwelling which
was previously subject to the provisions of any such laws or
acts which was acquired by the city in a tax foreclosure
proceeding or pursuant to article nineteen-A of the real
property actions and proceedings law, all dwelling units
within the multiple dwelling shall be subject to the rent
stabilization law of nineteen hundred sixty-nine, as
amended, at the last rent charged by the city, or on behalf
of the city, for such dwelling unit.
b. If a unit which was subject to this chapter at the time the
city so acquired title is occupied by a tenant who was in
occupancy at the time of acquisition and remains in
occupancy at the time of sale, such tenant shall be offered
a one or two year lease at the rent provided in this section
as soon as practical at the sale of the multiple dwelling.
c. This section shall not apply to redemptions from city
ownership pursuant to chapter four of title eleven of the
code.
[Section 26-508 has not been enacted.]
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Sec. 26-509. APPLICATION TO DEPARTMENT OF HOUSING PRESERVATION
AND DEVELOPMENT FOR RENT INCREASE EXEMPTIONS AND
EQUIVALENT TAX ABATEMENT FOR RENT REGULATED
PROPERTY OCCUPIED BY CERTAIN SENIOR CITIZENS.
a. Commencement of department of housing preservation and
development
(1) Notwithstanding any provisions of this chapter to the
contrary, on and after October first, nineteen hundred
eighty, the department of housing preservation and
development shall grant rent increase exemption orders
or tax abatement certificates pursuant to this section
and applications for such orders and certificates and
renewal applications shall be made to the department of
housing
(2) the department of housing preservation and development
shall have the power, in relation to any application
for a rent increase exemption order or tax abatement
certificate, to determine the lawful stabilization
rent, but it shall not receive applications for
adjustment of the initial legal regulated rent pursuant
(3) The department of finance, and the department of
housing preservation and development may promulgate
such rules and regulations as may be necessary to
effectively carry out the provisions of this section.
b. Rent increase exemptions for certain senior citizens
(1) No increase in the legal regulated rent shall be
collectible from a tenant to whom there has been issued
a currently valid rent exemption order pursuant to this
subdivision, except as provided in such order, if such
increase is a lawful increase in the monthly legal
regulated rent over the rent legally payable on the
eligibility date which is provided under a two year
lease, or under such other term as regards dwelling
units subject to the hotel stabilization provisions of
this chapter, for an increase in rent:
(i) pursuant to an order of the New York city rent
guidelines board, or
(ii) based upon an owner hardship rent increase order
issued by the state division of housing and
community renewal.
(2) A tenant is eligible for a rent exemption order
pursuant to this section if:
(i) the head of the household residing in the
housing accommodation is sixty-two years of age
or older and is entitled to the possession or to
the use or occupancy of a dwelling unit.
Nothing herein contained shall render ineligible
for benefits persons receiving supplemental
security income or additional statement
payments, or both, under a program administered
by the United States department of health and
human services or by such department and the New
York state department of social
(ii) the aggregate disposable income (as defined by
regulation of the department of housing
preservation and development) of all members of
the household residing in the housing
accommodation does not exceed fifteen thousand
dollars per year, after deduction of federal,
state and city income and social security taxes.
For purposes of this subdivision, "aggregate
disposable income" shall not include increases
in benefits accorded pursuant to the social
security act which take effect after the
eligibility date of a head of the household
receiving benefits under this section whether
received by the head of the household or any
other member of the household.
(iii) (a) in the case of a head of the household
who does not receive a monthly allowance for
shelter pursuant to the social services law,
the maximum rent for the housing
accommodation exceeds one-third of the
aggregate disposable income or subject to the
limitations contained within item (c) of
subparagraph (i) of paragraph three of this
subdivision, if any expected lawful increase
in the maximum rent would cause such maximum
rent to exceed one-third of the aggregate
disposable income; or
(b)in the case of a head of the household who
receives a monthly allowance for shelter
pursuant to the social services law, the
maximum rent for the housing accommodation
exceeds the maximum allowance for shelter
which the head of the household is entitled
to receive pursuant to the social services
law, or subject to the limitations contained
within item (c) of subparagraph (i) of
paragraph three of this subdivision, if any
expected lawful increase in the maximum rent
would cause such maximum rent to exceed the
maximum allowance for shelter which the head
of the household is entitled to receive.
(3) (i) A rent exemption order pursuant to this
subdivision shall provide:
(a)in the case of a head of the household who
does not receive a monthly allowance for
shelter pursuant to the social services law,
that the landlord may not collect from the
tenant to whom it is issued rent at a rate in
excess of either one-third of the aggregate
disposable income, or the rent in effect
immediately preceding the eligibility date,
whichever is greater; or
(b)in the case of a head of the household who
receives a monthly allowance for shelter
pursuant to the social services law, that the
landlord may not collect from the tenant to
whom it is issued rent a rate in excess of
either the maximum allowance for shelter
which the head of the household is entitled
to receive, or the rent in effect immediately
preceding the eligibility date, whichever is
greater; and
(c)that the landlord may collect from the tenant
increases in rent based on an electrical
inclusion adjustment or an increase in
dwelling space, services or equipment.
(ii) Each such order shall expire upon termination of
occupancy of the housing accommodation by the
tenant to whom it is issued. The landlord shall
notify the department of housing preservation
and development, on a form to be prescribed by
such department, within thirty days of each such
termination of occupancy.
(4) Any landlord who collects, or seeks to collect or
enforce, rent from a tenant in violation of the terms
of a rent exemption order shall, for the purposes of
all remedies, sanctions and penalties provided in this
chapter, be deemed to have collected or attempted to
collect or enforce, a rent in excess of the legal
regulated rent.
(5) A rent exemption order shall be issued to each tenant
who applies to the department of housing preservation
and development in accordance with its regulations and
who is found to be eligible under this subdivision.
Such order shall take effect on the first day of the
first month after receipt of such application by the
department of housing preservation and development,
except that where any other increase in the legal
regulated rent within ninety days of the issuance of
the order increasing the tenant's maximum rent which a
tenant is not exempted from paying the rent exemption
order shall without further order of the department of
housing preservation and development take effect as of
the effective date of said order increasing the
tenant's rent including any retroactive increments
collectible pursuant to such order.
(6) A rent exemption order shall be valid for the period of
the lease or renewal thereof upon application by the
tenant; provided, that upon any such renewal
application being made by the tenant, any rent
exemption order then in effect with respect to such
tenant shall be deemed renewed until such time as the
department of housing preservation and development
shall have found such tenant to be either eligible or
ineligible for a rent exemption order but in no event
for more than six additional months. If such tenant is
found eligible, the order shall be deemed to have taken
effect upon expiration of the exemption In the event
that any such tenant shall, subsequent to any such
automatic renewal, not be granted a rent exemption
order, such tenant shall be liable to the owner for the
difference between the amounts the tenant has paid
under the provisions of the automatically renewed order
and the amounts which the tenant would have been
required to pay in the absence of such order. Any rent
exemption order issued pursuant to this subdivision
shall include provisions giving notice as to the
contents of this paragraph relating to automatic
renewal of rent exemption orders and shall include
provisions giving notice that the tenant must enter
into either a one or two year renewal lease in order to
be eligible for a rent exemption. The notice that each
tenant receives from the owner relating to the right to
a renewal lease shall contain similar information Any
application or renewal application for a rent exemption
order shall also constitute an application for a tax
abatement under such section. The department of housing
preservation and development may, with respect to
renewal applications by the tenants whom it has found
eligible for rent exemption orders prescribe a
simplified form including a certification of the
applicant's continued eligibility in lieu of a detailed
statement of income and other qualifications.
(7) Notwithstanding any other provision of law, when a head
of a household to whom a then current, valid rent
exemption order has been issued under this chapter,
chapter three or chapter seven of this title moves his
or her principal residence to a subsequent dwelling
unit subject to regulation under this chapter, the head
of the household may apply to the department of housing
preservation and development for a rent exemption order
relating to the subsequent dwelling unit, and such
order may provide that the head of the household shall
be exempt from paying that portion of the legal
regulated rent for the subsequent dwelling
(i) the amount by which the rent for the subsequent
dwelling unit exceeds the last rent, as reduced,
which the head of the household was required to
actually pay in the original dwelling unit;
(ii) the last amount deducted from the maximum rent
or legal regulated rent meaning the most recent
monthly deduction for the applicant in the
original dwelling unit pursuant to this section
or section 26-605 of this title; or
(iii) where the head of the household does not receive
a monthly allowance for shelter pursuant to the
social services law, the amount by which the
legal regulated rent of the subsequent dwelling
unit exceeds one-third of the combined income of
all members of the household.
Such certificate shall be effective as of the first day
of the month in which the tenant applied for such
exemption or as of the date the tenant took occupancy
of the subsequent dwelling unit, whichever is later
provided both occur after the effective date of this
section.
(8) (i) When a dwelling unit subject to regulation
under this chapter is later reclassified to a
dwelling unit subject to regulation under
chapter three of this title, the eligibility of
a head of the household to receive a rent
increase exemption order upon such
reclassification shall be governed by paragraph
eight of subdivision m of section 26-405 of this
title.
(ii) When a dwelling unit subject to regulation under
this chapter is later reclassified to a dwelling
unit subject to the provisions of article II,
IV, V or XI of the private housing finance law
or subject to a mortgage insured or initially
insured by the federal government pursuant to
section two hundred thirteen of the national
housing act, as amended, the eligibility of a
head of the household to receive a rent increase
exemption order upon such reclassification shall
be governed by section 26-605.1 of this title.
(9) notwithstanding any other provision of law to the
contrary, where a head of household holds a current,
valid rent exemption order and, after the effective
date of this paragraph, there is a permanent decrease
in aggregate disposable income in an amount which
exceeds twenty percent of such aggregate disposable
income as represented in such head of the household's
last approved application for a rent exemption order or
for renewal thereof, such head of the household may,
upon renewal or one year after the issuance or renewal
of such rent exemption order, apply for a
redetermination of the amount set forth therein. Upon
application, such amount shall be redetermined so as to
re-establish the ratio of adjusted rent to aggregate
disposable income which existed at the time of approval
of such head of the household's last application for a
rent exemption order or for renewal thereof; provided,
however, that in no event shall the amount of adjusted
rent be redetermined to be (i) in the case of a head of
the household who does not receive a monthly allowance
for shelter pursuant to the social services law, less
than one-third of the aggregate disposable income; or
(ii) in the case of a head of the household who
receives a monthly allowance for shelter pursuant to
such law, less than the maximum allowance for shelter
which such head of the household is entitled to receive
pursuant to the social services law. For purposes of
this paragraph, a decrease in aggregate disposable
income shall not include any decrease in such income
resulting from the manner in which such income is
calculated pursuant to any amendment to paragraph c of
subdivision one of section four hundred sixty-seven-b
of the real property tax law or any amendment to the
regulations of the department of housing preservation
and development made on or after April first, nineteen
hundred eighty-seven. For purposes of this paragraph,
"adjusted rent" shall mean legal regulated rent less
the amount set forth in a rent exemption order.
c. Tax abatement for properties subject to rent exemption
order.
(1) Tax abatement, pursuant to the provisions of section
four hundred sixty-seven-b of the real property tax
law, shall be granted with respect to any real property
for which a rent exemption order is issued under
subdivision b of this section to the tenant of any
housing accommodation contained therein. The rent
exemption order shall also constitute the tax abatement
certificate.
(2) The real estate tax imposed upon any real property for
which a rent exemption is issued, shall be reduced and
abated by an amount equal to the difference between:
(i) the sum of the maximum rents collectible under
such orders, and
(ii) the sum of rents that would be collectible from
the tenants of such housing accommodations if no
exemption had been granted pursuant to
subdivision b of this section.
(3) For any individual housing accommodation, the tax
abatement computed pursuant to this subdivision shall
be available with respect to a period commencing on the
effective date of the initial rent exemption order, and
ending on the expiration date of such order or on the
effective date of an order terminating the rent
exemption.
(4) Prior to the commencement of each fiscal year, the
department of housing preservation and development
shall notify the department of finance of the total
amount of taxes to be abated under this section with
respect to each property for which rent exemption
orders were in effect for all or any part of the
preceding calendar year. The commissioner of finance
shall make the appropriate adjustment in the real
estate tax payable in such fiscal year
(5) Tax abatement pursuant to this section shall be in
addition to any other tax abatement authorized by law,
but shall not reduce the tax for any fiscal year below
zero. In the event that the tax abatement certificate
authorizes an amount of deduction in excess of the real
estate installment, then the balance may be applied to
any subsequent installment until exhausted. In such a
case the owner shall submit with his or her real estate
tax bill and remittance, a verified statement in such
form as prescribed by the commissioner of finance
setting forth the carry over amount and the amounts
previously applied provided however, that at the
request of the owner such balance shall be paid to the
owner by the commissioner of finance in lieu of being
applied to any subsequent installment, except where the
owner is in arrears in the payment of real estate taxes
on any property. For the purposes of this paragraph,
where the owner is a corporation, it shall be deemed to
be in arrears when any of the officers directors or any
person holding an interest in more than ten percent of
the issued and outstanding stock of such corporation is
in arrears in the payment of real estate taxes on any
property; where title is held by a nominee, the owner
shall be deemed to be in arrears when the person for
whose benefit such title is held is in arrears in the
payment of real estate taxes on any property.
d. Notwithstanding the provisions of this chapter, a tenant who
resides in a dwelling unit which becomes subject to this
chapter upon the sale by the city of New York of the
building in which such dwelling unit is situated may be
issued a rent increase exemption order for increases in rent
which occurred during ownership of such building by the city
of New York provided that such tenant would have been
otherwise eligible to receive a rent increase exemption
order at the time of such increase but for the fact that
such tenant occupied a dwelling unit owned by the city of
New York and was therefore not subject to this chapter.
Application for such rent increase exemption orders shall be
made within one year from the date such building is sold by
the city of New York within one Year of the effective date
of this provision, whichever is later.
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Sec. 26-510. RENT GUIDELINES BOARD.
a. There shall be a rent guidelines board to consist of nine
members, appointed by the mayor. Two members shall be
representative of tenants, two shall be representative of
owners of property, and five shall be public members each of
whom shall have had at least five years experience in either
finance, economics or housing. One public member shall be
designated by the mayor to serve as chairman and shall hold
no other public office. No member, officer or employee of
any municipal rent regulation agency or the state division
of housing and community renewal and no person who owns or
manages real estate covered by this law or who is an officer
of any owner or tenant organization shall serve on a rent
guidelines board. One public member, one member
representative of tenants and one member representative of
owners shall serve for a term ending two years from January
first next succeeding the date of their appointment; one
public member, one member representative of tenants and one
member representative of owners shall serve for terms ending
three years from the January first next succeeding the date
of their appointment and two public members shall serve for
terms ending four years from January first next succeeding
the dates of their appointment. The chairman shall serve at
the pleasure of the mayor. Thereafter, all members shall
continue in office until their successors have been
appointed and qualified. The mayor shall fill any vacancy
which may occur by reason of death, resignation or otherwise
in a manner consistent with the original appointment. A
member may be removed by the mayor for cause, but not
without an opportunity to be heard in person or by counsel,
in his or her defense, upon not less than ten days notice.
b. The rent guidelines board shall establish annually
guidelines for rent adjustments, and in determining whether
rents for housing accommodations subject to the emergency
tenant protection act of nineteen seventy-four or this law
shall be adjusted shall consider, among other things (1) the
economic condition of the residential real estate industry
in the affected area including such factors as the
prevailing and projected (i) real estate taxes and sewer and
water rates, (ii) gross operating maintenance costs
(including insurance rates governmental fees, cost of fuel
and labor costs), (iii) costs and availability of financing
(including effective rates of interest), (iv) over-all
supply of housing accommodations and over-all vacancy rates,
(2) relevant data from the current and projected cost of
living indices for the affected area, (3) such other data as
may be made available to it. Not later than July first of
each year, the rent guidelines board shall file with the
city clerk its findings for the preceding calendar year, and
shall accompany such findings with a statement of the
maximum rate or rates of rent adjustment, if any, for one or
more classes of accommodations subject to this law,
authorized for leases or other rental agreements commencing
on the next succeeding October first or within the twelve
months thereafter. Such findings and statement shall be
published in the City record.
c. Such members shall be compensated on a per diem basis of one
hundred dollars per day for no more than twenty-five days a
year except that the chairman shall be compensated at one
hundred twenty-five dollars a day for no more than fifty
days a year. The chairman shall be chief administrative
officer of the rent guidelines board and among his or her
powers and duties he or she shall have the authority to
employ, assign and supervise the employees of the rent
guidelines board and enter into contracts for consultant
services. The department of housing preservation and
development shall cooperate with the rent guidelines board
and may assign personnel and perform such services in
connection with the duties of the rent guidelines board as
may reasonably be required by the chairman.
d. Any housing accommodation covered by this law owned by a
member in good standing of an association registered with
the department of housing preservation and development
pursuant to section 26-511 of this chapter which becomes
vacant for any reason, other than harassment of the prior
tenant, may be offered for rental at any price
notwithstanding any guideline level established by the
guidelines board for renewal leases, provided the offering
price does not exceed the rental then authorized by the
guidelines board for such dwelling unit plus five percent
for a new lease not exceeding two years and a further five
percent for a new lease having a minimum term of three
years, until July first nineteen hundred seventy, at which
time the guidelines board shall determine what the rental
for a vacancy shall be.
e. With respect to hotel dwelling units, covered by this law
pursuant to section 26-506 of this chapter, the council,
after receipt of a study from the rent guidelines board,
shall establish a guideline for rent increases, irrespective
of the limitations on amount of increase in subdivision d
hereof, which guideline shall apply only to permanent
tenants. A permanent tenant is an individual or family who
at any time since May thirty-first, nineteen hundred sixty-
eight, or hereafter, has continuously resided in the same
hotel as a principal residence for a period of at least six
months. On January first, nineteen hundred seventy-one and
once annually each succeeding year the rent guidelines board
shall cause a review to be made of the levels of fair rent
increases provided under this subdivision and may establish
different levels of fair rent increases for hotel dwelling
units renting within different rental ranges based upon the
board's consideration of conditions in the market for hotel
accommodations and the economics of hotel real estate. Any
hotel dwelling unit which is voluntarily vacated by the
tenant thereof may be offered for rental at the guideline
eve for vacancies established by the rent guidelines board.
If a hotel dwelling unit becomes vacant because the prior
tenant was evicted therefrom, there shall be no increase in
the rental thereof except for such increases in rental that
the prior tenant would have had to pay had he or she
continued in occupancy.
g.* From September twenty-fifth, nineteen hundred sixty-nine
until the rate of permissible increase is established by the
council pursuant to subdivision e of this section, there
shall not be collected from any permanent hotel tenant any
rent increase in excess of ten percent over the rent payable
for his or her dwelling unit on May thirty-first, nineteen
hundred sixty-eight, except for hardship increases
authorized by the conciliation and appeals board. Any owner
who collects or permits any rent to be collected in excess
of the amount authorized by this subdivision shall not be
eligible to be a member in good standing of a hotel industry
stabilization association.
* So in original. No paragraph (f) was enacted.
h. The rent guidelines board prior to the annual adjustment of
the level of fair rents provided for under subdivision b of
this section for dwelling units and hotel dwelling units
covered by this law, shall hold a public hearing or hearings
for the purpose of collecting information relating to all
factors set forth in subdivision b of this section. Notice
of the date, time, location and summary of subject matter
for the public hearing or hearings shall be published in the
city record daily for a period of not less than eight days
and at least once in one or more newspapers of general
circulation at least eight days immediately preceding each
hearing date, at the expense of the city of New York, and
the hearing shall be open for testimony from any individual,
group, association or representative thereof who wants to
testify.
i. Maximum rates of rent adjustment shall not be established
more than once annually for any housing accommodation within
the board's jurisdiction. Once established, no such rate
shall, within the one-year period, be adjusted by any
surcharge, supplementary adjustment or other modification.
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Sec. 26-511. REAL ESTATE INDUSTRY STABILIZATION ASSOCIATION.
a. The real estate industry stabilization association
registered with the department of housing preservation and
development is hereby divested of all its powers and
authority under this law.
b. The stabilization code heretofore promulgated by such
association, as approved by the department of housing
preservation and development, is hereby continued to the
extent that it is not inconsistent with law. Such code may
be amended from time to time, provided, however, that no
such amendments shall be promulgated except by action of the
commissioner of the division of housing and community
renewal and provided further, that prior to the adoption of
any such amendments, the commissioner shall (i) submit the
proposed amendments to the commissioner of the department of
housing preservation and development and allow such
commissioner thirty days to make comments or recommendations
on the proposed amendments, (ii) review the comments or
recommendations, if any, made pursuant to clause (i) of this
subdivision and make any revisions to the proposed
amendments which the commissioner of the division of housing
and community renewal deems appropriate provided that any
such review and revision shall be completed within thirty
days of receipt of such comments or recommendations and
(iii) thereafter hold a public hearing on the proposed
amendments. No provision of such code shall impair or
diminish any right or remedy granted to any party by this
law or any other provision of law.
c. A code shall not be adopted hereunder unless it appears to
the division of housing and community renewal that such code
(1) provides safeguards against unreasonably high rent
increases and, in general, protects tenants and the
public interest, and does not impose any industry wide
schedule of rents or minimum rentals;
(2) requires owners not to exceed the level of lawful rents
as provided by this law;
(3) provides for a cash refund or a credit, to be applied
against future rent, in the amount of any rent
overcharge collected by an owner and any penalties
costs, attorneys' fees and interest from the date of
the overcharge at the rate of interest payable on a
judgment pursuant to section five thousand four of the
civil practice law and rules for which the owner is
assessed;
(4) includes provisions requiring owners to grant a one or
two year vacancy or renewal lease at the option of the
tenant except where a mortgage or mortgage commitment
existing as of April first, nineteen hundred sixty-
nine, provides that the mortgagor shall not grant a one
year lease;
(5) includes guidelines with respect to such additional
rent and related matters as, for example, security
deposits, advance rental payments, the use of escalator
clauses in leases and provision for increase in rentals
for garages and other ancillary facilities, so as to
insure that the level of fair rent increase established
under this law will not be subverted and made
ineffective;
(6) provides criteria whereby the commissioner may act upon
applications by owners for increases in excess of the
level of fair rent increase established under this law
provided, however, that such criteria shall provide (a)
as to hardship applications, for a finding that the
level of fair rent increase is not sufficient to enable
the owner to maintain approximately the same 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 an application pursuant to such
criteria as compared with annual net income, which
prevailed on the average over the period nineteen
hundred sixty-eight through nineteen hundred seventy,
or for the first three years of operation if the
building was completed since nineteen hundred sixty-
eight or for the first three fiscal years after a
transfer of title to a new owner provided the new owner
can establish to the satisfaction of the commissioner
that he or she acquired title to the building as a
result of a bona fide sale of the entire building and
that the new owner is unable to obtain requisite
records for the fiscal years nineteen hundred sixty-
eight through nineteen hundred seventy despite diligent
efforts to obtain same from predecessors in title and
further provided that the new owner can provide
financial data covering a minimum of six years under
his or her continuous and uninterrupted operation of
the building to meet the three year to three year
comparative test periods herein provided; and (b) as to
completed building-wide major capital improvements, for
a finding that such improvements are deemed depreciable
under the Internal Revenue Code and that the cost is to
be amortized over a seven-year period, based upon cash
purchase price exclusive of interest or service
charges. Notwithstanding anything to the contrary
contained herein, no increase granted pursuant to this
paragraph shall, when added to the annual gross rents,
as determined by the commissioner, exceed the sum of,
(i) the annual operating expenses, (ii) an allowance
for management services as determined by the
commissioner, (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 which is operated under the
supervision of the banking or insurance laws of the
state of New York or the united states, and (iv) eight
and one-half 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 the purposes of this paragraph shall be six
times the annual gross rent. The collection of any
increase in the stabilized rent for any apartment
pursuant to this paragraph 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 stabilized rent as
established or set in future years;
(6a) provides criteria whereby as an alternative to the
hardship application provided under paragraph six of
this subdivision owners of buildings 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 division for increases in excess of
the level of applicable guideline increases established
under this law based on a finding by the commissioner
that such guideline increases are not sufficient to
enable the owner to maintain an annual gross rent
income for such building which exceeds the annual
operating expenses of such building by a sum equal to
at least five percent of such gross rent. For the
purposes of this paragraph, operating expenses shall
consist of the actual, reasonable, costs of fuel,
labor, utilities, taxes, other than income or corporate
franchise taxes, fees, permits, necessary contracted
services and noncapital repairs, insurance, parts and
supplies, management fees and other administrative
costs and mortgage interest. For the purposes of this
paragraph, mortgage interest shall be deemed to mean
interest on a bona fide mortgage including an allocable
portion of charges related thereto. Criteria to be
considered in determining a bona fide mortgage other
than an institutional mortgage shall include; condition
of the property, location of the property, the existing
mortgage market at the time the mortgage is placed, the
term of the mortgage, the amortization rate, the
principal amount of the mortgage, security and other
terms and conditions of the mortgage. The commissioner
shall set a rental value for any unit occupied by the
owner or a person related to the owner 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 commissioner shall impute a rent consistent
with other rents in the building. The amount of
hardship increase shall be such as may be required to
maintain the annual gross rent income as provided by
this paragraph. The division shall not grant a hardship
application under this paragraph or paragraph six of
this subdivision for a period of three years subsequent
to granting a hardship application under the provisions
of this paragraph. The collection of any increase in
the rent for any housing accommodation pursuant to this
paragraph 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 rent as established or set in future years. No
application shall be approved unless the owner's equity
in such building exceeds five percent of (i) the arms
length purchase price of the property; (ii) the cost of
any capital improvements for which the owner has not
collected a surcharge- (iii) 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 collected a surcharge and (iv) 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.
For the purposes of this paragraph, owner's equity
shall mean the sum of (i) the purchase price of the
property less the principal of any mortgage or loan
used to finance the purchase of the property, (ii) the
cost of any capital improvement for which the owner has
not collected a surcharge less the principal of any
mortgage or loan used to finance said improvement,
(iii) 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 a surcharge, and (iv) 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.
(7) establishes a fair and consistent formula for
allocation of rental adjustment to be made upon
granting of an increase by the commissioner;
(8) requires owners to maintain all services furnished by
them on May thirty-first, nineteen hundred sixty-eight,
or as otherwise provided by law, in connection with the
leasing of the dwelling units covered by this law;
(9) provides that an owner shall not refuse to renew a
lease except:
(a) where he or she intends in good faith to
demolish the building and has obtained a permit
therefor from the department of buildings, or
(b) where he or she seeks to recover possession of
one or more dwelling units for his or her own
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 provided however, that
this subparagraph shall not apply where a tenant
or the spouse of a tenant lawfully occupying the
dwelling unit is sixty-two years of age or
older, or 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 prevent
the tenant from engaging in any substantial
gainful employment, unless such owner offers to
provide and if requested, provides an equivalent
or superior housing accommodation at the same or
lower stabilized rent in a closely proximate
area. The provisions of this subparagraph shall
only permit one of the individual owners of any
building to recover possession of one or more
dwelling units for his or her own personal use
and/or for that of his or her immediate family.
Any dwelling unit recovered by an owner pursuant
to this subparagraph shall not for a period of
three years be rented, leased, subleased or
assigned to any person other than a person for
whose benefit recovery of the dwelling unit is
permitted pursuant to this subparagraph or to
the tenant in occupancy at the time of recovery
under the same terms as the original lease. This
subparagraph shall not be deemed to establish or
eliminate any claim that the former tenant of
the dwelling unit may otherwise have against the
owner. Any such rental, lease, sublease or
assignment during such period to any other
person may be subject to a penalty of a
forfeiture of the right to any increases in
residential rents in such building for a period
of three years; or
(c) where the housing accommodation is owned by 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
either:
(i) the tenant's initial tenancy commenced
after the owner acquired the property and
the owner requires the unit in connection
with its charitable or educational purposes
including, but not limited to, housing for
affiliated persons; provided that with
respect to any tenant whose right to
occupancy commenced prior to July first,
nineteen hundred seventy-eight 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 his or
her tenancy was subject to nonrenewal, the
institution shall not have the right to
refuse to renew pursuant to this
subparagraph provided further that a tenant
who was affiliated with the 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 unit for a
nonresidential use in connection with its
charitable or educational purposes; or
(d) on specified grounds set forth in the code
consistent with the purposes of this law; or
(e) where a tenant violates the provisions of
paragraph twelve of this subdivision.
(9a) provides that where an owner has submitted to and the
attorney general has accepted for filing an offering
plan to convert the building to cooperative or
condominium ownership and the owner has presented the
offering plan to the tenants in occupancy, any renewal
or vacancy lease may contain a provision that if a
building is converted to cooperative or condominium
ownership pursuant to an eviction plan, as provided in
section three hundred fifty-two-eeee of the general
business law, the lease may only be canceled upon the
expiration of three years after the plan has been
declared effective, and upon ninety days notice to the
tenant that such period has expired or will be
expiring.
(10) specifically provides that if an owner fails to comply
with any order of the commissioner or is found by the
commissioner to have harassed a tenant to obtain
vacancy of his or her housing accommodation, he or she
shall, in addition to being subject to any other
penalties or remedies permitted by law, be barred
thereafter from applying for or collecting any further
rent increase. The compliance by the owner with the
order of the commissioner or the restoration of the
tenant subject to harassment to the housing
accommodation or compliance with such other remedy as
shall be determined by the commissioner to be
appropriate shall result in the prospective elimination
of such sanctions;
(11) includes provisions which may be peculiarly applicable
to hotels including specifically that no owner shall
refuse to extend or renew a tenancy for the purpose of
preventing a hotel tenant from becoming a permanent
tenant- and
(12) permits subletting of units subject to this law
pursuant to section two hundred twenty-six-b of the
real property law provided that (a) the rental charged
to the subtenant does not exceed the stabilized rent
plus a ten percent surcharge payable to the tenant if
the unit sublet was furnished with the tenant's
furniture; (b) the tenant can establish that at all
times he or she has maintained the unit as his or her
primary residence and intends to occupy it as such at
the expiration of the sublease; (c) an owner may
terminate the tenancy of a tenant who sublets or
assigns contrary to the terms of this paragraph but no
action or proceeding based on the nonprimary residence
of a tenant may be commenced prior to the expiration
date of his or her lease; (d) where an apartment is
sublet the prime tenant shall retain the right to a
renewal lease and the rights and status of a tenant in
occupancy as they relate to conversion to condominium
or cooperative ownership; (e) where a tenant violates
the provisions of subparagraph (a) of this paragraph
the subtenant shall be entitled to damages of three
times the overcharge and may also be awarded attorneys
fees and interest from the date of the overcharge at
the rate of interest payable on a judgment pursuant to
section five thousand four of the civil practice law
and rules; (f) the tenant may not sublet the unit 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 provisions of this subparagraph shall
only apply to subleases commencing on and after July
first, nineteen hundred eighty-three (g) for the
purposes of this paragraph only, the term of the
proposed sublease may extend beyond the term of the
tenant's lease. In such event, such sublease shall be
subject to the tenant's right to a renewal lease. The
subtenant shall have no right to a renewal lease. It
shall be unreasonable for an owner to refuse to consent
to a sublease solely because such sublease extends
beyond the tenant's lease; and (h) notwithstanding the
provisions of section two hundred twenty-six-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
landlord's consent to any such sublease and without
being bound by the provisions of subparagraphs (b), (c)
and (f) of this paragraph. Commencing with the
effective date of this subparagraph, 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 fifteen percent of the
previous lease rental for such housing accommodation,
hereinafter referred to as a vacancy surcharge, unless
the landlord 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 landlord 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.
d. (1) Each owner subject to the rent stabilization law
shall furnish to each tenant signing a new or renewal
lease, a rider describing the rights and duties of
owners and tenants as provided for under the rent
stabilization law of nineteen hundred sixty-nine. Such
publication shall conform to the intent of section 5-
702 of the general obligations law and shall be
attached as an addendum to the lease. Upon the face of
each lease, in bold print, shall appear the following:
"Attached to this lease are the pertinent rules and
regulations governing tenants and landlords' rights
under the rent stabilization law of nineteen hundred
sixty-nine".
(2) The rider shall be in a form promulgated by the
commissioner in larger type than the lease and shall be
utilized as provided in paragraph one of this
subdivision.
e. Each owner of premises subject to the rent stabilization law
shall furnish to each tenant signing a new or renewal lease,
a copy of the fully executed new or renewal lease bearing
the signatures of owner and tenant and the beginning and
ending dates of the lease term, within thirty days from the
owner's receipt of the new or renewal lease signed by the
tenant.
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Sec. 26-512. STABILIZATION PROVISIONS.
a. No owner of property subject to this law shall charge or
collect any rent in excess of the initial legal regulated
rent or adjusted initial legal regulated rent until the end
of any lease or other rental agreement in effect on the
local effective date until such time as a different legal
regulated rent shall be authorized pursuant to guidelines
adopted by a rent guidelines board.
b. The initial regulated rent for housing accommodations
subject to this law on the local effective date of the
emergency tenant protection act of nineteen seventy-four or
which become subject to this law thereafter, pursuant to
such act, shall be:
(1) For housing accommodations which were regulated
pursuant to this law or the city rent and
rehabilitation law prior to July first, nineteen
hundred seventy-one, and which became vacant on or
after such date and prior to the local effective date
of the emergency tenant protection act of nineteen
seventy-four, the rent reserved in the last effective
lease or other rental agreement; provided that such
initial rent may be adjusted on application of the
tenant pursuant to subdivision b of section 26-513 of
this chapter.
(2) For housing accommodations which were regulated
pursuant to the city rent and rehabilitation law on the
local effective date of the emergency tenant protection
act of nineteen seventy-four, and thereafter become
vacant, the rent agreed to by the landlord and the
tenant and reserved in a lease or provided for in a
rental agreement; provided that such initial rent may
be adjusted on application of the tenant pursuant to
subdivision b of section 26-513 of this chapter.
(3) For housing accommodations other than those described
in paragraphs one and two of this subdivision, the rent
reserved in the last effective lease or other rental
agreement.
(4) For any plot or parcel of land which had been regulated
pursuant to the city rent and rehabilitation law prior
to July first, nineteen hundred seventy-one and which,
(i) became vacant on or after July first, nineteen
hundred seventy-one and prior to July first,
nineteen hundred seventy-four, the rent reserved
in a lease or other rental agreement in effect
on June thirtieth, nineteen hundred seventy-four
plus increases authorized by the rent guidelines
board under this law for leases or other rental
agreements commencing thereafter; provided that
such initial rent may be adjusted on application
of the tenant pursuant to subdivision b of
section 26-513 of this chapter or,
(ii) became vacant on or after July first, nineteen
hundred seventy-four, the rent agreed to by the
landlord and the tenant and reserved in a lease
or other rental agreement plus increases
authorized by the rent guidelines board under
this law for leases or other rental agreements
commencing thereafter; provided that such
initial rent may be adjusted on application of
the tenant pursuant to subdivision b of section
26-513 of this chapter.
(iii) Where the commissioner has determined that the
rent charged is in excess of the lawful rents as
stated in subparagraph (i) or (ii) hereof, plus
lawful increases thereafter, he or she shall
provide for a cash refund or a credit, to be
applied against future rent, in the amount of
any rent overcharge collected by an owner and
any penalties, costs, attorneys' fees and
interest from the date of the overcharge at the
rate of interest payable on a judgment pursuant
to section five thousand four of the civil
practice law and rules for which the owner is
assessed.
c. With respect to accommodations for which the initial legal
regulated rent is governed by paragraph two of subdivision b
hereof, no increase of such initial legal regulated rent
pursuant to annual guidelines adopted by the rent guidelines
board shall become effective until the expiration of the
first lease or rental agreement taking effect after the
local effective date of the emergency tenant protection act
of nineteen seventy-four, but in no event before one year
after the commencement of such rental agreement.
d. With respect to accommodations, other than those referred to
in subdivision c, for which a lease is entered into after
the local effective date of the emergency tenant protection
act of nineteen seventy-four, but before the effective date
of the first guidelines applicable to such accommodations,
the lease may provide for an adjustment of rent pursuant to
such guidelines to be effective on the first day of the
month next succeeding the effective date of such guidelines.
e. Notwithstanding any contrary provisions of this law, on and
after July first nineteen hundred eighty-four, the legal
regulated rent authorized for a housing accommodation
subject to the provisions of this law shall be the rent
registered pursuant to section 26-517 of this chapter
subject to any modification imposed pursuant to this law.
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Sec. 26-513. APPLICATION FOR ADJUSTMENT OF INITIAL RENT.
a. The tenant or owner of a housing accommodation made subject
to this law by the emergency tenant protection act of
nineteen seventy-four may, within sixty days of the local
effective date of this section or the commencement of the
first tenancy thereafter, whichever is later, file with the
commissioner an application for adjustment of the initial
legal regulated rent for such housing accommodation. The
commissioner may adjust such initial legal regulated rent
upon a finding that the presence of unique or peculiar
circumstances materially affecting the initial legal
regulated rent has resulted in a rent which is substantially
different from the rents generally prevailing in the same
area for substantially similar housing accommodations.
b. 1. The tenant of a housing accommodation that was
regulated pursuant to the city rent and rehabilitation
law or this law prior to July first, nineteen hundred
seventy-one and that became vacant on or after January
first, nineteen hundred seventy-four may file with the
commissioner within ninety days after notice has been
received pursuant to subdivision d of this section, an
application for adjustment of the initial legal
regulated rent for such housing accommodation. Such
tenant need only allege that such rent is in excess of
the fair market rent and shall present such facts
which, to the best of his or her information and
belief, support such allegation. The rent guidelines
board shall promulgate as soon as practicable after the
local effective date of the emergency tenant protection
act of nineteen seventy-four guidelines for the
determination of fair market rents for housing
accommodations as to which any application may be made
pursuant to this subdivision. In rendering a
determination on an application filed pursuant to this
subdivision b the commissioner shall be guided by such
guidelines and by the rents generally prevailing in the
same area for substantially similar housing
accommodations. Where the commissioner has determined
that the rent charged is in excess of the fair market
rent he or she shall, in addition to any other
penalties or remedies permitted by law, order a refund
of any excess paid since January first, nineteen
hundred seventy-four or the date of the commencement of
the tenancy, whichever is later. Such refund shall be
made by the landlord in cash or as a credit against
future rents over a period not in excess of six months.
2. The provisions of paragraph one of this subdivision
shall not apply to a tenant of a housing accommodation
for which the initial legal regulated rent is no
greater than the maximum rent that would have been in
effect under this law on December thirty-first,
nineteen hundred seventy-three, or for the period
commencing January first, nineteen hundred seventy-four
and ending December thirty-first, nineteen hundred
seventy-five as calculated pursuant to the city rent
and rehabilitation law (if no such maximum rent has
been calculated for a particular unit for the period
commencing January first, nineteen hundred seventy-four
and ending December thirty-first, nineteen hundred
seventy-five, the division of housing and community
renewal shall calculate such a rent), as the case may
be, if such apartment had not become vacant on or after
January first, nineteen hundred seventy-four, plus the
amount of any adjustment which would have been
authorized under this law for renewal leases or other
rental agreement, whether or not such housing
accommodation was subject to this law for leases or
other rental agreements commencing on or after July
first, nineteen hundred seventy-four.
c. Upon receipt of any application filed pursuant to this
section, the commissioner shall notify the owner or tenant,
as the case may be, and provide a copy to him or her of such
application. Such owner or tenant shall be afforded a
reasonable opportunity to respond to the application. A
hearing may be held upon the request of either party, or the
commissioner may hold a hearing on his or her own motion.
The commissioner shall issue a written opinion to both the
tenant and the owner upon rendering his or her
determination.
d. Within thirty days after the local effective date of the
emergency tenant protection act of nineteen seventy-four the
owner of housing accommodations as to which an application
for adjustment of the initial legal regulated rent may be
made pursuant to subdivision b of this section shall give
notice in writing by certified mail to the tenant of each
such housing accommodation on a form prescribed by the
commissioner of the initial legal regulated rent for such
housing accommodation and of such tenant's right to file an
application for adjustment of the initial legal regulated
rent of such housing accommodation.
e. Notwithstanding any contrary provision in this law an
application for an adjustment pursuant to this section must
be filed within ninety days from the initial registration.
This subdivision shall not extend any other time limitations
imposed by this law.
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Sec. 26-514. MAINTENANCE OF SERVICES.
In order to collect a rent adjustment authorized pursuant to the
provisions of subdivision d of section 26-510 of this chapter an
owner must file with the state division of housing and community
renewal, on a form which the commissioner shall prescribe, a
written certification that he or she is maintaining and will
continue to maintain all services furnished on the date upon
which the emergency tenant protection act of nineteen seventy-
four becomes a law or required to be furnished by any state law
or local law, ordinance or regulation applicable to the premises.
In addition to any other remedy afforded by law any tenant may
apply to the state division of housing and community renewal for
a reduction in the rent to the level in effect prior to its most
recent adjustment and for an order requiring services to be
maintained as provided in this section, and the commissioner
shall so reduce the rent if it is found that the owner has failed
to maintain such services. The owner shall also be barred from
applying for or collecting any further rent increases. The
restoration of such services shall result in the prospective
elimination of such sanctions. The owner shall be supplied with a
copy of the application and shall be permitted to file an answer
thereto. A hearing may be held upon the request of either party,
or the commissioner may hold a hearing upon his or her own
motion. The commissioner may consolidate the proceedings for two
or more petitions applicable to the same building or group of
buildings or development. If the commissioner finds that the
owner has knowingly filed a false certification, it shall, in
addition to abating the rent, assess the owner with the
reasonable costs of the proceeding, including reasonable
attorneys' fees, and impose a penalty not in excess of two
hundred fifty dollars for each false certification.
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Sec. 26-515. RECOVERY OF POSSESSION.
a. An owner seeking to recover possession pursuant to
subparagraph (c) of paragraph nine of subdivision c of
section 26-511 of this chapter shall notify the tenant in
occupancy not more than one hundred fifty and not less than
one hundred twenty days prior to the end of the tenant's
lease term, by mail, of such owner's intention not to renew
such lease in order to recover the dwelling unit for its
charitable or educational purposes. The owner may give such
notice within one hundred twenty days of the expiration of
the tenant's lease term, provided it may not commence a
summary proceeding to recover the dwelling unit until the
expiration of one hundred twenty days from the giving of
such notice and, provided, further, that the tenant may
remain in occupancy until the commencement of such
proceeding at the same rent and upon the same terms and
conditions as were provided in his or her expired lease. The
notice of intention not to renew the tenant's lease shall be
accompanied by a notice on a form prescribed by the division
of housing and community renewal setting forth the penalties
to which an owner may be subject for his or her failure to
utilize the tenant's dwelling unit for the charitable or
educational purpose for which recovery of the dwelling unit
is sought.
b. If any owner who recovers a dwelling unit pursuant to such
subparagraph (c), or any successor in interest, utilizes
such unit for purposes other than those permitted under such
subparagraph, then such owner or successor shall, unless for
good cause shown, 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 the
court, provided that such tenant commences such action
within three years from the date of recovery of the unit.
The damages sustained by such tenant shall be the difference
between the rent paid by such tenant for the recovered
dwelling unit, and the rental value of a comparable rent
regulated dwelling unit on the open market. In addition to
any other damage, the reasonable cost of removal of the
tenant's property shall be a lawful measure of damages.
c. Where a dwelling unit has been recovered pursuant to such
subparagraph (c) and within four years of such recovery is
rented to a person or entity for purposes other than those
permitted pursuant to such subparagraph (c), unless for good
cause shown, the rent charged by such owner or any successor
in interest for four years following such recovery shall not
exceed the last regulated rent payable prior to such
recovery.
d. If the owner is found by the commissioner, to have recovered
possession of a dwelling unit pursuant to such subparagraph
(c) and within four years of such recovery such owner or any
successor in interest shall have utilized such unit for
purposes other than those permitted pursuant to such
subparagraph (c), unless for good cause shown, the
commissioner shall impose upon such owner or successor in
interest, by administrative order after hearing, a civil
penalty for any such violation. Such penalty shall be in an
amount of up to one thousand dollars for each offense. Such
order shall be deemed a final determination for the purposes
of judicial review. Such penalty may, upon the expiration of
the period for seeking review pursuant to article seventy-
eight of the civil practice law and rules, be docketed and
enforced in the manner of a judgment of the supreme court.
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Sec. 26-516. ENFORCEMENT AND PROCEDURES.
a. Subject to the conditions and limitations of this
subdivision, any owner of housing accommodations who, upon
complaint of a tenant, or of the state division of housing
and community renewal is found by the state division of
housing and community renewal, after a reasonable
opportunity to be heard, to have collected an overcharge
above the rent authorized for a housing accommodation
subject to this chapter shall be liable to the tenant for a
penalty equal to three times the amount of such overcharge.
If the owner establishes by a preponderance of the evidence
that the overcharge was not willful the state division of
housing and community renewal shall establish the penalty as
the amount of the overcharge plus interest. (i) Except as to
complaints filed pursuant to clause (ii) of this paragraph,
the legal regulated rent for purposes of determining an
overcharge, shall be the rent indicated 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 ninety days of the initial
registration of a housing accommodation, the legal regulated
rent shall be deemed to be the rent charged on the date four
years prior to the date of the initial registration of the
housing accommodation (or, if the housing accommodation was
subject to this chapter for less than four years, the
initial legal regulated rent) plus in each case, any lawful
increases and adjustments. Where the rent charged on the
date four years prior to the date of the initial
registration of the accommodation cannot be established,
such rent shall be established by the division.
Where the rent charged on the date four years prior to the
date of initial registration of the housing accommodation
cannot be established, such rent shall be established by the
division provided that where a rent is established based on
rentals determined under the provisions of the local
emergency housing rent control act such rent must be
adjusted to account for no less than the minimum increases
which would be permitted if the housing accommodation were
covered under the provisions of this chapter.
(1) The order of the state division of housing and
community renewal shall apportion the owner's liability
between or among two or more tenants found to have been
overcharged by such owner during their particular
tenancy of a unit.
(2) Except as provided under clauses (i) and (ii) of this
paragraph, a complaint under this subdivision shall be
filed with the state division of housing and community
renewal 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. (i) No
penalty of three times the overcharge may 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 first, nineteen hundred
eighty-four. (ii) Any complaint based upon overcharges
occurring prior to the date of filing of the initial
rent registration as provided in section 26-517 of this
chapter shall be filed within ninety days of the
mailing of notice to the tenant of such registration.
(3) Any affected tenant shall be notified of and given an
opportunity to join in any complaint filed by an
officer or employee of the state division of housing
and community renewal.
(4) An owner found to have overcharged may be assessed the
reasonable costs and attorney's fees of the proceeding
and interest from the date of the overcharge at the
rate of interest payable on a judgment pursuant to
section five thousand four of the civil practice law
and rules.
(5) The order of the state division of housing and
community renewal awarding penalties may, upon the
expiration of the period in which the owner may
institute a proceeding pursuant to article seventy-
eight of the civil practice law and rules, be filed and
enforced by a tenant in the same manner as a judgment
or not in excess of twenty percent thereof per month
may be offset against any rent thereafter due the
owner.
b. In addition to issuing the specific orders provided for by
other provisions of this law, the state division of housing
and community renewal shall be empowered to enforce this law
and the code by issuing, upon notice and a reasonable
opportunity for the affected party to be heard, such other
orders as it may deem appropriate.
c. If the owner is found by the commissioner:
(1) to have violated an order of the division the
commissioner may impose by administrative order after
hearing, a civil penalty in the amount of two hundred
fifty dollars for the first such offense and one
thousand dollars for each subsequent offense; or
(2) to have harassed a tenant to obtain vacancy of his or
her housing accommodation, the commissioner may impose
by administrative order after hearing, a civil penalty
for any such violation. Such penalty shall be in the
amount of up to one thousand dollars for a first such
offense and up to twenty-five hundred dollars 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. Such penalty may, upon
the expiration of the period for seeking review
pursuant to article seventy-eight of the civil practice
law and rules, be docketed and enforced in the manner
of a judgment of the supreme court.
d. Any proceeding pursuant to article seventy-eight of the
civil practice law and rules seeking review of any action
pursuant to this chapter shall be brought within sixty days
of the expiration of the ninety day period and any extension
thereof provided in subdivision h of this section or the
rendering of a determination, whichever is later. Any action
or proceeding brought by or against the commissioner under
this law shall be brought in the county in which the housing
accommodation is located.
e. Violations of this law, or of the code and orders issued
pursuant thereto may be enjoined by the supreme court upon
proceedings commenced by the state division of housing and
community renewal which shall not be required to post bond.
f. In furtherance of its responsibility to enforce this law,
the state division of housing and community renewal shall be
empowered to administer oaths, issue subpoenas, conduct
investigations, make inspections and designate officers to
hear and report. The division shall safeguard the
confidentiality of information furnished to it at the
request of the person furnishing same, unless such
information must be made public in the interest of
establishing a record for the future guidance of persons
subject to this law.
g. Any owner who has duly registered a housing accommodation
pursuant to section 26-517 of this chapter shall not be
required to maintain or produce any records relating to
rentals of such accommodation for more than four years prior
to the most recent registration or annual statement for such
accommodation.
h. The state division of housing and community renewal may, by
regulation, provide for administrative review of all orders
and determinations issued by it pursuant to this chapter.
Any such regulation shall provide that if a petition for
such review is not determined within ninety days after it is
filed, it shall be deemed to be denied. However, the
division may grant one extension not to exceed thirty days
with the consent of the party filing such petition; any
further extension may only be granted with the consent of
all parties to the petition. No proceeding may be brought
pursuant to article seventy-eight of the civil practice law
and rules to challenge any order or determination which is
subject to such administrative review unless such review has
been sought and either (1) a determination thereon has been
made or (2) the ninety day period provided for determination
of the petition for review (or any extension thereof) has
expired.
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Sec. 26-517. RENT REGISTRATION.
a. Each housing accommodation which is subject to this law
shall be registered by the owner thereof with the state
division of housing and community renewal prior to July
first, nineteen hundred eighty-four upon forms prescribed by
the commissioner. The data to be provided on such forms
shall include the following: (1) the name and address of the
building or group of buildings or development in which such
housing accommodation is located and the owner and the
tenant thereof; (2) the number of housing accommodations in
the building or group of buildings or development in which
such housing accommodation is located; (3) the number of
housing accommodations in such building or group of
buildings or development subject to this code and the number
of such housing accommodations subject to the local
emergency housing rent control act; (4) the rent charged on
the registration date; (5) the number of rooms in such
housing accommodation; and (6) all services provided on the
date that the housing accommodation became subject to this
chapter.
a.1. Within thirty days of changing his address, the managing
agent or, if there is no managing agent, the owner, of a
building or group of buildings or development, such agent or
owner shall advise the state division of housing and
community renewal and all tenants of his new address.
b. Registration pursuant to this section shall not be subject
to the freedom of information law provided that registration
information relative to a tenant owner, lessor or subtenant
shall be made available to such party or his or her
authorized representative.
c. Housing accommodations which become subject to this chapter
after the initial registration period must be registered
within ninety days thereafter. Registration of housing
accommodations subject to the local emergency housing rent
control act immediately prior to the date of initial
registration as provided in this section shall include, in
addition to the items listed above, where existing the
maximum base rent immediately prior to the date that such
housing accommodations become subject to this chapter.
d. Copies of the registration shall be filed with the state
division of housing and community renewal in such place or
places as it may require. In addition one copy of that
portion of the registration statement which pertains to the
tenant's unit must be mailed by the owner to the tenant in
possession at the time of initial registration or to the
first tenant in occupancy if the apartment is vacant at the
time of initial registration.
e. The failure to file a proper and timely initial or annual
rent registration statement shall, until such time as such
registration is filed, bar an owner from applying for or
collecting any rent in excess of the legal regulated rent in
effect on the date of the last preceding registration
statement or if no such statements have been filed, the
legal regulated rent in effect on the date that the housing
accommodation became subject to the registration
requirements of this section. The filing of a late
registration shall result in the prospective elimination of
such sanctions.
f. An annual statement shall be filed containing the current
rent for each unit and such other information contained in
subdivision a of this section as shall be required by the
division. The owner shall provide each tenant then in
occupancy with a copy of that portion of such annual
statement as pertains to the tenant's unit.
g. Each housing accommodation for which a timely registration
statement was filed between April first, nineteen hundred
eighty-four and June thirtieth nineteen hundred eighty-four,
pursuant to subdivision a of this section shall designate
the rent charged on April first, nineteen hundred eighty-
four, as the rent charged on the registration date.
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Sec. 26-517.1. FEES.
a. The Department of Finance shall collect from the owner of
each housing accommodation registered pursuant to Section 26-
517 of this law an annual fee in the amount of ten dollars
per year for each unit subject to this law, in order to
defray costs incurred by the city pursuant to subdivision c
of section eight of the emergency tenant protection act of
nineteen hundred seventy-four.
b. Pursuant to the provisions of subdivision d of section eight
of the emergency tenant protection act of nineteen hundred
seventy-four, the failure to pay the fee imposed by the
provisions of subdivision a of this section shall preclude
an owner from applying for or collecting any further rent
increases authorized under this chapter or any other
provision of law, and the late payment of such fee shall
result in the prospective elimination only of the sanctions
contained therein Interest shall be imposed on such late
payment at the same rate as is imposed on a delinquent tax
on real property.
c. The provisions of subdivision a of this section shall be
deemed to have been in full force and effect as of April
first, nineteen hundred eighty-four.
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Sec. 26-518. HOTEL INDUSTRY STABILIZATION ASSOCIATION.
a. The hotel industry stabilization association registered with
the department of housing preservation and development is
hereby divested of all its powers and authority under this
law. The stabilization code heretofore promulgated by such
association, as approved by the department of housing
preservation and development, is hereby continued to the
extent that it is not inconsistent with law. Such code may
be amended from time to time provided, however, that no such
amendments shall be promulgated except by action of the
commissioner of the division of housing and community
renewal and provided further, that prior to the adoption of
any such amendments, the commissioner shall (i) submit the
proposed amendments to the commissioner of the department of
housing preservation and development and allow such
commissioner thirty days to make comments or recommendations
on the proposed amendments, (ii) review the comments or
recommendations, if any, made pursuant to clause (i) of this
subdivision and make any revisions to the proposed
amendments which the commissioner of the division of housing
and community renewal deems appropriate provided that any
such review and revision shall be completed within thirty
days of receipt of such comments or recommendations and
(iii) thereafter hold a public hearing on the proposed
amendments. No provision of such code shall impair or
diminish any right or remedy granted to any party by this
law or any other provision of law.
b. A code shall not be approved hereunder unless it appears to
the commissioner of the division of housing and community
renewal that it provides for a cash refund or a credit to be
applied against future rent, in the amount of the excess, if
any, of rent paid since January first, nineteen hundred
sixty-nine, over the permissible fair increase, and that it
gives a hotel tenant the right to request a six month lease
at the permissible rent rate within thirty days of the
approval of such code, or, if his or her tenancy commences
after such thirty day period, within thirty days of the
commencement of his or her tenancy, and that is in
compliance with the standards set forth in subdivision c of
section 26-511 to the extent such standards are applicable
to the hotel industry, and that it provides specifically
that no owner shall refuse to extend or renew a tenancy for
the purpose of preventing a hotel tenant from becoming a
permanent tenant.
c. Each landlord who is made subject to this law pursuant to
section 26-505 or 26-506 of this code shall furnish to each
permanent tenant signing a new or renewal lease, a rider
describing the rights and duties of owners and tenants as
provided under the rent stabilization law of nineteen
hundred sixty-nine. Such rider shall be in a form
promulgated by the commissioner and shall conform to the
intent of section 5-702 of the general obligations law and
shall be in a print size larger than the print size of the
lease to which the rider is attached.
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Sec. 26-519. SUSPENSION OF REGISTRATION.
The department of housing preservation and development may, after
notice and opportunity for hearing, suspend the registration of
an association if it finds that the articles, code, rules or
other conduct thereof do not conform to the requirements of this
law and any such suspension shall remain in effect until such
administration issues an order determining that such articles,
rules, code or other conduct have been modified to conform with
such requirements. For the purposes of this law, the members in
good standing of the association shall be deemed to be members in
good standing of an association registered with the department of
housing preservation and development during and only during, the
first sixty days of such period of suspension.
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Sec. 26-520. EXPIRATION DATE.
This chapter shall expire on April first, nineteen hundred ninety-
one unless rent control shall sooner terminate as provided in
subdivision three of section one of the local emergency housing
rent control law.
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