Title 9 Part 2202

Maximum rents may be increased or decreased only by order of the administrator, or as otherwise provided by law.

No order increasing or decreasing a maximum rent previously established pursuant to these regulations shall be effective prior to the date on which the order is issued, except as hereinafter provided. If an application for an increase pursuant to section 2202.8 of this Part is submitted on or after August 1, 1970 and is accompanied by a certified statement of expenditures with all required documentation, and no order is issued thereon within four months of the date of filing of an application based on assessed valuation (or on equalized assessed valuation on or after January 1, 1972), or eight months of the date of filing of an application based upon sales price, the increased rent requested shall be collectible by the landlord and shall be placed in an interest- bearing escrow account with a banking organization until the final determination of such application. The order of the district rent administrator shall be made effective as of the date on which the landlord is entitled to collect such requested rent increase for any housing accommodation in the building, pursuant to the permission granted by this section, and, notwithstanding any other provision of these regulations, shall be in accordance with the regulations in effect on such date. Where such order grants a rent increase which is less than the rent collected by the landlord as herein permitted, or denies the application, the excess rent collected shall be refunded to the tenants entitled thereto within 30 days from the date such order shall become final, together with interest from the date of each excessive payment of rent at the prevailing rate of interest paid by the banking organization in which such deposit is made. Any person serving as escrow agent shall not be liable except for fraud or misfeasance.

The administrator may grant an appropriate adjustment of a maximum rent where he finds that there has been, since March 1, 1959, 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 by order of the administrator, or pursuant to the State Rent Act or the Federal Act. Such adjustment shall be effective only during the period of subletting or increase in the number of tenants.

The administrator may grant an appropriate adjustment of a maximum rent where he finds that the presence of unique or peculiar circumstances materially affecting the maximum rent has resulted in a maximum rent which is substantially lower than rents generally prevailing in the same area for substantially similar housing accommodations; provided that the adjustment shall not result in a maximum rent higher than the rents generally prevalent in the same area of substantially similar housing accommodations.

Increases or decreases in real estate taxes, water charges, sewer rents, and wages currently in effect may be projected in making such computation.

The administrator may make an appropriate adjustment of a maximum rent where he finds that the actual labor expenses 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 currently applicable operating and maintenance expense allowance under section 2201.4 or 2201.5 of this Title. No adjustment pursuant to this section may be made within one year from the most recent adjustment in maximum rent pursuant to this section or section 2202.8 of this Part.

The administrator may grant an appropriate adjustment where he finds that there has been a rehabilitation or improvement of substandard or deteriorated housing accommodations which has been financed under a governmental program providing assistance through loans, loan insurance or tax abatement, or which has been undertaken under any other rehabilitation program not so financed but approved by the administrator.

The administrator at any time, on his own initiative or on application of the tenant, may order a decrease of the maximum rent otherwise allowable, on the grounds stated in sections 2202.15 through 2202.18 of this Part.

Where a maximum rent has been established for a housing accommodation:

the administrator may order a decrease in the maximum rent where such maximum rent is substantially higher than the maximum rents for comparable housing accommodations, giving due consideration to any other factors bearing on the equities involved, consistent with the purposes of the Rent Law, including but not limited to the factors that such housing accommodations were created from housing accommodations which were vacated on or after November 22, 1963 other than by voluntary surrender of possession or in the manner provided by Part 2204 of this Title. Where the housing accommodations were created from such accommodations, the administrator may give due consideration to the limitation on the amount of the rent adjustment which may be ordered, pursuant to the provisions of section 2202.3(a)(1) of this Part, in considering the equities involved.

The following schedule sets forth conditions that will generally not constitute a failure to maintain an essential service. However, this schedule is not intended to be exclusive, and is not determinative in all cases and under all circumstances. Therefore, it does not include all conditions that may be considered de minimis, and there may be circumstances where a condition, although included on the schedule, will nevertheless be found to constitute a decrease in an essential service.

SCHEDULE OF DE MINIMIS CONDITIONS BUILDING-WIDE CONDITIONS

Failure to provide in lobby, hallways, stairwells, and other non-enclosed public areas.

Removal of canopy over unlocked door leading to vestibule; changes in door-locking devices, where security or access is not otherwise compromised.

Change in color or quality under certain circumstances; isolated stains on otherwise clean carpets; frayed areas which do not create a tripping hazard.

Removal of, whether or not dryers are provided.

Sidewalk cracks which do not create a tripping hazard; hairline cracks in walls and ceilings.

Modification (e.g., fountain replaced with rock garden); removal of some or all for aesthetic reasons.

Failure to post elevator inspection certificates; failure to provide or maintain amenities (e.g., ashtray, fan, recorded music).

Failure to wax floors; discrete areas in need of cleaning or dusting, where there is evidence that janitorial services are being regularly provided and most areas are clean (See JANITORIAL SERVICES, item 12).

Any condition that does not interfere with the use of the garage or an assigned parking space (e.g., peeling paint where there is no water leak).

Minor graffiti inside the building; any graffiti outside the building where the landlord submits an "affidavit of on-going maintenance" indicating a reasonable time period when the specific condition will be next addressed.

Modification; failure to maintain a particular aspect of landscaping where the grounds are generally maintained.

Failure to clean or dust discrete areas, where there is evidence that janitorial services are being regularly provided because most areas are, in fact, clean.

Missing light bulbs where the lighting is otherwise adequate.

Discontinuance of fresh cut flowers; removal of fireplace or fireplace andirons; modification of furniture; removal of some furnishings (determined on a case by case basis); removal of decorative mirrors; reduction in lobby space where reasonable access to tenant areas are maintained; elimination of public area door mat; failure to maintain a lobby directory that is not associated with a building intercom; removal or replacement of window coverings (See DECORATIVE AMENITIES, item 6).

Elimination of door-to-door or other methods of mail distribution where mailboxes are installed in a manner approved by the U.S. Postal Service.

Minor deterioration; failure to point exterior bricks where there is no interior leak damage.

Change in color in public areas under certain circumstances (e.g., not in violation of the New York City Housing Maintenance Code); replacement of wallpaper or stenciling with paint in the public areas; isolated or minor areas where paint or plaster is peeling, or other similarly minor areas requiring repainting, provided there are no active water leaks; any painting condition in basement or cellar areas not usually meant for or used by tenants; any painting condition that is limited to the top-floor bulkhead area provided there is no active water leak in such area.

Modifications, such as reasonable substitution of equipment, combination of areas, or reduction in the number of items of certain equipment where overall facilities are maintained (See ROOF, item 19).

Discontinuance of recreational use (e.g., sunbathing) unless a lease clause provides for such service, or formal facilities (e.g., solarium) are provided by the landlord; lack of repairs where water does not leak into the building or the condition is not dangerous.

Failure to provide or maintain in compactor rooms or laundry rooms.

Removal or reduction of, unless storage space service is provided for in a specific rider to the lease (not a general clause in a standard form residential lease), or unless the landlord has provided formal storage boxes or bins to tenants within three years of the filing of a tenant's complaint alleging an elimination or a reduction in storage space service.

Decrease in the number of staff, other than security, provided there is no decrease in janitorial services; elimination of on-site management office; failure to provide an on-site superintendent, provided there is no decrease in janitorial services.

Replacement of individual antennas with master antenna; visible cable; television wires; or other technologies.

Removal of (except in buildings containing Class B units).

Sealed, vented, basement or crawl space windows, other than in areas used by tenants (e.g., laundry rooms); cracked fire-rated windows; peeling paint or other non-hazardous condition of exterior window frames.

INDIVIDUAL APARTMENT CONDITIONS

Chips on appliances, countertops, fixtures or tile surfaces; color-matching of appliances, fixtures or tiles.

Hairline cracks; minor wall cracks, provided there is no missing plaster, or no active water leak.

Lack of alignment, provided condition does not prevent proper locking of entrance door or closing of interior door.

Failure to provide refinishing or shellacking.

Caused by another tenant.

Failure to re-tape or re-cord venetian blinds.

The administrator may order a decrease of the maximum rent otherwise allowable, or take action as provided in section 2202.19 of this Part, where a city agency having jurisdiction certifies 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. In such case, the maximum rent for the housing accommodation may be decreased in such amount as the administrator deems to be necessary or proper.

Notwithstanding any other provision of these regulations, where a maximum rent has been established for a housing accommodation in a rooming house, or for a single-room occupancy accommodation, the administrator may order a decrease in the maximum rent, having regard for any factors bearing on the equities involved, consistent with the purposes of the Rent Law, to correct speculative, abnormal and unwarranted increases in rent.

he may issue an order fixing or establishing the maximum rent, having regard for the maximum rents for comparable housing accommodations or any other factors bearing on the equities involved, consistent with the purpose of the Rent Law, including but not limited to the factor that such housing accommodations were created from housing accommodations which were vacated, on or after November 22, 1963, other than by voluntary surrender of possession or in the manner provided by Part 2204 of this Title. Where the housing accommodations were created from such accommodations, the administrator may give due consideration to the limitation on the amount of the rent adjustment which may be ordered, pursuant to the provisions of section 2202.3(a)(1) of this Part, in considering the equities involved. Such order shall fix or establish the maximum rent as of May 1, 1950, or the date of first renting, whichever is later, and may contain a directive that all rent collected in excess of the maximum rent fixed or established under this subdivision during the period beginning no earlier than two years prior to the date of the filing of the tenant's statement of violations, if any, or the date of the commencement of the proceeding to fix or establish the maximum rent, whichever date is earlier, shall be refunded to the tenant, together with six percent interest from the date of each such excessive payment of rent, within 30 days after such order shall become final.

Where an order establishing or adjusting a maximum rent, or the portion thereof collectible from a particular tenant, is effective as of a date prior to the date of its issuance:

Where all tenants occupying a housing accommodation on June 19, 1997 have permanently vacated such housing accommodation, and a primary-resident family member of such vacating tenant or tenants (first successor) is entitled to and continues to occupy the housing accommodation subject to the protections of this Subchapter, as provided in section 2204.6 of this Title, and thereafter permanently vacates the housing accommodation, if such accommodation continues to be subject to the Rent Law and this Subchapter after such first successor vacates, and a primary- resident family member (second successor) is entitled to and continues to occupy the housing accommodation subject to the protections of this Subchapter, as provided in section 2204.6 of this Title, the maximum collectible rent shall be increased by a sum equal to the allowance then in effect for vacancy leases for housing accommodations subject to the Rent Stabilization Law of 1969, including the amount allowed by paragraph 5-a of subdivision c of section 26-511 of such law. Such increase shall be in addition to any other increases provided for in this Subchapter, including adjustments pursuant to section 2202.4 of this Part, and shall be applicable in like manner to the maximum collectible rent that may be charged each second subsequent succeeding family member.

Where a landlord acts as a provider of a utility service (including, but not limited to electricity, gas, cable, or telecommunications), the landlord may collect surcharges which shall not be part of the maximum rent, and shall not be subject to this Subchapter.

Every year after adoption of this regulation, DHCR shall conduct a new survey to assess the categories of major capital improvements, the classes of work within categories eligible for major capital improvements and the maximum recoverable costs listed for the types of MCI costs identified in the reasonable cost schedule.

Owners may apply for a waiver of application of the reasonable cost schedule. Pursuant to the requirements specified below, such application must demonstrate that:

At the time of initial application for an MCI, an owner may apply for, and the DHCR may grant, a waiver of application of the reasonable cost schedule where the owner meets any of the following criteria:

As part of the written waiver application for non-emergency capital improvements, owners must submit the following:

The owner must submit a statement from an independent engineer or architect describing the emergency, why the costs were greater than those in the schedule, that the costs were reasonable for the situation, and why owner could not obtain three bids in a timely manner due to the exigent circumstances.

As part of the MCI application process, any request by an owner for a waiver of application of the reasonable cost schedule, shall be made available to the tenants of the subject building(s) with an opportunity to comment on and contest the waiver.

If an owner’s application for a waiver is denied, the owner’s recoupment shall be limited to that required by the reasonable cost schedule together with such other relief as may be appropriate. Approval of the waiver does not assure that the application will be granted, that it will not be modified, or that items submitted will not be disallowed, in whole or in part, as all other requirements and proof set forth in this paragraph must be met.

The initial Operational Bulletin 2020-1 including all amendments, shall be issued pursuant to this paragraph and section 2527.11 of this Title. The Operational Bulletin 2020-1 and all amended versions shall be available in hardcopy form at 92-31 Union Hall Street, Jamaica, Queens, New York, and will be available on DHCR's website at www.hcr.state.ny.us (www.hcr.ny.gov).