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 living
space, essential services, furniture, furnishings or
equipment to which the tenant was entitled on such date
have been decreased.
(3) Whenever any agency of the city having jurisdiction
certifies that any housing accommodation is a fire
hazard or is in a continued dangerous condition or
detrimental to life or health, or is occupied in
violation of law, the city rent agency may issue an
order decreasing the maximum rent or take action as
provided in paragraph four of this subdivision h for
such housing accommodation in such amount as it deems
necessary or proper, until the agency issuing such
certification has certified that such housing
accommodation is no longer a fire or other hazard and
is not in a condition detrimental to life and health
and is not occupied in violation of law.
(4) (a) 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, in lieu of decreasing the maximum
rents as provided in paragraphs two and three of
this subdivision h, enter into a contract wherein
the landlord agrees in writing to deposit all
income derived from the property, including income
from spaces and accommodations not controlled,
into an escrow or trust account for use in
maintaining or restoring essential services and
equipment, for removing violations against the
property or housing accommodations therein, making
such repairs as are necessary to remove a
certification from any city agency having
jurisdiction thereof that the housing
accommodation is a fire hazard or is in a
continued dangerous condition or detrimental to
life or health, or is occupied in violation of
law, and/or for such other uses as the city rent
agency deems necessary or proper for the
preservation, repair or maintenance of the
property. The city rent agency may adopt such
rules and regulations and orders as it may deem
necessary or proper to effectuate the purposes of
this paragraph, including but not limited to the
issuance of orders adjusting all controlled rents
to the appropriate maximum rent effective as of
the first day of the month following the execution
of the contract provided, however, that in the
event the city rent agency shall determine that
the landlord has breached such contract, such
agency may issue orders (1) decreasing the maximum
rents pursuant to such contract; (2) containing a
directive that rent collected by the landlord in
excess of the rent thus decreased be refunded to
the tenants; and (3) containing such other
determinations and directives as are necessary in
order to effectuate the purposes of this paragraph
four.
(b) Notwithstanding any provision of this chapter to
the contrary, whenever in the judgment of the city
rent agency action as provided in paragraph two or
three of this subdivision h is necessary or proper
in order to effectuate the purposes of this
chapter, such agency may in lieu of decreasing the
maximum rents thereof issue orders adjusting all
controlled rents and directing that rents be paid
into an escrow account for the uses stated in
subparagraph (a) of this paragraph four where:
(1) The landlord fails to take corrective action
after notice by the city rent agency of
proposed action to decrease the maximum rents
pursuant to paragraph two or three of this
subdivision h, and,
(2) The city rent agency has notified all
mortgagees who have filed with the city rent
agency a declaration of interest in such
property and in such proposed action, and,
(3) The landlord has failed for three consecutive
months to collect any controlled rents or to
commence court proceedings for their
collection or if such proceedings have been
commenced, the landlord has not diligently
prosecuted them or such proceedings have not
resulted in judgment in favor of such
landlord.
(c) The city rent agency shall promulgate rules and
regulations for the administration of escrow and
trust accounts set forth in this paragraph four.
Any person serving as escrow agent or trustee
shall not be liable except for fraud breach of
fiduciary duties or misfeasance.
(5) Whenever the essential services, furnishings, furniture
or equipment of any individual housing accommodation
are reduced, impaired, mutilated, or made unworkable as
the result of the neglect, failure to exercise due
care, or failure of the tenant to take practicable
precautions to prevent such condition, the landlord
shall restore such services, furniture, furnishings or
equipment and pursuant to regulations to be prescribed
by the city rent agency may make application for a
temporary increase in the maximum rent based upon the
cost of such restoration. In the event of the failure
of the tenant to make restitution within a reasonable
time, as determined by the city rent agency an order
shall be issued adjusting the maximum rent for such
tenant in an amount sufficient to recover the cost over
twelve monthly installments, or until the tenant
surrenders possession, whichever is sooner. The
provisions of this paragraph shall be in addition to
all other rights and remedies of the landlord.
(6) If at least six months before the effective date of any
adjustment or establishment of rents pursuant to
paragraph three or four of subdivision a of this
section, the landlord has not certified to the agency
having jurisdiction that (a) all rent impairing
violations (as defined by section three hundred two-a
of the multiple dwelling law), and (b) at least eighty
per centum of all other violations of the housing
maintenance code or other state or local laws that
impose requirements on property that were recorded
against the property one year prior to such effective
date have been cleared, corrected, or abated, no
increase pursuant to such paragraphs shall take effect
until he or she shall have entered into a written
agreement with the city rent agency to deposit all
income derived from the property into an escrow or
trust account pursuant to subparagraph (a) of paragraph
four of this subdivision, in addition to the procedures
set forth in this paragraph and all other applicable
penalties and procedures under this chapter, such
violation shall also be subject to repair or removal by
the city pursuant to the provisions of article five of
subchapter five of the housing maintenance code, the
landlord to be liable for the cost thereof.
i. Any regulation or order issued pursuant to this section may
be established in such form and manner, may contain such
classifications and differentiations, and may provide for
such adjustments including the establishment of new or
adjusted maximum rents in whole dollar amounts, and such
reasonable exceptions as in the judgment of the city rent
agency are necessary or proper in order to effectuate the
purposes of this chapter.
j. No increase or decrease in maximum rent shall be effective
prior to the date on which the order therefor is issued,
except as hereinafter provided. If an application for an
increase pursuant to subparagraph (a) of paragraph one of
subdivision g of this section submitted on or after August
first, nineteen hundred seventy is accompanied by a
certified statement of expenditures and no order is issued
thereon within four months of the filing of an application
based on assessed value or equalized assessed value, or
eight months of the filing of an application based on sale
price, with all required documentation the increased rent
requested shall thereafter be placed in an interest bearing
escrow account until a final determination is made upon such
application by the city rent agency. Upon initial
determination by the agency an order shall be issued
providing for the payment of the increased amount, if any,
due to the landlord from the date of first deposit of rent
in said escrow account with interest, and the excess amount,
if any, be paid the tenants entitled thereto, with an
appropriate amount of interest. The city rent agency shall
promulgate rules and regulations for the administration of
such escrow accounts. Any person serving as escrow agent
shall not be liable except for fraud or misfeasance.
k. Regulations, orders, and requirements under this chapter may
contain such provisions as the city rent agency deems
necessary to prevent the circumvention or evasion thereof.
l. The powers granted in this action shall not be used or made
to operate to compel changes in established rental
practices, except where such action is affirmatively found
by the city rent agency to be necessary to prevent
circumvention or evasion of any regulation, order, or
requirement under this chapter.
m. Findings. The council finds that there is an acute and
continuing housing shortage; that this shortage has and
continues to have an adverse effect on the population and
especially on inhabitants of the city who are sixty-two
years of age or older and of limited means, who cannot pay
enough rent to induce private enterprise to maintain decent
housing at rents they can afford to pay; that this condition
is and continues to be particularly acute in a time of
rising costs such as the present; that present rising costs
and the continuing increase in rents pursuant to amendments
to the New York City Rent and Rehabilitation Law may result
in such persons being unable to pay their rent, thus making
them subject to eviction, that such hardships fall with
particular severity upon older persons in the population
because of their particular inability to find alternative
accommodations within their means, because of the trauma
experienced by many older persons who have to relocate and
because they may endanger their health by paying additional
sums for shelter and thereby deprive themselves of other
necessities; that hardships imposed upon such people
adversely affect their health and welfare and the general
welfare of the inhabitants of the city. The council is aware
of the provisions set forth in chapter three hundred seventy-
two and chapter one thousand twelve of the laws of nineteen
hundred seventy-one. It is our considered opinion that this
legislation extending the rent exemption to cover the
resultant rent increases due to the maximum rents
established January first, nineteen hundred seventy-two, is
not more stringent or restrictive than those presently in
effect. It is, therefore, found and declared to be necessary
for the health, welfare and safety of such persons and of
inhabitants of the city that the city continue a system of
special rent adjustments for such persons as hereinafter
provided.
(1) No increase in maximum rent pursuant to paragraph two
or paragraph three, four or five of subdivision a of
this section, or subparagraph (a), (b), (c), (1) or (n)
of paragraph one of subdivision g of this section,
shall be collectible from a tenant to whom there has
been issued a currently valid rent exemption order
pursuant to this subdivision, except as provided in
such order.
(2) A tenant is eligible for a rent exemption order
pursuant to this subdivision if:
(i) the head of the household residing in the housing
accommodation is sixty-two years of age or older
and is entitled to the possession or to the use or
occupancy of a dwelling unit.
Nothing herein contained shall render ineligible
for benefits persons receiving supplemental
security income or additional state payments, or
both, under a program administered by the United
States department of health and human services or
by such department and the New York state
department of social services.
(ii) The aggregate disposable income (as defined by
regulation of the department of housing
preservation and development) of all members of
the household residing in the housing
accommodation does not exceed fifteen thousand
dollars per year, after deduction of federal,
state and city income and social security taxes.
For purposes of this subdivision, "aggregate
disposable income" shall not include increases in
benefits accorded pursuant to the social security
act which take effect after the date of
eligibility of a head of the household receiving
benefits under this subdivision whether received
by the head of the household or any other member
of the household; and
(iii) (a) in the case of a head of the household
who does not receive a monthly allowance for
shelter pursuant to the social services law,
the maximum rent for the housing
accommodations exceeds one-third of the
aggregate disposable income or if any
expected increase in the maximum rent
pursuant to paragraph two, three, four or
five of subdivision a of this section, or
subparagraph (a), (b), (c), (1) or (n) of
paragraph one of subdivision g of this
section would cause such maximum rent to
exceed one-third of the aggregate disposable
income; or
(b) in the case of a head of the household who
receives a monthly allowance for shelter
pursuant to the social services law, the
maximum rent for the housing accommodations
exceeds the maximum allowance for shelter
which the head of the household is entitled
to receive pursuant to the social services
law or if any expected increase in the
maximum rent pursuant to paragraph two,
three, four or five of subdivision a of this
section, or subparagraph (a), (b), (c), (1)
or (n) of paragraph one of subdivision g of
this section would cause such maximum rent to
exceed the maximum allowance for shelter
which the head of the household is entitled
to receive.
(3) (a) A rent exemption order pursuant to this
subdivision shall provide:
(i) in the case of a head of the household who
does not receive a monthly allowance for
shelter pursuant to the social law services
law, that the landlord may not collect from
the tenant to whom it is issued rent at a
rate in excess of one-third of the aggregate
disposable income, or the maximum collectible
rent in effect on December thirty-first of
the year preceding the effective date of the
order, whichever is greater; or
(ii) in the case of a head of the household who
receives a monthly allowance for shelter
pursuant to the social services law, that the
landlord may not collect from the tenant to
whom it is issued rent at a rate in excess of
either the maximum allowance for shelter
which the head of the household is entitled
to receive, or the maximum collectible rent
in effect on December thirty-first of the
year preceding the effective date of the
order, whichever is greater; except,
(iii) that the landlord may collect from the
tenants described in items (i) and (ii) of
this subparagraph increases in rent
pursuant to subparagraphs (d), (e), and (i)
of paragraph one of subdivision g of this
section.
(b) Each such order shall expire upon termination of
occupancy of the housing accommodation by the
tenant to whom it is issued. The landlord shall
notify the department of housing preservation and
development, on a form to be prescribed by such
department, within thirty days of each such
termination of occupancy.
(4) Any landlord who collects, or seeks to collect or
enforce, rent from a tenant in violation of the terms
of a rent exemption order shall, for the purposes of
all remedies, sanctions and penalties provided in this
chapter, be deemed to have collected or attempted to
collect or enforce, a rent in excess of the legal
maximum rent.
(5) A rent exemption order shall be issued to each tenant
who applies to the New York City department of housing
preservation and development in accordance with its
regulations and who is found to be eligible under this
subdivision. Such order shall take effect on the first
day of the first month after receipt of such
application, except that where the aggregate disposable
income of all members of the household residing in the
housing accommodation is greater than five thousand
dollars per year but does not exceed fifteen thousand
dollars per year pursuant to subparagraph (ii) of
paragraph two of this subdivision m of this section on
orders issued on applications received before July
first, nineteen hundred seventy-five, the effective
date of such order shall be the later of (1) June
thirty, nineteen hundred seventy-four or (2) the last
day of the month in which a person becomes an eligible
head of household in the housing accommodation in which
such person resides at the time of filing the most
recent application for a rent exemption order; and
further, except that where any other application has
been received within ninety days of the issuance of the
order increasing the tenant's maximum rent pursuant to
paragraph three, four or six of subdivision (a) of this
section, or subparagraph (a), (b), (c), or (1) of
paragraph (1) of subdivision (g) of this section or
pursuant to court order, whichever is later, the rent
exemption order shall without further order take effect
as of the effective date of said order increasing the
tenant's rent including any retroactive increments
collectible pursuant to such orders.
(6) A rent exemption order shall be valid for a period of
two years and may be renewed for further two year
periods upon application by the tenant provided, that
upon any such renewal application being made by the
tenant any rent exemption order then in effect with
respect to such tenant shall be deemed renewed until
such time as the department of housing preservation and
development shall have found such tenant to be either
eligible or ineligible for a rent exemption order but
in no event for more than six additional months. If
such tenant is found eligible, the order shall be
deemed to have taken effect upon expiration of the
exemption. In the event that any such tenant shall
subsequent to any such automatic renewal, not be
granted a rent exemption order, such tenant shall be
liable to his or her landlord for the difference
between the amounts he or she has paid under the
provisions of the automatically renewed order and the
amounts which he or she would have been required to pay
in the absence of such order. Any rent exemption order
issued pursuant to this subdivision shall include
provisions giving notice as to the contents of this
paragraph relating to automatic renewals of rent
exemption orders. Any application or renewal
application for a rent exemption order shall also
constitute an application for a tax abatement under
such section. The department of housing preservation
and development may, with respect to renewal
applications by tenants whom it has found eligible for
rent exemption orders, prescribe a simplified form
including a certification of the applicant's continued
eligibility in lieu of a detailed statement of income
and other qualifications.
(7) Notwithstanding the provisions of this chapter, a
tenant who resides in a housing accommodation which
becomes subject to this chapter upon the sale by the
city of New York of the building in which such housing
accommodation is situated may be issued a rent increase
exemption order for increases in rent which occurred
during ownership of such building by the city of New
York provided that such tenant would have been
otherwise eligible to receive a rent increase exemption
order at the time of such increase but for the fact
that such tenant occupied a housing accommodation owned
by the city of new York and was therefore not subject
to this chapter. Application for such rent increase
exemption orders shall be made within one year from the
date such building IS sold by the city of New York or
within one year of the effective date of this
provision, whichever is later.
(8) Notwithstanding the provisions of this chapter or
chapter four of this title when a dwelling unit is
subject to regulation under this chapter or chapter
four of this title is reclassified by a city rent
agency order subject to the other chapter the tenant,
who holds a senior citizen rent increase exemption
order at the time of the reclassification or is
otherwise eligible and entitled to an exemption order
from one or more rent increases but for the
reclassification of the dwelling unit, may be issued a
rent increase exemption order under the chapter to
which the unit is thereafter subject by virtue of the
reclassification continuing the previous exemption
notwithstanding the reclassification of the dwelling
unit or, where no previous rent increase exemption
order has been granted, issuing an initial order
exempting the tenant from paying the rent increase to
the extent for which he or she would have been eligible
and entitled to be exempted at the time of the increase
and reclassification but for the fact of
reclassification of the dwelling unit including
exemption from the rent increase granted pursuant to
subparagraph (m) of paragraph one of subdivision g of
this section to the extent that it is not predicated
upon any improvement or addition in a category as
provided for in subparagraph (d), (e), (f), (g), (h) or
(i) of paragraph one of subdivision g of this section.
Application for such rent increase exemption order
shall be made within ninety days from the date of
reclassification or within ninety days of the effective
date of this paragraph, whichever is later. The rent
increase exemption order shall take effect as of the
effective date of reclassification including any
retroactive increments pursuant to such rent increase.
(9) Notwithstanding any other provision of law to the
contrary, where a head of household holds a current,
valid rent exemption order and, after the effective
date of this paragraph, there is a permanent decrease
in aggregate disposable income in an amount which
exceeds twenty percent of such aggregate disposable
income as represented in such head of the household's
last approved application for a rent exemption order or
for renewal thereof, such head of the household may,
upon renewal or one year after the issuance or renewal
of such rent exemption order, apply for a
redetermination of the amount set forth therein. Upon
application, such amount shall be redetermined so as to
re-establish the ratio of adjusted rent to aggregate
disposable income which existed at the time of the
approval of such eligible head of the household's last
application for a rent exemption order or for renewal
thereof; provided, however, that in no event shall the
amount of the adjusted rent be redetermined to be (i)
in the case of a head of the household who does not
receive a monthly allowance for shelter pursuant to the
social services law, less than one-third of the
aggregate disposable income; or (ii) in the case of a
head of the household who receives a monthly allowance
for shelter pursuant to the social services law, less
than the maximum allowance for shelter which such head
of the household is entitled to receive pursuant to
such law. For purposes of this paragraph, a decrease in
aggregate disposable income shall not include any
decrease in such income resulting from the manner in
which such income is calculated pursuant to any
amendment to paragraph c of subdivision one of section
four hundred sixty-seven-b of the real property tax law
or any amendment to the regulations of the department
of housing preservation and development made on or
after April first, nineteen hundred eighty-seven. For
purposes of this paragraph, "adjusted rent" shall mean
maximum rent less the amount set forth in a rent
exemption order.
Added by Laws 1985, Ch. 907, § 1, eff. Sept. 1, 1986; amended by
Local L. 1985, No. 63, eff. Oct. 1, 1985, amended by Local L.
1985, No. 98, eff. Dec. 31, 1985; amended by Local L. 1986, No.
52; amended by Laws 1986, Ch. 737, § 2, eff. Sept. 1, 1986;
amended by Laws 1987, Ch. 584, § 7, eff. Aug. 3, 1987; amended by
Laws 1988, Ch. 366, § 2, eff. July 29 1988, amended by Laws 1988,
Ch. 651, §§ 3, 4, eff. Sept. 1, 1988; amended by Local L. 1988,
No. 67, §§ 2, 3, eff. Nov. 4, 1988; amended by Laws 1990, Ch.
749, §§ 1, 2, eff. July 22, 1990.
*****************************************************
§ 26-406. Tax abatement for properties subject to rent exemption
orders.
a. Tax abatement, pursuant to the provisions of section four
hundred sixty-seven-b of the real property tax law, shall be
granted with respect to any real property for which a rent
exemption order is issued under subdivision n of section 26-
405 of this chapter to the tenant of any housing
accommodation contained therein. The rent exemption order
shall also constitute the tax abatement certificate.
b. The real estate tax imposed upon any real property for which
a rent exemption order is issued, shall be reduced and
abated by an amount equal to the difference between ( I )
the sum of the maximum rents collectible under such orders,
and (2) the sum of rents that would be collectible from the
tenants of such housing accommodations if no exemption had
been granted pursuant to subdivision n of section 26-405 of
this chapter.
c. For any individual housing accommodation, the tax abatement
computed pursuant to subdivision b of this section shall be
available with respect to a period commencing on the
effective date of the initial rent exemption order or
January first, nineteen hundred seventy-two, whichever is
later, and ending on the expiration date of such order or on
the effective date of an order terminating the rent
exemption. Notwithstanding any other provision of law, when
a head of a household to whom a then current, valid tax
abatement certificate has been issued under this chapter,
chapter four or chapter seven of this title moves his or her
principal residence to a subsequent dwelling unit subject to
regulation under this chapter, the head of the household may
apply to the department of housing preservation and
development for a tax abatement certificate relating to the
subsequent dwelling unit, and such certificate may provide
that the head of the household shall be exempt from paying
that portion of the maximum rent for the subsequent dwelling
unit which is the least of the following:
(1) the amount by which the rent for the subsequent
dwelling unit exceeds the last rent, as reduced, which
the head of the household was required to actually pay
in the original dwelling unit;
(2) the last amount deducted from the maximum rent or legal
regulated rent meaning the most recent monthly
deduction for the applicant in the original dwelling
unit pursuant to this section, section 26-509 or
section 26-605 of this title; or
(3) where the head of the household does not receive a
monthly allowance for shelter pursuant to the social
services law, the amount by which the maximum rent or
legal regulated rent of the subsequent dwelling unit
exceeds one-third of the combined income of all members
of the household.
Such certificate shall be effective as of the first day
of the month in which the tenant applied for such
exemption or as of the date the tenant took occupancy
of the subsequent dwelling unit, whichever is later,
provided both occur after the effective date of this
law.
d. Prior to the commencement of each fiscal year, the
department of housing preservation and development shall
notify the department of finance of the total amount of
taxes to be abated under this section with respect to each
property for which rent exemption orders were in effect for
all or any part of the preceding calendar year. The
commissioner of finance shall make the appropriate
adjustment in the real estate tax payable in such fiscal
year.
e. Tax abatement pursuant to this section shall be in addition
to any other tax abatement authorized by law, but shall not
reduce the tax for any fiscal year below zero. In the event
that the tax abatement certificate authorizes an amount of
deduction in excess of the real estate installment, then the
balance may be applied to any subsequent installment until
exhausted. In such a case the owner shall submit with his or
her real estate tax bill and remittance, a verified
statement in such form as prescribed by the commissioner of
finance setting forth the carry over amount and the amounts
previously applied; provided, however, that at the request
of the owner such balance shall be paid to the owner by the
commissioner of finance in lieu of being applied to any
subsequent installment, except where the owner is in arrears
in the payment of real estate taxes on any property. For the
purposes of this subdivision, where the owner is a
corporation, it shall be deemed to be in arrears when any of
the officers, directors or any person holding an interest in
more than ten percent of the issued and outstanding stock of
such corporation is in arrears in the payment of real estate
taxes on any property; where title is held by a nominee, the
owner shall be deemed to be in arrears when the person for
whose benefit such title is held is in arrears in the
payment of real estate taxes on any property.
Added by Laws 1985, Ch. 907, § 1, eff. Sept. 1, 1986; amended by
Local L. 1985, No. 98, eff. Dec. 31, 1985.
*****************************************************
§ 26-407. Labor cost pass-along.
a. Notwithstanding any provisions of this chapter, any labor
cost pass-along rent increase requested of, or received
from, any tenant on or after July first, nineteen hundred
seventy-two, pursuant to the provisions of subparagraph (1)
of paragraph one of subdivision g of section 26-405 of this
title, shall not exceed the maximum rent adjustment as
provided under this chapter after the effective date of this
section.
b. All such increases in excess of such maximum rent are hereby
declared null and void and of no effect. A tenant who paid
any such excess increase shall be repaid by a cash refund or
credit, to be applied against future rent, in equal
installments for the same number of months for which such
increase was actually collected, commencing on January
first, nineteen hundred seventy-eight.
Added by Laws 1985, Ch. 907, § 1, eff. Sept. 1, 1986.
*****************************************************
§ 26-408. Evictions.
a. No tenant, so long as he or she continues to pay the rent to
which the landlord is entitled, shall be removed from any
housing accommodation which is subject to rent control under
this chapter by action to evict or to recover possession, by
exclusion from possession, or otherwise, nor shall any
person attempt such removal or exclusion from possession
notwithstanding the fact that the tenant has no lease or
that his or her lease, or other rental agreement, has
expired or otherwise terminated, notwithstanding any
contract, lease agreement, or obligation heretofore or
hereafter entered into which provides for surrender of
possession, or which otherwise provides contrary hereto,
except on one or more of the following grounds, or unless
the landlord has obtained a certificate of eviction pursuant
to subdivision b of this section:
(1) The tenant is violating a substantial obligation of his
or her tenancy other than the obligation to surrender
possession of such housing accommodation and has failed
to cure such violation after written notice by the
landlord that the violation cease within ten days, or
within the three month period immediately prior to the
commencement of the proceeding the tenant has wilfully
violated such an obligation inflicting serious and
substantial injury to the landlord; or
(2) The tenant is committing or permitting a nuisance in
such housing accommodation; or is maliciously or by
reason of gross negligence substantially damaging the
housing accommodation; or his or her conduct is such as
to interfere substantially with the comfort and safety
of the landlord or of other tenants or occupants of the
same or other adjacent building or structure; or
(3) Occupancy of the housing accommodation by the tenant is
illegal because of the requirements of law, and the
landlord is subject to civil or criminal penalties
therefor, or both, provided, however, that such
occupancy shall not be considered illegal by reason of
violations placed against the housing accommodations or
the building in which same are located by any
department or agency of the city having jurisdiction
unless such department or agency has issued an order
requiring the tenants to vacate said accommodation or
building or unless such occupancy for such building or
such violations relied on by the landlord result from
an act, omission or situation caused or created by the
tenant; or
(4) The tenant is using or permitting such housing
accommodation to be used for an immoral or illegal
purpose; or
(5) The tenant who had a written lease or other written
rental agreement which terminated or shall terminate on
or after may first, nineteen hundred fifty, has refused
upon demand of the landlord to execute a written
extension or renewal thereof for a further term of like
duration not in excess of one year but otherwise on the
same terms and conditions as the previous lease except
in so far as such terms and conditions are inconsistent
with this chapter; or
(6) The tenant has unreasonably refused the landlord access
to the housing accommodation for the purpose of making
necessary repair or improvements required by law or for
the purpose of inspection or of showing the
accommodation to a prospective purchaser, mortgagee or
prospective mortgagee, or other person having a
legitimate interest therein; provided, however, that in
the latter event such refusal shall not be ground for
removal or eviction if such inspection or showing of
the accommodation is contrary to the provisions of the
tenant's lease or other rental agreement.
(7) The eviction is sought by the owner of a dwelling unit
or the shares allocated thereto where such dwelling
unit is located in a structure owned as a cooperative
or as a condominium and an offering prospectus for the
conversion of such structure pursuant to an eviction
plan shall have been submitted to the attorney general
pursuant to section three hundred fifty-two-eeee of the
general business law and accepted for filing by the
attorney general, and been declared effective in
accordance with such law, and any right of continued
occupancy granted by such law to a non-purchasing
tenant in occupancy of such dwelling unit shall have
expired; provided that the owner of the dwelling unit
or the shares allocated thereto seeks in good faith to
recover possession of a dwelling unit for his or her
own personal use and occupancy or for the use and
occupancy of his or her immediate family.
b. No tenant shall be removed or evicted on grounds other than
those stated in subdivision a of this section unless on
application of the landlord the city rent agency shall issue
an order granting a certificate of eviction in accordance
with its rules and regulations designed to effectuate the
purposes of this title, permitting the landlord to pursue
his or her remedies at law. The city rent agency shall issue
such an order whenever it finds that:
(1) The landlord seeks in good faith to recover possession
of a housing accommodation because of immediate and
compelling necessity for his or her own personal use
and occupancy or for the use and occupancy of his or
her immediate family provided, however, that this
subdivision shall not apply where a member of the
household lawfully occupying the housing accommodation
is sixty-two years of age or older, has been a tenant
in a housing accommodation in that building for twenty
years or more, or has an impairment which results from
anatomical, physiological or psychological conditions,
other than addiction to alcohol, gambling, or any
controlled substance, which are demonstrable by
medically acceptable clinical and laboratory diagnostic
techniques, and which are expected to be permanent and
which prevent the tenant from engaging in any
substantial gainful employment; or
(2) The landlord seeks in good faith to recover possession
of a housing accommodation for which the tenant's lease
or other rental agreement has expired or otherwise
terminated, and at the time of termination the
occupants of the housing accommodation are subtenants
or other persons who occupied under a rental agreement
with the tenant, and no part of the accommodation is
used by the tenant as his or her dwelling; or
(3) The landlord seeks in good faith to recover possession
of a housing accommodation for the immediate purpose of
substantially altering or remodeling it, provided that
the landlord shall have secured such approval therefor
as is required by law and the city rent agency
determines that the issuance of the order granting the
certificate of eviction is not inconsistent with the
purpose of this chapter; or
(4) The landlord seeks in good faith to recover possession
of housing accommodations for the immediate purpose of
demolishing them, and the city rent agency determines
that such demolition is to be effected for the purpose
of constructing a new building, provided that:
(a) If the purpose of such demolition is to construct
a new building containing housing accommodations,
no certificate of eviction shall be granted under
this paragraph unless such agency determines that
such new building will contain at least twenty per
centum more housing accommodations consisting of
self-contained family units (as defined by
regulations issued by such agency, with due regard
for the shortage of housing accommodations
suitable for family occupancy and for the purposes
of this chapter in relation thereto) than are
contained in the structure to be demolished;
except, however, that where as a result of
conditions detrimental to life or health of the
tenants, violations have been placed upon the
structure containing the housing accommodations by
any agency of the city having jurisdiction over
such matters and the cost of removing such
violations would be substantially equal to or
would exceed the assessed valuation of the
structure, the new building shall only be required
to make provision for a greater number of housing
accommodations consisting of self-contained family
units (as so defined by regulation) than are
contained in the structure to be demolished; and
(b) The city rent agency shall, by regulation, as a
condition to the granting of certificates of
eviction under this paragraph, require the
relocation of the tenants in other suitable
accommodations, provided that the city rent agency
may, by regulation, authorize the granting of such
certificates as to any tenants or classes of
tenants without such requirement of relocation,
where such exemption will not result in hardship
to such tenants or classes of tenants and will not
be inconsistent with the purposes of this chapter;
and
(c) The city rent agency may, by regulation, in order
to carry out the purposes of this chapter, impose
additional conditions to the granting of
certificates of eviction under this paragraph,
including, but not limited to, the payment of
stipends to the tenants by the landlord in such
amounts and subject to such variations and
classifications as such agency may determine to be
reasonably necessary; and
(d) No certificate of eviction shall be issued
pursuant to this paragraph unless the landlord
shall have secured such approval as is required by
law for the construction sought to be effected,
and the city rent agency determines that the
issuance of such certificate is not inconsistent
with the purpose of this chapter.
(5) Notwithstanding any provisions to the contrary
contained in this subdivision or in subdivision d of
section 26-410 of this chapter or in the local
emergency housing rent control act:
(a) no application for a certificate of eviction under
paragraph three or four of this subdivision and no
application for a certificate of eviction under
paragraph one of subdivision j or under
subdivision c of this section for the purpose of
withdrawing a housing accommodation from the
housing market on the grounds that the continued
operation of such housing accommodation would
impose undue hardship upon the landlord, pending
or made on or after the effective date hereof
shall be granted by the city rent agency unless
the city rent agency finds that there is no
reasonable possibility that the landlord can make
a net annual return of eight and one-half per
centum of the assessed value of the subject
property without recourse to the remedy provided
in said paragraph three or four or said
subdivision c or j and finds that neither the
landlord nor his or her immediate predecessor in
interest has intentionally or willfully managed
the property to impair the landlord's ability to
earn such return; and
(b) the effectiveness of any certificate of eviction
or of any order granting a certificate of eviction
pursuant to paragraphs three and four of this
subdivision shall be suspended, and no tenant may
be evicted pursuant to any such certificate or
order, unless the city rent agency:
(i) finds that there is no reasonable possibility
that the landlord can make a net annual
return of eight and one-half per centum of
the assessed value of the subject property
without recourse to the remedy provided in
said paragraphs three and four and finds that
neither the landlord nor his or her immediate
predecessor in interest has intentionally or
willfully managed the property to impair the
landlord's ability to earn such return; and
(ii) issues an order reinstating the effectiveness
of any certificate of eviction suspended
pursuant to this paragraph. The pendency of
any judicial proceeding or appeal shall in no
way prevent the taking effect of the relief
granted in this subparagraph.
(c) the provisions of this paragraph shall not apply
to an application for a certificate of eviction
from a housing accommodation when the landlord
seeks in good faith to recover possession thereof
for the immediate purpose of substantially
altering or remodelling it or for the immediate
purpose of demolishing it for the purpose of
constructing a new building when such altering or
remodelling or the construction of such new
building is to be aided by interest reduction
payments under section two hundred thirty-six of
the national housing act.
c. The city rent agency may from time to time, to effectuate
the purposes of this chapter, adopt, promulgate, amend or
rescind such rules, regulations or orders as it may deem
necessary or proper for the control of evictions. Any such
rules, regulations or orders may include, in addition to any
other provisions authorized by this subdivision, provisions
restricting the filing of applications for, or the issuance
of orders granting, certificates of eviction where such
agency finds that a course of conduct has been engaged in
which is proscribed by subdivision d of section 26-412 of
this chapter. The agency shall also require, prior to the
filing of plans with the department of buildings for a new
building or alteration on the site of controlled housing
accommodations and prior to the filing of an application for
a permit for the demolition or removal of an existing
multiple dwelling which contains controlled housing
accommodations, that the applicant certify to and file with
the agency such information and give such notice to tenants
as it deems necessary to prevent evasion of the law and
regulations governing evictions. It may also require that an
order granting a certificate of eviction be obtained from it
prior to the institution of any action or proceeding for the
recovery of possession of any housing accommodation subject
to rent control under this chapter upon the grounds
specified in subdivision b of this section or where it finds
that the requested removal or eviction is not inconsistent
with the purposes of this chapter and would not be likely to
result in circumvention or evasion thereof; provided,
however, that no such order shall be required in any action
or proceeding brought pursuant to the provisions of
subdivision a of this section.
d. (1) The city rent agency, on its own initiative or on
application of a tenant, may revoke or cancel an order
granting a certificate of eviction at any time prior to
the execution of a warrant in a summary proceeding to
recover possession of real property by a court whenever
it finds that:
(a) The certificate of eviction was obtained by fraud
or illegality; or
(b) The landlord's intentions or circumstances have so
changed that the premises, possession of which is
sought, will not be used for the purpose specified
in the certificate.
(2) The commencement of a proceeding by the city rent
agency to revoke or cancel an order granting a
certificate of eviction shall stay such order until the
final determination of the proceeding regardless of
whether the waiting period in the order has already
expired. In the event the city rent agency cancels or
revokes such an order, the court having jurisdiction of
any summary proceeding instituted in such case shall
take appropriate action to dismiss the application for
removal of the tenant from the real property and to
vacate and annul any final order or warrant granted or
issued by the court in the matter.
e. Notwithstanding the preceding provisions of this section,
the state, the city, or the New York city housing authority
may recover possession of any housing accommodations
operated by it where such action or proceeding is authorized
by statute or regulations under which such accommodations
are administered.
f. Any order of the city rent agency under this section
granting a certificate of eviction shall be subject to
judicial review only in the manner prescribed by subdivision
eight of section one of the state enabling act and sections
26-410 and 26-411 of this chapter.
g. (1) Where after the city rent agency has granted a
certificate of eviction authorizing the landlord to
pursue his or her remedies pursuant to law to acquire
possession and a tenant voluntarily removes from a
housing accommodation or has been removed therefrom by
action or proceeding to evict from or recover
possession of a housing accommodation upon the ground
that the landlord seeks in good faith to recover
possession of such accommodation:
(a) For his or her immediate and personal use, or for
the immediate and personal use by a member or
members of his or her immediate family, and such
landlord or members of his or her immediate family
shall fail to occupy such accommodation within
thirty days after the tenant vacates, or such
landlord shall lease or rent such space or permit
occupancy thereof by a third person within a
period of one year after such removal of the
tenant; or
(b) For the immediate purpose of withdrawing such
housing accommodation from the rental market and
such landlord shall lease or sell the housing
accommodation or the space previously occupied
thereby, or permit use thereof in a manner other
than contemplated in such eviction certificate
within a period of one year after such removal of
the tenant; or
(c) For the immediate purpose of altering or
remodeling such housing accommodation, and the
landlord shall fail to start the work of
alteration or remodeling of such housing
accommodation within ninety days after the
removal, on the ground that he or she required
possession for the purpose of effecting such
alteration or remodeling, of the last tenant whose
removal is necessary to enable the landlord to
effect such alteration or remodeling of such
accommodation, or if after having commenced such
work shall fail or neglect to prosecute the work
with reasonable diligence; or
(d) For the immediate purpose of demolishing such
housing accommodations and constructing a new
building in accordance with approved plans, or
reasonable amendment thereof, and the landlord has
failed to complete the demolition within six
months after the removal of the last tenant or,
having demolished the premises, has failed or
neglected to proceed with the new construction
within ninety days after the completion of such
demolition, or having commenced such construction
work has failed or neglected to prosecute such
work with reasonable diligence; or
(e) For some purpose other than those specified above
for which the removal of the tenant was sought and
the landlord has failed to use the vacated
premises for such purpose; such landlord shall,
unless for good cause shown, be liable to the
tenant for three times the damages sustained on
account of such removal plus reasonable attorney's
fees and costs as determined by the court. In
addition to any other damage, the cost of removal
of property shall be a lawful measure of damage.
The remedy herein provided for shall be in
addition to those provided for in subdivision h of
this section, paragraph (a) of subdivision ten of
section one of the state enabling act and
subdivision a of section 26-413 of this chapter.
(2) The acts and omissions mentioned in subparagraphs (a),
(b), (c), (d) and (e) of paragraph one of this
subdivision, on the part of a landlord after issuance
of a certificate of eviction, are hereby declared to be
inconsistent with the purposes for which such
certificate of eviction was issued.
h. Where after the city rent agency has granted a certificate
of eviction authorizing the landlord to pursue his or her
remedies pursuant to law to acquire possession for any
purpose stated in subdivision b or j of this section or for
some other stated purpose, and a tenant voluntarily removes
from a housing accommodation or has been removed therefrom
by action or proceeding to evict from or recover possession
of a housing accommodation and the landlord or any successor
landlord of the premises does not use the housing
accommodation for the purpose specified in such certificate
of eviction, the vacated accommodation or any replacement or
subdivision thereof shall, unless the city rent agency
approves such different purpose, be deemed a housing
accommodation subject to control, notwithstanding any
definition of that term in this chapter to the contrary.
Such approval shall be granted whenever the city rent agency
finds that the failure or omission to use the housing
accommodation for the purpose specified in such certificate
was not inconsistent with the purpose of this chapter and
would not be likely to result in the circumvention or
evasion thereof. The remedy herein provided for shall be in
addition to those provided for in subdivision g of this
section, paragraph (a) of subdivision ten of section one of
the state enabling act and subdivision a of section 26-413
of this chapter.
i. Any statutory tenant who vacates a housing accommodation
without giving the landlord at least thirty days' written
notice by registered or certified mail of his or her
intention to vacate, shall be liable to the landlord for the
loss of rent suffered by the landlord, but not exceeding one
month's rent, except where the tenant has been removed or
vacates pursuant to the provisions of this section. Such
notice shall be postmarked on or before the last day of the
rental period immediately prior to such thirty-day period.
j. (1) Nothing in this chapter shall be construed to
require any person to offer any housing accommodations
for rent, but housing accommodations already on the
rental market may be withdrawn only after prior written
approval of the city rent agency, if such withdrawal
requires that a tenant be evicted from such
accommodations.
(2) The city rent agency, in order to carry out the
purposes of this chapter, may issue regulations
providing for issuance of certificates of eviction in
any case where the landlord seeks such approval in
order to use the premises (including the building or
land) (a) for the purpose of conducting a business, or
(b) where the landlord is a hospital, convent, asylum,
public institution, college, school or any institution
operated exclusively for charitable, religious or
educational purposes on a nonprofit basis and the
landlord seeks such approval in order to use the
premises (including the building or land) or any part
thereof in connection with the landlord's charitable,
religious or educational purposes; such agency, if it
grants approval, shall condition same upon compliance
by the landlord with designated requirements which may
consist of any conditions that such agency would have
authority to prescribe by regulation under
subparagraphs (b) and (c) of paragraph four of
subdivision b of this section with respect to
applications for certificates of eviction under such
paragraph four provided, however, that such agency
shall not condition any such approval granted to a
hospital, convent, asylum, public institution, college,
school, or any institution operated exclusively for
charitable, religious or educational purposes upon
compliance with requirements exceeding or less than
those applicable to any private owner in similar
circumstances. Nothing contained in this paragraph
shall be construed as authorizing or requiring such
agency to approve the withdrawal of any housing
accommodations from the rental market by any landlord
for the purpose of using the premises for any business
other than one in existence and conducted by such
landlord at the time such withdrawal is sought. No
certificate of eviction shall be issued to a nonprofit
school, college, hospital, or other charitable
institution, including without limitation, any
organization exempt from taxation under the Federal
Internal Revenue Code, which seeks to recover
possession of the housing accommodations or to withdraw
such accommodations from the rental or non-rental
housing market, for immediate and personal use and
occupancy as housing accommodations by its employees,
students or members of its staff.
k. The city rent agency by order issued pursuant to its
regulations may waive the requirements of subdivision b of
this section where (1) the housing accommodations were
vacant at the time when landlord made application for such
waiver, and (2) were vacated by reason of the last tenant's
voluntary surrender thereof, and (3) the landlord, in good
faith, intends to demolish or substantially rehabilitate the
building in which the housing accommodations are located
within a period approved by the city rent agency. The
failure of the landlord to comply with the conditions
established by the city rent agency for the granting of the
application shall subject the housing accommodations to all
the provisions of this chapter.
Added by Laws 1985, Ch. 907, § 1, eff. Sept. 1, 1986.
*****************************************************
§ 26-409. Investigation; records; reports.
a. The city rent agency is authorized to make such studies and
investigations, to conduct such hearings, and to obtain such
information as it deems necessary or proper in prescribing
any regulation or order pursuant to this chapter or in
administering and enforcing this chapter and the regulations
and orders thereunder or the state rent act and the
regulations and orders thereunder.
b. The city rent agency is further authorized, by regulation or
order, to require any person who rents or offers for rent or
acts as broker or agent for the rental of any housing
accommodations to furnish any such information under oath or
affirmation, or otherwise, to make and keep records and
other documents, and to make reports, including, but not
limited to, reports with respect to decontrolled or exempt
housing accommodations, and the city rent agency may require
any such person to permit the inspection and copying of
records and other documents and the inspection of housing
accommodations. Any officer or agent designated by the city
rent agency for such purposes may administer oaths and
affirmations and may, whenever necessary, by subpoena,
require any such person to appear and testify or to appear
and produce documents, or both, at any designated place.
c. For the purpose of obtaining any information under this
section, the city rent agency may by subpoena require any
other person to appear and testify or to appear and produce
documents, or both, at any designated place.
d. The production of a person's documents at any place other
than his or her place of business shall not be required
under this section in any case in which, prior to the return
date specified in the subpoena issued with respect thereto,
such person either has furnished the city rent agency with a
copy of such documents certified by such person under oath
to be a true and correct copy, or has entered into a
stipulation with the city rent agency as to the information
contained in such documents.
e. In case of contumacy by, or refusal to obey a subpoena
served upon, any person referred to in this section, the
supreme court in or for any judicial district in which such
person is found or resides or transacts business, upon
application by the city rent agency, shall have jurisdiction
to issue an order requiring such person to appear and give
testimony or to appear and produce documents, or both; and
any failure to obey such order of the court may be punished
by such court as a contempt thereof. The provisions of this
subdivision e shall be in addition to the provisions of
paragraph (a) of subdivision nine of section one of the
state enabling act and subdivision a of section 26-412 of
this chapter.
f. Witnesses subpoenaed under this section shall be paid the
same fee and mileage as are paid witnesses pursuant to the
civil practice law and rules.
g. Upon any such investigation or hearing, the city rent
agency, or an officer duly designated by the city rent
agency to conduct such investigation or hearing, may confer
immunity in accordance with the provisions of the criminal
procedure law.
h. The city rent agency shall not publish or disclose any
information obtained under this chapter that the city rent
agency deems confidential or with reference to which a
request for confidential treatment is made by the person
furnishing such information, unless the city rent agency
determines that the withholding thereof is contrary to the
public interest.
i. Any person subpoenaed under this section shall have the
right to make a record of his or her testimony and to be
represented by counsel.
j. Without limiting any power granted by this section or any
other provision of law, the city rent agency may by
regulation require the owner of a building or property
containing both housing accommodations subject to this
chapter and housing accommodations subject to chapter four
of this title to execute and file registration statements
with respect to the housing accommodations subject to this
chapter along with those filed pursuant to such chapter
four. Notwithstanding any other provisions of law, such
agency may promulgate regulations, and take other necessary
or appropriate actions, pursuant to this subdivision prior
to April first, nineteen hundred eighty-four, to take effect
on or after such date.
Added by Laws 1985, Ch. 907, § 1, eff. Sept. 1, 1986.
*****************************************************
§ 26-410. Procedure.
a. After the issuance of any regulation or order by the city
rent agency, any person subject to any provision of such
regulation or order may, in accordance with regulations to
be prescribed by such agency, file a protest against such
regulation or order specifically setting forth his or her
objections to any such provisions and affidavits or other
written evidence in support of such objections. Statements
in support of any such regulation or order may be received
and incorporated in the record of the proceedings at such
times and in accordance with such regulations as may be
prescribed by such agency. Within a reasonable time after
the filing of any protest under this section, such agency
shall either grant or deny such protest in whole or in part,
notice such protest for hearing, or provide an opportunity
to present further evidence in connection therewith. In the
event that such agency denies any such protest in whole or
in part, it shall inform the protestant of the grounds upon
which such decision is based, and of any economic data and
other facts of which it has taken official notice.
b. In the administration of this chapter, the city rent agency
may take official notice of economic data and other facts,
including facts found by it as a result of action taken
under section 26-405 of this chapter.
c. Any proceedings under this section may be limited by the
city rent agency to the filing of affidavits, or other
written evidence, and the filing of briefs, except that no
multiple-tenant initiated proceeding for the reduction of
rents in a building may be determined without a hearing.
d. Any protest filed under this section shall be granted or
denied by the city rent agency, or granted in part and the
remainder of it denied, within a reasonable time after it is
filed. If such agency does not act finally within a period
of ninety days after the protest is filed, the protest shall
be deemed to be denied. However, such agency may grant one
extension not to exceed thirty days with the consent of the
party filing such protest; any further extension may only be
granted with the consent of all parties to the protest. No
proceeding may be brought pursuant to article seventy-eight
of the civil practice law and rules to challenge any order
or determination which is subject to such protest unless
such review has been sought and either (1) a determination
thereon has been made or (2) the ninety-day period provided
for determination of the protest (or any extension thereof)
has expired. If such agency does not act finally within a
period of ninety days after the entry of an order of remand
to such agency by the court in a proceeding instituted
pursuant to subdivision eight of section one of the state
enabling act or section 26-411 of this chapter, the order
previously made by such agency shall be deemed reaffirmed.
However, such agency may grant one extension not to exceed
thirty days with the consent of the petitioner; any further
extension may only be granted with the consent of all
parties to the petition.
e. 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 a copy of each
decision rendered by it upon granting, or denying, in whole
or in part, any protests filed under this section and shall
have available at each appropriate local office a register
of properties concerning which a vacate order was issued by
a city department having jurisdiction or proceedings have
been brought to determine whether any housing accommodations
therein became vacant as a result of conduct proscribed by
subdivision d of section 26-412 of this chapter.
Added by Laws 1985, Ch. 907, § 1, eff. Sept. 1, 1986.
*****************************************************
§ 26-411. Judicial review.
a. (1) Any person who is aggrieved by the final
determination of the city rent agency in an
administrative proceeding protesting a regulation or
order of such agency may, in accordance with article
seventy-eight of the civil practice law and rules,
within sixty days after such determination, commence a
proceeding in the supreme count The petition shall
specify his or her objections and pray that the
regulation or order protested be enjoined or set aside
in whole or in pan. Such proceeding may at the option
of the petitioner be instituted in the county where the
city rent agency has its principal office or where the
property is located. The city rent agency shall file
with such court the original or a transcript of such
portions of the proceedings in connection with its
final determination as are material under the petition.
Such return shall include a statement setting forth, so
far as practicable, the economic data and other facts
of which the city rent agency has taken official
notice. Upon the filing of such petition the court
shall have jurisdiction to set aside the regulation or
order protested, in whole or in pan, to dismiss the
petition, or to remit the proceeding to the city rent
agency, provided, however, that the regulation or order
may be modified or rescinded by the city rent agency at
any time notwithstanding the pendency of such
proceeding for review.
(2) No objection to such regulation or order, and no
evidence in support of any objection thereto, shall be
considered by the court, unless such objection shall
have been presented to the city rent agency by the
petitioner in the proceedings resulting in the
determination or unless such evidence shall be
contained in the return. If application is made to the
court by either party for leave to introduce additional
evidence which was either offered and not admitted or
which could not reasonably have been offered or
included in such proceedings before the city rent
agency, and the court determines that such evidence
should be admitted, the court shall order the evidence
to be presented to the city rent agency. The city rent
agency shall promptly receive the same, and such other
evidence as the city rent agency deems necessary or
proper, and thereupon the city rent agency shall file
with the court the original or a transcript thereof and
any modification made in such regulation or order as a
result thereof; except that on request by the city rent
agency, any such evidence shall be presented directly
to the court. Upon final determination of the
proceeding before the court, the original record, if
filed by the city rent agency with the court, shall be
returned to the city rent agency.
b. No regulation or order of the city rent agency shall be
enjoined or set aside in whole or in part, unless the
petitioner shall establish to the satisfaction of the court
that the regulation or order is not in accordance with law,
or is arbitrary or capricious. The effectiveness of an order
of the court enjoining or setting aside, in whole or in
part, any such regulation or order shall be postponed until
the expiration of thirty days from the entry thereof. The
jurisdiction of the supreme court shall be exclusive and its
order dismissing the petition or enjoining or setting aside
such regulation or order, in whole or in part, shall be
final, subject to review by the appellate division of the
supreme court and the court of appeals in the same manner
and form and with the same effect as provided in the civil
practice law and rules for appeals from a final order in a
special proceeding. Notwithstanding any provision of
paragraph one of subdivision (b) of section five thousand
seven hundred one of the civil practice law and rules to the
contrary, any order of the court remitting the proceeding to
the city rent agency may, at the election of the city rent
agency, be subject to review by the appellate division of
the supreme court and the court of appeals in the same
manner and form and with the same effect as provided in the
civil practice law and rules for appeals from a final order
in a special proceeding. All such proceedings shall be heard
and determined by the court and by any appellate court as
expeditiously as possible and with lawful precedence over
other matters. All such proceedings for review shall be
heard on the petition, manuscript and other papers, and on
appeal shall be heard on the record, without requirement of
printing.
c. Within thirty days after arraignment, or such additional
time as the court may allow for good cause shown, in any
criminal proceeding, and within five days after judgment in
any civil or criminal proceeding, brought pursuant to
subdivision ten of section one of the state enabling act or
section 26-413 of this chapter involving alleged violation
of any provision of any regulation or order of the city rent
agency, the defendant may apply to the court in which the
proceeding is pending for leave to file in the supreme court
a petition setting forth objections to the validity of any
provision which the defendant is alleged to have violated or
conspired to violate. The court in which the proceeding is
pending shall grant such leave with respect to any objection
which it finds is made in good faith and with respect to
which it finds there is reasonable and substantial excuse
for the defendant's failure to present such objection in an
administrative proceeding before the city rent agency. Upon
the filing of a petition pursuant to and within thirty days
from the granting of such leave, the supreme court shall
have jurisdiction to enjoin or set aside in whole or in part
the provision of the regulation or order complained of or to
dismiss the petition. The court may authorize the
introduction of evidence, either to the city rent agency or
directly to the court, in accordance with subdivision a of
this section The provisions of subdivision b of this section
shall be applicable with respect to any proceedings
instituted in accordance with this subdivision.
d. In any proceeding brought pursuant to subdivision ten of
section one of the state enabling act or section 26-413 of
this chapter involving an alleged violation of any provision
of any such regulation or order, the court shall stay the
proceeding:
(1) During the period within which a petition may be filed
in the supreme court pursuant to leave granted under
subdivision c of this section with respect to such
provision;
(2) During the pendency of any protest properly filed
under section 26-410 of this chapter prior to the
institution of the proceeding under subdivision ten of
section one of the state enabling act or section 26-413
of this chapter, setting forth objections to the
validity of such provision which the court finds to
have been made in good faith; and
(3) During the pendency of any judicial proceeding
instituted by the defendant under this section with
respect to such protest or instituted by the defendant
under subdivision c of this section with respect to
such provision, and until the expiration of the time
allowed in this section for the taking of further
proceedings with respect thereto.
e. Notwithstanding the provisions of subdivision d of this
section, stays shall be granted thereunder in civil
proceedings only after judgment and upon application made
within five days after judgment. Notwithstanding the
provisions of subdivision d of this section, in the case of
a proceeding under paragraph (a) of subdivision ten of
section one of the state enabling act or subdivision a of
section 26-413 of this chapter, the court granting a stay
under subdivision d of this section shall issue a temporary
injunction or restraining order enjoining or restraining,
during the period of the stay, violations by the defendant
of any provision of the regulation or order involved in the
proceeding. If any provision of a regulation or order is
determined to be invalid by judgment of the supreme court
which has become effective in accordance with subdivision b
of this section, any proceeding pending in any court shall
be dismissed, and any judgment in such proceeding vacated,
to the extent that such proceeding or judgment is based upon
violation of such provision. Except as provided in
subdivisions c and d of this section and as heretofore
provided in this subdivision e, the pendency of any protest
under section 26-410 of this chapter before the city rent
agency or judicial proceeding under this section, shall not
be grounds for staying any proceeding brought pursuant to
subdivision ten of section one of the state enabling act or
section 26-413 of this chapter; nor, except as provided in
this subdivision e, shall any retroactive effect be given to
any judgment setting aside a provision of a regulation or
order.
f. The method prescribed herein for the judicial review of a
regulation or order of the city rent agency shall be
exclusive.
Added by Laws 1985, Ch. 907, § 1, eff. Sept. 1, 1986.
*****************************************************
§ 26-412. Prohibitions.
a. It shall be unlawful, regardless of any contract, lease or
other obligation heretofore or hereafter entered into, for
any person to demand or receive any rent for any housing
accommodations in excess of the applicable maximum rent
established therefor by the city rent agency or otherwise to
do or omit to do any act, in violation of any regulation,
order or requirement of the city rent agency under the state
enabling act or under this chapter, or to offer, solicit
attempt or agree to do any of the foregoing.
b. It shall be unlawful for any person to remove or attempt to
remove from any housing accommodations the tenant or
occupant thereof or to refuse to renew the lease or
agreement for the use of said accommodations, because such
tenant or occupant has taken, or proposes to take, action
authorized or required by the state rent act or by this
chapter or any provision of this code, the multiple dwelling
law, or the health code of the city of New York, or any
regulation, order or requirement thereunder.
c. It shall be unlawful for any officer or employee of the city
rent agency or for any official adviser or consultant to the
city rent agency to disclose, otherwise than in the course
of official duty, any information obtained under this
chapter or to use any such information for personal benefit.
d. It shall be unlawful for any person, with intent to cause
any tenant to vacate housing accommodations or to surrender
or waive any rights of such tenant under this chapter or the
regulations promulgated thereunder, to engage in any course
of conduct including but not limited to, interruption or
discontinuance of essential services which interferes with
or disturbs or is intended to interfere with or disturb the
comfort, repose, peace or quiet of such tenant in his or her
use or occupancy of the housing accommodations.
e. It shall be unlawful for any person to make any statement or
entry false in any material respect in any document or
report submitted in any proceeding before the city rent
agency or required to be kept filed under this chapter or
any regulation, order or requirement thereunder, or to
wilfully omit or neglect to make any material statement or
entry required to be made in any such document or report;
f. It shall be unlawful for a landlord or a successor in
interest to use housing accommodations or the site on which
same were located for any purposes other than that specified
in the certificate of eviction.
Added by Laws 1985, Ch. 907, § 1, eff. Sept. 1, 1986.
*****************************************************
§ 26-413. Enforcement and penalties.
a. Any person who wilfully violates any provision of section 26-
412 of this chapter shall be guilty of and punishable for a
crime as specified in subdivision ten of section one of the
state enabling act, namely such persons shall be subject to
a fine of not more than five thousand dollars, or to
imprisonment for not more than two years in the case of a
violation of subdivision c of section 26-412 of this chapter
and for not more than one year in all other cases, or to
both such fine and Imprisonment. The city rent agency may
certify such facts, which in its opinion constitute such
violation, to the district attorney having jurisdiction
thereof.
b. (1) The city rent agency may, whenever in its judgment
any person has engaged in or is about to engage in acts
or practices which constitute a violation of any
provision of section 26-412 of this chapter, apply to
the supreme court for an order (a) enjoining such acts
or practices, (b) enforcing compliance with such
provision of said section or with an order issued by
the city rent agency, or (c) directing the landlord to
correct such violation of such provision; and upon
sufficient showing, the supreme court may issue a
temporary or permanent injunction, restraining order or
other order, all of which shall be granted without
bond. Jurisdiction shall not be deemed lacking in the
supreme court because a defense is based upon an order
of an inferior court.
(2) The city rent agency may, whenever in its judgment any
person has engaged in acts or practices which
constitute a violation of any provision of section
26412 of this chapter:
(a) Impose by administrative order after hearing, a
civil penalty for any violation of said section
and bring an action to recover same in any court
of competent jurisdiction. Such penalty in the
case of a violation of subdivision d of such
section shall be in the amount of five hundred
dollars for a first such offense and one thousand
dollars for each subsequent offense or for a
violation consisting of conduct directed at the
tenants of more than one housing accommodation;
and in the case of any other violation of such
section in the amount of one hundred dollars for
the first such offense and five hundred dollars
for each subsequent offense. Such order by the
city rent agency shall be deemed a final
determination for the purposes of judicial review
as provided in section 26-411 of this chapter.
Such action shall be brought on behalf of the city
and any amount recovered shall be paid into the
city treasury. Such right of action may be
released, compromised or adjusted by the city rent
agency at any item subsequent to the issuance of
such administrative order.
(b) Commence an action to recover damages, as provided
for in paragraph two of subdivision d of this
section in the event that (i) the tenant has not
previously commenced such an action as therein
provided and (ii) more than six months have
elapsed since the occurrence of the violation or
issuance of the order. An action instituted by the
city rent agency shall constitute a bar to an
action by the person aggrieved. The city rent
agency shall pay over one-half of the sum
recovered in such action to the person aggrieved
and one-half to the city treasury, exclusive of
costs and disbursements.
(3) (a) Subject to the provisions of subparagraph (b)
of this paragraph, make a finding of harassment
whenever it determines the existence of a
violation of subdivision d of section 26-412 of
this chapter in which event the city rent agency
may (i) dismiss any pending application for a
certificate of eviction and grant any subsequent
application for such certificate only upon such
terms and conditions as it deems necessary to
prevent the circumvention or evasion of provisions
of this chapter; (ii) determine that such housing
accommodations or any replacement or subdivision
thereof (whether or not by demolition, alteration
or substantial rehabilitation) shall constitute
housing accommodations subject to control under
the provisions of this chapter, notwithstanding
any definition of that term to the contrary; and
(iii) to refuse to credit any adjustments
increasing rent mandated by section 26-405 of this
chapter and dismiss any applications for an
adjustment pursuant to said section for such time
and under such terms and conditions as the city
rent agency deems necessary to prevent
circumvention or evasion of the provisions of this
chapter.
(b) No proceeding to determine whether housing
accommodations have become vacant as a result of
harassment may be commenced later than thirty days
after the entire structure shall have been
vacated, unless the landlord failed to certify his
or her intent to alter or demolish the premises as
provided by subdivision c of section 26-408 of
this chapter. No proceeding shall be maintained
for acts performed in good faith and in a
reasonable manner for the purposes of operating,
maintaining or repairing any building or part
thereof. A finding of harassment shall be attached
to and noted upon the registration of the housing
accommodations affected by such findings, and a
copy thereof shall be filed and docketed in the
manner of a notice of mechanic's lien affecting
the property. The provisions of this paragraph
shall bind all persons or parties who succeed to
the landlord's interest in said housing
accommodations.
(4) Revoke any order or determination based upon any
statement or entry false in any material respect in any
document or report submitted in any proceeding before
the city rent agency or required to be kept or filed
under this chapter or any requirements thereunder.
c. (1) Any court shall advance on the docket or otherwise
expedite the disposition of any action or proceeding
brought before it pursuant to the provisions of
subdivision b of this section.
(2) The provisions of subdivision b of this section are
cumulative. The enforcement of one provision thereof
shall not constitute a bar to the enforcement by
action, proceeding or by making a finding or
determination pursuant to other provisions of said
subdivision.
(3) The city rent agency may direct that a refund payment
to the tenant for rent collected in violation of
subdivision a of section 26-412 include interest from
the date of each excessive payment of rent. Where the
city rent agency has revoked an order or determination
premised on a false statement or entry it may withhold
issuance of an order granting increase in maximum rent
for such housing accommodations until the landlord has
complied with the refund directive, if any, provided
for in such order of revocation.
d. (1) Where after the city rent agency has granted a
certificate of eviction authorizing the landlord to
pursue his or her remedies pursuant to law to acquire
possession and a tenant voluntarily removes from a
housing accommodation or has been removed therefrom by
action or proceeding to evict from or recover
possession of a housing accommodation upon the ground
that the landlord seeks in good faith to recover
possession of such accommodation:
(a) For his or her immediate and personal use, or for
the immediate and personal use by a member or
members of his or her immediate family, and such
landlord or members of his or her immediate family
shall fail to occupy such accommodation within
thirty days after the tenant vacates; or
(b) For the immediate purpose of withdrawing such
housing accommodation from the rental market, and
such landlord shall lease or sell the housing
accommodation or the space previously occupied
thereby, or permit use thereof in a manner other
than contemplated in such eviction certificate
within a period of one year after such removal of
the tenant; or
(c) For the immediate purpose of altering or
remodeling such housing accommodation, and the
landlord (who required possession for the purpose
of effecting such alteration or remodeling) shall
fail to start the work of alteration or remodeling
of such housing accommodation within ninety days
after the removal of the last tenant whose removal
is necessary to enable the landlord to effect such
alteration or remodeling of such accommodation, or
if after having commenced such work shall fail or
neglect to prosecute the work with reasonable
diligence; or
(d) For the immediate purpose of demolishing such
housing accommodations and constructing a new
building in accordance with approved plans, or
reasonable amendment thereof, and the landlord has
failed to complete the demolition within six
months after the removal of the last tenant or,
having demolished the premises, has failed or
neglected to proceed with the new construction
within ninety days after the completion of such
demolition, or having commenced such construction
work, has failed or neglected to prosecute such
work with reasonable diligence; or
(e) For some purpose other than those specified above
for which the removal of the tenant was sought and
the landlord has failed to use the vacated
premises for such purposes; such landlord shall,
unless for good cause shown be liable to the
tenant for three times the damages sustained on
account of such removal plus reasonable attorney's
fees and costs as determined by the court provided
that the tenant commences such action within three
years from the expiration of the applicable time
period as set forth in this subdivision. The
damages sustained by the tenant under this
subdivision shall be the difference between the
rent paid for the housing accommodation from which
such tenant was evicted, and the rental value of a
comparable housing accommodation on the open
market. In addition to any other damage, the cost
of removal of the tenant's property shall be a
lawful measure of damages. The remedy herein
provided shall be in addition to those provided
for in subdivisions a and b of this section. Such
acts and omissions on the part of a landlord after
issuance of a certificate of eviction are hereby
declared to be consistent with the purposes for
which such certificate of eviction was issued.
(2) A tenant may bring an action against his or her
landlord in any court of competent jurisdiction for a
violation of subdivision a of section 26-412 of this
chapter within: (a) two years from the date of
occurrence of an overcharge, defined to mean the amount
by which the consideration paid by a tenant to a
landlord exceeds the applicable maximum rent, or (b)
within one year after the landlord fails to pay a
refund as ordered by the city rent agency, such time to
be calculated from thirty-three days after the date of
the issuance of the order or when the order becomes
final, whichever is later, or (c) in the case of an act
proscribed by subdivision e of section 26-412 of this
chapter, within two years after knowledge of such
statement or omission and consequent violation has been
made known to the city agency. The landlord shall be
liable for reasonable attorney's fees and costs as
determined by the court, plus whichever of the
following sums is the greater: (i) such amount not more
than three times the amount of the overcharge, or the
overcharges, upon which the action is based as the
court in its discretion may determine or (ii) an amount
not less than twenty-five dollars, provided, however,
that such amount shall be the amount of the overcharge
or overcharges or twenty-five dollars, whichever is
greater, if the defendant proves that the violation of
the regulation or order in question was neither wilful
nor the result of failure to take practicable
precautions against the occurrence of the violation.
(3) A tenant or occupant who is unlawfully removed by a
landlord from any housing accommodation may, within two
years from the date of occurrence bring a civil action
against the landlord by reason of such unlawful
removal. In such action, the landlord shall be liable
to the tenant for three times the damages sustained on
account of such removal plus reasonable attorney's fees
and costs as determined by the court. The damages
sustained by the tenant under this paragraph shall be
the difference between the rent paid for the housing
accommodation from which such tenant was evicted and
the rental value of a comparable housing accommodation
on the open market. In addition to any other damage the
cost of removal of the tenant's property shall be a
lawful measure of damage.
e. No person (including, but not limited to any officer or
employee of the city rent agency) shall be held liable for
damages or penalties in any court, on any grounds for or in
respect of anything done or omitted to be done in good faith
pursuant to any provision of the state rent act or of this
chapter, or any regulation, order, or requirement
thereunder, notwithstanding that subsequently such
provision, regulation, order or requirement may be modified,
rescinded, or determined to be invalid. In any action or
proceeding wherein a party relies for ground of relief or
defense or raises issue or brings into question the
construction or validity of any provision of this chapter or
any regulation, order, or requirement thereunder, the court
having jurisdiction of such action or proceeding may at any
stage certify such fact to the city rent agency. The city
rent agency may intervene in any such action or proceeding.
Added by Laws 1985, Ch. 907, § 1, eff. Sept. 1, 1986.
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§ 26-414. Decontrol on basis of vacancy rate.
Whenever the city rent agency shall find, after making such
studies and investigations as it deems necessary for such
purpose, or for processing an application supported by adequate
proof filed by an interested party pursuant to regulation that
the percentage of vacancies in all or any particular class of
housing accommodations in the city, as such class is determined
by the city rent agency, is five per centum or more, the controls
imposed on rents and evictions by and pursuant to this chapter,
with respect to the housing accommodations as to which such
finding has been made, shall be forthwith scheduled for orderly
decontrol, with due regard to preventing uncertainty, hardship
and dislocation, by order of such agency; provided, however, that
notwithstanding any provision of this section to the contrary,
such agency shall not order the decontrol of any particular class
of housing accommodations as to which it shall find that the
percentage of vacancies is less than five per centum; provided,
further, that no such order shall be made unless such agency
shall hold a public hearing on such proposal at which interested
persons are given a reasonable opportunity to be heard. Notice of
such hearing shall be provided by publication thereof, on at
least five days during the period of fifteen days next preceding
the date of the commencement of such hearing, in the city record
and in at least two daily newspapers having general circulation
in the city.
Added by Laws 1985, Ch. 907, § 1, eff. Sept. 1, 1986.
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§ 26-415. Surveys of need for rent control.
As provided in subdivision three of section one of the local
emergency housing rent control act, the mayor shall cause to be
made, and shall present to the council a report of the results
of, a survey of the supply of housing accommodations within the
city, the condition of such accommodations and the need for
continuing the regulation and control of residential rents and
evictions within the city.
Added by Laws 1985, Ch. 907, § 1, eff. Sept. 1, 1986.
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26-403(e)(2)
(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 as of
October first, nineteen hundred ninety-three.
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 at any time
between the effective date of this subparagraph
and October first, nineteen hundred ninety-three
which is or becomes vacant on or after the
effective date of this subparagraph, 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.
§ 26-403.1. High income rent decontrol.
b. On or before the first day of May in each calendar year, the
owner of each housing accommodation for which the maximum
rent as of October first, nineteen hundred ninety-three 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 had a maximum rent of two
thousand dollars or more per month as of October first,
nineteen hundred ninety-three 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.