New York Codes, Rules and Regulations (NYCRR)
Title 9 Part 2202
Executive Department
Browse the NYCRR by title, part, and section.
28 sections
Title 9 is open to everyone.
Ask LawEngine about the NYCRR →Create a free account →All 23 titles. No credit card required.Source version current through Sep 15, 2021
All 28 displayed sections in this Part carry the same compiled date. Status and warnings stay on each section.
9 NYCRR 2202.1 - Maximum rents
Related State Register notice: Adopted rule HCR-35-22-00006-A. Published Nov 8, 2023. Notice effective date: Nov 8, 2023.
Dates and status
- NYCRR title agency
- Executive Department
- Section status
- Section source receipt
- Source version current through
- Sep 15, 2021
- Related Register notice
- HCR-35-22-00006-A · Adopted rule
- Related notice published
- Nov 8, 2023
- Related notice effective date
- Nov 8, 2023
Current section text is not available here.
9 NYCRR 2202.2 - Effective date of orders adjusting rents
Related State Register notice: Adopted rule HCR-35-22-00006-A. Published Nov 8, 2023. Notice effective date: Nov 8, 2023.
Dates and status
- NYCRR title agency
- Executive Department
- Section status
- Section source receipt
- Source version current through
- Sep 15, 2021
- Related Register notice
- HCR-35-22-00006-A · Adopted rule
- Related notice published
- Nov 8, 2023
- Related notice effective date
- Nov 8, 2023
Current section text is not available here.
9 NYCRR 2202.3 - Grounds for increase of maximum rent
Later State Register activity may affect this section.
Dates and status
- NYCRR title agency
- Executive Department
- Section status
- Section source receipt
- Source version current through
- Sep 15, 2021
- Related Register notice
- HCR-35-22-00004-P · Proposed rule
- Related notice published
- Aug 31, 2022
(a)
(1)This section and sections 2202.4 to 2202.12, inclusive, of this Part set forth specific standards for the increase of a maximum rent. In applying these standards and issuing an order adjusting a maximum rent, the administrator shall take into consideration all factors bearing on the equities involved, subject to the general limitation that the adjustment can be put into effect without dislocation and hardship inconsistent with the purposes of the Rent Law. On or after November 22, 1963, where any housing accommodations were vacated other than by voluntary surrender of possession or in the manner provided by Part 2204 of this Title, the administrator may, after having due regard to the equities involved, bar adjustments of maximum rents for any and all accommodations in such structure, pursuant to section 2202.4(b) and (c) of this Part, except for work which:
(i)is necessary in order to remove violations against the property;
(ii)is necessary to obtain a certificate of occupancy, if such certificate is required by law; or
(iii)could have been performed with a tenant in physical possession of the housing accommodation at the time that the work was performed.
(2)The administrator shall have the power to revoke or modify any adjustment granted hereunder if there has been a substantial change in the basis upon which such adjustment was granted.
(b)
(1)No application for an increase in any maximum rent may be filed under section 2202.8, 2202.9 or 2202.10 of this Part, unless:
(i)a report of search issued by a city agency having jurisdiction is annexed to such applications, stating either that no violations against such property are recorded or that all violations recorded against such property have been cleared, corrected or abated, or a receipt (or photocopy thereof) issued by such agency attesting to the payment of the fee for the report of search; and
(ii)the landlord certifies that he is maintaining all essential services required to be furnished, and that he will continue to maintain such services so long as such increase in the maximum rent continues in effect.
(2)No new maximum rent shall be established pursuant to section 2201.4 of this Title, and no adjustment shall be made pursuant to section 2201.5(a) of this Title, unless the landlord has certified that he is maintaining all essential services required to be maintained with respect to the housing accommodations covered by such certification, and that he will continue to maintain such services so long as the new maximum rent or the adjustment is in effect. For purposes of this paragraph, essential services shall be defined as: heat during that part of the year when required by law, hot water, cold water, superintendent services, maintenance of front or entrance door security (including but not limited to lock and buzzer), garbage collection, elevator service, gas, electricity and other utility services to both public and required private areas, and such other services wherein failure to provide and/or maintain such would constitute a danger to the life or safety of, or would be detrimental to the health of, the tenant or tenants. Upon a determination that such essential services are not, or were not, being maintained, the Division of Housing and Community Renewal may revoke or modify the new maximum rent established pursuant to section 2201.4 of this Title and/or an adjustment made pursuant to subdivision (a) of section 2201.5, and may direct a refund to the tenants of all or part of the increase paid by the tenants as a result of any such order or orders. Each such certification filed in connection with an adjustment pursuant to section 2201.5 of this Title shall be accompanied by a certification by the landlord that he has actually expended or incurred 90 percent of the total amount of the allowance for operating and maintenance expenses, including the rents collectible from housing accommodations in the property.
(c)Except as provided in subdivision (g) of this section and section 2202.19 of this Part, no landlord shall be entitled to an increase in the maximum rent on any ground unless he certifies that he 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 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 maximum rent on any ground where an agency of the city 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; nor shall any landlord be entitled to any increase where the landlord has not removed the violation recorded against such property as shown in the report of search required under subdivision (b) of this section.
(d)
(1)No more than one order adjusting the maximum rent for any housing accommodation under section 2202.8 of this Part may be issued in any 24-month period and, except as provided in section 2202.8 of this Part, the adjustment granted by any such order shall not exceed 15 percent.
(2)Any adjustment pursuant to section 2220.8, 2202.9 or 2202.10 of this Part, shall be collectible only to the extent permitted by section 2201.6 of this Title; provided that, in ordering an adjustment pursuant to section 2202.8, the administrator may waive such limitation where a greater increase is necessary to make the earned income of the property equal to its operating expenses.
(c)That portion of the amount of increase computed under sections 2202.8 through 2202.11 of this Part, as is properly attributable to the controlled housing accommodations, shall be apportioned among them in the manner prescribed in section 2201.4 of this Title for the apportionment of the maximum gross building rental. Each controlled housing accommodation shall bear no more than that portion of the amount of increase as is properly attributable to such housing accommodation, whether or not the amount so attributed shall be fully collectible by reason of an existing lease or, in the case of an adjustment pursuant to section 2202.8, 2202.9 or 2202.10 of this Part, by reason of the limitations provided in section 2201.6 of this Title.
(f)
(1)Any landlord may file an application to increase the maximum rent otherwise allowable, on forms prescribed by the administrator, only on one or more of the grounds stated in sections 2202.4 through 2202.12 of this Part.
(2)Any landlord may file an application to establish the maximum rents to be effective January 1, 1972, pursuant to section Y51-5.0a(3) of the Rent Law, on forms provided by the administrator, on or before the date prescribed by the administrator, and provided that such application shall be accompanied by a fee in the sum of $5 per rent-controlled housing accommodation, based on the number of such accommodations stated in the city report form R-23 filed for the subject building or, if the owner failed to provide this data in the form filed, on the basis of the number of housing accommodations (whether or not subject to control pursuant to these regulations) shown on the records of the Department of Buildings.
(g)Where an application for an increase in any maximum rent is filed under section 2202.4(b) and/or (c) , and section 2202.8, 2202.9 or 2202.10 of this Part, and the landlord is not entitled to any increase by reason of the provisions of subdivision (b) of this section, the administrator may waive such provision and issue orders increasing the maximum rent effective as of the date of issuance of such orders; provided, however, that the landlord agrees in writing to deposit the entire amount of such increase in maximum rent into an escrow or trust account administered by the administrator in accordance with procedures adopted by the administrator for the purpose of obtaining compliance with the provisions of subdivision (b) of this section, and further agrees to obtain and submit to the administrator, within one year from the date of issuance of such orders, a report of search issued by the city agency having jurisdiction, stating that the violations shown in the report of search required under subdivision (b) of this section have been removed, cleared, corrected or abated, and his own certification that he is maintaining and will continue to maintain all essential services in accordance with the provisions of subdivision (c) of this section. In the event the landlord fails to fully comply with such provision within one year from the date of the issuance of the orders increasing the maximum rent, the administrator 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.
(h)If, at least six months before the effective date of the establishment of new maximum rents pursuant to section 2201.4 of this Title, or an adjustment of maximum rents pursuant to section 2201.5(a), the landlord has not certified to the Department of Rent and Housing Maintenance that (1) all rent-impairing violations (as defined in section 302-a of the Multiple Dwelling Law), and (2) at least 80 percent of all other violations of the Housing Maintenance Code or Multiple Dwelling Law that were recorded against the property one year prior to such effective date have been cleared, corrected or abated, such new maximum rents or such adjustment shall not take effect until he shall have entered into a written agreement with such department to deposit income derived from the property into an escrow or trust account as prescribed in such agreement for the purpose of correction of such violations.
9 NYCRR 2202.4 - Earlier source heading: Increased services or facilities, substantial rehabilitation, major capital or other improvements
Related State Register notice: Adopted rule HCR-35-22-00006-A. Published Nov 8, 2023. Notice effective date: Nov 8, 2023.
Dates and status
- NYCRR title agency
- Executive Department
- Section status
- Section source receipt
- Source version current through
- Sep 15, 2021
- Related Register notice
- HCR-35-22-00006-A · Adopted rule
- Related notice published
- Nov 8, 2023
- Related notice effective date
- Nov 8, 2023
Current section text is not available here.
9 NYCRR 2202.5 - Voluntary written agreements
Later State Register activity may affect this section.
Dates and status
- NYCRR title agency
- Executive Department
- Section status
- Section source receipt
- Source version current through
- Sep 15, 2021
- Related Register notice
- HCR-35-22-00004-P · Proposed rule
- Related notice published
- Aug 31, 2022
(a)The landlord and tenant in occupancy may voluntarily enter into a valid written lease, on or after August 1, 1970, in good faith with respect to any housing accommodation, which provides for an increase in the maximum rent on the basis of specified increased services, furniture, furnishings or equipment having a market value commensurate with the increased rent, which is not in excess of 15 percent of the maximum rent in effect on the date of execution of such lease, and the lease is for a term of not less than two years. No increase pursuant to this section shall be authorized with respect to a housing accommodation for which an increase has been effected, pursuant to section 2201.3(c) of this Title, on the basis of a vacancy of the housing accommodation until January 1, 1972, or one year after such increase has become effective as a result of such vacancy, whichever date comes later. No increase shall be authorized unless a report of lease is filed as required by subdivision (d) of this section, or such report has been otherwise accepted by the administrator. Such lease or such lease report:
(1)contains a certification by the landlord that he is maintaining all essential services furnished or required to be furnished as of the date determining the maximum rent, and will continue to maintain such services so long as the increase in maximum rent continues in effect;
(2)gives the landlord no right of cancellation of said lease inconsistent with the provisions of these regulations;
(3)does not provide for the payment by the tenant of any rent in excess of the amount therein provided, unless the maximum rent is thereafter increased:
(i)by order of the administrator pursuant to section 2202.4(a) of this Part; or
(ii)pursuant to subdivision (b), (c), (d) or (e) of such section, where the improvement or substantial rehabilitation of the building or housing accommodations therein was either completed or in progress when such lease was executed; or
(iii)pursuant to a pending application for a financial adjustment of the maximum rents for the subject building pursuant to section 2201.3 of this Title, or section 2202.8, 2202.9, 2202.10 or 2202.11 of this Part; or
(iv)pursuant to a deferred financial adjustment order which was not fully effective; and
(4)gives the tenant the right to cancel such lease at any time after the expiration of the first two years thereof, by giving the landlord at least 30 days' notice in writing, by registered or certified mail of his intention to cancel such lease and surrender possession of the housing accommodations.
(b)Where a maximum rent was established by the execution of a lease pursuant to the provisions of this section, it may not thereafter be increased by a subsequent lease executed with the same tenant pursuant to this section, except:
(1)by a subsequent written lease in accordance with subdivision (a) of this section, where the rent provided by such subsequent lease does not result in an increase of more than 15 percent over the maximum rent in effect prior to the execution of the original lease, exclusive of adjustments ordered by the administrator; or
(2)where, after the expiration of the term of the original lease, or in a case where the original lease is terminated after the expiration of the first two years of its term, a new written lease may be entered into in accordance with such subdivision (a) of this section; or
(3)where the original lease is terminated after the expiration of the first year of its term, in which event a new written lease in accordance with such subdivision (a) of this section may be entered into for a term of not less than the unexpired remainder of the first two years of the original lease plus two years, and providing for an increase commencing with the expiration of the first two years of the original lease, which increase shall not exceed 15 percent over the maximum rent in effect on the effective date of such new lease.
(c)Where the entire structure, or any lesser portion thereof, was vacated by order of a city department having jurisdiction on or after November 22, 1963, 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, notwithstanding any provision of subdivision (a) of this section to the contrary, until such departments have been reimbursed for expenses necessarily incurred in connection with the foregoing; provided, however, that such reimbursement shall not be required where the vacating was caused by fire or accident not resulting from any unlawful act or omission on the part of the landlord.
(d)Within 60 days following the date of execution of the lease, or within 60 days after the effective date of this amendment, whichever date is later, the landlord shall file a report of such lease, upon forms prescribed by the administrator, which shall also include a statement of additional services or equipment furnished as a consideration of the execution of the lease.
(e)Notwithstanding any other provision of this section to the contrary, where a maximum base rent is established pursuant to section 2201.4 of this Title, during the term of any lease entered into on or after August 1, 1970 pursuant to the provisions of this section, such maximum base rent shall be collectible up to the 7½ percent limitation provided for by section 2201.6 of this Title, even though such lease provides for the payment of a lesser amount.
9 NYCRR 2202.6 - Increase in subtenants or occupants
Later State Register activity may affect this section.
Dates and status
- NYCRR title agency
- Executive Department
- Section status
- Section source receipt
- Source version current through
- Sep 15, 2021
- Related Register notice
- HCR-35-22-00004-P · Proposed rule
- Related notice published
- Aug 31, 2022
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.
9 NYCRR 2202.7 - Unique or peculiar circumstances
Later State Register activity may affect this section.
Dates and status
- NYCRR title agency
- Executive Department
- Section status
- Section source receipt
- Source version current through
- Sep 15, 2021
- Related Register notice
- HCR-35-22-00004-P · Proposed rule
- Related notice published
- Aug 31, 2022
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.
9 NYCRR 2202.8 - Return on capital value
Later State Register activity may affect this section.
Dates and status
- NYCRR title agency
- Executive Department
- Section status
- Section source receipt
- Source version current through
- Sep 15, 2021
- Related Register notice
- HCR-35-22-00004-P · Proposed rule
- Related notice published
- Aug 31, 2022
(a)A landlord may file an application for an increase in maximum rents on the ground that the current maximum gross building rental established pursuant to section 2201.4 or 2201.5 of this Title does not equal the sum of:
(1)the real estate taxes, water charges and sewer rents on the property;
(2)the operating and maintenance expenses of the property;
(3)an allowance for the vacancy and collection losses on the property; and
(4)a return of 8½ percent on capital value which, except as provided in subdivisions (b) and (c) of this section, shall be the equalized assessed value obtained by multiplying the current assessed value of the property by the current equalization ratio established by the New York State Board of Equalization and Assessment pursuant to article 12-A of the Real Property Tax Law.
Increases or decreases in real estate taxes, water charges, sewer rents, and wages currently in effect may be projected in making such computation.
(b)The administrator may make a determination that:
(1)capital value is an amount different from that prescribed in subdivision (a) of this section, where there has been a reduction in assessed valuation for the year next preceding the effective date of the assessed valuation in effect at the time of the filing of the application; or
(2)capital value is equal to five times the equalized assessed value of the buildings, where the assessed valuation of the land exceeds four times the assessed valuation of the buildings thereon.
(c)The administrator may make a determination that capital value is an amount different from that prescribed in subdivision (a) of this section, where there has been a bona fide sale of the property since February 1, 1961, 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 a sale to a cooperative. In determining whether a sale was on normal financing terms, the administrator shall give due consideration to the following factors:
(1)the ratio of the cash payment received by the seller to the sales price of the property and the annual gross income from the property;
(2)the total amount of the outstanding mortgages which are liens against the property (including purchase money mortgages), as compared with the equalized assessed value of the property;
(3)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;
(4)the presence of deferred amortization in purchase money mortgages, or the assignment of such mortgages at a discount; and
(5)any other facts and circumstances surrounding such sale which, in the judgment of the administrator, may have a bearing upon the question of financing.
(d)No increase in maximum rent shall be granted under this section where there is pending, without final disposition, a judicial proceeding to correct the final determination of the Tax Commission with respect to the assessed valuation of such property for the city fiscal year in which the landlord filed the application for such increase, or for the city fiscal year immediately preceding the filing of the application for such increase.
(e)No application for an increase in any maximum rent under this section may be filed with respect to any property if (1) on the date that the application is sought to be filed, less than two years have elapsed since the date of filing of the last prior application for an increase under this section, which application resulted in the granting of an increase, or (2) less than two years have elapsed since the last sale of the property and the application is based upon a sales price in excess of the equalized assessed valuation. This latter limitation shall not apply, however, when the application is based upon a sale, within such two-year period, at a price in excess of the equalized assessed valuation, if such price is less than the price in the last sale which meets the criteria heretofore specified in subdivision (c) of this section occurring prior to two years before the application is sought to be filed.
(f)For the purposes of this section, the test year shall be the most recent full calendar year or the landlord's most recent fiscal year, or any 12 consecutive months ending not more than 90 days prior to the filing of the application for an increase.
9 NYCRR 2202.9 - Unavoidable increases in operating costs in small structures
Later State Register activity may affect this section.
Dates and status
- NYCRR title agency
- Executive Department
- Section status
- Section source receipt
- Source version current through
- Sep 15, 2021
- Related Register notice
- HCR-35-22-00004-P · Proposed rule
- Related notice published
- Aug 31, 2022
(a)A landlord may file an application for an adjustment of maximum rents on the ground that he owns a building containing no more than 19 housing accommodations (whether or not subject to control) and has incurred unavoidable increases in property taxes, fuel, utilities, insurance, and repairs and maintenance, excluding mortgage interest and amortization, and excluding allowances for depreciation, obsolescence and reserves, which have occurred since the Federal date determining the maximum rent. If, as determined by the administrator, the landlord has not been fully compensated by increases in rental income sufficient to offset such increases in operating costs, the administrator shall grant an adjustment of the maximum rents.
(b)Where the administrator finds, in considering the application under this section, that a present tenant is paying a rent less than the maximum rent, the administrator, upon request of the landlord, may reduce the maximum rent of the housing accommodation to the amount actually being paid, or to the highest maximum rent for comparable controlled housing accommodations in the structure, whichever is higher.
(c)A further application may not be filed under this section sooner than one year from the date of filing of the last prior application for an increase with respect to such property under this section, where such prior application resulted in the granting of an increase.
9 NYCRR 2202.10 - Unavoidable increases in operating costs in other specified structures
Later State Register activity may affect this section.
Dates and status
- NYCRR title agency
- Executive Department
- Section status
- Section source receipt
- Source version current through
- Sep 15, 2021
- Related Register notice
- HCR-35-22-00004-P · Proposed rule
- Related notice published
- Aug 31, 2022
(a)A landlord may file an application for an increase in maximum rents on the ground that he operates a hotel or rooming house, or owns a cooperative apartment, and has incurred unavoidable increases in property taxes and other costs, including costs of operation of such hotel or rooming house, but excluding mortgage interest and amortization and excluding allowances for obsolescence and reserves and building depreciation, 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. If, as determined by the administrator, the landlord has not been fully compensated by increases in rental income from the controlled housing accommodations sufficient to offset such increases in operating costs as are allowable to such controlled housing accommodations, the administrator shall grant an adjustment of the maximum rents.
(b)Where the administrator finds, in considering an application under this section, that a present tenant is paying a rent less than the maximum rent, the administrator, upon request of the landlord, may reduce the maximum rent of the housing accommodation to the amount actually being paid, or to the highest maximum rent for comparable controlled housing accommodations in the structure, whichever is higher.
(c)A further application may not be filed under this section sooner than one year from the date of filing of the last prior application for an increase with respect to such property under this section, or under the provisions of section 4(4)(a)(3) of the State Rent Act, where such prior application resulted in the granting of an increase.
9 NYCRR 2202.11 - Labor costs in excess of maximum base rent allowance
Later State Register activity may affect this section.
Dates and status
- NYCRR title agency
- Executive Department
- Section status
- Section source receipt
- Source version current through
- Sep 15, 2021
- Related Register notice
- HCR-35-22-00004-P · Proposed rule
- Related notice published
- Aug 31, 2022
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.
9 NYCRR 2202.12 - Rehabilitation or improvement under government-financed program or other approved program
Later State Register activity may affect this section.
Dates and status
- NYCRR title agency
- Executive Department
- Section status
- Section source receipt
- Source version current through
- Sep 15, 2021
- Related Register notice
- HCR-35-22-00004-P · Proposed rule
- Related notice published
- Aug 31, 2022
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.
9 NYCRR 2202.13 - Earlier source heading: Fuel cost adjustments
Related State Register notice: Adopted rule HCR-35-22-00006-A. Published Nov 8, 2023. Notice effective date: Nov 8, 2023.
Dates and status
- NYCRR title agency
- Executive Department
- Section status
- Section source receipt
- Source version current through
- Sep 15, 2021
- Related Register notice
- HCR-35-22-00006-A · Adopted rule
- Related notice published
- Nov 8, 2023
- Related notice effective date
- Nov 8, 2023
Current section text is not available here.
9 NYCRR 2202.14 - Grounds for decrease of maximum rent
Later State Register activity may affect this section.
Dates and status
- NYCRR title agency
- Executive Department
- Section status
- Section source receipt
- Source version current through
- Sep 15, 2021
- Related Register notice
- HCR-35-22-00004-P · Proposed rule
- Related notice published
- Aug 31, 2022
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.
9 NYCRR 2202.15 - Decrease of first rents
Later State Register activity may affect this section.
Dates and status
- NYCRR title agency
- Executive Department
- Section status
- Section source receipt
- Source version current through
- Sep 15, 2021
- Related Register notice
- HCR-35-22-00004-P · Proposed rule
- Related notice published
- Aug 31, 2022
Where a maximum rent has been established for a housing accommodation:
(a)pursuant to section 4(3) of the State Rent Act, and a proper and timely registration statement had been filed as had been required by the Federal Act or by the State Rent Commission; or
(b)pursuant to section 2201.1(b) or (c) of this Title, and a proper and timely registration statement has been filed as required by section 2203.3 of this Title;
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.
9 NYCRR 2202.16 - Rent decrease for reduction of services, etc
Related State Register notice: Adopted rule HCR-35-22-00006-A. Published Nov 8, 2023. Notice effective date: Nov 8, 2023.
Dates and status
- NYCRR title agency
- Executive Department
- Section status
- Section source receipt
- Source version current through
- Sep 15, 2021
- Related Register notice
- HCR-35-22-00006-A · Adopted rule
- Related notice published
- Nov 8, 2023
- Related notice effective date
- Nov 8, 2023
Current section text is not available here.
9 NYCRR 2202.17 - Rent decrease based on hazardous conditions
Later State Register activity may affect this section.
Dates and status
- NYCRR title agency
- Executive Department
- Section status
- Section source receipt
- Source version current through
- Sep 15, 2021
- Related Register notice
- HCR-35-22-00004-P · Proposed rule
- Related notice published
- Aug 31, 2022
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.
9 NYCRR 2202.18 - Decrease of inequitable rents for rooming house and single-room occupancy accommodations
Later State Register activity may affect this section.
Dates and status
- NYCRR title agency
- Executive Department
- Section status
- Section source receipt
- Source version current through
- Sep 15, 2021
- Related Register notice
- HCR-35-22-00004-P · Proposed rule
- Related notice published
- Aug 31, 2022
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.
9 NYCRR 2202.19 - Alternative provision in lieu of rent decrease
Later State Register activity may affect this section.
Dates and status
- NYCRR title agency
- Executive Department
- Section status
- Section source receipt
- Source version current through
- Sep 15, 2021
- Related Register notice
- HCR-35-22-00004-P · Proposed rule
- Related notice published
- Aug 31, 2022
(a)Whenever in the judgment of the administrator such action is necessary or proper in order to effectuate the purpose of the Rent Law, the administrator may, in lieu of decreasing the maximum rents as provided in sections 2202.16 and 2202.17 of this Part, 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 supervised by the administrator, in accordance with the conditions imposed by the administrator, for use in maintaining or restoring essential services and equipment, for removing violations against the property or housing accommodations therein, for 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 administrator deems necessary or proper for the preservation, repair or maintenance of the property.
(b)Where the landlord has entered into an escrow agreement as provided in subdivision (a) of this section, the administrator shall issue orders adjusting all controlled rents to the appropriate maximum rent, effective as of the first day of the month following the execution of such agreement; provided, however, that in the event the administrator shall determine that the landlord has breached such agreement, the administrator may issue orders:
(1)decreasing the maximum rent pursuant to such agreement;
(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 to effectuate the purposes of this section.
(c)Notwithstanding any provision of these regulations to the contrary, whenever, in the judgment of the administrator, action as provided in sections 2202.16 and 2202.17 of this Part is necessary or proper in order to effectuate the purposes of the Rent Law or of these regulations, the administrator may, in lieu of decreasing the maximum rents, issue orders adjusting all controlled rents and directing that rents be paid into an escrow account supervised by the administrator for the uses stated in subdivision (a) of this section, where:
(1)the landlord fails to take corrective action after notice by the administrator of proposed action to decrease the maximum rents pursuant to sections 2202.16 and 2202.17 of this Part;
(2)the administrator has notified all mortgagees who have filed with the administrator 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.
(d)Where the essential services, furnishings, furniture or equipment of any individual housing accommodation are reduced, impaired, mutilated or made unworkable as a result of neglect, failure to exercise due care or failure of the tenant to take practical precautions to prevent such condition, the landlord shall restore such services, furniture, furnishings or equipment and may make application for a temporary increase in the maximum rent based upon cost of such restoration. In the event of the failure of the tenant to make restitution within a reasonable time, as determined by the administrator, an order shall be issued adjusting the maximum rent for such tenant in an amount sufficient to recover the cost over 12 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.
9 NYCRR 2202.20 - Senior citizen rent increase exemption
Later State Register activity may affect this section.
Dates and status
- NYCRR title agency
- Executive Department
- Section status
- Section source receipt
- Source version current through
- Sep 15, 2021
- Related Register notice
- HCR-35-22-00004-P · Proposed rule
- Related notice published
- Aug 31, 2022
(a)No increase in maximum rent, pursuant to section 2201.3, 2201.4, 2201.5, 2201.6, 2202.8, 2202.9, 2202.10, 2202.11 or 2202.13 of this Title, shall be collectible from a tenant to whom there has been granted a rent increase exemption order, pursuant to this section, which became effective prior to the effective date of such increase, except as provided in such exemption order or as modified by subsequent exemption order.
(b)No increase in the legal regulated rent of housing accommodations subject to the provisions of title YY of the New York City Administrative Code, and the Rent Stabilization Code promulgated thereunder, shall be collectible from a tenant to whom there has been issued a currently valid exemption order pursuant to said Administrative Code or pursuant to this section, except as provided in such order or as modified by subsequent exemption order, where such increase is a lawful increase provided under a two-year lease executed pursuant to title YY of the New York City Administrative Code and Rent Stabilization Code, or under such other terms as regards housing accommodations subject to the hotel stabilization provisions of title YY51 of the New York City Administrative Code:
(1)pursuant to an order of the New York City Rent Guidelines Board; or
(2)based upon an owner hardship rent increase order issued by the Conciliation and Appeals Board.
(c)The city, upon application by the tenant on forms prescribed by HPD, shall issue a rent increase exemption order where it finds that the tenant is eligible for such order. A tenant shall be entitled to a rent increase exemption if:
(1)the aggregate disposable income of all members of the household residing in the housing accommodation does not exceed $10,000 per year;
(2)the maximum rent, including rent increases described in subdivisions (a) and (b) of this section, for the housing accommodation exceeds one third of the aggregate disposable income of all members of the household;
(3)the tenant is entitled to reside in the housing accommodation; and
(4)the head of the household or spouse residing in the housing accommodation was 62 years of age or older on or before the date the application hereunder is filed, and is not a recipient of public assistance pursuant to the Social Services Law. However, 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 solely or in combination with the New York State Department of Social Services shall not be rendered ineligible thereby.
(d)For the purpose of this section:
(1)The term aggregate disposable income shall mean the total income, from whatever source derived (whether or not subject to Federal income taxation), including but not limited to all compensation for personal services, wages, salaries, commissions, tips and earnings from self-employment, inclusive, social security and supplemental security income benefits, interest and dividends, pension payments, unemployment, disability and workers' compensation benefits, rents, royalties, payments from roomers, boarders or subtenants, alimony and support payment pursuant to agreement or court order, other than gifts and voluntary assistance payments from relatives and friends of members of the household not required to provide maintenance or support, received by any member of the household subject to the following adjustments:
(i)all Federal, State and city income taxes and social security taxes shall be deducted;
(ii)union dues withheld from wages or salaries shall be deducted; and
(iii)payments for maintenance or support, made pursuant to a written agreement or order of a court of competent jurisdiction by a member of the household to a person not a member of the household, shall be deducted.
(2)Disposable income to be reported shall be the income received in the last calendar year prior to the filing of the application, except that where the applicant retires between the commencement of such year and the date of filing the application, the income for such year may be adjusted by excluding employment earnings and projecting expected annual retirement income.
(3)The term head of household shall mean the person who customarily pays the rent (or his spouse, if older).
(4)The term member of household shall mean any person permanently residing in the housing accommodation who is not a bona fide roomer, boarder or subtenant.
(e)The rent increase exemption order shall provide that the landlord may not collect from a tenant, to whom it is issued, rent at a rate in excess of the greater of the following:
(1)one third of the aggregate disposable income;
(2)the maximum rent for rent-controlled housing in effect on December 31st of the calendar year immediately preceding the year in which the initial exemption is effective; or
(3)the legal regulated rent for rent-stabilized housing accommodations in effect on June 30, 1974 or the date immediately preceding eligibility, whichever is later.
Such order shall expire upon termination of occupancy by the tenant to whom it is issued, except as provided in subdivision (j) of this section. The landlord shall file a report of termination of occupancy of such tenant, on a form prescribed by the city, within 30 days.
(f)The effective date of any senior citizen rent increase exemption order issued pursuant to this section shall be:
(1)for rent-controlled housing accommodations, the first day of the month following the month in which the application is filed or the applicant becomes eligible, whichever is later. However, where such tenant could not qualify for senior citizen rent increase exemption between July 1, 1980 and December 31, 1980, due to the sole reason that the aggregate disposable income of all members of the household exceeded $6,500 per year and did not exceed $8,000 per year, but filed for an exemption on or before December 31, 1980, pursuant to New York City Local Law 61 for 1980, the effective date of that portion of the exemption applicable solely to the fuel cost adjustment collectible pursuant to section 2202.13 of this Part shall be July 1, 1980, including any retroactive adjustments authorized by said section;
(2)for rent-stabilized housing accommodations, the first day of the month in which the application is filed or the applicant becomes eligible, whichever is later. However, where such tenant could not qualify for senior citizen rent increase exemption between July 1, 1980 and December 31, 1980, due to the sole reason that the aggregate disposable income of all members of the household exceeded $6,500 per year and did not exceed $8,000 per year, but filed for an exemption on or before December 31, 1980, the effective date of the exemption order shall be July 1, 1980, including any retroactive adjustments collectible thereby;
(3)for rent-controlled and rent-stabilized tenants, the effective date of any increase described in subdivisions (a) and (b) of this section, including any retroactive adjustments collectible thereby, provided the tenant has filed an application within 90 days after:
(i)any such order was issued increasing the tenant's rent; or
(ii)in the event no order was issued, any notice or report prescribed by the city to increase the tenant's rent was served upon the tenant.
(g)A rent exemption order shall be renewable annually upon application by the tenant, upon forms prescribed by the city, which may include a certification of the tenant's continued eligibility in lieu of the detailed statement of income and other qualifications. Upon the filing of the renewal application, the prior rent exemption order shall remain in effect until an order is issued determining the tenant's renewal application, but in no event for more than six additional months.
(h)The city may audit and review applications made pursuant to this section, and may cause an order issued pursuant to this section to be amended, terminated or revoked, and the city may direct the payment of back rent where it finds that:
(1)the tenant did not qualify for such order;
(2)the tenant no longer qualifies for such order due to a change of circumstances; or
(3)the tenant has submitted materially false statements or has willfully omitted or neglected to make any required material statement, in violation of subdivision (d) of section 2205.1 of this Title.
(i)Orders increasing or establishing maximum rents, pursuant to sections 2202.4- 2202.7, 2202.12, 2202.19 and 2202.22 of this Part, are not subject to the provisions of this section, and exemption orders for rent-stabilized tenants shall provide that landlord may collect increases based on an electrical inclusion or an increase in dwelling space, services, equipment or major capital improvement.
(j)When a tenant holding a senior citizen rent increase exemption order granted under these rent regulations, title YY of the New York City Administrative Code or article II, IV, V or VI of the Private Housing Finance Law, moves into a dwelling unit subject to the title YY or these rent regulations on or after March 28, 1977, he may apply to the city to carry the exemption from paying that portion of the maximum rent of the original dwelling unit over to the dwelling unit into which he moves; provided, however, that the exempt amount shall be limited to the lowest of the following:
(1)the amount by which the rent for the subsequent dwelling unit exceeds the rent the tenant was required to pay for the original dwelling unit, after giving effect to the senior citizen rent increase exemption;
(2)the most recent monthly deduction in the original dwelling unit pursuant to senior citizen's exemption issued under the City Rent and Rehabilitation Law, title YY of the New York City Administrative Code, or the Private Housing Finance Law; or
(3)the amount by which the maximum rent of the subsequent housing accommodation exceeds one third of the aggregate disposable income of all members of the household.
Such exemption certificate shall be effective the first day of the month in which the application is filed, or the date the tenant took occupancy of the subsequent dwelling unit, whichever is later, provided both the application is filed and the tenant takes occupancy of the subsequent dwelling unit on or after March 28, 1977.
9 NYCRR 2202.21 - Decrease of services; application, order or report
Later State Register activity may affect this section.
Dates and status
- NYCRR title agency
- Executive Department
- Section status
- Section source receipt
- Source version current through
- Sep 15, 2021
- Related Register notice
- HCR-35-22-00004-P · Proposed rule
- Related notice published
- Aug 31, 2022
(a)Until the accommodations become vacant, the landlord shall maintain the same dwelling space, essential services, furniture, furnishings and equipment as are required under section 2201.2 of this Title, unless and until he has filed an application to decrease the dwelling space, essential services, furniture, furnishings or equipment and an order permitting such decrease has been entered thereon by the administrator.
(b)On or after May 1, 1955, the removal of furniture or furnishings from housing accommodations rented as furnished, whether or not such removal is consented to by the tenant, shall constitute a decrease in service.
(c)When the accommodations become vacant, the landlord may, prior to renting to a new tenant, decrease the dwelling space, essential services, furniture, furnishings or equipment. Within 10 days after so renting, the landlord shall file a written report with the district rent administrator showing such decrease.
(d)The order on any application under subdivision (a) of this section may require an appropriate decrease in the maximum rent. Any maximum rent for which a report is required by subdivision (c) of this section may be decreased in accordance with the provisions of section 2202.16 of this Part.
(e)If the landlord shall have failed to file an application or a proper and timely report, as required by subdivision (a) or (c) of this section, the maximum rent shall be deemed in doubt and the administrator may issue an order fixing the maximum rent pursuant to section 2202.22 of this Part.
9 NYCRR 2202.22 - Orders where maximum rent or other facts are in dispute, in doubt or not known, or where maximum rents must be fixed or established
Later State Register activity may affect this section.
Dates and status
- NYCRR title agency
- Executive Department
- Section status
- Section source receipt
- Source version current through
- Sep 15, 2021
- Related Register notice
- HCR-35-22-00004-P · Proposed rule
- Related notice published
- Aug 31, 2022
(a)Where the maximum rent or any fact necessary to the determination of the maximum rent, or the dwelling space, essential services, furniture, furnishings or equipment required to be furnished with the accommodation, is in dispute between the landlord and tenant, or is in doubt, or is not known, or is required by section 2201.1(d) or (e) of this Title to be fixed or established, the administrator at any time, upon written request of either party or on his own initiative, may issue an order determining the facts, including the amount of the maximum rent, the dwelling space, essential services, furniture, furnishings and equipment required to be furnished with the accommodations. Where the administrator determines that the accommodations are subject to control, he shall also fix or establish the maximum rent therefor, together with the dwelling space, essential services, furniture, furnishings and equipment required to be furnished with the accommodations, unless such maximum rent had been previously fixed or established by the State Rent Commission or by the administrator.
(b)Where:
(1)no registration statement has been filed under the Federal Act, or the State Rent Act, or the City Rent Law, as required by these regulations; or
(2)no proper or timely registration statement has been filed as required by these regulations; or
(3)no statement has been filed as required by section 2203.9 of this Title; or
(4)no proper or timely statement has been filed as required by said section; or
(5)the administrator in a proceeding pursuant to subdivision (a) of this section is unable to otherwise determine the maximum rent; or
(6)the maximum rent must be fixed or established by the administrator;
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.
(c)Where the landlord has failed to file an application or report required by the State Rent Commission or by either secton 2202.21(a) or (c) of this Part or section 35(a) or (c) of the New York City Rent and Eviction Regulations, the administrator at any time, upon written request of the tenant or on his own initiative, may issue an order establishing the maximum rent by decreasing the previous maximum rent for the housing accommodation by that amount which the administrator finds to be the reduction in rental value of the housing accommodation because of the decrease in dwelling space, essential services, furniture, furnishings or equipment. The administrator may take into consideration all factors bearing on the equities involved, consistent with the purposes of the Rent Law. Such order shall establish the maximum rent as of the date of such decrease of dwelling space, essential services, furniture, furnishings or equipment, 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.
9 NYCRR 2202.23 - Order where apartment is rented to more than one tenant
Later State Register activity may affect this section.
Dates and status
- NYCRR title agency
- Executive Department
- Section status
- Section source receipt
- Source version current through
- Sep 15, 2021
- Related Register notice
- HCR-35-22-00004-P · Proposed rule
- Related notice published
- Aug 31, 2022
(a)On and after February 1, 1952, where an apartment, in whole or in part, is rented or sought to be rented to more than one tenant, the landlord shall file an application with the administrator to fix maximum rents for the units or portions of such apartment. Such application shall set forth the present maximum rent for the apartment, the furniture, furnishings, facilities, equipment and other services added or proposed to be added, the number of occupants and the space to be occupied by each tenant in such apartment, the terms and conditions of occupancy, and all other data which may be required by the administrator. In fixing the maximum rent, the administrator shall apportion the previous maximum rent for the entire apartment among the tenants in proportion to the space they occupy, and shall add thereto the increased rental value of any furniture, furnishings, facilities and equipment added by the landlord. Where the landlord has satisfied all of the requirements of the authorities having jurisdiction over the physical conversion and over the occupancy of the changed housing accommodations, the administrator, in fixing maximum rents for individual tenants, shall also take into consideration all factors bearing on the equities involved, including the cost of any physical conversion or alteration. If there was no previous maximum rent for the entire apartment, the administrator, prior to making the apportionment and fixing a maximum rent for each tenant as hereinabove required, shall establish a maximum rent for the entire apartment, having regard for the maximum rents for comparable housing accommodations, or any factors bearing on the equities involved, consistent with the purposes of the Rent Law. Unless and until an order is issued by the administrator fixing maximum rents for the individual tenants of the apartment, the aggregate maximum rent for all of the tenants in the apartment shall be the maximum rent previously established for the apartment. All orders issued under this section shall be effective as of the date of first renting.
(b)Where no application has been made under this section, the administrator at any time, upon written request of a tenant or on his own initiative, may issue an order pursuant to this section fixing or establishing a maximum rent for each of the individual tenants in the apartment, effective as of the date of such renting. In fixing such maximum rents for the individual tenants, the administrator shall use the standards prescribed in subdivision (a) of this section. Such order may contain a directive that all rent collected in excess of the maximum rent 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.
9 NYCRR 2202.24 - Retroactive adjustments
Later State Register activity may affect this section.
Dates and status
- NYCRR title agency
- Executive Department
- Section status
- Section source receipt
- Source version current through
- Sep 15, 2021
- Related Register notice
- HCR-35-22-00004-P · Proposed rule
- Related notice published
- Aug 31, 2022
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:
(a)Any rent to which the landlord shall be entitled for such prior period shall be payable by the tenant in installments, except that a tenant who vacates the premises when rent for such prior period has not been fully paid shall be obligated to pay the balance forthwith. The installment of back rent payable for each month (or other rental payment period) shall not exceed the difference per month (or other rental payment period) between the rent established by the order and the prior rent.
(b)Any excess rent paid by the tenant for such prior period shall be credited to the tenant in full, commencing with the rental payment immediately following the issuance of the order.
9 NYCRR 2202.25 - Rent adjustments upon succession
Related State Register notice: Adopted rule HCR-35-22-00006-A. Published Nov 8, 2023. Notice effective date: Nov 8, 2023.
Dates and status
- NYCRR title agency
- Executive Department
- Section status
- Section source receipt
- Source version current through
- Sep 15, 2021
- Related Register notice
- HCR-35-22-00006-A · Adopted rule
- Related notice published
- Nov 8, 2023
- Related notice effective date
- Nov 8, 2023
Current section text is not available here.
9 NYCRR 2202.26 - Surcharge for the installation and use of washing machines, dryers and dishwashers
Later State Register activity may affect this section.
Dates and status
- NYCRR title agency
- Executive Department
- Section status
- Section source receipt
- Source version current through
- Sep 15, 2021
- Related Register notice
- HCR-35-22-00004-P · Proposed rule
- Related notice published
- Aug 31, 2022
(a)Where a tenant requests permission from the landlord to install a washing machine, dryer or dishwasher, whether permanently installed or portable, and the landlord consents, the landlord may collect surcharges, without notification to or approval by the administrator in an amount specified in an operational bulletin to be issued by the administrator pursuant to section 2209.8 of this Title. The surcharges authorized by this section shall not be part of the maximum rent.
(b)
(1)Where a prior installation by a tenant of a washing machine, dryer or dishwater comes to the attention of the landlord and the landlord consents to the continued use of the washing machine, dryer or dishwasher, the surcharges provided for in this section shall only be available prospectively.
(2)Under no circumstances shall servicing or replacement of such washing machine, dryer or dishwasher become a service required to be provided by the landlord pursuant to this Subchapter.
(3)Where there is in effect a prior practice of charging for installation of a tenant-owned washing machine, dryer or dishwasher, the landlord may continue the charge, which may also continue to be included in the maximum rent, if such was the prior practice.
9 NYCRR 2202.27 - Surcharges for submetered electricity or other utility service
Related State Register notice: Adopted rule HCR-35-22-00006-A. Published Nov 8, 2023. Notice effective date: Nov 8, 2023.
Dates and status
- NYCRR title agency
- Executive Department
- Section status
- Section source receipt
- Source version current through
- Sep 15, 2021
- Related Register notice
- HCR-35-22-00006-A · Adopted rule
- Related notice published
- Nov 8, 2023
- Related notice effective date
- Nov 8, 2023
Current section text is not available here.
9 NYCRR 2202.28 - Schedule
Later State Register activity may affect this section.
Dates and status
- NYCRR title agency
- Executive Department
- Section status
- Section source receipt
- Source version current through
- Sep 15, 2021
- Related Register notice
- HCR-35-22-00004-P · Proposed rule
- Related notice published
- Aug 31, 2022
(a)The reasonable costs that may be recovered for qualified major capital improvements (MCI) may not exceed the recoverable costs, as determined by DHCR. In making such determination, DHCR shall refer to such reasonable costs as specified in the reasonable cost schedule found in Operational Bulletin 2020-1. The reasonable cost schedule shall provide the recoverable cost of MCIs that fall within the following main three categories:
(1)Major systems:
(i)The maximum recoverable costs shall be presented for the following classes of work:
(a)plumbing;
(b)gas repipe;
(c)wiring;
(d)windows;
(e)boiler/burner;
(f)hot water heater;
(g)elevator replacement; and
(h)elevator modernization.
(2)Façade, parapet, roof:
(i)The maximum recoverable costs shall be presented for the following classes of work:
(a)façade;
(b)parapet; and
(c)roof.
(3)Other systems:
(i)The maximum recoverable costs shall be presented for the following classes of work:
(a)chimney;
(b)doors;
(c)security systems; and
(d)intercom; and may include such other systems as DHCR may determine.
(b)Each class of MCI may list more detailed types of capital improvement work. Each class of MCI described in the schedule may be inclusive of additional cost that can be associated with the type of improvements listed within such class.
(c)The costs of each type of MCI work will be listed as per unit, per unit of measurement or per piece of equipment as is appropriate given the nature of the improvement.
(d)The maximum recoverable costs for each type of MCI specified in the initial reasonable cost schedule shall be based on a survey of such construction costs undertaken for such installation. The maximum recoverable costs listed in the reasonable cost schedule shall be initially published and made available for public review and comment in conjunction with the promulgation process required for adoption of this regulation.
(e)Periodic review of reasonable cost schedule.
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.
(f)Procedure.
(1)When applying for a temporary MCI rent increase, owners are required to submit an itemized list of work performed with a description or explanation of the reason or purpose of such work. Costs may be granted for related expenses that are not specified in the actual schedule, if they are found to be within or below the maximum costs for the class of work, are necessary for the claimed improvement, and eligible for reimbursement as an MCI. Costs will not be granted for expenses which are ineligible for MCI rent increases. Only the actual amounts expended by owners for qualifying MCI costs will be the basis for any temporary MCI rent increase. Qualifying owners will, therefore, be awarded a temporary MCI rent increase on the lesser of either:
(i)the actual amount expended; or
(ii)the maximum reasonable cost from the schedule, and such other additional items that are eligible as an MCI but are not listed as part of the reasonable cost schedule.
(2)The schedule provides a maximum of costs that can be granted for eligible MCIs. All costs granted for a temporary MCI rent increase must be actual, reasonable, verifiable, and meet all other regulatory requirements.
(g)Waiver of application of 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:
(1)The claimed costs underlying the temporary MCI rent increase either:
(i)are not identified in the reasonable cost schedule, or are necessarily and appropriately priced higher than those costs listed in the reasonable cost schedule, and such costs are accurate and reasonable under the circumstances; or
(ii)that use of the reasonable cost schedule will cause an undue hardship and the use of alternative procedures are appropriate to the interests of the owner, the tenants, and the public, and the costs of such improvement are reasonable and accurate under the circumstances. Owners must request a waiver of the use of the reasonable cost schedule in writing and accompany the application with the information and documentation as specified in subparagraph (i) of this paragraph.
(h)Categories of waiver.
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:
(1)Non-landmarked buildings (buildings not designated by the Landmark Commission).
(i)A licensed engineer or architect must certify that:
(a)the MCI costs for which owner seeks a temporary MCI rent increase are accurate and reasonable under the circumstances;
(b)there is no common ownership or other financial interest between the contractor installing the replacement or upgrade and the ownership entity of the owner; and
(c)a bid process was conducted and supervised by a licensed architect or engineer.
(2)Landmarked buildings (buildings designated by the Landmark Commission). Any eligible MCI work and the costs therefore were the result of any law, regulation, rule, or requirement under which the premises have been designated a landmark building.
(3)Capital improvement work performed while also under another governmental agency’s supervision. DHCR will also accept the cost of contract where:
(i)the building is subject to both:
(a)the Rent Stabilization Law; and
(b)another housing program; and
(ii)the contract is approved by or awarded under the supervision of a state, city or local housing entity in conjunction with that affordable housing program; and
(iii)such supervision includes a process by which such supervising agency reviews the costs to assure they are reasonable.
(4)Emergency capital improvements. DHCR will also accept the cost of contract where capital improvements were performed to remedy an emergency condition and for which the owner paid more than the reasonable costs due to such emergency situation, but the costs are actual and verifiable.
(5)Interim rules. An owner may apply for a waiver of application of the reasonable cost schedule if, prior to the effective date of this subdivision, it has either entered a contract for the performance of MCI work within two years before final promulgation of this regulation, or submitted to DHCR an application for a temporary MCI rent increase. The recoverable costs will be determined according to the reasonable cost schedule and these provisions, but the owner need not submit evidence of compliance with the bidding requirements set forth in paragraph (i)(2) of this section; the owner may instead use alternative means of establishing the reasonableness of the MCI costs sought to be recovered as directed by DHCR as part of the processing of such application.
(6)For pending MCI applications, an owner must make this waiver application within 60 days of the final promulgation of this regulation, unless in the context of processing the MCI application the owner is directed by DHCR to submit an application for waiver at an earlier date.
(i)Waiver procedure.
As part of the written waiver application for non-emergency capital improvements, owners must submit the following:
(1)A certification by a licensed architect or engineer stating that:
(i)the purchases and contracts, whose costs owner seeks to recover have been awarded on the basis of analysis and bidding to the fullest extent possible, but with no less than three bidders having been solicited to perform the work unless the owner can demonstrate that the work is so highly specialized that such bids cannot be extended;
(ii)list of items for which owner solicited bids were necessary;
(iii)the costs claimed by owner for the MCI work are accurate and reasonable, provided that the architect or engineer’s basis for such conclusion is credibly supported;
(iv)all changes to the original agreed upon scope of work were necessary to the underlying MCI and reasonably priced; and
(v)the owner selected the lowest responsible bidder or the bidder best suited to perform the MCI work, provided that the architect or engineer’s basis for such conclusion is credibly supported.
(2)Certification by owner that it has complied with bid process requirements including submission of:
(i)tabulation of all bids received;
(ii)copies of all bids received;
(iii)a certification by each bidder disclosing whether the owner or any board member, general partner, officer or employee of owner, and/or principal or employee of any managing agent retained by owner, has a direct or indirect interest in the bidder or in the compensation to be received by the bidder pursuant to the proposed contract. Failure to accurately and fully complete this certification may result in the rejection of the bid for purposes of determining owner’s application for waiver of the use of the reasonable cost schedule, as well as rejection and a dismissal of the MCI application; and
(iv)detailed description of the items for which owner initially solicited bids.
(3)A certification by the owner’s architect or engineer certifying the necessity, appropriateness, and reasonableness of the costs of all changes to the original agreed upon scope of work that were performed in connection with the MCI, along with a description of the changes in the scope, price, or time of completion of the work related to each change order.
(j)For emergency capital improvement MCI applications.
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.
(k)Notice.
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.
(l)Denial of 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.
(m)Operational bulletin.
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).