NEW YORK CITY RENT CONTROL
CITY RENT AND REHABILITATION LAW
N.Y.C. Admin. Code Sections 26-401 -- 26-415
TABLE OF CONTENTS
Section
26-401. Declaration and findings.
26-402. Short title.
26-403. Definitions.
26-403.1. High income rent decontrol.
26-404. City rent agency; division of housing and community
renewal.
26-405. General powers and duties of the city rent agency.
26-406. Tax abatement for properties subject to rent exemption
orders.
26-407. Labor cost pass-along.
26-408. Evictions.
26-409. Investigation; records; reports.
26-410. Procedure.
26-411. Judicial review.
26-412. Prohibitions.
26-413. Enforcement and penalties.
26-414. Decontrol on basis of vacancy rate.
26-415. Surveys of need for rent control.
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§ 26-401. Declaration and findings.
a. The council hereby finds that a serious public emergency
continues to exist in the housing of a considerable number
of persons in the city, which emergency was created by war,
the effects of war and the aftermath of hostilities; 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; 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
through enactment of local legislation by the council
continues to be imperative; that such action, as a temporary
measure to be effective until it is determined by the
council that such emergency no longer exists, 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 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; that in order to prevent
uncertainty, hardship and dislocation, the provisions of
this chapter are declared to be necessary and designed to
protect the public health, safety and general welfare.
b. The council further declares that it is city policy to
utilize the powers conferred by this chapter, in a manner
consistent with the purposes and provisions thereof, to
encourage and promote the improvement and rehabilitation of
the housing accommodations subject to control hereunder, for
the purpose of protecting the public health, safety and
general welfare.
Added by Laws 1985, Ch. 907, § 1, eff. Sept. 1, 1986.
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§ 26-402. Short title.
This chapter shall be known and may be cited as the city rent and
rehabilitation law.
Added by Laws 1985, Ch. 907, § 1, eff. Sept. 1, 1986.
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§ 26-403. Definitions.
When used in this chapter, unless a different meaning clearly
appears from the context, the following terms shall mean and
include:
a. "Administrator." The commissioner of the state division of
housing and community renewal.
b. "City rent agency." The state division of housing and
community renewal.
c. "Documents." Records, books, accounts, correspondence,
memoranda and other documents, drafts and copies of any of
the foregoing.
d. "Federal act." The emergency price control act of nineteen
hundred forty-two, and as thereafter amended and as
superseded by the Housing and rent act of nineteen hundred
forty-seven, and as the latter was thereafter amended prior
to may first, nineteen hundred fifty, and regulations
adopted pursuant thereto.
e. "Housing accommodation."
1. Except as otherwise provided in paragraph two of this
subdivision e, any building or structure, permanent or
temporary or any part thereof, occupied or intended to
be occupied by one or more individuals as a residence,
home, sleeping place, boarding house, lodging house or
hotel, together with the land and buildings appurtenant
thereto, and all services, privileges, furnishings,
furniture and facilities supplied in connection with
the occupation thereof, and any plot or parcel of land
(as distinguished from any building constructed or
placed thereon) which is not owned by the city and
which was rented prior to may first, nineteen hundred
fifty, for the purpose of permitting the tenant thereof
to construct his or her own private dwelling (as such
term "private dwelling" is defined in subdivision six
of section four of the multiple dwelling law) thereon
and on which there exists such a private dwelling owned
and occupied by a tenant of such plot or parcel, or on
or after July first, nineteen hundred seventy-one such
private dwelling is owned or occupied by a member of
the tenant's immediate family regardless of whether the
member of the tenant's immediate family was in
occupancy of the private dwelling with the tenant prior
to the transfer of title or possession or thereafter
took occupancy of the private dwelling pursuant to such
transfer of title or possession, including:
(a) Entire structures or premises as distinguished
from the individual housing accommodations
contained therein, wherein twenty-five or less
rooms are rented or offered for rent by any
lessee, sublessee, or other tenant of such entire
structure or premises; and
(b) Housing accommodations which, under subparagraph
(i) of paragraph two of this subdivision e, are or
at any time become exempt from or not subject to
control and which, while in such status, are
certified by a city agency having jurisdiction to
be a fire hazard or in a continued dangerous
condition or detrimental to life or health; and
the subsequent removal of the conditions on which
such certification is based shall not cause any
such housing accommodation to become exempt from
or not subject to control; and
(c) Notwithstanding any other provision of this
chapter, all housing accommodations in any
multiple dwelling aided by a loan made by the city
under article eight of the private housing finance
law; provided that where any such housing
accommodation, if this subparagraph (c) were not
applicable thereto, would not be subject to rent
control under this chapter and the regulations
thereunder prior to the date on which rent control
with respect to such multiple dwelling is required
by the provisions of such article eight to begin,
this subparagraph (c) shall operate to make such
housing accommodation subject to rent control
under this chapter and the regulations thereunder
only on and after such date; and provided further
that if any such housing accommodation, on the
date on which rent control with respect thereto
ceases to be required by such article eight, would
not be subject to rent control, or would be
eligible for decontrol on the landlord's
application, under the provisions of this chapter
and the regulations thereunder, if this
subparagraph (e) were not applicable thereto, then
such housing accommodation, after such date, shall
not be subject to rent control, or shall be
eligible for decontrol, as the case may be, in the
same manner as if this subparagraph (c) had not
been applicable to such housing accommodation.
2. The term "housing accommodation" shall not include:
(a) structures in which all of the housing
accommodations are exempt or not subject to
control under this chapter or any regulation
issued thereunder; or
(b) a hospital, convent, monastery, asylum, public
institution, or college or school dormitory or any
institution operated exclusively for charitable or
educational purposes on a nonprofit basis; or
(c) notwithstanding any previous order, finding,
opinion or determination of the state rent
commission, housing accommodations in any
establishment which on March first, nineteen
hundred fifty, was and still is commonly regarded
as a hotel in the community in which it is located
and which customarily provides hotel services such
as maid service, furnishing and laundering of
linen, telephone and secretarial or desk service,
use and upkeep of furniture and fixtures and
bellboy service, provided, however, that the term
"hotel" shall not include any establishment which
is commonly regarded in the community as a rooming
house, nor shall it include any establishment not
identified or classified as a "hotel," "transient
hotel" or "residential hotel" pursuant to the
federal act irrespective of whether such
establishment either provides some services
customarily provided by hotels, or is represented
to be a hotel, or both, and provided further that
housing accommodations in hotels which have been
and still are occupied by a tenant who has resided
in such hotel continuously since December second,
nineteen hundred forty-nine, so long as such
tenant occupies the same, shall continue to remain
subject to control under this chapter; or
(d) Any motor court, or any part thereof; any trailer
or trailer space used exclusively for transient
occupancy or any part thereof (provided that
nothing herein contained shall be construed as
legalizing or authorizing any use or occupancy of
a trailer or trailer space where prohibited by
law); or any tourist home serving transient guests
exclusively, or any part thereof; or
(e) Nonhousekeeping, furnished housing accommodations,
located within a single dwelling unit not used as
a rooming or boarding house, but only if: (1) no
more than two tenants for whom rent is paid
(husband and wife being considered one tenant for
this purpose), not members of the landlord's
immediate family, live in such dwelling unit; and
(2) the remaining portion of such dwelling unit is
occupied by the landlord or his or her immediate
family; or
(f) Housing accommodations owned and operated by the
united states, the state of New York, or the New
York city housing authority; or owned by the city
and under the jurisdiction of the city department
of housing preservation and development pursuant
to the New York city charter, or owned and
operated by the city; or housing accommodations in
buildings in which rentals are fixed by or subject
to the supervision of the state commissioner of
housing and community renewal;
(g) Housing accommodations in buildings operated
exclusively for charitable purposes on a nonprofit
basis; or
(h) Except as otherwise provided in item six of
subparagraph (i) of this paragraph two, housing
accommodations which were completed on or after
February first, nineteen hundred forty-seven,
provided, however, that, the former structure or
any lesser portion thereof, was not vacated, on or
after the effective date of this first provision
of this subparagraph (h), other than by voluntary
surrender of possession or in the manner provided
in this chapter and provided further that maximum
rents established under the veterans' emergency
housing act, for priority constructed housing
accommodations completed on or after February
first, nineteen hundred forty-seven, shall
continue in full force and effect, if such
accommodations are being rented to veterans of
world war ii or their immediate families who, on
June thirtieth nineteen hundred forty-seven,
either occupied such housing accommodations or had
a right to occupy such housing accommodations at
any time on or after July first, nineteen hundred
forty-seven, under any agreement whether written
or oral; or
(i) Except as otherwise provided in subparagraphs (b)
and (c) of paragraph one of this subdivision e:
(1) housing accommodations created by a change
from a nonhousing use to a housing use on or
after February first, nineteen hundred forty-
seven, but only if the space comprising such
accommodations was devoted to a nonhousing
use on February first, nineteen hundred forty-
seven; or
(2) Additional housing accommodations, other than
rooming house accommodations, created by
conversion on or after February first,
nineteen hundred forty-seven, provided,
however, that any housing accommodations
created as a result of any such conversion on
or after May first, nineteen hundred fifty,
shall continue to be subject to rent control
as provided for herein unless the state rent
commission, prior to may first, nineteen
hundred sixty-two, issued an order
decontrolling them, or the city rent agency,
on or after such date, issues an order
decontrolling them, and the city rent agency
shall issue such an order if there has been a
structural change involving substantial
alterations or remodeling and such change has
resulted in additional housing accommodations
consisting of self-contained family units as
defined by regulations issued by the city
rent agency, with due regard for the shortage
of housing accommodations suitable for family
occupancy and for the purposes of this
chapter in relation thereto; and provided
further, that any such order of decontrol of
the state rent commission or the city rent
agency shall remain effective after April
thirtieth, nineteen hundred sixty-two only so
long as the housing accommodations are not
occupied for other than single family
occupancy; and provided further, that any
such order of decontrol shall not apply to
that portion of the original housing
accommodations occupied by a tenant in
possession at the time of the conversion, but
only so long as that tenant continues in
occupancy; and provided further, that no such
order of decontrol shall be issued unless
such conversion occurred after the entire
structure, or any lesser portion thereof as
may have been thus convened, was vacated by
voluntary surrender of possession, or in the
manner provided in this chapter, or (where
vacated prior to may first, nineteen hundred
sixty-two) in the manner provided by section
five of the state rent act, and provided
funkier that notwithstanding any of the
foregoing provisions of this item two, no
such order of decontrol shall be issued with
respect to housing accommodations of any type
resulting from conversion, after April
thirtieth, nineteen hundred sixty-two, to
rooming house accommodations or to single
room occupancy accommodations, and such
resulting accommodations shall continue to be
housing accommodations subject to rent
control under this chapter and the regulation
thereunder; or
(3) Housing accommodations rented after April
first, nineteen hundred fifty-three, which
were or are continuously occupied by the
owner thereof for a period of one year prior
to the date of renting; provided, however,
that this item three shall not apply where
the owner acquired possession of the housing
accommodation after the issuance of a
certificate of eviction under subdivision two
of section five of the state rent act or
under subdivision b of section 26-408 of this
chapter within the two year period
immediately preceding the date of such
renting, and provided further that this item
three shall not apply to any such housing
accommodation rented on or after may first,
nineteen hundred sixty-two, where an
exemption of any housing accommodation in the
same building was obtained under paragraph
(h) of subdivision two of section two of the
state rent act or has been previously
obtained under this item three, and provided
further, that this exemption shall remain
effective only so long as the housing
accommodations are not occupied for other
than single family occupancy, or
(4) Housing accommodations in one or two family
houses which were or shall become vacant on
or after April first, nineteen hundred fifty-
three, provided however, that this exemption
shall remain effective only so long as the
housing accommodations are not occupied for
other than single family occupancy, or
* So in original. No paragraph (5) was enacted.
(6) (i) Such housing accommodations resulting
from substantial demolition (as such
accommodations are defined in this item six),
as are decontrolled by order of the city rent
agency pursuant to this item six; provided
that all housing accommodations resulting
from substantial demolition which are not so
decontrolled shall continue to be housing
accommodations subject to rent control under
this chapter and the regulations thereunder.
(ii) The term "housing accommodation
resulting from substantial demolition," as
used herein, shall mean any housing
accommodation (a) which is created on or
after may first, nineteen hundred sixty-two,
as a result of the substantial demolition of
a multiple dwelling and the reconstruction of
such building m such manner as to retain any
portion thereof existing prior to such
demolition, and (b) which is so created after
the issuance of one or more certificates
permitting the eviction of any tenant or
tenants of such multiple dwelling for the
purpose of effecting such demolition.
(iii) No order shall be issued under this
item six decontrolling any housing
accommodation resulting from substantial
demolition unless, after such reconstruction,
all housing accommodations in the building
are self-contained family units as defined by
regulations issued by the city rent agency,
with due regard for the shortage of housing
accommodations suitable for family occupancy
and for the purposes of this chapter in
relation thereto.
(iv) The city rent agency shall issue
regulations, with due regard for such
shortage and purposes, specifying minimum
requirements for qualifying any housing
accommodation resulting from substantial
demolition as suitable for occupancy by
larger families (including, with respect to
the individual unit, but not limited to,
number of rooms, space suitable for sleeping
purposes and total floor area) and likewise
prescribing, subject to such variations and
classifications as such agency may determine
to be reasonably necessary, the ratio between
the total number of housing accommodations
resulting from substantial demolition In the
building, and the number of such
accommodations which must meet such
requirements for larger family occupancy, in
order that a decontrol order may be granted
hereunder.
(v) The city rent agency shall issue an order
decontrolling all of the housing
accommodations resulting from substantial
demolition in the building, if such
accommodations meet the requirements of sub-
item (iii) of this item six and if the
prescribed proportion thereof meets the
requirements of sub-item (iv) of this Item
six for larger family occupancy; provided
that (a) if all such accommodations meet the
requirements of such sub-item (iii), but less
than the prescribed proportion thereof meet
the requirements of such sub-item (iv), then
the city rent agency shall issue an order
decontrolling only those accommodations which
meet the requirements of both such sub-items;
and (b) any order of decontrol issued under
this item six shall remain effective only so
long as the accommodations decontrolled by
such order are not occupied for other than
single family occupancy. (vi) in the case of
any housing accommodations vacated on or
after March twenty-sixth, nineteen hundred
sixty-four, no order of decontrol shall be
issued under this item six for any housing
accommodations resulting from substantial
demolition thereof unless such reconstruction
occurred after the structure was vacated by
voluntary surrender of possession, or in the
manner provided in this chapter; or
(7) (i) Individual housing accommodations having
unfurnished maximum rents of two hundred and
fifty dollars or more per month as of April
first, nineteen hundred sixty, or furnished
maximum rents of three hundred dollars or
more per month as of April first, nineteen
hundred sixty, which are or become vacant on
or after the effective date of this item
seven; or
(ii) On and after October first, nineteen
hundred sixty-four individual housing
accommodations having unfurnished maximum
rents of three hundred dollars or more per
month as of April first, nineteen hundred
sixty, or furnished maximum rents of three
hundred and sixty dollars or more per month
as of April first, nineteen hundred sixty;
provided, however, that where any such
housing accommodation is occupied by a tenant
whose household contains one or more children
attending an elementary or secondary school,
such housing accommodation shall continue to
remain subject to control under this chapter
and the regulations thereunder until June
thirtieth, nineteen hundred sixty-five; and
provided further, that where such housing
accommodation on March twenty-sixth, nineteen
hundred sixty-four is occupied by a tenant
whose household contains four or more related
persons, it shall continue to remain subject
to control under this chapter and the
regulations thereunder so long as such tenant
remains in occupancy; or
(iii) On and after April first, nineteen
hundred sixty-five individual housing
accommodations having unfurnished maximum
rents of two hundred and fifty dollars to two
hundred ninety-nine dollars and ninety-nine
cents, inclusive, per month as of April
first, nineteen hundred sixty, or furnished
maximum rents of three hundred dollars to
three hundred fifty-nine dollars and ninety-
nine cents inclusive, per month as of April
first, nineteen hundred sixty; provided,
however, that where any such housing
accommodation is occupied by a tenant whose
household contains one or more children
attending an elementary or secondary school,
such housing accommodation shall continue to
remain subject to control under this chapter
and the regulations thereunder until June
thirtieth, nineteen hundred sixty-five; and
provided further, that where such housing
accommodations on March twenty-sixth,
nineteen hundred sixty-four is occupied by a
tenant whose household contains four or more
related persons, it shall continue to remain
subject to control under this chapter and the
regulations thereunder so long as such tenant
remains in occupancy.
(iv) The exemptions provided for in this item
seven shall remain effective only so long as
the housing accommodations are not occupied
for other than single family occupancy.
(v) The term "related persons," as used in
this item seven, shall be limited to the
tenant and a parent, grandparent, child,
stepchild, grandchild, brother or sister of
the tenant or of the tenant's spouse or the
spouse of any of the foregoing, who
customarily occupied the housing
accommodation on and before the effective
date of this item seven. The tenant's spouse
or an unmarried child or grandchild of the
tenant who temporarily resided elsewhere on
the effective date of this item seven because
of attendance at an educational institution
or service in the armed forces of the United
States shall be deemed to be a related person
in occupancy.
(8) No more than two housing accommodations in
any one year period in an owner-occupied
structure containing six or fewer housing
accommodations which are or become vacant on
or after August first, nineteen hundred
seventy by voluntary surrender or pursuant to
section 26-408 of this chapter; provided,
however, that this exemption shall remain
effective only so long as the housing
accommodations are not occupied for other
than residential dwelling purposes and
provided further, that if the city rent
agency shall make a finding of harassment in
violation of subdivision d of section 26-412
of this chapter with respect to a housing
accommodation in a structure containing six
or less housing accommodations, in addition
to all other criminal or civil fines,
penalties injunctive relief and enforcement
penalties and remedies authorized by section
26-413 of this chapter, no housing
accommodation in such structure shall be
decontrolled pursuant to this item eight
until a minimum period of three years has
elapsed since the making of such finding of
harassment by the city rent agency.
Structures containing six or fewer housing
accommodations shall be considered to be
structures containing six or fewer housing
accommodations for the purposes of this item
eight, notwithstanding that such structures
shall contain commercial accommodations in
addition to such housing accommodations.
(9) Housing accommodations which became vacant on
or after June thirtieth nineteen hundred
seventy-one, 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, however, that nothing
contained herein shall be deemed to preclude
the applicability to such housing
accommodations of the emergency tenant
protection act of nineteen seventy-four.
(10) Housing accommodations not occupied by the
tenant, not including subtenants or
occupants, as his or her primary residence,
as determined by a court of competent
jurisdiction. 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.
(j) Upon the issuance of an order of decontrol by the
division, housing accommodations which: (1) are
occupied by persons who have a total annual income
in excess of two hundred fifty thousand dollars
per annum in each of the two preceding calendar
years, as defined in and subject to the
limitations and process set forth in section 26-
403.1 of this chapter; and (2) have a maximum rent
of two thousand dollars or more per month.
Provided however, that this exclusion shall not
apply to housing accommodations which became or
become subject to this law by virtue of receiving
tax benefits pursuant to section four hundred
eighty-nine of the real property tax law.
(k) Any housing accommodation with a maximum rent of
two thousand dollars or more per month which is or
becomes vacant on or April first, nineteen hundred
ninety-four. Provided however, that this exclusion
shall not apply to housing accommodations which
became or become subject to this law by virtue of
receiving tax benefits pursuant to section four
hundred eighty-nine of the real property tax law.
This subparagraph shall not apply however, to or
become effective with respect to housing
accommodations which the commissioner determines
or finds that the landlord or any person acting on
his or her behalf, with intent to cause the tenant
to vacate, has engaged in any course of conduct
(including, but not limited to, interruption or
discontinuance of required 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 in
connection with such course of conduct, any other
general enforcement provision of this law shall
also apply.
f. Landlord. An owner, lessor, sublessor, assignee, or other
person receiving or entitled to receive rent for the use or
occupancy of any housing accommodation or an agent of any of
the foregoing.
g. Maximum rent. The maximum lawful rent for the use of housing
accommodations. Maximum rents may be formulated in terms of
rents and other charges and allowances.
h. Person. An individual, corporation, partnership,
association, or any other organized group of individuals or
the legal successor or representative of any of the
foregoing.
i. Rent. Consideration, including any bonus, benefit or
gratuity demanded or received for or in connection with the
use or occupancy of housing accommodations or the transfer
of a lease of such housing accommodations.
j. State Enabling Act. The local emergency housing rent control
act.
k. State Rent Act. The emergency housing rent control law.
1. State Rent Commission. The temporary state housing rent
commission created by the emergency housing rent control
law.
m. Tenant. A tenant, subtenant, lessee, sublessee, or other
person entitled to the possession or to the use or occupancy
of any housing accommodation.
Added by Laws 1985, Ch. 907, § 1, eff. Sept. 1, 1986.
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§ 26-403.1. High income rent decontrol.
a. For purposes of this section, annual income shall mean the
federal adjusted gross income as reported on the new york
state income tax return. Total annual income means the sum
of the annual incomes of all persons who occupy the housing
accommodation as their primary residence other than on a
temporary basis, excluding bona fide employees of such
occupants residing therein in connection with such
employment and excluding bona fide subtenants in occupancy
pursuant to the provisions of section two hundred twenty-six-
b of the real property law. In the case where a housing
accommodation is sublet, the annual income of the sublessor
shall be considered.
b. On or before the first day of May in each calendar year, the
owner of each housing accommodation for which the maximum
rent is two thousand dollars or more per month may provide
the tenant or tenants residing therein with an income
certification form prepared by the division of housing and
community renewal on which such tenant or tenants shall
identify all persons referred to in subdivision (a) of this
section and shall certify whether the total annual income is
in excess of two hundred fifty thousand dollars in each of
the two preceding calendar years. Such income certification
form shall state that the income level certified to by the
tenant may be subject to verification by the department of
taxation and finance pursuant to section one hundred seventy-
one-b of the tax law and shall not require disclosure of any
income information other than whether the aforementioned
threshold has been exceeded. Such income certification form
shall clearly state that: (i) only tenants residing in
housing accommodations which have a maximum rent of two
thousand dollars or more per month are required to complete
the certification form; (ii) that tenants have protections
available to them which are designed to prevent harassment;
(iii) that tenants are not required to provide any
information regarding their income except that which is
requested on the form and may contain such other information
the division deems appropriate. The tenant or tenants shall
return the completed certification to the owner within
thirty days after service upon the tenant or tenants. In the
event that the total annual income as certified is in excess
of two hundred fifty thousand dollars in each such year, the
owner may file the certification with the state division of
housing and community renewal on or before June thirtieth of
such year. Upon filing such certification with the division,
the division shall, within thirty days after the filing,
issue an order of decontrol providing that such housing
accommodations shall not be subject to the provisions of
this law as of the first day of June in the year next
succeeding the filing of the certification by the owner. A
copy of such order shall be mailed by regular and certified
mail, return receipt requested, to the tenant or tenants and
a copy thereof shall be mailed to the owner.
c. 1. In the event that the tenant or tenants either
fail to return the completed certification to the owner
on or before the date required by subdivision (b) of
this section or the owner disputes the certification
returned by the tenant or tenants, the owner may, on or
before june thirtieth of such year, petition the state
division of housing and community renewal to verify,
pursuant to section one hundred seventy-one-b of the
tax law, whether the total annual income exceeds two
hundred fifty thousand dollars in each of the two
preceding calendar years. Within twenty days after the
filing of such request with the division, the division
shall notify the tenant or tenants that such tenant or
tenants must provide the division with such information
as the division and the department of taxation and
finance shall require to verify whether the total
annual income exceeds two hundred fifty thousand
dollars in each such year. The division's notification
shall require the tenant or tenants to provide the
information to the division within sixty days of
service upon such tenant or tenants and shall include a
warning in bold faced type that failure to respond will
result in an order of decontrol being issued by the
division for such housing accommodation.
2. If the department of taxation and finance determines
that the total annual income is in excess of two
hundred fifty thousand dollars in each of the two
preceding calendar years, the division shall, on or
before november fifteenth of such year, notify the
owner and tenants of the results of such verification.
Both the owner and the tenants shall have thirty days
within which to comment on such verification results.
Within forty-five days after the expiration of the
comment period, the division shall, where appropriate,
issue an order of decontrol providing that such housing
accommodation shall not be subject to the provisions of
this law as of the first day of march in the year next
succeeding the filing of the owner's petition with the
division. A copy of such order shall be mailed by
regular and certified mail, return receipt requested,
to the tenant or tenants and a copy thereof shall be
sent to the owner.
3. In the event the tenant or tenants fail to provide the
information required pursuant to paragraph one of this
subdivision, the division shall issue, on or before
december first of such year, an order of decontrol
providing that such housing accommodation shall not be
subject to the provisions of this law as of the first
day of march in the year next succeeding the last day
on which the tenant or tenants were required to provide
the information required by such paragraph. A copy of
such order shall be mailed by regular and certified
mail, return receipt requested, to the tenant or
tenants and a copy thereof shall be sent to the owner.
4. The provisions of the state freedom of information act
shall not apply to any income information obtained by
the division pursuant to this section.
d. This section shall apply only to subparagraph (j) paragraph
two of subdivision e of section 26-403 of this code.
*****************************************************
§ 26-404. City rent agency; division of housing and community
renewal.
The division of housing and community renewal shall have charge
of and conduct through its own counsel any proceeding under this
chapter of the code, except for the provisions of subdivision n
of section 26-405 and section 26-406 of this chapter which shall
remain under the jurisdiction of the department of housing
preservation and development.
Added by Laws 1985, Ch. 907, § 1, eff. Sept. 1, 1986.
*****************************************************
§ 26-405. General powers and duties of the city rent agency.
a. (1) At the time this chapter shall become effective, the
city rent agency shall establish maximum rents which,
subject to the provisions of subdivision b of this section,
shall be the maximum rents in effect on April thirtieth,
nineteen hundred sixty-two pursuant to the state rent act
and the regulations thereunder.
(2) (a) Notwithstanding the foregoing provision of
this subdivision, and except as provided in
subparagraph (b) of this paragraph two, effective
August first, nineteen hundred seventy, the
maximum rent in effect on July thirty-first,
nineteen hundred seventy shall be adjusted as
follows:
(i) for any individual housing accommodation for
which one or more but less than two full
fifteen per centum rent increases has been
granted since may first, nineteen hundred
fifty-three pursuant to former subparagraph
(d) of paragraph one of subdivision g of this
section the maximum rent shall be increased
by eight per centum.
(ii) For any individual housing accommodation for
which no full fifteen per centum rent
increase has been granted since may first,
nineteen hundred fifty-three pursuant to
former subparagraph (d) of paragraph one of
subdivision g of this section the maximum
rent shall be increased by fifteen per
centum, except that if there was no such
increase for any individual housing
accommodation for which a first rent was
established pursuant to former subdivision m
of this section after July thirty-first,
nineteen hundred sixty-five and before August
first nineteen hundred sixty-eight, the
maximum rent shall be increased by five per
centum, and except that if there was no such
increase for any individual housing
accommodation for which a first rent was
established pursuant to such subdivision on
or after August first, nineteen hundred sixty-
eight there shall be no increase in maximum
rent. On or after August first, nineteen
hundred sevens a landlord may file
application for labor cost rent adjustment
pursuant to subparagraph (l) of paragraph (1)
of subdivision g of this section. In lieu
of such labor cost rent adjustment, the
landlord of a building with twenty or fewer
housing accommodations shall have the option
of filing for a five per centum increase in
maximum rent for any individual housing
accommodation for which two or more full
fifteen per centum increases have been
granted since may first nineteen hundred
fifty-three pursuant to former subparagraph
(d) of paragraph one of subdivision g of this
section.
Nothing contained in this subparagraph (a)
however, shall have the effect of establishing the
maximum rent in an amount less than the maximum
rent in effect on July thirty-first, nineteen
hundred seventy nor of increasing by more than
fifteen per centum the maximum rent for any
housing accommodation.
(b) Where the maximum rent in effect on July thirty-
first, nineteen hundred seventy for any individual
housing accommodation is less than sixty dollars
per month such rent shall be increased effective
August first, nineteen hundred seventy by ten
dollars per month where the housing accommodation
is comprised of three rooms or less and by fifteen
dollars per month where the housing accommodation
is comprised of more than three rooms.
(c) Where a lease is in effect for any housing
accommodation on August first nineteen hundred
seventy, no adjustment of maximum rent for such
accommodation shall become effective until the
expiration of such lease. Where a h accommodation
becomes vacant on or after August first, nineteen
hundred seventy and before January first, nineteen
hundred seventy-two by voluntary surrender of
possession by the tenant the maximum rent shall be
increased by no more than fifteen per centum over
the maximum rent established for such
accommodation at the time the vacancy occurred,
provided that a report is filed with the city rent
agency as prescribed by its regulations. If the
city rent agency shall make a finding of
harassment in violation of subdivision d of
section 26-412 of this chapter for the purpose of
obtaining such a vacancy, in addition to all other
civil or criminal penalties, injunctive relief and
enforcement remedies authorized by section 26-413
of this chapter, no housing accommodation in the
building shall thereafter be entitled to the
benefit of a rental increase as a result of
becoming vacant between the aforesaid dates.
(d) The total of (i) the increase pursuant to
subparagraph (a) of this paragraph or (ii) any
increases granted between December thirty-first,
nineteen hundred sixty-nine and December thirty-
first; nineteen hundred seventy-one pursuant to
subparagraph (a), (b), or (c) of paragraph one of
subdivision g of this section and (iii) any
increase granted on or after the effective date of
this paragraph pursuant to subparagraph (1) of
paragraph one of subdivision g of this section
shall not exceed fifteen per centum of the "1970
base rent." For purposes of this subparagraph, the
"1970 base rent" is the maximum rent on July
thirty-first, nineteen hundred seventy minus the
amount of any increase granted between December
thirty-first, nineteen hundred sixty-nine and July
thirty-first, nineteen hundred seventy pursuant to
subparagraph (a), (b), or (c) of paragraph one of
subdivision g of this section. This subparagraph
shall not operate to decrease any maximum rent
existing on its effective date.
(e) The rent increases provided for in this paragraph
two shall be collectible upon the landlord's
filing a report with the city rent agency on forms
to be prescribed by such agency, including
simplified forms for landlords of buildings with
twelve or fewer housing accommodations, and giving
such notice to the tenant as such agency may
prescribe, subject to adjustment upon order of the
city rent agency. The report shall contain a
certified statement by the landlord that there is
no legally habitable rent controlled housing
accommodation in the building which has not been
rented for a period of six months or more on the
date of the filing of such report, or that if
there is such a housing accommodation, the reasons
it has not been rented is that it is being altered
pursuant to a permit issued by the department of
buildings no later than three months after the
vacancy commenced and that the alteration is of
such a nature that the accommodation must be kept
vacant while it is being made or for such other
cause found by the city rent agency not to be
inconsistent with the purpose of this chapter,
provided further that in the case of an alteration
It is commenced within sixty days from the
issuance of said permit. A copy of the permit and
the application therefor shall accompany the
report. No report shall be accepted for filing and
no rent increase provided for in this paragraph
two shall be collected in the absence of any such
certified statement by the landlord. Any excess
shall be credited to the tenants in full
commencing with the rental payment following the
receipt by the landlord of such order of
adjustment. If such report is filed on or before
October thirty-first, nineteen hundred seventy,
the increase shall take effect August first,
nineteen hundred seventy. If the report is filed
thereafter, such increase shall take effect with
the first rental payment following filing.
(f) The rent increases provided for in this paragraph
two shall not be collected for the period between
March thirty-first, nineteen hundred and seventy-
one and December thirty-first, nineteen hundred
seventy-one until the landlord shall have filed
with the city rent agency a certified statement
attesting that for every month for which he or she
has received a rent increase pursuant to
subparagraphs (a) and (b) of this paragraph two,
he or she has expended or incurred in the
operation, maintenance and improvements of the
housing accommodations from which increases were
collected an amount which equals the amount
expended per month for such purpose averaged over
the preceding five years, or such lesser period
that he or she has been landlord of such
properties, plus ninety per centum of all
increased rents so collected.
(3) The city rent agency shall establish maximum rents to
be effective January first, nineteen hundred seventy-
two by dividing the maximum gross building rental from
all housing accommodations in the property whether or
not subject to or exempt from control under this
chapter by the number of such accommodations, after
giving consideration to such factors as may be
prescribed by formula, such as size and location of
housing accommodations and number of rooms. Such
maximum gross building rental shall be computed on the
basis of real estate taxes, water rates and sewer
charges and an operation and maintenance expense
allowance, a vacancy allowance not in excess of two per
cent, and a collection loss allowance, both as
prescribed by such agency, and an eight and one-half
per centum return on capital value. The operating and
maintenance expense allowance shall include provision
for the cost of fuel, utilities, payroll, maintenance
repairs, replacement reserves and miscellaneous charges
attributed to the property, excluding mortgage interest
and amortization, and may be varied by the agency for
different types of properties depending upon such
factors as the year of construction, elevator or non-
elevator buildings, the average number of rooms per
individual housing accommodations in the building.
Capital value shall be equalized assessed valuation as
established pursuant to article twelve-a of the real
property tax law. Where the property receives income
from sources other than such housing accommodations,
the taxes, water and sewer charges and the capital
value attributed to the portion consisting of housing
accommodations shall be in the same ratio of the total
taxes, water and sewer charges (where not computed
separately) and the total capital value as the gross
income from such portion consisting of housing
accommodations bears to the total gross income from the
property, as prescribed by the agency.
The agency shall report to the council on or before
October fifteenth, nineteen hundred seventy-one as to
the status of preparation of the formulas necessary to
implement the rent adjustments to be effective January
first, nineteen hundred seventy-two.
(4) The city rent agency shall establish maximum rents
effective January first, nineteen hundred seventy-four
and biennially thereafter by adjusting the existing
maximum rent to reflect changes, if any, in the factors
which determine maximum gross building rental under
paragraph three of this subdivision except that
commencing January first, nineteen hundred eighty-two,
said maximum rent shall no longer recognize or reflect
the adjustment allocable to changes in heating costs
after April ninth, nineteen hundred seventy-nine.
Notwithstanding any other provisions in this paragraph
to the contrary, commencing January first, nineteen
hundred seventy-four, the city rent agency shall
require each owner to make available for examination
his or her books and all other financial records
relating to the operation of each building under his or
her ownership containing accommodations subject to this
chapter at least once every three years for the purpose
of determining whether the maximum formula rent is
appropriate for each building in light of actual
expenditures therefor and shall also alter such formula
rent to take into account significant variations
between the formula and actual cost experience. The
agency shall also establish maximum costs for the
factors under paragraph three of this subdivision which
determine maximum gross building rental to preclude
increases which would otherwise results from excessive
expenditures in the operation and maintenance of the
building. The return allowed on capital may be revised
from time to time by local law.
(5) Where a maximum rent established pursuant to this
chapter on or after January first, nineteen hundred
seventy-two, is higher than the previously existing
maximum rent, the landlord may not collect more than
seven and one-half percentum increase from a tenant in
occupancy on such date in any one year period, provided
however, that where the period for which the rent is
established exceeds one year, regardless of how the
collection thereof is averaged over such period, the
rent the landlord shall be entitled to receive during
the first twelve months shall not be increased by more
than seven and one-half percentum over the previous
rent and additional annual rents shall not exceed seven
and one-half percentum of the rent paid during the
previous year. Notwithstanding any of the foregoing
limitations in this paragraph five, maximum rent shall
be increased if ordered by the agency pursuant to
subparagraphs (d), (e), (f), (g), (h), (i), (k), (1),
(m) or (n) of paragraph one of subdivision g of this
section. Commencing January first, nineteen hundred
eighty, rent adjustments pursuant to subparagraph (n)
of paragraph one of subdivision g of this section shall
be excluded from the maximum rent when computing the
seven and one-half percentum increase authorized by
this paragraph five. Where a housing accommodation is
vacant on January first, nineteen hundred seventy-two,
or becomes vacant thereafter by voluntary surrender of
possession by the tenants, the maximum rent established
for such accommodations may be collected.
(6) Where a new maximum rent has been established pursuant
to former subdivision m of this section or, following
the repeal of such subdivision, pursuant to
subparagraph (m) of paragraph one of subdivision g of
this section, a new maximum rent shall not be
established pursuant to paragraph three of this
subdivision. Except with respect to a housing
accommodation to which the preceding sentence applies,
where the maximum rent on December thirty-first,
nineteen hundred seventy-one is higher than the maximum
rent established pursuant to paragraph three of this
subdivision, such prior maximum rent shall continue in
effect until the maximum rent under paragraph three, as
adjusted from time to time pursuant to the provisions
of this chapter, shall equal or exceed such prior
maximum rent, at which time the maximum rent for such
housing accommodations shall be as prescribed in this
chapter.
(7) Section eight housing assistance.
(a) Notwithstanding any provision of this chapter, if
during a rental period in which the landlord is
eligible for an adjustment or establishment of
rents pursuant to paragraph three or four of this
subdivision, housing assistance payments are being
made pursuant to section eight of the United
States Housing Act of nineteen hundred thirty-
seven, as amended, with respect to any housing
accommodation covered by this chapter, the maximum
rent collectible from the tenant in occupancy
shall be the lesser of:
(1) the maximum rent established pursuant to
paragraph three of this subdivision as
adjusted pursuant to this chapter, computed
without regard to the limitations of
paragraph five of this subdivision (provided
that in any case the rent paid by the tenant
pursuant to this chapter without regard to-
this paragraph is higher than such rent, the
rent paid shall be substituted for such
rent), or
(2) the contract or fair market rent approved for
the housing accommodation pursuant to federal
law or regulation.
(b) Prior to the collection of any increase in maximum
rent pursuant to this paragraph, the landlord
shall advise the city rent agency of his or her
intent to compute the maximum rent pursuant to
this paragraph.
(c) If a housing accommodation to which this
subdivision applies ceases for any reason to be
governed by this paragraph, the maximum rent
collectible from the tenant shall be computed as
if this paragraph had not applied and any
adjustments thereto which would have been
permitted pursuant to this chapter during the
period such rent was set by this paragraph shall
be proper rental adjustments.
(8) Notwithstanding the provisions of this chapter, upon
the sale in any manner authorized by law of a multiple
dwelling which was previously subject to the provisions
of such chapter and 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, for a dwelling unit which was subject to this
chapter pursuant to the local emergency housing rent
control act 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, the maximum rent shall be the last rent charged
by the city, or on behalf of the city, for such
dwelling unit, which rent shall not exceed the rent
computed pursuant to paragraph three of this
subdivision, computed as of the time of such sale. This
paragraph shall not apply to redemptions from city
ownership pursuant to chapter four of title eleven of
the code.
(9) The city rent agency, prior to establishing biennially
maximum base rents pursuant to this chapter and before
establishing a maximum base rent which is different
from the previously existing maximum base rent for
dwellings covered by this law, shall hold a public
hearing or hearings for the purpose of collecting
information the city rent agency may consider in
establishing maximum base rents. Notice of the date,
time, location and summary of subject matter for the
public hearing or hearings shall be published in the
city record for a period of not less than fourteen
days, and at least once in one or more newspapers of
general circulation at least fourteen 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.
b. Such agency, to effectuate the purposes of this chapter, and
in accordance with the standards set forth in paragraph two
of subdivision c of this section may set aside and correct
any maximum rent resulting from illegality, irregularity in
vital matters or fraud, occurring prior to or after may
first, nineteen hundred sixty-two.
c. (1) whenever such agency determines that such action
is necessary to effectuate the purposes of this
chapter, it may also establish maximum rents for
housing accommodations to which this chapter applies,
where no maximum rent with respect thereto was in
effect on April thirtieth, nineteen hundred sixty-two,
or where no registration statement had been filed with
respect thereto as required by the state rent act, or
where for any other reason the provisions of
subdivision a of this section are not susceptible to
application to any such housing accommodations.
(2) Such rents shall be established, having regard for the
maximum rents for comparable housing accommodations or
any other factors bearing on the equities involved,
consistent with the purposes of this chapter.
d. Where any housing accommodations, which are decontrolled
(including those decontrolled by order) or exempted from
control pursuant to the provisions of subparagraph (i) of
paragraph two of subdivision e of section 26-403 of this
chapter, are certified by any city agency having
jurisdiction to be a fire hazard or in a continued dangerous
condition or detrimental to life or health, the city rent
agency shall establish maximum rents for such housing
accommodations, having regard for the maximum rents for
comparable housing accommodations or any other factors
bearing on the equities involved consistent with the
purposes of this chapter.
e. Notwithstanding any other provision of this chapter, and
subject to the provisions of subdivision f of this section,
provision shall be made pursuant to regulations prescribed
by the city rent agency for the establishment, adjustment
and modification of maximum rents with respect to rooming
house and single room occupancy accommodations, which shall
include those housing accommodations subject to control
pursuant to the provisions of subparagraph (c) of paragraph
two of subdivision e of section 26-403 of this chapter
(other than those accommodations subject to control under
the last proviso of such subparagraph (c)), having regard
for any factors bearing on the equities involved, consistent
with the purposes of this chapter, to correct speculative,
abnormal and unwarranted increases in rent.
f. On or before June thirtieth, nineteen hundred sixty-two, the
city rent agency shall undertake a survey and investigation
of all factors affecting rents, rental conditions and rental
practices with respect to rooming houses and single room
occupancy accommodations within the city for the purpose of
determining whether the provisions of this chapter and the
regulations thereunder relating to the establishment and
adjustment of maximum rents for rooming house and single
room occupancy accommodations are reasonably designed to
prevent exaction of unreasonable and oppressive rents. Not
later than January fifteenth, nineteen hundred sixty-three,
such agency shall submit to tine' council a report setting
forth the results of such survey and investigation, together
with the findings and recommendations of such agency and any
amendments to this chapter and the regulations thereunder
which such agency may deem necessary or desirable for the
accomplishment of the purposes of this chapter in relation
to such accommodations. During the period between may first,
nineteen hundred sixty-two and the thirtieth day next
succeeding the date of the submission of such report to the
council (1) no application for an increase in any maximum
rent for any rooming house or single room occupancy
accommodations may be filed on any ground other than those
specified in subparagraphs (f) and (g) of paragraph one of
subdivision g of this section, and (2) no maximum rents for
any rooming house or single room occupancy accommodations
shall be increased on any grounds other than those specified
in such subparagraphs (f) and (g), provided that where the
maximum rents for any such accommodations were or are
decreased prior to or during such period because of the
landlord's reduction of living space, essential services,
furniture, furnishings or equipment, and such reduction has
been corrected, an application for restoration of the rent
decrease may be filed and such rents may be adjusted so as
to fix maximum rents which the city rent agency may
determine to be proper, pursuant to the provisions of
subdivision e of this section, but which shall not in any
event exceed the maximum rents for such accommodations in
effect immediately prior to such rent decrease.
g. (1) The city rent agency may from time to time adopt,
promulgate, amend or rescind such rules, regulations
and orders as it may deem necessary or proper to
effectuate the purposes of this chapter, including
practices relating to recovery of possession; provided
that such regulations can be put into effect without
general uncertainty, dislocation and hardship
inconsistent with the purposes of this chapter; and
provided further that such regulations shall be
designed to maintain a system of rent controls at
levels which, in the judgment of such agency, are
generally fair and equitable and which will provide for
an orderly transition from and termination of emergency
controls without undue dislocations, inflationary price
rises or disruption. Provision shall be made, pursuant
to regulations prescribed by such agency, for
individual adjustment of maximum rents where:
(a) The rental income from a property yields a net
annual return of less than six per centum of the
valuation of the property.
(1) Such valuation shall be the current assessed
valuation established by the city, which is
in effect at the time of the filing of the
application for an adjustment under this
subparagraph (a); provided that:
(i) The city rent agency may make a
determination that the valuation of the
property is an amount different from
such assessed valuation where there has
been a reduction in the assessed
valuation for the year next preceding
the effective date of the current
assessed valuation in effect at the time
of the filing of the application; and
(ii) Such agency may make a determination
that the value of the property is an
amount different from the assessed
valuation where there has been a bona
fide sale of the property within the
period February first, nineteen hundred
sixty-one, and the time of filing of the
application, as the result of a
transaction at arm's length, on normal
financing terms, at a readily
ascertainable price, and unaffected by
special circumstances such as but not
limited to a forced sale exchange of
property, package deal, wash sale or
sale to a cooperative, provided however,
that where an application was filed
under this subparagraph (a) on or before
the effective date of this subitem (ii),
the city rent agency may determine the
value of the property on the basis that
there has been a bona fide sale of the
property within the period between March
fifteenth, nineteen hundred fifty-eight,
and the time of the filing of the
application. In determining whether a
sale was on normal financing terms, such
agency shall give due consideration to
the following factors:
(a) the ratio of the cash payment
received by the seller to (1) the
sales price of the property and (2)
the annual gross income from the
property;
(b) the total amount of the outstanding
mortgages which are liens against
the property (including purchase
money mortgages) as compared with
the assessed valuation of the
property;
(c) the ratio of the sales price to the
annual gross income of the
property, with consideration given
to the total amount of rent
adjustments previously granted,
exclusive of rent adjustments
because of changes in dwelling
space, services, furniture,
furnishings or equipment, major
capital improvements, or
substantial rehabilitation;
(d) the presence of deferred
amortization in purchase money
mortgages, or the assignment of
such mortgage at a discount;
(e) Any other facts and circumstances
surrounding such sale which, in the
judgment of such agency, may have a
bearing upon the question of
financing; and
(iii) Where the assessed valuation of the
land exceeds four times the assessed
valuation of the buildings thereon,
the city rent agency may determine a
valuation of the property equal to
five times the assessed valuation of
the buildings, for the purposes of
this subparagraph (a).
(2) An application for an increase in any maximum
rent under this subparagraph (a) of this
paragraph one may not be filed with respect
to any property if, on the date when the
application is sought to be filed:
(i) Less than two years have elapsed since
the date of the filing of the last prior
application for an increase under this
subparagraph (a) of this paragraph one
with respect to such property, which
application resulted in the granting of
an increase; or
(ii) Less than two years have elapsed since
the last sale of the property, and the
application is based upon a sale price
in excess of the assessed valuation.
This subitem shall not apply, however,
where less than two years have elapsed
since the last sale of the property and
the application is based upon a sale
within such two-year period at a price
in excess of the assessed valuation, if
such price is less than the price in the
last sale which meets the criteria
heretofore specified in this
subparagraph (a) occurring prior to two
years before the application is sought
to be filed and since February first,
nineteen hundred sixty-one.
(3) No increase in maximum rents shall be granted
under this subparagraph (a) by the city rent
agency while there is pending without final
disposition any judicial proceeding to
correct the final determination of the tax
commission with respect to the assessed
valuation of such property, (a) for the city
fiscal year in which the landlord filed the
application for such increase or (b) for the
city fiscal year immediately preceding the
filing of the application for such increase.
(4) For the purposes of this subparagraph (a):
(i) Net annual return shall be the amount by
which the earned income exceeds the
operating expenses of the property,
excluding mortgage interest and
amortization, and excluding allowances
for obsolescence and reserves, but
including an allowance for depreciation
of two per centum of the value of the
buildings exclusive of the land, or the
amount shown for depreciation of the
buildings in the latest required federal
income tax return, whichever is lower;
provided, however, that no allowance for
depreciation of the buildings shall be
included where the buildings have been
fully depreciated for federal income tax
purposes or on the books of the owner;
and
(ii) Test year shall be the most recent full
calendar year or the landlord's most
recent fiscal year or any twelve
consecutive months ending not more than
ninety days prior to the filing of the
application for an increase;
(b) Where a building contains no more than nineteen
rental units and the landlord has not been fully
compensated by increases in rental income
sufficient to offset unavoidable increases in
property taxes, fuel, utilities, insurance and
repairs and maintenance, excluding mortgage
interest and amortization, and excluding allowance
for depreciation, obsolescence and reserves, which
have occurred since the federal date determining
the maximum rent; or
(c) The landlord operates a hotel or rooming house or
owns a cooperative apartment and has not been
fully compensated by increases in rental income
from the controlled housing accommodations
sufficient to offset such unavoidable increases in
property taxes and other costs as are allocable to
such controlled housing accommodations, including
costs of operation of such hotel or rooming house,
but excluding mortgage interest and amortization,
and excluding allowances for depreciation,
obsolescence and reserves, which have occurred
since the federal date determining the maximum
rent or the date the landlord commenced the
operation of the property, whichever is later; or
(d) The landlord and tenant in occupancy voluntarily
enter into a valid written lease in good faith
with respect to any housing accommodation, which
lease provides for an increase in the maximum rent
on the basis of specified increased services,
furniture, furnishings, or equipment, provided the
city rent agency determines that the specified
increased services, furniture, furnishings or
equipment have a market value commensurate with
the increased rent, the increase maximum rent is
not in excess of fifteen per centum and the lease
is for a term of not less than two years, provided
further that a report of lease is filed as
prescribed by regulations issued by the city rent
agency or has been otherwise accepted by such
agency, and provided further, that where the
entire structure, or any lesser portion thereof
was vacated by order of a city department having
jurisdiction, on or after November twenty-second,
nineteen hundred sixty-three and any tenants
therein were relocated by the department of
relocation, or such structure was boarded up by
the department of real estate, such lease
increases in subsequently executed leases shall
not become effective for any housing
accommodations in the structure until such
departments have been reimbursed for expenses
necessarily incurred in connection with the
foregoing; provided further, however, that the
landlord may obtain such lease increases without
making such reimbursement where the vacating was
caused by fire or accident not resulting from any
unlawful act or omission on the part of the
landlord; or
(e) The landlord and tenant by mutual voluntary
written agreement agree to a substantial increase
or decrease in dwelling space or a change in the
services, furniture, furnishings or equipment
provided in the housing accommodations. An
adjustment under this subparagraph shall be equal
to one-fortieth of the total cost incurred by the
landlord in providing such modification or
increase in dwelling space, services, furniture,
furnishings or equipment, including the cost of
installation, but excluding finance charges,
provided further than an owner who is entitled to
a rent increase pursuant to this subparagraph
shall not be entitled to a further rent increase
based upon the installation of similar equipment,
or new furniture or furnishings within the useful
life of such new equipment, or new furniture or
furnishings. The owner shall give written notice
to the city rent agency of any such adjustment
pursuant to this subparagraph.; or
(f) There has been since March first, nineteen hundred
fifty-nine, an increase in the rental value of the
housing accommodations as a result of a
substantial rehabilitation of the building or
housing accommodation therein which materially
adds to the value of the property or appreciably
prolongs its life, excluding ordinary repairs,
maintenance and replacements; or
(g) There has been since July first, nineteen hundred
seventy, a major capital improvement required for
the operation, preservation or maintenance of the
structure. An adjustment under this subparagraph
(g) shall be in an amount sufficient to amortize
the cost of the improvements pursuant to this
subparagraph (g) over a seven-year period; or
(h) There has been since March first, nineteen hundred
fifty-nine, in structures containing more than
four housing accommodations, other improvements
made with the express consent of the tenants in
occupancy of at least seventy-five per centum of
the housing accommodations; provided, however,
that whenever the city rent agency has determined
that the improvements proposed were part of a plan
designed for overall improvement of the structure
or increases in services, it may authorize
increases in maximum rents for all housing
accommodations affected upon the express consent
of the tenants in occupancy of at least fifty-one
per centum of the housing accommodations, and
provided further that no adjustment granted
hereunder shall exceed fifteen per centum unless
the tenants have agreed to a higher percentage of
increase, as herein provided; or
(i) There has been, since March first, nineteen
hundred fifty-nine, a subletting without written
consent from the landlord or an increase in the
number of adult occupants who are not members of
the immediate family of the tenant, and the
landlord has not been compensated therefor by
adjustment of the maximum rent by lease or order
of the city rent agency or pursuant to the state
rent act or the federal act; or
(j) The presence of unique or peculiar circumstances
materially affecting the maximum rent has resulted
in a maximum rent which is substantially lower
than the rents generally prevailing in the same
area for substantially similar housing
accommodations.
(k) The landlord has incurred, since January first,
nineteen hundred seventy, in connection with and
in addition to a concurrent major capital
improvement pursuant to subparagraph (g) of this
paragraph, other expenditures to improve, restore
or preserve the quality of the structure. An
adjustment under this subparagraph shall be
granted only if such improvements represent an
expenditure equal to at least ten per centum of
the total operating and maintenance expenses for
the preceding year. An adjustment under this
subparagraph shall be in addition to any
adjustment granted for the concurrent major
capital improvement and shall be in an amount
sufficient to amortize the cost of the
improvements pursuant to this subparagraph over a
seven-year period.
(l) (1) The actual labor expenses currently
incurred or to be incurred (pursuant to a
collective agreement or other obligation
actually entered into by the landlord) exceed
the provision for payroll expenses in the
current applicable operating and maintenance
expense allowance under subdivision a of this
section. No application pursuant to this
subparagraph may be granted within one year
from the granting of an adjustment in maximum
rent pursuant to this subparagraph (1), or
pursuant to subparagraph (a) of this
paragraph. Any rent increase the applicant
would be entitled to, or such portion
thereof, shall not exceed a total increase of
seven and one-half per centum per annum of
the maximum rent as provided in paragraph
five of subdivision a of this section.
(2) Any adjustment in the maximum rents pursuant
hereto shall be subject to:
(i) The adjustment in maximum rent for any
twelve-month period for any housing
accommodation shall not exceed four
percent of the maximum rent in effect on
December thirty-first, nineteen hundred
seventy-three.
(ii) Where the increase in labor costs
compensable herein is the result of an
industry-wide collective bargaining
agreement or a specific agreement in
anticipation of, or subsequent to, an
industry-wide collective bargaining
agreement the adjustment shall be in
such amount (subject to the above
limitation) that the increased rental
income from January first, nineteen
hundred seventy-four to December thirty-
first, nineteen hundred seventy-six
shall reflect the increased labor costs
for the period from April thirtieth,
nineteen hundred seventy-three to April
thirtieth, nineteen hundred seventy-six.
(3) For the purpose of this subparagraph (1) the
increase in labor costs shall be the amount
by which the labor costs (a) actually in
effect and paid, or (b) actually in effect
and paid or payable and fixed and determined
pursuant to agreement on the date of the
filing of the application and projected over
the period ending April thirtieth, nineteen
hundred seventy-six, exceed the labor costs
for the twelve calendar months immediately
preceding the last day of the month in which
the wage agreement became effective.
(4) Notwithstanding any other provision of this
chapter, the adjustment pursuant to this
subparagraph shall be collectible upon the
landlord's filing of a report with the city
rent agency, subject to the provisions of
subparagraph (e) of paragraph two of
subdivision a of this section.
(5) No increase in the maximum rent for any
housing accommodation may be granted under
this subparagraph (1) if on the date when the
application is sought to be filed, less than
the full term of such agreement has elapsed
since the date of the filing of the last
prior application for an increase with
respect to such property under this
subparagraph (1), which application resulted
in the granting of an increase. Where,
however, the landlord establishes the
existence of unique or peculiar circumstances
affecting an increase in labor costs for the
property, the agency may accept such
application where it determines that such
acceptance is not inconsistent with the
purposes of this local law.
(6) The increase authorized herein shall be
apportioned equitably among all the housing
accommodations in the property whether or not
subject to control under this chapter.
(m) Where the rehabilitation or improvement of
substandard or deteriorated housing accommodations
has been financed under a governmental program
providing assistance through loans, loan insurance
or tax abatement or has been undertaken under
another rehabilitation program not so financed but
approved by the commissioner.
(n) (1) The city rent agency shall hereafter
promulgate in January of each year
(i) findings regarding the price increase or
decrease, respectively, for all types of
heating fuel, including numbers two,
four and six home heating oils, utility
supplied steam, gas, electricity and
coal, together with the sales and excise
taxes thereon, on December thirty-first
as compared to the January first in any
year;
(ii) standards for consumption of heating
fuel, which shall be no more than two
hundred twenty-five gallons per year per
room commencing January first nineteen
hundred eighty-one, for buildings using
heating oils for heat with comparable
unit limitations to be established by
the city rent agency for utility
supplied steam, gas, electricity, coal
and any other types of heating systems,
provided that such consumption standards
for heating fuels shall be reduced by
five gallons per room per year for
heating oils and a comparable amount for
other heating fuels for the next
succeeding year and ten gallons per room
per year for heating oils and a
comparable amount for other heating
fuels for two succeeding years
thereafter.
Such findings and consumption standards shall
be published in the City Record.
(2) To obtain a rental adjustment pursuant to
this subparagraph (n), the landlord shall
file a report with the agency on forms
prescribed by the agency and shall:
(i) certify the amount of heating fuel
consumed in the calendar year
immediately prior to the filing of the
report;
(ii) state the type of fuel used and the
number of rooms in the building;
(iii) certify that (a) all essential
services required to be provided have
been and will continue to be
maintained and (b) there has been no
rent reduction order issued pursuant
to this chapter based on the
landlord's failure to provide heat or
hot water during the prior twelve
months;
(iv) certify on information and belief, in
order to qualify for an additional rent
increase pursuant to this subparagraph
(n), that for an individual housing
accommodation, if the maximum rent
collectible pursuant to paragraph five
of subdivision a of this section plus
actual rent adjustments pursuant to this
subparagraph (n) and such additional
rent increase, is equal to or exceeds
the maximum rent established pursuant to
paragraphs three and four of subdivision
a of this section plus the amount
calculated pursuant to subitem (i) of
item three and subitem (i) of item four
of this subparagraph (n), each to be
allocated to such housing accommodation
pursuant to subitem (ii) of item four of
this subparagraph (n), that the landlord
will not be earning an amount m excess
of the statutory return specified in
subparagraph (a) of paragraph one of
subdivision g of this section after
collection of a rent increase pursuant
to this subparagraph (n), with respect
to a building or buildings serviced by a
single heating plant;
(v) report any funds received with respect
to the housing accommodations from any
governmental grant program compensating
such landlord for fuel price increases
during the period for which an
adjustment is obtained pursuant to this
subparagraph (n);
(vi) provide such other information as the
agency may require.
(3) rent adjustments for controlled housing
accommodations for annual heating fuel cost
increases or decreases experienced after
December thirty-first, nineteen hundred
seventy-nine, shall be determined as follows:
(i) the increase or decrease in heating fuel
prices found by the agency for that year
shall be multiplied by the actual
consumption, not to exceed that year's
consumption standard established
pursuant to subitem (ii) of item one of
this subparagraph; and
(ii) seventy-five percentum of such amount
shall be allocated among all rental
space in the building, including
commercial, professional and similar
facilities, provided, for the purposes
of this subparagraph (n), that living
rooms, kitchens over fifty-nine square
feet in area and bedrooms shall be
considered rooms and that bathrooms,
foyers and kitchenettes shall not be
considered rooms.
(4) Rent adjustments for controlled housing
accommodations for heating fuel cost
increases or decreases experienced from April
ninth, nineteen hundred seventy-nine, through
and including December thirty-first, nineteen
hundred seventy-nine, shall be determined as
follows:
(i) the increase or decrease in heating fuel
prices found by the agency for that
period shall be multiplied by seventy-
five percentum of the actual heating
fuel consumption during the period from
January first, nineteen hundred seventy-
nine, through and including December
thirty-first, nineteen hundred seventy-
nine, which consumption shall not exceed
seventy-five percentum of that year's
consumption standard established by the
agency; and
(ii) such amount shall be allocated among all
rental space in the building, including
commercial, professional and similar
facilities, provided, for the purposes
of this subparagraph (n), that living
rooms, kitchens over fifty-nine square
feet in area and bedrooms shall be
considered rooms and that bathrooms
foyers and kitchenettes shall not be
considered rooms.
The city rent agency shall promulgate
findings for heating fuel price increases or
decreases and standards for consumption for
the periods set forth in this item four
thirty days after this local law is enacted.
The standard for consumption shall be no more
than seventy-five percentum of two hundred
thirty gallons per room for buildings using
heating oils for heat with comparable unit
limitations to be established by the city
rent agency for utility supplied steam, gas,
electricity, coal and any other types of
heating systems.
(5) A landlord who files a report pursuant to
this subparagraph and who falsely certifies
shall not be eligible to collect any rent
adjustment pursuant to this subparagraph for
two years following a determination of a
false certification and in addition, any
adjustments obtained pursuant to this
subparagraph for up to two years prior to
such determination shall not be collectible
for that same two year period. Such landlord
shall also be subject to any additional
penalties imposed by law.
(6) A landlord annually may file a report
pursuant to this subparagraph (n) after
promulgation by the agency of the findings
and consumption standards set forth in item
one of subparagraph (n). A rent adjustment
pursuant to such report shall be
prospectively collectible upon the landlord's
serving and filing the report, provided,
however, that if a landlord files such report
within sixty days of the promulgation of such
findings and consumption standards, such rent
adjustment shall be retroactive to and shall
be effective as of the January first of the
year in which the report is filed.
(7) A landlord demanding or collecting a rent
adjustment pursuant to this subparagraph (n)
shall at the time of either the demand or
collection issue to the tenant either a rent
bill or receipt separately setting forth the
amount of the adjustment pursuant to this
subparagraph (n) and the amount of the
maximum rent otherwise demanded or collected.
If the tenant has been issued a valid senior
citizen rent exemption order, the owner shall
also separately state the amount payable by
the senior citizen after the exemption.
(8) In the event that a rent reduction order is
issued by the city rent agency based upon the
landlord's failure to provide heat or hot
water to housing accommodations for which the
landlord is collecting a rent adjustment
pursuant to this subparagraph (n), the rent
adjustment shall not be collected during the
time such rent reduction order is in effect
and for twelve months following the date of
the restoration of the rent reduction. In
addition, the landlord shall not be eligible
to collect any subsequent rent adjustment
pursuant to this subparagraph (n) until
twelve months following the date of the
restoration of the rent reduction.
(9) In the event that the city rent agency
promulgates a finding of a price decrease, if
any landlord who has obtained a rent
adjustment pursuant to this subparagraph (n)
does not file a report for a rent adjustment
pursuant to this subparagraph (n) within
sixty days of the promulgation of such
findings, then all rent adjustments obtained
pursuant to this subparagraph (n) shall not
be collectible for a period of twelve months.
(10) Any rent adjustment obtained pursuant to this
subparagraph (n) shall not be included in the
maximum rent established pursuant to
paragraph four or five of subdivision (a) of
this section.
(11) The city rent agency shall have the power to
promulgate such regulations as it may
consider necessary or convenient to implement
and administer the provisions of this
subparagraph (n). The regulations shall also
require that any rent adjustment granted
pursuant to this subparagraph (n) be reduced
by an amount equal to any governmental grant
received by the landlord compensating the
landlord for any fuel price increases, but
not required by the city, the agency or any
granting government entity to be expended for
fuel related repairs or improvements.
(o) (1) There has been an increase in heating
and heating fuel expenditures in a property
resulting from a city-wide rise in heating
fuel costs such that the verifiable
expenditures for heating or heating fuel in a
property for nineteen hundred seventy-four
exceeds the verifiable expenditures for such
heating or heating fuel during nineteen
hundred seventy-three.
(2) To obtain a rental adjustment pursuant to
this subparagraph (o), the landlord must
certify that he or she is presently
maintaining all essential services required
to be furnished with respect to the housing
accommodations covered by such certification,
and that he or she will continue to so
maintain such essential services for the
period of any such adjustment.
(3) To obtain a rental adjustment pursuant to
this subparagraph (o), the landlord must
certify on information and belief that he or
she will not be earning an amount in excess
of the statutory return specified in
subparagraph (a) of paragraph one of
subdivision g of this section after
collection of such rental adjustment, with
respect to the building or buildings serviced
by a single heating plant, and where the
building, or buildings serviced by a single
heating plant, contains forty-nine or fewer
housing accommodations, the landlord must
certify that the amount expended directly for
heating or heating fuel in nineteen hundred
seventy-four equalled or exceeded ten per
cent of the total rental income which was
derived from the property during nineteen
hundred seventy-four; and, where the
building, or buildings serviced by a single
heating plant, contains fifty or more housing
accommodations the landlord must certify that
the amount expended directly for heating or
heating fuel in nineteen hundred seventy-four
equalled or exceeded seven and one-half
percentum of the total rental income which
was derived from the property during nineteen
hundred seventy-four.
(4) The total rental adjustments for a property
to be allocated or deemed allocated pursuant
to this subparagraph (o) shall not exceed one-
half of the gross amount by which the total
verifiable expenditures for heating or
heating fuel for nineteen hundred seventy-
four exceeds the total verifiable
expenditures for such heating or heating fuel
for nineteen hundred seventy-three.
(5) Such total rental adjustments shall be
allocated or deemed allocated pursuant to
this subparagraph (o) to all housing
accommodations subject to this chapter, to
all other housing accommodations, and to all
commercial, professional and similar
facilities in or associated with the property
in a manner to be determined by the agency.
In no event shall any adjustment in maximum
rent pursuant to this subparagraph (o) for
any housing accommodations subject to this
chapter exceed a monthly increase of two
dollars per room, as defined by item eight
below. In any apartment containing five or
more rooms, any increase shall not exceed the
total of nine dollars.
(6) Any adjustment pursuant to this subparagraph
(o) shall be effective for all or part of the
period July first, nineteen hundred seventy-
five through June thirtieth, nineteen hundred
seventy-six. Any adjustment pursuant to this
subparagraph shall automatically expire no
later than June thirtieth, nineteen hundred
seventy-six.
(7) The rental increases provided for herein
shall be effective and collectible upon the
landlord's filing a report with the agency on
forms prescribed by the agency and upon
giving such notice to the tenants as the
agency shall prescribe subject to adjustments
upon order of the agency.
(8) In determining the amount of an adjustment
allocation of an adjustment pursuant to this
subparagraph (o), only living rooms, kitchens
over fifty-nine square feet in area, dining
rooms and bedrooms shall be considered rooms
bathrooms, foyers, and kitchenettes shall not
be considered rooms.
(2) In any case where any housing accommodation was vacated
on or after the effective date of this paragraph two,
other than by voluntary surrender of possession or in
the manner provided in this chapter, the city rent
agency may by regulations having due regard for the
equities involved, bar adjustments pursuant to
subparagraphs (f) and (g) of paragraph one of this
subdivision g except for work which:
(a) is necessary in order to remove violations against
the property;
(b) is necessary to obtain a certificate of occupancy
if such certificate is required by law; or
(c) could have been performed with a tenant in
physical possession of the housing accommodation.
(3) Any adjustment pursuant to subparagraph (a), (b), or
(c) of paragraph one of this subdivision shall be
subject to the limitation set forth in paragraph five
of subdivision a of this section; provided:
(a) that in ordering an adjustment pursuant to such
subparagraph (a), the city rent agency may waive
such limitation where a greater increase is
necessary to make the earned income of the
property equal to its operating expenses; and
(b) that where due to such limitation the landlord
will not receive the full amount of the rent
increase to which he or she would otherwise be
entitled, the order of the city rent agency shall
increase the maximum rent by a further additional
amount during each succeeding twelve-month period,
not to exceed seven and a half percentum of the
maximum rent in effect on the date of the filing
of the application for an adjustment, under the
maximum rent shall reflect the full increase to
which the landlord is entitled.
(4) Any increase in maximum rent shall be apportioned
equitably among all the controlled housing
accommodations in the property. In making such
apportionment and in fixing the increases in maximum
rents, the city rent agency shall give due
consideration (a) to all previous adjustments or
increases in maximum rents by lease or otherwise; and
(b) to all other income derived from the property,
including income from space and accommodations not
controlled, or the rental value thereof if vacant or
occupied rent-free, so there is allocated to the
controlled housing accommodations therein only that
portion of the amount of increases necessary pursuant
to subparagraph (a), (b), (c) or (k) of paragraph one
of this subdivision g, as is properly attributable to
such controlled accommodations.
(5) The city rent agency shall compile and make available
for public inspection at reasonable hours at its
principal office and at each appropriate local office,
the manual of accounting procedures and advisory
bulletins applicable to applications under
subparagraphs (a), (b) and (c) of paragraph one of this
subdivision g, and all amendments to such manual and
bulletins.
(6) (a) No application for an increase in any maximum
rent may be filed under subparagraph (a), (b) or
(c) of paragraph one of this subdivision g with
respect to any property unless there is annexed to
such application:
(1) A report of search issued by the agency of
the city having jurisdiction stating either
that no violations against such property are
recorded or a receipt (or photocopy thereof)
issued by that agency attesting to the
payment of the fee for the report of search
or that all violations recorded against such
property have been cleared, corrected or
abated; and
(2) A certification by the landlord of such
property that he or she is maintaining all
essential services required to be furnished
and that he or she will continue to maintain
such services so long as an such increase in
the maximum rent continues in effect.
(b) Except as provided in subparagraph (c) of this
paragraph six and paragraph four of subdivision h
of this section, no landlord shall be entitled to
an increase in the maximum rent on any ground
unless he or she certifies that he or she is
maintaining all essential services furnished or
required to be furnished as of the date of the
issuance of the order adjusting the maximum rent
and that he or she will continue to maintain such
services so long as the increase in such maximum
rent continues in effect; nor shall any landlord
be entitled to any increase in the maximum rent on
any ground where an agency of the city having
jurisdiction certifies that the housing
accommodation is a fire hazard or is a continued
dangerous condition or detrimental to life or
health or is occupied in violation of law; nor
shall any landlord be entitled to any increase
where the landlord has not removed the violations
recorded against such property as shown in the
report of search required under subparagraph (a)
of this paragraph six.
(c) Where an application for an increase in any
maximum rent is filed under subparagraph (f)
and/or (g) of paragraph one of this subdivision g,
and the landlord is not entitled to any increase
by reason of the provisions of subparagraph (b) of
this paragraph six, the city rent agency may waive
such provisions and issue orders increasing the
maximum rent effective as of the date of the
issuance of the orders provided, however, that the
landlord agrees in writing to deposit the entire
amount of such increase in maximum rent into an
escrow account administered by the city rent
agency in accordance with rules and regulations to
be promulgated by such agency for the purpose of
obtaining compliance with such provisions and
further agrees to obtain and submit to the city
rent agency within one year from the date of
issuance of such orders; a report of search issued
by the agency of the city having jurisdiction
stating that the violations shown in the report of
search required under subparagraph (a) of this
paragraph six have been removed, cleared,
corrected or abated, and his or her own
certification that he or she is and will continue
to maintain all essential services in accordance
with the provisions of subparagraph (b) of this
paragraph six. In the event the landlord fails to
fully comply with such provisions within one year
from the date of the issuance of the order
increasing the maximum rent, the city agency may,
having due regard for the equities involved,
revoke such orders and direct full refund to the
tenants of the entire increase paid by the tenants
as a result of such orders. Any person serving as
escrow agent shall not be liable except for fraud
or misfeasance.
(d) No new maximum rent shall be established pursuant
to paragraph three or four of subdivision a of
this section unless not more than one hundred
fifty days nor less than ninety days prior to the
effective date thereof, the landlord has certified
that he or she is maintaining all essential
services required to be furnished with respect to
the housing accommodations covered by such
certification, and that he or she will continue to
maintain such services so long as such new maximum
rent is in effect. Each such certification filed
to obtain a new maximum rent pursuant to paragraph
four of subdivision a of this section shall be
accompanied by a certification by the landlord
that he or she has actually expended or incurred
ninety per centum of the total amount of the cost
index for operation and maintenance established
for his or her type of building.
(e) The city rent agency shall establish a counseling
service to provide assistance to tenants and to
landlords of buildings containing nineteen or
fewer housing accommodations, by way of
instruction in the management, maintenance and
upkeep of housing accommodations, their respective
responsibilities thereto, the programs and
enforcement remedies available in the agency and
from other city agencies, and assistance in the
preparation of applications and other forms.
(7) Before ordering any adjustment in maximum rents, the
city rent agency shall accord a reasonable opportunity
to be heard thereon to the tenant and the landlord.
h. (1) whenever in the judgment of the city rent agency
such action is necessary or proper in order to
effectuate the purposes of this chapter, such agency
may, by regulation or order, regulate or prohibit
speculative or manipulative practices or renting or
leasing practices, including practices relating to
recovery of possession, which in the judgment of such
agency are equivalent to or are likely to result in
rent increases inconsistent with the purposes of this
chapter.
(2) Whenever in the judgment of such agency such action is
necessary or proper in order to effectuate the purposes
of this chapter, such agency may provide regulations to
assure the maintenance of the same living space,
essential services, furniture, furnishings and
equipment as were provided on the date determining the
maximum rent, and such agency shall have power by
regulation or order to decrease the maximum rent or
take action as provided in paragraph four of this
subdivision h for any housing accommodation with
respect to which a maximum rent is in effect, pursuant
to this chapter, if it shall find that the livin