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State of New York Codes, Rules and Regulations (NYCRR)
Title 9. Executive Department
Subtitle S. Division of Housing and Community Renewal
Chapter VIII. Rent Stabilization Regulations
Subchapter B. Rent Stabilization Code

Part 2520. Scope

2520.1 Statutory authority
2520.2 Amendment of codes
2520.3 Construction and implementation
2520.4 Delegation of authority
2520.5 Designations
2520.6 Definitions
2520.7 Effective date
2520.8 Amendment or revocation
2520.9 Filing of amendments
2520.10 Separability
2520.11 Applicability
2520.12 Effect of this Code on leases and other rental agreements
2520.13 Waiver of benefit void



NYCRR Part 2520

Statutory authority:
N.Y.C. Administrative Code, 26-511(b), 26-518(a) Added Part 2520 on 5/01/87.


9 NYCRR 2520.1

2520.1  Statutory authority

This Subchapter is promulgated and adopted pursuant to the powers granted to the Division of Housing and Community Renewal by chapter 888 of the Laws of New York for the year 1985.

Statutory authority:
N.Y.C. Administrative Code, 26-511(b), 26-518(a)
History:
Added 2520.1 on 5/01/87.


9 NYCRR 2520.2

2520.2  Amendment of codes

Sections 1 through 66, inclusive, of the code of the Rent Stabilization Association of New York City, Inc., and sections 1 through 64, inclusive, of the code of the Metropolitan Hotel Industry Stabilization Association, Inc., as last amended, are hereby further amended by deleting such sections in their entirety, and sections 2520.1 through 2530.1 of this Subchapter, inclusive, are hereby adopted, and this Code shall hereafter be known as the Rent Stabilization Code. Chapter VIII of this Subtitle is hereby redesignated to be known as Rent Stabilization Regulations, and divided into Subchapter A - Emergency Tenant Protection Regulations, consisting of existing Parts 2500- 2510; and Subchapter B - Rent Stabilization Code, consisting of new Parts 2520- 2530.

Statutory authority:
N.Y.C. Administrative Code, 26-511(b), 26-518(a)
History:
Added 2520.2 on 5/01/87.


9 NYCRR 2520.3

2520.3  Construction and implementation

This Code shall be construed so as to carry out the intent of the Rent Stabilization Law to ensure that such statute shall not be subverted or rendered ineffective, directly or indirectly, and to prevent the exaction of unjust, unreasonable and oppressive rents and rental agreements, and to forestall profiteering, speculation and other disruptive practices tending to produce threats to the public health, safety and general welfare; and that the policy herein expressed shall be implemented with due regard for the preservation of regulated rental housing.


Statutory authority:
N.Y.C. Administrative Code, 26-511(b), 26-518(a)
History:
Added 2520.3 on 5/01/87.


9 NYCRR 2520.4

2520.4  Delegation of authority

The Commissioner of Housing and Community Renewal may delegate to a deputy commissioner, an assistant commissioner, a rent administrator or any other person or persons, the authority to carry out any of the duties and powers granted to him by the New York City Rent Stabilization Law or this Code, and the Emergency Tenant Protection Act of Nineteen Seventy-four as amended.

Statutory authority:
N.Y.C. Administrative Code, 26-511(b), 26-518(a)
History:
Added 2520.4 on 5/01/87.


9 NYCRR 2520.5

2520.5  Designations

When used in this Code, unless a different meaning clearly appears from the context, the following terms shall mean and include:

(a) RSL. Title 26 of the Administrative Code of the City of New York, sections 26-501 through 26-520, as recodified by chapter 907 of the Laws of New York for the year 1985, constituting the New York City Rent Stabilization Law.

(b) ETPA. The Emergency Tenant Protection Act of Nineteen Seventy-four.

(c) State Rent Law. The New York State Emergency Housing Rent Control Law, commonly referred to as the State Rent Control Law.

(d) City Rent Law. Title 26 of the Administrative Code of the City of New York, sections 26-401 through 26-415, as recodified by chapter 907 of the Laws of New York for the year 1985, constituting the New York City Rent and Rehabilitation Law, commonly referred to as the City Rent Control Law.

(e) PHFL. The Private Housing Finance Law.

(f) MDL. The Multiple Dwelling Law.

(g) City Rent and Eviction Regulations. Regulations adopted and promulgated by the State Division of Housing and Community Renewal pursuant to the City Rent Law, Parts 2200-2210 of Title 9 NYCRR, officially known as the Official Compilation of Codes, Rules and Regulations of the State of New York.

(h) DHCR. State Division of Housing and Community Renewal in the Executive Department.

(i) Commissioner. Commissioner of the DHCR.

(j) City Rent Agency. DHCR as defined in the City Rent Law.

(k) HPD. New York City Department of Housing Preservation and Development.

(l) Loft Board. The board created in the City of New York pursuant to article 7-C of the MDL, to resolve complaints of owners of interim multiple dwellings and of residential occupants of such buildings qualified for the protection of MDL article 7-C, and to act upon hardship applications made pursuant to such article.

(m) Rent Guidelines Board. The board created in the City of New York pursuant to the RSL to establish guidelines annually for rent adjustments for leases or other rental agreements.

(n) Office of Rent Administration. The office of the DHCR designated by the commissioner to administer the ETPA, the RSL and the City and State Rent Laws.

(o) District Rent Office. The local rent administration office of the DHCR for a particular rent area in the City of New York.

(p) Rent Administrator. The person designated by the commissioner to issue orders based on complaints or applications made to the DHCR.

Statutory authority: New York City Administrative Code, 26-401, 26-402, 26-403, 26-404, 26-405, 26-406, 26-407, 26-408, 26-409, 26-410, 26-411, 26-412, 26-413, 26-414, 26-415, 26-501, 26-502, 26-503, 26-504, 26-505, 26-506, 26-507, 26-509, 26-510, 26-511, 26-512, 26-513, 26-514, 26-515, 26-516, 26-517, 26-518, 26-519, 26-520; Multiple Dwelling, A7-C, N.Y.C. Administrative Code, 26-511(b), 26-518(a)
History:
Added 2520.5 on 5/01/87.

9 NYCRR 2520.6

2520.6  Definitions

(a) Housing accommodation. That part of any building or structure, occupied or intended to be occupied by one or more individuals as a residence, home, dwelling unit or apartment, and all services, privileges, furnishings, furniture and facilities supplied in connection with the occupation thereof. The term housing accommodation will also apply to any plot or parcel of land which had been regulated pursuant to the City of Rent Law prior to July 1, 1971, and which became subject to the RSL after June 30, 1974.

(b) Hotel. Any Class A or Class B multiple dwelling which provides all of the services included in the rent as set forth in section 2521.3 of this Title.

(c) Rent. Consideration, charge, fee or other thing of value, including any bonus, benefit or gratuity demanded or received for, or in connection with, the use or occupation of housing accommodations or the transfer of a lease for such housing accommodations. Rent shall not include surcharges authorized pursuant to section 2522.10 of this Title.

(d) Tenant. Any person or persons named on a lease as lessee or lessees, or who is or are a party or parties to a rental agreement and obligated to pay rent for the use or occupancy of a housing accommodation.

(e) Legal Regulated Rent. The rent charged on the base date set forth in subdivision (f) of this section, plus any subsequent lawful increases and adjustments.

(f) Base date. For the purpose of proceedings pursuant to sections 2522.3 and 2526.1 of this Title, base date shall mean the date which is the most recent of:

(1) the date four years prior to the date of the filing of such appeal or complaint;

(2) the date on which the housing accommodation first became subject to the RSL; or

(3) April 1, 1984, for complaints filed on or before March 31, 1988 for housing accommodations for which initial registrations were required to be filed by June 30, 1984, and for which a timely challenge was not filed.

(g) Vacancy lease. The first lease or rental agreement for a housing accommodation that is entered into between an owner and a tenant.

(h) Renewal lease. Any extension of a tenant's lawful occupancy of a housing accommodation pursuant to section 2523.5 of this Title.

(i) Owner. A fee owner, lessor, sublessor, assignee, net lessee, or a proprietary lessee of a housing accommodation in a structure or premises owned by a cooperative corporation or association, or an owner of a condominium unit of the sponsor of such cooperative corporation or association or condominium development, or any other person or entity receiving or entitled to receive rent for the use or occupation of any housing accommodation, or an agent of any of the foregoing, but such agent shall only commence a proceeding pursuant to section 2524.5 of this Title, in the name of such foregoing principals. Any separate entity that is owned, in whole or in part, by an entity that is considered an owner pursuant to this subdivision, and which provides only utility services shall itself not be considered an owner pursuant to this subdivision. Except as is otherwise provided in sections 2522.3 and 2526.1(f) of this Title, a court-appointed receiver shall be considered an owner pursuant to this subdivision.

(j) Permanent tenant. For housing accommodations located in hotels, an individual or such individual's family members residing with such individual, who have continuously resided in the same building as a principal residence for a period of at least six months. In addition, a hotel occupant who requests a lease of six months or more pursuant to section 2522.5(a)(2) of this Title, or who is in occupancy pursuant to a lease of six months or more shall be a permanent tenant even if actual occupancy is less than six months. Unless otherwise specified, reference in this Code to "tenant" shall include permanent tenant with respect to hotels.

(k) Subtenant or sublessee. Any person lawfully occupying the housing accommodation pursuant to an agreement with the tenant by authority of the lease or by virtue of rights afforded pursuant to section 226-b of the Real Property Law. Such person shall be entitled to all of the benefits of and be subject to all of the obligations of this Code except the right to renew, and the right to purchase upon conversion to cooperative or condominium ownership.

(l) Occupant. Any person occupying a housing accommodation as defined in and pursuant to section 235-f of the Real Property Law. Such person shall not be considered a tenant for the purposes of this Code.

(m) Hotel occupant. Any person residing in a housing accommodation in a hotel who is not a permanent tenant. Such person shall not be considered a tenant for the purposes of this Code, but shall be entitled to become a permanent tenant as defined in subdivision (j) of this section, upon compliance with the procedure set forth in such subdivision.

(n) Immediate family. A husband, wife, son, daughter, stepson, stepdaughter, father, mother, stepfather, stepmother, brother, sister, grandfather, grandmother, grandson, granddaughter, father-in-law, mother-in-law, son-in-law or daughter-in-law of the owner.

(o) Family member.

(1) A husband, wife, son, daughter, stepson, stepdaughter, father, mother, stepfather, stepmother, brother, sister, grandfather, grandmother, grandson, granddaughter, father-in-law, mother-in-law, son-in-law or daughter-in-law of the tenant or permanent tenant; or

(2) Any other person residing with the tenant or permanent tenant in the housing accommodation as a primary or principal residence, respectively, who can prove emotional and financial commitment, and interdependence between such person and the tenant or permanent tenant. Although no single factor shall be soley determinative, evidence which is to be considered in determining whether such emotional and financial commitment and interdependence existed, may include, without limitation, such factors as listed below. In no event would evidence of a sexual relationship between such persons be required or considered:

(i) longevity of the relationship;

(ii) sharing of or relying upon each other for payment of household or family expenses, and/or other common necessities of life;

(iii) intermingling of finances as evidenced by, among other things, joint ownership of bank accounts, personal and real property, credit cards, loan obligations, sharing a household budget for purposes of receiving government benefits, etc.;

(iv) engaging in family-type activities by jointly attending family functions, holidays and celebrations, social and recreational activities, etc.;

(v) formalizing of legal obligations, intentions, and responsibilities to each other by such means as executing wills naming each other as executor and/or beneficiary, granting each other a power of attorney and/or conferring upon each other authority to make health care decisions each for the other, entering into a personal relationship contract, making a domestic partnership declaration, or serving as a representative payee for purposes of public benefits, etc.;

(vi) holding themselves out as family members to other family members, friends, members of the community or religious institutions, or society in general, through their words or actions;

(vii) regularly performing family functions, such as caring for each other or each other's extended family members, and/or relying upon each other for daily family services;

(viii) engaging in any other pattern of behavior, agreement, or other action which evidences the intention of creating a long-term, emotionally committed relationship.

(p) Senior citizen. A person who is 62 years of age or older.

(q) Disabled person. Except as provided pursuant to section 2523.5(b)(4) of this Title (Renewal of Lease), a person who has an impairment which results from anatomical, physiological or psychological conditions, other than addiction to alcohol, gambling, or any controlled substance, which are demonstrable by medically acceptable clinical and laboratory diagnostic techniques, and which are expected to be permanent and which prevent such person from engaging in any substantial gainful employment.

(r) Required services.

(1) That space and those services which the owner was maintaining or was required to maintain on the applicable base dates set forth below, and any additional space or services provided or required to be provided thereafter by applicable law. These may include, but are not limited to, the following: repairs, decorating and maintenance, the furnishing of light, heat, hot and cold water, elevator services, janitorial services and removal of refuse.

(2) For housing accommodations located in hotels in addition to the definition set forth in paragraph (1) of this subdivision, required services shall also include the services set forth in section 2521.3 of this Title, and any other services provided, or required to be provided by applicable law on the applicable base dates set forth below, including but not limited to telephone switchboard, bellhop, secretarial, and front desk services.

(3) Ancillary services. That space and those required services not contained within the individual housing accommodation which the owner was providing on the applicable base dates set forth below, and any additional space and services provided or required to be provided thereafter by applicable law. These may include, but are not limited to, garage facilities, laundry facilities, recreational facilities, and security. Such ancillary services are subject to the following provisions:

(i) No owner shall require a tenant or prospective tenant to lease, rent or pay for an ancillary service, other than security, as a condition of renting a housing accommodation.

(ii) Where an ancillary service is provided to a tenant pursuant to a lease or rental agreement separate and apart from the lease or rental agreement for the housing accommodation occupied by the tenant, the tenant shall not be required to renew such lease, or rental agreement, for the ancillary service upon the expiration of such lease or rental agreement.

(iii) Where an ancillary service is provided to a tenant pursuant to a lease or rental agreement for a housing accommodation, whether at a charge separate and apart from the rental of the housing accommodation, or included in the legal regulated rent, the tenant may be required to renew the rental term for the ancillary service upon the renewal of the lease for the housing accommodation. However, where the owner requires a tenant to continue such ancillary service, the owner may not unreasonably withhold consent to the tenant to sublet for the term of each renewal lease, the space or other facility constituting the ancillary service.

(iv) For housing accommodations located in hotels, where telephone switchboard service is not provided or required to be provided pursuant to paragraph (2) of this subdivision, an owner shall not deny a permanent tenant permission to install a private telephone, provided that such installation shall not cause undue economic hardship to the owner, nor shall an owner cause the removal of a pay telephone from the premises.

(4) The base dates for required services shall be:

(i) for housing accommodations subject to the RSL on June 30, 1974, for building-wide and individual dwelling unit services: May 31, 1968;

(ii) for housing accommodations subject to the RSL pursuant to section 421-a of the Real Property Tax Law, for building-wide and individual dwelling unit services: the date of issuance of the initial Certificate of Occupancy;

(iii) for housing accommodations subject to the RSL on June 30, 1971, and exempted thereafter as a result of a vacancy prior to June 30, 1974, for building-wide services: May 31, 1968; for individual dwelling unit services: May 29, 1974;

(iv) for dwelling units which became subject to the RSL on July 1, 1974, pursuant to section 423 of the Real Property Tax Law, for building-wide and individual unit services: May 29, 1974, except that for housing accommodations in the Riverton Apartments at East 138th Street, Manhattan, which became subject to the RSL on July 1, 1974, pursuant to an initial legal regulated rent date of June 30, 1973, for building-wide and individual dwelling unit services: June 30, 1973;

(v) for housing accommodations which are subject to this Code solely as a condition of receiving or continuing to receive benefits pursuant to section 11-243 (formerly J51-2.5) or 11-244 (formerly J51-5.0) of the Administrative Code of the City of New York, as amended, for building-wide and individual unit services: January 1, 1976, or the date of the issuance of a Certificate of Reasonable Cost, whichever is later;

(vi) for housing accommodations for which rents are established by governmental agencies pursuant to the PHFL, or which are first made subject to this Code pursuant to the PHFL, the building-wide and individual unit services which were required for approval in connection with the establishment of initial rents pursuant to the PHFL: the effective date of the initial rents;

(vii) for housing accommodations whose rentals were previously regulated under the PHFL or any other State or Federal law, other than the RSL or the City Rent Law: the date such regulation ends;

(viii) for housing accommodations contained in Class B multiple dwelling units, including single room occupancy facilities, rooming houses or rooming units made subject to the ETPA on June 4, 1981, for building-wide and individual dwelling unit services: June 4, 1981;

(ix) for housing accommodations which are first made subject to this Code pursuant to article 7-C of the MDL, for building-wide and individual dwelling unit services: the effective date of the initial rents established by the Loft Board;

(x) for all other housing accommodations not subject to the RSL on June 30, 1974, which become subject to the RSL on or after July 1, 1974 pursuant to the ETPA, for building-wide and individual dwelling unit services: May 29, 1974.

A service as defined in paragraph (3) of this subdivision for which there is or was a separate charge, shall not be subject to the provisions of this Code where no common ownership between the operator of such service and the owner exists or existed on the applicable base date, or at any time subsequent thereto, and such service is or was provided on the applicable base date and at all times thereafter by an independent contractor pursuant to a contract or agreement with the owner. Where, however, on the applicable base date or at any time subsequent thereto, there is or was a separate charge, and there is or was common ownership, directly or indirectly, between the operator of such service and the owner, or the service was provided by the owner, any increase, other than the charge provided in the initial agreement with a tenant to lease, rent or pay for such service, shall conform to the applicable rent guidelines rate. However, notwithstanding such common ownership, where such service was not provided primarily for the use of tenants in the building or building complex on the applicable base date or at any time subsequent thereto, such increases shall not be subject to any guidelines limitations.

(5) Each housing accommodation must be painted at least once every three years in compliance with title 27 of the Administrative Code of the City of New York (the Housing Maintenance Code). In no event shall a tenant be required to pay a painting deposit or to contribute to the cost of the painting except to the extent the owner agrees to provide services in connection with the painting which are not required, and the tenant consents in writing to pay therefor. Any painting deposit previously required shall be returned to the tenant on renewal of his or her lease.

(s) Documents. Records, books, accounts, correspondence, memoranda and other documents, and copies, including microphotographic or electronically stored or transmitted copies, of any of the foregoing.

(t) Final order. A final order shall be an order of a rent administrator not appealed to the commissioner within the period authorized pursuant to section 2529.2 of this Title, or an order of the commissioner, unless such order remands the proceeding for further consideration.

(u) Primary residence. Although no single factor shall be solely determinative, evidence which may be considered in determining whether a housing accommodation subject to this Code is occupied as a primary residence shall include, without limitation, such factors as listed below:

(1) specification by an occupant of an address other than such housing accommodation as a place of residence on any tax return, motor vehicle registration, driver's license or other document filed with a public agency;

(2) use by an occupant of an address other than such housing accommodation as a voting address;

(3) occupancy of the housing accommodation for an aggregate of less than 183 days in the most recent calendar year, except for temporary periods of relocation pursuant to section 2523.5(b)(2) of this Title; and

(4) subletting of the housing accommodation.

Statutory authority:
New York City Administrative Code, 11-243, 11-244; Multiple Dwelling, A7-C; Real Property Law, 226-B, 235-F; Real Property Tax Law, 423; New York City Administrative Code, T27C2; Real Property Tax Law, 421-A, N.Y.C. Administrative Code, 26-511(b), 26-518(a)
History:
Added 2520.6 on 5/01/87; amended 2520.6(c) on 12/20/00; repealed and added 2520.6(e) on 12/20/00; repealed and added 2520.6(f) on 12/20/00; amended 2520.6(i) on 12/20/00; amended 2520.6(n) on 4/04/90; amended 2520.6(n) on 12/20/00; amended 2520.6(o) on 4/04/90; amended 2520.6(o)(1) on 12/20/00; amended 2520.6(q) on 4/04/90; amended 2520.6(s) on 12/20/00; amended 2520.6(t) on 12/20/00; added 2520.6(u) on 12/20/00.

9 NYCRR 2520.7

2520.7  Effective date

In accordance with the provisions of the State Administrative Procedure Act, this Code shall be effective May 1, 1987, and all amendments to this Code shall become effective in accordance with the State Administrative Procedure Act. Where implementation of a provision would require new or significantly revised filing procedures or notice requirements, the DHCR may postpone implementation of such provision, as required, for up to 180 days after the effective date of this Code, by an advisory opinion issued pursuant to section 2527.11 of this Title, which shall be available to the public on such effective date. Where such postponement is deemed necessary, current filing procedures, notice requirements, or forms, if any, may be utilized until revision thereof.

Statutory authority:
N.Y.C. Administrative Code, 26-511(b), 26-518(a)
History:
Added 2520.7 on 5/01/87.


9 NYCRR 2520.8

2520.8  Amendment or revocation

Any provision of this Code may be amended or revoked at any time in accordance with the procedure set forth in chapter 888 of the Laws of New York for the year 1985, or as otherwise provided by the State Administrative Procedure Act.

Statutory authority:
N.Y.C. Administrative Code, 26-511(b), 26-518(a)
History:
Added 2520.8 on 5/01/87.


9 NYCRR 2520.9

2520.9  Filing of amendments

Such amendment or revocation shall be filed with the Secretary of State and shall take effect upon the date of filing unless otherwise specified therein or as otherwise provided by the State Administrative Procedure Act.

Statutory authority:
N.Y.C. Administrative Code, 26-511(b), 26-518(a)
History:
Added § 2520.9 on 5/01/87.


9 NYCRR 2520.10

2520.10  Separability

If any provision of this Code or the application of such provision to any person or circumstance shall be held invalid, the validity of the remainder of this Code and the applicability of such provision to other persons or circumstances shall not be affected thereby.

Statutory authority:
N.Y.C. Administrative Code, 26-511(b), 26-518(a)
History:
Added § 2520.10 on 5/01/87.

9 NYCRR 2520.11

§ 2520.11  Applicability

This Code shall apply to all or any class or classes of housing accommodations made subject to regulation pursuant to the RSL or any other provision of law, except the following housing accommodations for so long as they maintain the status indicated below:

(a) housing accommodations subject to the City Rent Law;

(b) housing accommodations owned, operated or leased by the United States, the State of New York, any political subdivision, agency or instrumentality thereof, any municipality or any public housing authority;

(c) housing accommodations for which rentals are fixed by the DHCR or HPD, unless, after the establishment of initial rents, the housing accommodations are made subject to the RSL pursuant to applicable law, or housing accommodations subject to the supervision of the DHCR or HPD under other provisions of law or the New York State Urban Development Corporation, or buildings aided by government insurance under any provision of the National Housing Act to the extent the RSL or any regulation or order issued thereunder is inconsistent with such act. However, housing accommodations in buildings completed or substantially rehabilitated prior to January 1, 1974, and whose rentals were previously regulated under the PHFL or any other State or Federal law, other than the RSL or the City Rent Law, shall become subject to the ETPA, the RSL and this Code, upon the termination of such regulation;

(d) buildings containing fewer than six housing accommodations on the date the building first became subject to the RSL, unless such buildings are otherwise subject to this Code pursuant to the RSL or other statutes and regulations; for the purposes of this subdivision, a building shall be deemed to contain six or more housing accommodations if it was part of a multiple family garden-type maisonette dwelling complex containing six or more housing accommodations having common facilities such as a sewer line, water main or heating plant and was operated as a unit under common ownership on the date the building or complex first became subject to the RSL, notwithstanding that Certificates of Occupancy were issued for portions thereof as one- or two- family dwellings;

(e) housing accommodations in buildings completed or buildings substantially rehabilitated as family units on or after January 1, 1974, except such buildings which are made subject to this Code by provision of the RSL or any other statute that meet the following criteria, which, at the DHCR's discretion, may be effectuated by operational bulletin:

(1) a specified percentage, not to exceed 75 percent, of listed building- wide and individual housing accommodation systems, must have been replaced;

(2) for good cause shown, exceptions to the criteria stated herein or effectuated by operational bulletin, regarding the extent of the rehabilitation work required to be effectuated building-wide or as to individual housing accommodations, may be granted where the owner demonstrates that a particular component of the building or system has recently been installed or upgraded, or is structurally sound and does not require replacement, or that the preservation of a particular component is desirable or required by law due to its aesthetic or historic merit;

(3) the rehabilitation must have been commenced in a building that was in a substandard or seriously deteriorated condition. The extent to which the building was vacant of residential tenants when the rehabilitation was commenced shall constitute evidence of whether the building was in fact in such condition. Where the rehabilitation was commenced in a building in which at least 80 percent of the housing accommodations were vacant of residential tenants, there shall be a presumption that the building was substandard or seriously deteriorated at that time. Space converted from nonresidential use to residential use shall not be required to have been in substandard or seriously deteriorated condition for there to be a finding that the building has been substantially rehabilitated;

(4) except in the case of extenuating circumstances, the DHCR will not find the building to have been in a substandard or seriously deteriorated condition where it can be established that the owner has attempted to secure a vacancy by an act of arson resulting in criminal conviction of the owner or the owner's agent, or the DHCR has made a finding of harassment, as defined pursuant to any applicable rent regulatory law, code or regulation;

(5) in order for there to be a finding of substantial rehabilitation, all building systems must comply with all applicable building codes and requirements, and the owner must submit copies of the building's certificate of occupancy, if such certificate is required by law, before and after the rehabilitation;

(6) where occupied rent regulated housing accommodations have not been rehabilitated, such housing accommodations shall remain rent regulated until vacated, notwithstanding a finding that the remainder of the building has been substantially rehabilitated, and therefore qualifies for exemption from regulation;

(7) where, because of the existence of hazardous conditions in his or her housing accommodation, a tenant has been ordered by a governmental agency to vacate such housing accommodation, and the tenant has received a court order or an order of the DHCR that provides for payment by the tenant of a nominal rental amount while the vacate order is in effect, and permits the tenant to resume occupancy without interruption of the rent stabilized status of the housing accommodation upon restoration of the housing accommodation to a habitable condition, such housing accommodation will be excepted from any finding of substantial rehabilitation otherwise applicable to the building. However, the exemption from rent regulation based upon substantial rehabilitation will apply to a housing accommodation that is subject to a right of reoccupancy, if the returning tenant subsequently vacates, or if the tenant who is entitled to return pursuant to court or DHCR order chooses not to do so;

(8) an owner may apply to the DHCR for an advisory prior opinion that the building will qualify for exemption from rent regulation on the basis of substantial rehabilitation, based upon the owner's rehabilitation plan;

(9) specified documentation will be required from an owner in support of a claim of substantial rehabilitation;

(f) housing accommodations owned, operated, or leased or rented pursuant to governmental funding, by a hospital, convent, monastery, asylum, public institution, or college or school dormitory or any institution operated exclusively for charitable or educational purposes on a nonprofit basis, and occupied by a tenant whose initial occupancy is contingent upon an affiliation with such institution; however, a housing accommodation occupied by a nonaffiliated tenant shall be subject to the RSL and this Code;

(g) rooms or other housing accommodations in hotels where such housing accommodations (1) are used for transient occupancy; (2) were rented on May 31, 1968 for more than $350 per month or $88 per week; or (3) are contained in a hotel which was constructed after July 1, 1969;

(h) any motor court, or any part thereof, any trailer, or trailer space used exclusively for transient occupancy or any part thereof; or any tourist home serving transient guests exclusively, or any part thereof. The term tourist home shall mean a rooming house which caters primarily to transient guests and is known in the community as a tourist home;

(i) nonhousekeeping, furnished housing accommodations, located within a single dwelling unit not used as a rooming or boarding house, but only if:

(1) no more than two tenants for whom rent is paid (husband and wife being considered one tenant for this purpose), who are not members of the owner's immediate family, live in such dwelling unit; and

(2) the remaining portion of such dwelling unit is occupied by the owner or his or her immediate family; provided that this exemption shall not apply where the tenancy commenced prior to July 1, 1971;

(j) housing accommodations in buildings operated exclusively for charitable purposes on a nonprofit basis;

(k) housing accommodations which are not occupied by the tenant, not including subtenants or occupants, as his or her primary residence as determined by a court of competent jurisdiction;

(l) housing accommodations contained in buildings owned as cooperatives or condominiums on or before June 30, 1974; or thereafter, as provided in section 352-eeee of the General Business Law in accordance with section 2522.5(h) of this Title, provided, however, and subject to the limitations set forth in subdivisions (e), (o) and (p) of this section, that:

(1) where cooperative or condominium ownership of such building no longer exists (deconversion), because the cooperative corporation or condominium association loses title to the building upon a foreclosure of the underlying mortgage or otherwise, or where the conversion of the building to cooperative or condominium ownership is revoked retroactively by the New York State Attorney General to the date immediately prior to the effective date of the conversion plan on the basis of fraud or on other grounds, such housing accommodations shall revert to regulation pursuant to the RSL and this Code, and the regulated rents therefor shall be as follows:

(i) Housing accommodations not occupied at the time of deconversion.

(a) Where deconversion occurs four years or more after the effective date of the conversion plan, the initial regulated rent shall be as agreed upon by the parties and reserved in a vacancy lease.

(b) Where deconversion occurs within four years after the effective date of the conversion plan, the initial regulated rent shall be the most recent legal regulated rent for the housing accommodation increased by all lawful adjustments that would have been permitted had the housing accommodation been continuously subject to the RSL and this Code.

(c)

(1) Where the rent, as agreed upon by the parties and paid by the tenant is $2,000 or more per month, pursuant to subdivision (r) of this section, such accommodation and the rent therefor shall not revert to regulation under this Code.

(2) Initial regulated rents established pursuant to clause (a ) of this subparagraph shall not be subject to challenge under section 2526.1(a)(2)(ii) of this Title.

(d)

(1) Within 30 days after deconversion, the new owner taking title upon deconversion shall offer a vacancy lease, at an initial regulated rent established pursuant to this subparagraph, to the holder of shares formerly allocated to the housing accommodation in the case of cooperative ownership, or the former unit owner in the case of condominium ownership. Such shareholder or former unit owner shall have 30 days to accept such offer by entering into the vacancy lease. Failure to enter into such lease shall be deemed to constitute a surrender of all rights to the housing accommodation.

(2) This clause shall not apply where deconversion was caused, in whole or in part, by a violation of any material term of the proprietary lease by the shareholder or former unit owner.

(3) No individual former owner or proprietary lessee shall be entitled to occupy more than one housing accommodation.

(ii) Housing accommodations occupied at the time of deconversion and not subject to regulation under this Code at such time.

(a) Where the housing accommodation is occupied by a holder of shares formerly allocated to it in the case of cooperative ownership, or by the former owner of such unit in the case of condominium ownership, such shareholder or former unit owner shall be offered a new vacancy lease, subject to regulation under this Code, by the new owner taking title upon deconversion, which lease shall be subject to all of the terms and conditions set forth in subparagraph (i) of this paragraph pertaining to the establishment of initial regulated rents, lease offer, and deregulation, including subclause (i)(d)(2) of this paragraph.

(b) Where the housing accommodation is occupied by a current renter pursuant to a sublease with the holder of shares formerly allocated to it in the case of cooperative ownership, or to the former owner of such unit in the case of condominium ownership, the new owner shall offer a vacancy lease to such holder of shares or former unit owner pursuant to all of the terms and conditions set forth in subparagraph (i) of this paragraph.

(c) All shareholders or former unit owners described in this subparagraph shall be offered a vacancy lease within 30 days after the deconversion, and shall have 30 days to accept such offer. However, in the event such shareholder or former unit owner does not enter into the vacancy lease, he or she shall be deemed to have surrendered all rights to the housing accommodation effective 120 days after the deconversion.

(iii) Housing accommodations occupied pursuant to regulation under this Code or the City Rent and Eviction Regulations by nonpurchasing tenants immediately prior to deconversion. The regulated rents for such housing accommodations shall not be affected by the deconversion, and such accommodations shall remain fully subject to all provisions of this Code or the City Rent and Eviction Regulations, whichever is applicable.

(iv)

(a) Where it determines that the owner taking title at deconversion caused, in whole or in part, the deconversion to occur, the initial legal regulated rent shall be established by the DHCR pursuant to sections 2522.6 and 2522.7 of this Title. In such cases, if the rent so established and paid is $2,000 or more per month, subdivision (r) of this section shall not apply.

(b) Upon deconversion, housing accommodations which were last subject to regulation pursuant to the City Rent and Eviction Regulations shall become subject to regulation under this Code pursuant to this paragraph. In such cases, the initial legal regulated rent shall be established by the DHCR pursuant to sections 2522.6 and 2522.7 of this Title.

(2) Housing accommodations that were subject to regulation under this Code or the City Rent and Eviction Regulations immediately prior to conversion to cooperative or condominium ownership by virtue of the receipt of tax benefits pursuant to applicable law shall revert to regulation under this Code pursuant to paragraph (1) of this subdivision only for such period of time as is required by such applicable law;

(m) housing accommodations occupied by domestic servants, superintendents, caretakers, managers or other employees to whom the space is provided as part or all of their compensation without payment of rent and who are employed for the purpose of rendering services in connection with the premises of which the housing accommodation is a part;

(n) housing accommodations used exclusively for professional, commercial, or other nonresidential purposes;

(o) housing accommodations in buildings completed or substantially rehabilitated as family units on or after January 1, 1974, or located in a building containing less than six housing accommodations, and which were originally made subject to regulation solely as a condition of receiving tax benefits pursuant to section 11-243 (formerly J51-2.5) or section 11-244 (formerly J51-5.0) of the Administrative Code of the City of New York, as amended, or article XVIII of the PHFL; and thereafter receipt of such tax benefits has concluded pursuant to these sections or article XVIII, and:

(1) for housing accommodations which were subject to the RSL pursuant to section 11-243 (formerly J51-2.5) or section 11-244 (formerly J51-5.0) or PHFL article XVIII became vacant; or

(2) for housing accommodations which received benefits pursuant to section 11-243 (formerly J51-2.5) or section 11-244 (formerly J51-5.0) or article XVIII of the PHFL, each lease and each renewal thereof of the tenant in residence at the time of the expiration of the tax benefit period includes a notice, in at least 12-point type informing such tenant that the housing accommodation shall become deregulated upon the expiration of the last lease or rental agreement entered into during the tax benefit period, and states the approximate date on which such tax benefit period is scheduled to expire;

(p) housing accommodations in buildings completed or substantially rehabilitated as family units on or after January 1, 1974 or located in a building containing less than six housing accommodations, and which were originally made subject to regulation solely as a condition of receiving tax benefits pursuant to section 421-a of the Real Property Tax Law, as amended, and:

(1) the housing accommodations which were subject to the RSL pursuant to section 421-a became vacant; or

(2) for housing accommodations which first became subject to the rent stabilization requirements of section 421-a after July 3, 1984, where each lease and each renewal thereof of the tenant in occupancy at the time the period of tax exemption pursuant to section 421-a expires, contains a notice in at least 12-point type informing such tenant that the housing accommodation shall become deregulated upon the expiration of the last lease or rental agreement entered into during the tax benefit period and states the approximate date on which such tax benefit period is scheduled to expire;

(q) housing accommodations which would otherwise be subject to rent regulation solely by reason of the provisions of article 7-C of the MDL requiring rent regulation, but which are exempted from such provisions pursuant to section 286(6) and 286(12) of the MDL;

(r) housing accommodations which:

(1) became vacant on or after July 7, 1993 but before April 1, 1994 where, at any time between July 7, 1993 and October 1, 1993, inclusive, the legal regulated rent was $2,000 or more per month;

(2) became vacant on or after April 1, 1994 but before April 1, 1997, with a legal regulated rent of $2,000 or more per month;

(3) became vacant on or after April 1, 1997 but before June 19, 1997, where the legal regulated rent at the time the tenant vacated was $2,000 or more per month; or

(4) became or become vacant on or after June 19, 1997, with a legal regulated rent of $2,000 or more per month;

(5) exemption pursuant to this subdivision shall not apply to housing accommodations which became or become subject to the RSL and this Code:

(i) solely by virtue of the receipt of tax benefits pursuant to section 421-a of the Real Property Tax Law, except as otherwise provided in subparagraph (i) of paragraph (f) of subdivision two of such section 421- a, section 11-243 (formerly J51-2.5) or section 11-244 (formerly J51-5) of the Administrative Code of the City of New York, as amended; or

(ii) solely by virtue of article 7-C of the MDL;

(6) exemption pursuant to this subdivision shall not apply to or become effective with respect to housing accommodations for which the commissioner determines or finds that the owner 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 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. In connection with such course of conduct, any other general enforcement provision of the RSL and this Code shall also apply;

(7) during the period of effectiveness of an order issued pursuant to section 2523.4 of this Title for failure to maintain required services, which lowers the legal regulated rent below $2,000 per month during the time period specified in this subdivision, a vacancy shall not qualify the housing accommodation for exemption under this subdivision;

(8)

(i) where an owner installs new equipment or makes improvements to the individual housing accommodation qualifying for a rent increase pursuant to section 2522.4(a)(1) of this Title, while such housing accommodation is vacant, and where the legal regulated rent is raised on the basis of such rent increase, or as a result of any rent increase permitted upon vacancy or succession as provided in section 2522.8 of this Title, or by a combination of rent increases, as applicable, to a level of $2,000 per month or more, whether or not the next tenant in occupancy actually is charged or pays $2,000 per month or more for rental of the housing accommodation, the housing accommodation will qualify for exemption under this subdivision;

(ii) subparagraph (i) of this paragraph to the contrary notwithstanding, where the housing accommodation became vacant after March 31, 1997, upon the next re-renting of the housing accommodation between April 1, 1997 and June 18, 1997, where the legal regulated rent at the time the tenant vacated was less than $2,000 per month, rent increases resulting from new equipment or improvements made during that vacancy will not result in exemption under this subdivision;

(9) where, pursuant to section 2521.2 of this Title, a legal regulated rent is established by record within four years before a rent lower than such legal regulated rent is charged and paid by the tenant, and where, pursuant to such section, upon the vacancy of such tenant, a legal regulated rent previously established by record within four years prior thereto, as lawfully adjusted pursuant to the RSL or this Code, may be charged, and where such previously established legal regulated rent, as so adjusted, is $2,000 or more per month, such vacancy shall qualify the housing accommodation for exemption under this subdivision;

(10) where an owner substantially alters the outer dimensions of a vacant housing accommodation, which qualifies for a first rent of $2,000 or more per month, exemption pursuant to this subdivision shall apply.

(s) Upon the issuance of an order by the DHCR pursuant to the procedures set forth in Part 2531 of this Title, including orders resulting from default, housing accommodations which:

(1) have a legal regulated rent of $2,000 or more per month as of October 1, 1993, or as of any date on or after April 1, 1994, and which are occupied by persons who had a total annual income in excess of $250,000 per annum for each of the two preceding calendar years, where the first of such two preceding calendar years is 1992 through 1995 inclusive, and in excess of $175,000, where the first of such two preceding calendar years is 1996 or later, with total annual income being defined in and subject to the limitations and process set forth in Part 2531 of this Title;

(2) exemption pursuant to this subdivision shall not apply to housing accommodations which became or become subject to the RSL and this Code:

(i) solely by virtue of the receipt of tax benefits pursuant to section 421-a of the Real Property Tax Law, except as otherwise provided in subparagraph (i) of paragraph (f) of subdivision two of such section 421- a, section 11-243 (formerly J51-2.5) or section 11-244 (formerly J51-5) of the Administrative Code of the City of New York, as amended; or

(ii) solely by virtue of article 7-C of the MDL;

(3) in determining whether the legal regulated rent for a housing accommodation is $2,000 per month or more, the standards set forth in subdivision (r) of this section shall be applicable; to be eligible for exemption under this subdivision, the legal regulated rent must continuously be $2,000 or more per month from the owner's service of the income certification form provided for in section 2531.2 of this Title upon the tenant to the issuance of an order deregulating the housing accommodation.

(t) housing accommodations exempted pursuant to any other provision of law.

Statutory authority:
New York City Administrative Code, 11-243, 11-244; General Business Law, 352-EEEE; Multiple Dwelling, A7-C, 286; Private Housing Finance Law, A18; Real Property Tax Law, 421-A, N.Y.C. Administrative Code, 26-511(b), 26-518(a)

History:
Added 2520.11 on 5/01/87; amended 2520.11(c) on 12/20/00; amended 2520.11(e) on 12/20/00; amended 2520.11(l) on 12/20/00; added 2520.11(r) on 12/20/00; relettered 2520.11(r) to be (t) on 12/20/00.

9 NYCRR 2520.12

2520.12  Effect of this Code on leases and other rental agreements

The provisions of any lease or other rental agreement shall remain in force pursuant to the terms thereof, except insofar as those provisions are inconsistent with the ETPA, the RSL or this Code, and in such event such provisions shall be void and unenforceable. For housing accommodations made subject to the RSL and this Code pursuant to section 2520.11(c) of this Part, where such leases or rental agreements are so inconsistent as to render them ineffective in defining the rights and duties of tenants and owners, the DHCR may order the provision of new leases consistent with the ETPA, the RSL and this Code. No renewal lease or vacancy lease offered to a tenant shall contain any right of cancellation or eviction by the owner during the term thereof except as provided for by the ETPA, the RSL or this Code.

Statutory authority:
N.Y.C. Administrative Code, 26-511(b), 26-518(a)
History:
Added 2520.12 on 5/01/87.

9 NYCRR 2520.13

2520.13  Waiver of benefit void

An agreement by the tenant to waive the benefit of any provision of the RSL or this Code is void; provided, however, that based upon a negotiated settlement between the parties and with the approval of the DHCR, or a court of competent jurisdiction, or where a tenant is represented by counsel, a tenant may withdraw, with prejudice, any complaint pending before the DHCR. Such settlement shall be binding upon subsequent tenants. However, where the settlement encompasses surrender of occupancy by the tenant or the tenant is no longer in possession of the housing accommodation as of the date of the settlement, such settlement shall not be binding upon any subsequent tenant, except to the extent that the complaint being settled is subject to the time limitations set forth in the RSL and this Code.

Statutory authority:
N.Y.C. Administrative Code, 26-511(b), 26-518(a)
History:
Added 2520.13 on 5/01/87; amended 2520.13 on 12/20/00.

 

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