Section 26-401
§ 26-401 Declaration and findings. a. The council hereby finds that a
serious public emergency continues to exist in the housing of a
considerable number of persons in the city, which emergency was created
by war, the effects of war and the aftermath of hostilities; that such
emergency necessitated the intervention of federal, state and local
government in order to prevent speculative, unwarranted and abnormal
increases in rents; that there continues to exist an acute shortage of
dwellings; that unless residential rents and evictions continue to be
regulated and controlled, disruptive practices and abnormal conditions
will produce serious threats to the public health, safety and general
welfare; that to prevent such perils to health, safety and welfare,
preventive action through enactment of local legislation by the council
continues to be imperative; that such action, as a temporary measure to
be effective until it is determined by the council that such emergency
no longer exists, is necessary in order to prevent exactions of unjust,
unreasonable and oppressive rents and rental agreements and to forestall
profiteering, speculation and other disruptive practices tending to
produce threats to the public health; that the transition from
regulation to a normal market of free bargaining between landlord and
tenant, while still the objective of state and city policy, must be
administered with due regard for such emergency; that in order to
prevent uncertainty, hardship and dislocation, the provisions of this
chapter are declared to be necessary and designed to protect the public
health, safety and general welfare.
b. The council further declares that it is city policy to utilize the
powers conferred by this chapter, in a manner consistent with the
purposes and provisions thereof, to encourage and promote the
improvement and rehabilitation of the housing accommodations subject to
control hereunder, for the purpose of protecting the public health,
safety and general welfare.
Section 26-402
§ 26-402 Short title. This chapter shall be known and may be cited as
the city rent and rehabilitation law.
Section 26-403
§ 26-403 Definitions. When used in this chapter, unless a different
meaning clearly appears from the context, the following terms shall mean
and include:
a. Administrator. The commissioner of the state division of housing
and community renewal.
b. City rent agency. The state division of housing and community
renewal.
c. "Documents." Records, books, accounts, correspondence, memoranda
and other documents, drafts and copies of any of the foregoing.
d. "Federal act." The Emergency Price Control Act of nineteen hundred
forty-two, and as thereafter amended and as superseded by the Housing
and Rent Act of nineteen hundred forty-seven, and as the latter was
thereafter amended prior to May first, nineteen hundred fifty, and
regulations adopted pursuant thereto.
e. "Housing accommodation." 1. Except as otherwise provided in
paragraph two of this subdivision e, any building or structure,
permanent or temporary, or any part thereof, occupied or intended to be
occupied by one or more individuals as a residence, home, sleeping
place, boarding house, lodging house or hotel, together with the land
and buildings appurtenant thereto, and all services, privileges,
furnishings, furniture and facilities supplied in connection with the
occupation thereof, and any plot or parcel of land (as distinguished
from any building constructed or placed thereon) which is not owned by
the city and which was rented prior to May first, nineteen hundred
fifty, for the purpose of permitting the tenant thereof to construct his
or her own private dwelling (as such term "private dwelling" is defined
in subdivision six of section four of the multiple dwelling law) thereon
and on which there exists such a private dwelling owned and occupied by
a tenant of such plot or parcel, or on or after July first, nineteen
hundred seventy-one such private dwelling is owned and occupied by a
member of the tenant's immediate family provided that the member of the
tenant's immediate family was in occupancy of the private dwelling with
the tenant prior to the transfer of title and possession for a
continuous period of two years, including:
(a) Entire structures or premises as distinguished from the individual
housing accommodations contained therein, wherein twenty-five or less
rooms are rented or offered for rent by any lessee, sublessee, or other
tenant of such entire structure or premises; and
(b) Housing accommodations which, under subparagraph (i) of paragraph
two of this subdivision e, are or at any time become exempt from or not
subject to control and which, while in such status, are certified by a
city agency having jurisdiction to be a fire hazard or in a continued
dangerous condition or detrimental to life or health; and the subsequent
removal of the conditions on which such certification is based shall not
cause any such housing accommodation to become exempt from or not
subject to control; and
(c) Notwithstanding any other provision of this chapter, all housing
accommodations in any multiple dwelling aided by a loan made by the city
under article eight of the private housing finance law; provided that
where any such housing accommodation, if this subparagraph (c) were not
applicable thereto, would not be subject to rent control under this
chapter and the regulations thereunder prior to the date on which rent
control with respect to such multiple dwelling is required by the
provisions of such article eight to begin, this subparagraph (c) shall
operate to make such housing accommodation subject to rent control under
this chapter and the regulations thereunder only on and after such date;
and provided further that if any such housing accommodation, on the date
on which rent control with respect thereto ceases to be required by such
article eight, would not be subject to rent control, or would be
eligible for decontrol on the landlord's application, under the
provisions of this chapter and the regulations thereunder, if this
subparagraph (c) were not applicable thereto, then such housing
accommodation, after such date, shall not be subject to rent control, or
shall be eligible for decontrol, as the case may be, in the same manner
as if this subparagraph (c) had not been applicable to such housing
accommodation.
2. The term "housing accommodation" shall not include:
(a) structures in which all of the housing accommodations are exempt
or not subject to control under this chapter or any regulation issued
thereunder; or
(b) a hospital, convent, monastery, asylum, public institution, or
college or school dormitory or any institution operated exclusively for
charitable or educational purposes on a non-profit basis; or
(c) notwithstanding any previous order, finding, opinion or
determination of the state rent commission, housing accommodations in
any establishment which on March first, nineteen hundred fifty, was and
still is commonly regarded as a hotel in the community in which it is
located and which customarily provides hotel services such as maid
service, furnishing and laundering of linen, telephone and secretarial
or desk service, use and upkeep of furniture and fixtures and bellboy
service, provided, however, that the term "hotel" shall not include any
establishment which is commonly regarded in the community as a rooming
house, nor shall it include any establishment not identified or
classified as a "hotel", "transient hotel" or "residential hotel"
pursuant to the federal act, irrespective of whether such establishment
either provides some services customarily provided by hotels, or is
represented to be a hotel, or both; and provided further that housing
accommodations in hotels which have been and still are occupied by a
tenant who has resided in such hotel continuously since December second,
nineteen hundred forty-nine, so long as such tenant occupies the same,
shall continue to remain subject to control under this chapter; or
(d) Any motor court, or any part thereof; any trailer or trailer space
used exclusively for transient occupancy or any part thereof (provided
that nothing herein contained shall be construed as legalizing or
authorizing any use or occupancy of a trailer or trailer space where
prohibited by law); or any tourist home serving transient guests
exclusively, or any part thereof; or
(e) Nonhousekeeping, furnished housing accommodations, located within
a single dwelling unit not used as a rooming or boarding house, but only
if: (1) no more than two tenants for whom rent is paid (husband and wife
being considered one tenant for this purpose), not members of the
landlord's immediate family, live in such dwelling unit; and (2) the
remaining portion of such dwelling unit is occupied by the landlord or
his or her immediate family; or
(f) Housing accommodations owned and operated by the United States,
the state of New York, or the New York city housing authority; or owned
by the city and under the jurisdiction of the city department of housing
preservation and development pursuant to the New York city charter; or
owned and operated by the city; or housing accommodations in buildings
in which rentals are fixed by or subject to the supervision of the state
commissioner of housing and community renewal;
(g) Housing accommodations in buildings operated exclusively for
charitable purposes on a non-profit basis; or
(h) Except as otherwise provided in item six of subparagraph (i) of
this paragraph two, housing accommodations which were completed on or
after February first, nineteen hundred forty-seven, provided, however,
that, the former structure or any lesser portion thereof, was not
vacated, on or after the effective date of this first provision of this
subparagraph (h), other than by voluntary surrender of possession or in
the manner provided in this chapter, and provided further that maximum
rents established under the veterans' emergency housing act, for
priority constructed housing accommodations completed on or after
February first, nineteen hundred forty-seven, shall continue in full
force and effect, if such accommodations are being rented to veterans of
world war II or their immediate families who, on June thirtieth,
nineteen hundred forty-seven, either occupied such housing
accommodations or had a right to occupy such housing accommodations at
any time on or after July first, nineteen hundred forty-seven, under any
agreement whether written or oral; or
(i) Except as otherwise provided in subparagraphs (b) and (c) of
paragraph one of this subdivision e: (1) Housing accommodations created
by a change from a non-housing use to a housing use on or after February
first, nineteen hundred forty-seven, but only if the space comprising
such accommodations was devoted to a non-housing use on February first,
nineteen hundred forty-seven; or
(2) Additional housing accommodations, other than rooming house
accommodations, created by conversion on or after February first,
nineteen hundred forty-seven; provided, however, that any housing
accommodations created as a result of any such conversion on or after
May first, nineteen hundred fifty, shall continue to be subject to rent
control as provided for herein unless the state rent commission, prior
to May first, nineteen hundred sixty-two, issued an order decontrolling
them, or the city rent agency, on or after such date, issues an order
decontrolling them; and the city rent agency shall issue such an order
if there has been a structural change involving substantial alterations
or remodeling and such change has resulted in additional housing
accommodations consisting of self-contained family units as defined by
regulations issued by the city rent agency, with due regard for the
shortage of housing accommodations suitable for family occupancy and for
the purposes of this chapter in relation thereto; and provided further,
that any such order of decontrol of the state rent commission or the
city rent agency shall remain effective after April thirtieth, nineteen
hundred sixty-two only so long as the housing accommodations are not
occupied for other than single family occupancy; and provided further,
that any such order of decontrol shall not apply to that portion of the
original housing accommodations occupied by a tenant in possession at
the time of the conversion, but only so long as that tenant continues in
occupancy; and provided further, that no such order of decontrol shall
be issued unless such conversion occurred after the entire structure, or
any lesser portion thereof as may have been thus converted, was vacated
by voluntary surrender of possession, or in the manner provided in this
chapter, or (where vacated prior to May first, nineteen hundred
sixty-two) in the manner provided by section five of the state rent act;
and provided further that notwithstanding any of the foregoing
provisions of this item two, no such order of decontrol shall be issued
with respect to housing accommodations of any type resulting from
conversion, after April thirtieth, nineteen hundred sixty-two, to
rooming house accommodations or to single room occupancy accommodations,
and such resulting accommodations shall continue to be housing
accommodations subject to rent control under this chapter and the
regulation thereunder; or
(3) Housing accommodations rented after April first, nineteen hundred
fifty-three, which were or are continuously occupied by the owner
thereof for a period of one year prior to the date of renting; provided,
however, that this item three shall not apply where the owner acquired
possession of the housing accommodation after the issuance of a
certificate of eviction under subdivision two of section five of the
state rent act or under subdivision b of section 26-408 of this chapter
within the two year period immediately preceding the date of such
renting, and provided further that this item three shall not apply to
any such housing accommodation rented on or after May first, nineteen
hundred sixty-two, where an exemption of any housing accommodation in
the same building was obtained under paragraph (h) of subdivision two of
section two of the state rent act or has been previously obtained under
this item three; and provided further, that this exemption shall remain
effective only so long as the housing accommodations are not occupied
for other than single family occupancy; or
(4) Housing accommodations in one or two family houses which were or
shall become vacant on or after April first, nineteen hundred
fifty-three; provided, however, that this exemption shall remain
effective only so long as the housing accommodations are not occupied
for other than single family occupancy; or
(6) (i) Such housing accommodations resulting from substantial
demolition (as such accommodations are defined in this item six), as are
decontrolled by order of the city rent agency pursuant to this item six;
provided that all housing accommodations resulting from substantial
demolition which are not so decontrolled shall continue to be housing
accommodations subject to rent control under this chapter and the
regulations thereunder.
(ii) The term "housing accommodation resulting from substantial
demolition", as used herein, shall mean any housing accommodation (a)
which is created on or after May first, nineteen hundred sixty-two, as a
result of the substantial demolition of a multiple dwelling and the
reconstruction of such building in such manner as to retain any portion
thereof existing prior to such demolition, and (b) which is so created
after the issuance of one or more certificates permitting the eviction
of any tenant or tenants of such multiple dwelling for the purpose of
effecting such demolition.
(iii) No order shall be issued under this item six decontrolling any
housing accommodation resulting from substantial demolition unless,
after such reconstruction, all housing accommodations in the building
are self-contained family units as defined by regulations issued by the
city rent agency, with due regard for the shortage of housing
accommodations suitable for family occupancy and for the purposes of
this chapter in relation thereto.
(iv) The city rent agency shall issue regulations, with due regard for
such shortage and purposes, specifying minimum requirements for
qualifying any housing accommodation resulting from substantial
demolition as suitable for occupancy by larger families (including, with
respect to the individual unit, but not limited to, number of rooms,
space suitable for sleeping purposes and total floor area) and likewise
prescribing, subject to such variations and classifications as such
agency may determine to be reasonably necessary, the ratio between the
total number of housing accommodations resulting from substantial
demolition in the building, and the number of such accommodations which
must meet such requirements for larger family occupancy, in order that a
decontrol order may be granted hereunder.
(v) The city rent agency shall issue an order decontrolling all of the
housing accommodations resulting from substantial demolition in the
building, if such accommodations meet the requirements of sub-item (iii)
of this item six, and if the prescribed proportion thereof meets the
requirements of sub-item (iv) of this item six for larger family
occupancy; provided that (a) if all such accommodations meet the
requirements of such sub-item (iii), but less than the prescribed
proportion thereof meet the requirements of such sub-item (iv), then the
city rent agency shall issue an order decontrolling only those
accommodations which meet the requirements of both such sub-items; and
(b) any order of decontrol issued under this item six shall remain
effective only so long as the accommodations decontrolled by such order
are not occupied for other than single family occupancy.
(vi) In the case of any housing accommodations vacated on or after
March twenty-sixth, nineteen hundred sixty-four, no order of decontrol
shall be issued under this item six for any housing accommodations
resulting from substantial demolition thereof unless such reconstruction
occurred after the structure was vacated by voluntary surrender of
possession, or in the manner provided in this chapter; or
(7) (i) Individual housing accommodations having unfurnished maximum
rents of two hundred and fifty dollars or more per month as of April
first, nineteen hundred sixty, or furnished maximum rents of three
hundred dollars or more per month as of April first, nineteen hundred
sixty, which are or become vacant on or after the effective date of this
item seven; or
(ii) On and after October first, nineteen hundred sixty-four
individual housing accommodations having unfurnished maximum rents of
three hundred dollars or more per month as of April first, nineteen
hundred sixty, or furnished maximum rents of three hundred and sixty
dollars or more per month as of April first, nineteen hundred sixty;
provided, however, that where any such housing accommodation is occupied
by a tenant whose household contains one or more children attending an
elementary or secondary school, such housing accommodation shall
continue to remain subject to control under this chapter and the
regulations thereunder until June thirtieth, nineteen hundred
sixty-five; and provided further, that where such housing accommodation
on March twenty-sixth, nineteen hundred sixty-four is occupied by a
tenant whose household contains four or more related persons, it shall
continue to remain subject to control under this chapter and the
regulations thereunder so long as such tenant remains in occupancy; or
(iii) On and after April first, nineteen hundred sixty-five individual
housing accommodations having unfurnished maximum rents of two hundred
and fifty dollars to two hundred ninety-nine dollars and ninety-nine
cents, inclusive, per month as of April first, nineteen hundred sixty,
or furnished maximum rents of three hundred dollars to three hundred
fifty-nine dollars and ninety-nine cents inclusive, per month as of
April first, nineteen hundred sixty; provided, however, that where any
such housing accommodation is occupied by a tenant whose household
contains one or more children attending an elementary or secondary
school, such housing accommodation shall continue to remain subject to
control under this chapter and the regulations thereunder until June
thirtieth, nineteen hundred sixty-five; and provided further, that where
such housing accommodations on March twenty-sixth, nineteen hundred
sixty-four is occupied by a tenant whose household contains four or more
related persons, it shall continue to remain subject to control under
this chapter and the regulations thereunder so long as such tenant
remains in occupancy.
(iv) The exemptions provided for in this item seven shall remain
effective only so long as the housing accommodations are not occupied
for other than single family occupancy.
(v) The term "related persons", as used in this item seven, shall be
limited to the tenant and a parent, grandparent, child, stepchild,
grandchild, brother or sister of the tenant or of the tenant's spouse or
the spouse of any of the foregoing, who customarily occupied the housing
accommodation on and before the effective date of this item seven. The
tenant's spouse or an unmarried child or grandchild of the tenant who
temporarily resided elsewhere on the effective date of this item seven
because of attendance at an educational institution or service in the
armed forces of the United States shall be deemed to be a related person
in occupancy.
(8) No more than two housing accommodations in any one year period in
an owner-occupied structure containing six or fewer housing
accommodations which are or become vacant on or after August first,
nineteen hundred seventy, by voluntary surrender or pursuant to section
26-408 of this chapter; provided, however, that this exemption shall
remain effective only so long as the housing accommodations are not
occupied for other than residential dwelling purposes; and provided
further, that if the city rent agency shall make a finding of harassment
in violation of subdivision d of section 26-412 of this chapter with
respect to a housing accommodation in a structure containing six or less
housing accommodations, in addition to all other criminal or civil
fines, penalties, injunctive relief and enforcement penalties and
remedies authorized by section 26-413 of this chapter, no housing
accommodation in such structure shall be decontrolled pursuant to this
item eight until a minimum period of three years has elapsed since the
making of such finding of harassment by the city rent agency. Structures
containing six or fewer housing accommodations shall be considered to be
structures containing six or fewer housing accommodations for the
purposes of this item eight, notwithstanding that such structures shall
contain commercial accommodations in addition to such housing
accommodations.
(9) Housing accommodations which became vacant on or after June
thirtieth, nineteen hundred seventy-one, provided, however, that this
exemption shall not apply or become effective with respect to housing
accommodations which the commissioner determines or finds became vacant
because the landlord or any person acting on his or her behalf, with
intent to cause the tenant to vacate, engaged in any course of conduct
(including but not limited to, interruption or discontinuance of
essential services) which interfered with or disturbed or was intended
to interfere with or disturb the comfort, repose, peace or quiet of the
tenant in his or her use or occupancy of the housing accommodations and
provided, further, however, that nothing contained herein shall be
deemed to preclude the applicability to such housing accommodations of
the emergency tenant protection act of nineteen seventy-four.
(10) Housing accommodations not occupied by the tenant, not including
subtenants or occupants, as his or her primary residence, as determined
by a court of competent jurisdiction. For the purposes of determining
primary residency, a tenant who is a victim of domestic violence, as
defined in section four hundred fifty-nine-a of the social services law,
who has left the unit because of such violence, and who asserts an
intent to return to the housing accommodation shall be deemed to be
occupying the unit as his or her primary residence. No action or
proceeding shall be commenced seeking to recover possession on the
ground that a housing accommodation is not occupied by the tenant as his
or her primary residence unless the owner or lessor shall have given
thirty days notice to the tenant of his or her intention to commence
such action or proceeding on such grounds.
(j) Upon the issuance of an order of deregulation by the division,
housing accommodations which: (1) are occupied by persons who have a
total annual income, as defined in and subject to the limitations and
process set forth in section 26-403.1 of this chapter, in excess of the
deregulation income threshold, as defined in section 26-403.1 of this
chapter, in each of the two preceding calendar years; and (2) have a
maximum rent that equals or exceeds the deregulation rent threshold, as
defined in section 26-403.1 of this chapter. Provided however, that this
exclusion shall not apply to housing accommodations which became or
become subject to this law by virtue of receiving tax benefits pursuant
to section four hundred eighty-nine of the real property tax law.
(k) Any housing accommodation which becomes vacant on or after April
first, nineteen hundred ninety-seven and before the effective date of
the rent act of 2011, and where at the time the tenant vacated such
housing accommodation the maximum rent was two thousand dollars or more
per month; or, for any housing accommodation which is or becomes vacant
on or after the effective date of the rent regulation reform act of 1997
and before the effective date of the rent act of 2011 with a maximum
rent of two thousand dollars or more per month. This exclusion shall
apply regardless of whether the next tenant in occupancy or any
subsequent tenant in occupancy is charged or pays less than two thousand
dollars a month; or, for any housing accommodation with a maximum rent
of two thousand five hundred dollars or more per month at any time on or
after the effective date of the rent act of 2011, which is or becomes
vacant on or after such effective date. This exclusion shall apply
regardless of whether the next tenant in occupancy or any subsequent
tenant in occupancy actually is charged or pays less than two thousand
five hundred dollars a month. Provided however, that an exclusion
pursuant to this subparagraph shall not apply to housing accommodations
which became or become subject to this law by virtue of receiving tax
benefits pursuant to section four hundred eighty-nine of the real
property tax law. This subparagraph shall not apply, however, to or
become effective with respect to housing accommodations which the
commissioner determines or finds that the landlord or any person acting
on his or her behalf, with intent to cause the tenant to vacate, has
engaged in any course of conduct (including, but not limited to,
interruption or discontinuance of required services) which interfered
with or disturbed or was intended to interfere with or disturb the
comfort, repose, peace or quiet of the tenant in his or her use or
occupancy of the housing accommodations and in connection with such
course of conduct, any other general enforcement provision of this law
shall also apply.
f."Landlord." An owner, lessor, sublessor, assignee, or other person
receiving or entitled to receive rent for the use or occupancy of any
housing accommodation or an agent of any of the foregoing.
g."Maximum rent." The maximum lawful rent for the use of housing
accommodations. Maximum rents may be formulated in terms of rents and
other charges and allowances.
h. "Person." An individual, corporation, partnership, association, or
any other organized group of individuals or the legal successor or
representative of any of the foregoing.
i. "Rent." Consideration, including any bonus, benefit or gratuity
demanded or received for or in connection with the use or occupancy of
housing accommodations or the transfer of a lease of such housing
accommodations.
j. "State Enabling Act." The local emergency housing rent control act.
k. "State Rent Act." The emergency housing rent control law.
l. "State rent commission." The temporary state housing rent
commission created by the emergency housing rent control law.
m. "Tenant." A tenant, subtenant, lessee, sublessee, or other person
entitled to the possession or to the use or occupancy of any housing
accommodation.
Section 26-403.1
§ 26-403.1 High income rent deregulation. (a) 1. For purposes of this
section, annual income shall mean the federal adjusted gross income as
reported on the New York state income tax return. Total annual income
means the sum of the annual incomes of all persons who occupy the
housing accommodation as their primary residence other than on a
temporary basis, excluding bona fide employees of such occupants
residing therein in connection with such employment and excluding bona
fide subtenants in occupancy pursuant to the provisions of section two
hundred twenty-six-b of the real property law. In the case where a
housing accommodation is sublet, the annual income of the sublessor
shall be considered.
2. Deregulation income threshold means total annual income equal to
one hundred seventy-five thousand dollars in each of the two preceding
calendar years for proceedings commenced prior to July first, two
thousand eleven. For proceedings commenced on or after July first, two
thousand eleven, the deregulation income threshold means the total
annual income equal to two hundred thousand dollars in each of the two
preceding calendar years.
3. Deregulation rent threshold means two thousand dollars for
proceedings commenced before July first, two thousand eleven. For
proceedings commenced on or after July first, two thousand eleven, the
deregulation rent threshold means two thousand five hundred dollars.
(b) On or before the first day of May in each calendar year, the owner
of each housing accommodation for which the maximum rent equals or
exceeds the deregulation rent threshold may provide the tenant or
tenants residing therein with an income certification form prepared by
the division of housing and community renewal on which such tenant or
tenants shall identify all persons referred to in subdivision (a) of
this section and shall certify whether the total annual income is in
excess of the deregulation income threshold in each of the two preceding
calendar years. Such income certification form shall state that the
income level certified to by the tenant may be subject to verification
by the department of taxation and finance pursuant to section one
hundred seventy-one-b of the tax law and shall not require disclosure of
any income information other than whether the aforementioned threshold
has been exceeded. Such income certification form shall clearly state
that: (i) only tenants residing in housing accommodations which have a
maximum monthly rent that equals or exceeds the deregulation rent
threshold are required to complete the certification form; (ii) that
tenants have protections available to them which are designed to prevent
harassment; (iii) that tenants are not required to provide any
information regarding their income except that which is requested on the
form and may contain such other information the division deems
appropriate. The tenant or tenants shall return the completed
certification to the owner within thirty days after service upon the
tenant or tenants. In the event that the total annual income as
certified is in excess of the deregulation income threshold in each of
the two preceding calendar years, the owner may file the certification
with the state division of housing and community renewal on or before
June thirtieth of such year. Upon filing such certification with the
division, the division shall, within thirty days after the filing, issue
an order of deregulation providing that such housing accommodations
shall not be subject to the provisions of this law as of the first day
of June in the year next succeeding the filing of the certification by
the owner. A copy of such order shall be mailed by regular and certified
mail, return receipt requested, to the tenant or tenants and a copy
thereof shall be mailed to the owner.
(c) 1. In the event that the tenant or tenants either fail to return
the completed certification to the owner on or before the date required
by subdivision (b) of this section or the owner disputes the
certification returned by the tenant or tenants, the owner may, on or
before June thirtieth of such year, petition the state division of
housing and community renewal to verify, pursuant to section one hundred
seventy-one-b of the tax law, whether the total annual income exceeds
the deregulation income threshold in each of the two preceding calendar
years. Within twenty days after the filing of such request with the
division, the division shall notify the tenant or tenants that such
tenant or tenants must provide the division with such information as the
division and the department of taxation and finance shall require to
verify whether the total annual income exceeds the deregulation income
threshold in each of the two preceding calendar years. The division's
notification shall require the tenant or tenants to provide the
information to the division within sixty days of service upon such
tenant or tenants and shall include a warning in bold faced type that
failure to respond will result in an order of deregulation being issued
by the division for such housing accommodation.
2. If the department of taxation and finance determines that the total
annual income is in excess of the deregulation income threshold in each
of the two preceding calendar years, the division shall, on or before
November fifteenth of such year, notify the owner and tenants of the
results of such verification. Both the owner and the tenants shall have
thirty days within which to comment on such verification results. Within
forty-five days after the expiration of the comment period, the division
shall, where appropriate, issue an order of deregulation providing that
such housing accommodation shall not be subject to the provisions of
this law as of the first day of March in the year next succeeding the
filing of the owner's petition with the division. A copy of such order
shall be mailed by regular and certified mail, return receipt requested,
to the tenant or tenants and a copy thereof shall be sent to the owner.
3. In the event the tenant or tenants fail to provide the information
required pursuant to paragraph one of this subdivision, the division
shall issue, on or before December first of such year, an order of
deregulation providing that such housing accommodation shall not be
subject to the provisions of this law as of the first day of March in
the year next succeeding the last day on which the tenant or tenants
were required to provide the information required by such paragraph. A
copy of such order shall be mailed by regular and certified mail, return
receipt requested, to the tenant or tenants and a copy thereof shall be
sent to the owner.
4. The provisions of the state freedom of information act shall not
apply to any income information obtained by the division pursuant to
this section.
(d) This section shall apply only to subparagraph (j) of paragraph two
of subdivision e of section 26-403 of this chapter.
(e) Upon receipt of such order of deregulation pursuant to this
section, an owner shall offer the housing accommodation subject to such
order to the tenant at a rent not in excess of the market rent, which
for the purposes of this section means a rent obtainable in an arm's
length transaction. Such rental offer shall be made by the owner in
writing to the tenant by certified and regular mail and shall inform the
tenant that such offer must be accepted in writing within ten days of
receipt. The tenant shall respond within ten days after receipt of such
offer. If the tenant declines the offer or fails to respond within such
period, the owner may commence an action or proceeding for the eviction
of such tenant.
Section 26-403.2
§ 26-403.2 Increase in maximum collectable rent. Notwithstanding any
provision of this law to the contrary in the case where all tenants
occupying the housing accommodation on the effective date of this
section have vacated the housing accommodation and a family member of
such vacating tenant or tenants is entitled to and continues to occupy
the housing accommodation subject to the protections of this law, if
such accommodation continues to be subject to this law after such family
member vacates, on the occurrence of such vacancy the maximum
collectable rent shall be increased by a sum equal to the allowance then
in effect for vacancy leases for housing accommodations covered by the
rent stabilization law of nineteen hundred sixty-nine, including the
amount allowed by paragraph five-a of subdivision c of section 26-511 of
such law. This increase shall be in addition to any other increases
provided for in this law including an adjustment based upon a major
capital improvement, or a substantial increase or decrease in dwelling
space or a change in the services, furniture, furnishings or equipment
provided in the housing accommodation, pursuant to section 26-405 of
this law and shall be applicable in like manner to each second
subsequent succession.
Section 26-404
§ 26-404 City rent agency; division of housing and community renewal.
The division of housing and community renewal shall have charge of and
conduct through its own counsel any proceeding under this chapter of the
code, except for the provisions of subdivision m of section 26-405 and
section 26-406 of this chapter which shall be under the jurisdiction of
the department of finance and such other agency as the mayor shall
designate.
Section 26-405
§ 26-405 General powers and duties of the city rent agency. a. (1) At
the time this chapter shall become effective, the city rent agency shall
establish maximum rents which, subject to the provisions of subdivision
b of this section, shall be the maximum rents in effect on April
thirtieth, nineteen hundred sixty-two pursuant to the state rent act and
the regulations thereunder.
(2) (a) Notwithstanding the foregoing provision of this subdivision,
and except as provided in subparagraph (b) of this paragraph two,
effective August first, nineteen hundred seventy, the maximum rent in
effect on July thirty-first, nineteen hundred seventy shall be adjusted
as follows: (i) For any individual housing accommodation for which one
or more but less than two full fifteen per centum rent increases has
been granted since May first, nineteen hundred fifty-three pursuant to
former subparagraph (d) of paragraph one of subdivision g of this
section the maximum rent shall be increased by eight per centum.
(ii) For any individual housing accommodation for which no full
fifteen per centum rent increase has been granted since May first,
nineteen hundred fifty-three pursuant to former subparagraph (d) of
paragraph one of subdivision g of this section the maximum rent shall be
increased by fifteen per centum, except that if there was no such
increase for any individual housing accommodation for which a first rent
was established pursuant to former subdivision m of this section after
July thirty-first, nineteen hundred sixty-five and before August first,
nineteen hundred sixty-eight, the maximum rent shall be increased by
five per centum, and except that if there was no such increase for any
individual housing accommodation for which a first rent was established
pursuant to such subdivision on or after August first, nineteen hundred
sixty-eight there shall be no increase in maximum rent. On or after
August first, nineteen hundred seventy, a landlord may file application
for labor cost rent adjustment pursuant to subparagraph (l) of paragraph
(1) of subdivision g of this section. In lieu of such labor cost rent
adjustment, the landlord of a building with twenty or fewer housing
accommodations shall have the option of filing for a five per centum
increase in maximum rent for any individual housing accommodation for
which two or more full fifteen per centum increases have been granted
since May first, nineteen hundred fifty-three pursuant to former
subparagraph (d) of paragraph one of subdivision g of this section.
Nothing contained in this subparagraph (a) however, shall have the
effect of establishing the maximum rent in an amount less than the
maximum rent in effect on July thirty-first, nineteen hundred seventy
nor of increasing by more than fifteen per centum the maximum rent for
any housing accommodation.
(b) Where the maximum rent in effect on July thirty-first, nineteen
hundred seventy for any individual housing accommodation is less than
sixty dollars per month such rent shall be increased effective August
first, nineteen hundred seventy by ten dollars per month where the
housing accommodation is comprised of three rooms or less and by fifteen
dollars per month where the housing accommodation is comprised of more
than three rooms.
(c) Where a lease is in effect for any housing accommodation on August
first, nineteen hundred seventy, no adjustment of maximum rent for such
accommodation shall become effective until the expiration of such lease.
Where a housing accommodation becomes vacant on or after August first,
nineteen hundred seventy and before January first, nineteen hundred
seventy-two by voluntary surrender of possession by the tenant the
maximum rent shall be increased by no more than fifteen per centum over
the maximum rent established for such accommodation at the time the
vacancy occurred, provided that a report is filed with the city rent
agency as prescribed by its regulations. If the city rent agency shall
make a finding of harassment in violation of subdivision d of section
26-412 of this chapter for the purpose of obtaining such a vacancy, in
addition to all other civil or criminal penalties, injunctive relief and
enforcement remedies authorized by section 26-413 of this chapter, no
housing accommodation in the building shall thereafter be entitled to
the benefit of a rental increase as a result of becoming vacant between
the aforesaid dates.
(d) The total of (i) the increase pursuant to subparagraph (a) of this
paragraph, or (ii) any increases granted between December thirty-first,
nineteen hundred sixty-nine and December thirty-first, nineteen hundred
seventy-one pursuant to subparagraph (a), (b), or (c) of paragraph one
of subdivision g of this section and (iii) any increase granted on or
after the effective date of this paragraph pursuant to subparagraph (l)
of paragraph one of subdivision g of this section shall not exceed
fifteen per centum of the "1970 base rent". For purposes of this
subparagraph, the "1970 base rent" is the maximum rent on July
thirty-first, nineteen hundred seventy minus the amount of any increase
granted between December thirty-first, nineteen hundred sixty-nine and
July thirty-first, nineteen hundred seventy pursuant to subparagraph
(a), (b), or (c) of paragraph one of subdivision g of this section. This
subparagraph shall not operate to decrease any maximum rent existing on
its effective date.
(e) The rent increases provided for in this paragraph two shall be
collectible upon the landlord's filing a report with the city rent
agency on forms to be prescribed by such agency, including simplified
forms for landlords of buildings with twelve or fewer housing
accommodations, and giving such notice to the tenant as such agency may
prescribe, subject to adjustment upon order of the city rent agency. The
report shall contain a certified statement by the landlord that there is
no legally habitable rent controlled housing accommodation in the
building which has not been rented for a period of six months or more on
the date of the filing of such report, or that if there is such a
housing accommodation, the reasons it has not been rented is that it is
being altered pursuant to a permit issued by the department of buildings
no later than three months after the vacancy commenced and that the
alteration is of such a nature that the accommodation must be kept
vacant while it is being made or for such other cause found by the city
rent agency not to be inconsistent with the purpose of this chapter,
provided further that in the case of an alteration it is commenced
within sixty days from the issuance of said permit. A copy of the permit
and the application therefor shall accompany the report. No report shall
be accepted for filing and no rent increase provided for in this
paragraph two shall be collected in the absence of any such certified
statement by the landlord. Any excess shall be credited to the tenants
in full commencing with the rental payment following the receipt by the
landlord of such order of adjustment. If such report is filed on or
before October thirty-first, nineteen hundred seventy, the increase
shall take effect August first, nineteen hundred seventy. If the report
is filed thereafter, such increase shall take effect with the first
rental payment following filing.
(f) The rent increases provided for in this paragraph two shall not be
collected for the period between March thirty-first, nineteen hundred
and seventy-one and December thirty-first, nineteen hundred seventy-one
until the landlord shall have filed with the city rent agency a
certified statement attesting that for every month for which he or she
has received a rent increase pursuant to subparagraphs (a) and (b) of
this paragraph two, he or she has expended or incurred in the operation,
maintenance and improvements of the housing accommodations from which
increases were collected an amount which equals the amount expended per
month for such purpose averaged over the preceding five years, or such
lesser period that he or she has been landlord of such properties, plus
ninety per centum of all increased rents so collected.
(3) The city rent agency shall establish maximum rents to be effective
January first, nineteen hundred seventy-two by dividing the maximum
gross building rental from all housing accommodations in the property
whether or not subject to or exempt from control under this chapter by
the number of such accommodations, after giving consideration to such
factors as may be prescribed by formula, such as size and location of
housing accommodations and number of rooms. Such maximum gross building
rental shall be computed on the basis of real estate taxes, water rates
and sewer charges and an operation and maintenance expense allowance, a
vacancy allowance not in excess of two per cent, and a collection loss
allowance, both as prescribed by such agency, and an eight and one-half
per centum return on capital value. The operating and maintenance
expense allowance shall include provision for the cost of fuel,
utilities, payroll, maintenance repairs, replacement reserves and
miscellaneous charges attributed to the property, excluding mortgage
interest and amortization, and may be varied by the agency for different
types of properties depending upon such factors as the year of
construction, elevator or non-elevator buildings, and the average number
of rooms per individual housing accommodations in the building. Capital
value shall be equalized assessed valuation based upon the appropriate
tax class ratio which is established pursuant to article twelve of the
real property tax law. Where the property receives income from sources
other than such housing accommodations, the taxes, water and sewer
charges and the capital value attributed to the portion consisting of
housing accommodations shall be in the same ratio of the total taxes,
water and sewer charges (where not computed separately) and the total
capital value as the gross income from such portion consisting of
housing accommodations bears to the total gross income from the
property, as prescribed by the agency.
The agency shall report to the council on or before October fifteenth,
nineteen hundred seventy-one as to the status of preparation of the
formulas necessary to implement the rent adjustments to be effective
January first, nineteen hundred seventy-two.
(4) The city rent agency shall establish maximum rents effective
January first, nineteen hundred seventy-four and biennially thereafter
by adjusting the existing maximum rent to reflect changes, if any, in
the factors which determine maximum gross building rental under
paragraph three of this subdivision except that commencing January
first, nineteen hundred eighty-two, said maximum rent shall no longer
recognize or reflect the adjustment allocable to changes in heating
costs after April ninth, nineteen hundred seventy-nine.
Notwithstanding any other provisions in this paragraph to the
contrary, commencing January first, nineteen hundred seventy-four, the
city rent agency shall require each owner to make available for
examination his or her books and all other financial records relating to
the operation of each building under his or her ownership containing
accommodations subject to this chapter at least once every three years
for the purpose of determining whether the maximum formula rent is
appropriate for each building in light of actual expenditures therefor
and shall also alter such formula rent to take into account significant
variations between the formula and actual cost experience. The agency
shall also establish maximum costs for the factors under paragraph three
of this subdivision which determine maximum gross building rental to
preclude increases which would otherwise results from excessive
expenditures in the operation and maintenance of the building. The
return allowed on capital may be revised from time to time by local law.
(5) Where a maximum rent established pursuant to this chapter on or
after January first, nineteen hundred seventy-two, is higher than the
previously existing maximum rent, the landlord may not collect more than
seven and one-half percentum increase from a tenant in occupancy on such
date in any one year period, provided however, that where the period for
which the rent is established exceeds one year, regardless of how the
collection thereof is averaged over such period, the rent the landlord
shall be entitled to receive during the first twelve months shall not be
increased by more than seven and one-half percentum over the previous
rent and additional annual rents shall not exceed seven and one-half
percentum of the rent paid during the previous year. Notwithstanding any
of the foregoing limitations in this paragraph five, maximum rent shall
be increased if ordered by the agency pursuant to subparagraphs (d),
(e), (f), (g), (h), (i), (k), (l), (m) or (n) of paragraph one of
subdivision g of this section. Commencing January first, nineteen
hundred eighty, rent adjustments pursuant to subparagraph (n) of
paragraph one of subdivision g of this section shall be excluded from
the maximum rent when computing the seven and one-half percentum
increase authorized by this paragraph five. Where a housing
accommodation is vacant on January first, nineteen hundred seventy-two,
or becomes vacant thereafter by voluntary surrender of possession by the
tenants, the maximum rent established for such accommodations may be
collected.
(6) Where a new maximum rent has been established pursuant to former
subdivision m of this section or, following the repeal of such
subdivision, pursuant to subparagraph (m) of paragraph one of
subdivision g of this section, a new maximum rent shall not be
established pursuant to paragraph three of this subdivision. Except with
respect to a housing accommodation to which the preceding sentence
applies, where the maximum rent on December thirty-first, nineteen
hundred seventy-one is higher than the maximum rent established pursuant
to paragraph three of this subdivision, such prior maximum rent shall
continue in effect until the maximum rent under paragraph three, as
adjusted from time to time pursuant to the provisions of this chapter,
shall equal or exceed such prior maximum rent, at which time the maximum
rent for such housing accommodations shall be as prescribed in this
chapter.
(7) Section eight housing assistance.
(a) Notwithstanding any provision of this chapter, if during a rental
period in which the landlord is eligible for an adjustment or
establishment of rents pursuant to paragraph three or four of this
subdivision, housing assistance payments are being made pursuant to
section eight of the United States housing act of nineteen hundred
thirty-seven, as amended, with respect to any housing accommodation
covered by this chapter, the maximum rent collectible from the tenant in
occupancy shall be the lesser of:
(1) the maximum rent established pursuant to paragraph three of this
subdivision as adjusted pursuant to this chapter, computed without
regard to the limitations of paragraph five of this subdivision
(provided that in any case the rent paid by the tenant pursuant to this
chapter without regard to this paragraph is higher than such rent, the
rent paid shall be substituted for such rent), or
(2) the contract or fair market rent approved for the housing
accommodation pursuant to federal law or regulation.
(b) Prior to the collection of any increase in maximum rent pursuant
to this paragraph, the landlord shall advise the city rent agency of his
or her intent to compute the maximum rent pursuant to this paragraph.
(c) If a housing accommodation to which this subdivision applies
ceases for any reason to be governed by this paragraph, the maximum rent
collectible from the tenant shall be computed as if this paragraph had
not applied and any adjustments thereto which would have been permitted
pursuant to this chapter during the period such rent was set by this
paragraph shall be proper rental adjustments.
(8) Notwithstanding the provisions of this chapter, upon the sale in
any manner authorized by law of a multiple dwelling which was previously
subject to the provisions of such chapter and which was acquired by the
city in a tax foreclosure proceeding or pursuant to article nineteen-A
of the real property actions and proceedings law, for a dwelling unit
which was subject to this chapter pursuant to the local emergency
housing rent control act at the time the city so acquired title, is
occupied by a tenant who was in occupancy at the time of acquisition and
remains in occupancy at the time of sale, the maximum rent shall be the
last rent charged by the city, or on behalf of the city, for such
dwelling unit, which rent shall not exceed the rent computed pursuant to
paragraph three of this subdivision, computed as of the time of such
sale. This paragraph shall not apply to redemptions from city ownership
pursuant to chapter four of title eleven of the code.
(9) The city rent agency, prior to establishing biennially maximum
base rents pursuant to this chapter and before establishing a maximum
base rent which is different from the previously existing maximum base
rent for dwellings covered by this law, shall hold a public hearing or
hearings for the purpose of collecting information the city rent agency
may consider in establishing maximum base rents. Notice of the date,
time, location and summary of subject matter for the public hearing or
hearings shall be published in the City Record for a period of not less
than fourteen days, and at least once in one or more newspapers of
general circulation at least fourteen days immediately preceding each
hearing date, at the expense of the city of New York, and the hearing
shall be open for testimony from any individual, group, association or
representative thereof who wants to testify.
b. Such agency, to effectuate the purposes of this chapter, and in
accordance with the standards set forth in paragraph two of subdivision
c of this section, may set aside and correct any maximum rent resulting
from illegality, irregularity in vital matters or fraud, occurring prior
to or after May first, nineteen hundred sixty-two.
c. (1) Whenever such agency determines that such action is necessary
to effectuate the purposes of this chapter, it may also establish
maximum rents for housing accommodations to which this chapter applies,
where no maximum rent with respect thereto was in effect on April
thirtieth, nineteen hundred sixty-two, or where no registration
statement had been filed with respect thereto as required by the state
rent act, or where for any other reason the provisions of subdivision a
of this section are not susceptible to application to any such housing
accommodations.
(2) Such rents shall be established, having regard for the maximum
rents for comparable housing accommodations or any other factors bearing
on the equities involved, consistent with the purposes of this chapter.
d. Where any housing accommodations, which are decontrolled (including
those decontrolled by order) or exempted from control pursuant to the
provisions of subparagraph (i) of paragraph two of subdivision e of
section 26-403 of this chapter, are certified by any city agency having
jurisdiction to be a fire hazard or in a continued dangerous condition
or detrimental to life or health, the city rent agency shall establish
maximum rents for such housing accommodations, having regard for the
maximum rents for comparable housing accommodations or any other factors
bearing on the equities involved, consistent with the purposes of this
chapter.
e. Notwithstanding any other provision of this chapter, and subject to
the provisions of subdivision f of this section, provision shall be made
pursuant to regulations prescribed by the city rent agency for the
establishment, adjustment and modification of maximum rents with respect
to rooming house and single room occupancy accommodations, which shall
include those housing accommodations subject to control pursuant to the
provisions of subparagraph (c) of paragraph two of subdivision e of
section 26-403 of this chapter (other than those accommodations subject
to control under the last proviso of such subparagraph (c)), having
regard for any factors bearing on the equities involved, consistent with
the purposes of this chapter, to correct speculative, abnormal and
unwarranted increases in rent.
f. On or before June thirtieth, nineteen hundred sixty-two, the city
rent agency shall undertake a survey and investigation of all factors
affecting rents, rental conditions and rental practices with respect to
rooming houses and single room occupancy accommodations within the city
for the purpose of determining whether the provisions of this chapter
and the regulations thereunder relating to the establishment and
adjustment of maximum rents for rooming house and single room occupancy
accommodations are reasonably designed to prevent exaction of
unreasonable and oppressive rents. Not later than January fifteenth,
nineteen hundred sixty-three, such agency shall submit to the council a
report setting forth the results of such survey and investigation,
together with the findings and recommendations of such agency and any
amendments to this chapter and the regulations thereunder which such
agency may deem necessary or desirable for the accomplishment of the
purposes of this chapter in relation to such accommodations. During the
period between May first, nineteen hundred sixty-two and the thirtieth
day next succeeding the date of the submission of such report to the
council (1) no application for an increase in any maximum rent for any
rooming house or single room occupancy accommodations may be filed on
any ground other than those specified in subparagraphs (f) and (g) of
paragraph one of subdivision g of this section, and (2) no maximum rents
for any rooming house or single room occupancy accommodations shall be
increased on any grounds other than those specified in such
subparagraphs (f) and (g); provided that where the maximum rents for any
such accommodations were or are decreased prior to or during such period
because of the landlord's reduction of living space, essential services,
furniture, furnishings or equipment, and such reduction has been
corrected, an application for restoration of the rent decrease may be
filed and such rents may be adjusted so as to fix maximum rents which
the city rent agency may determine to be proper, pursuant to the
provisions of subdivision e of this section, but which shall not in any
event exceed the maximum rents for such accommodations in effect
immediately prior to such rent decrease.
g. (1) The city rent agency may from time to time adopt, promulgate,
amend or rescind such rules, regulations and orders as it may deem
necessary or proper to effectuate the purposes of this chapter,
including practices relating to recovery of possession; provided that
such regulations can be put into effect without general uncertainty,
dislocation and hardship inconsistent with the purposes of this chapter;
and provided further that such regulations shall be designed to maintain
a system of rent controls at levels which, in the judgment of such
agency, are generally fair and equitable and which will provide for an
orderly transition from and termination of emergency controls without
undue dislocations, inflationary price rises or disruption. Provision
shall be made, pursuant to regulations prescribed by such agency, for
individual adjustment of maximum rents where:
(a) The rental income from a property yields a net annual return of
less than six per centum of the valuation of the property.
(1) Such valuation shall be the current assessed valuation established
by the city, which is in effect at the time of the filing of the
application for an adjustment under this subparagraph (a); provided
that:
(i) The city rent agency may make a determination that the valuation
of the property is an amount different from such assessed valuation
where there has been a reduction in the assessed valuation for the year
next preceding the effective date of the current assessed valuation in
effect at the time of the filing of the application; and
(ii) Such agency may make a determination that the value of the
property is an amount different from the assessed valuation where there
has been a bona fide sale of the property within the period February
first, nineteen hundred sixty-one, and the time of filing of the
application, as the result of a transaction at arm's length, on normal
financing terms, at a readily ascertainable price, and unaffected by
special circumstances such as but not limited to a forced sale, exchange
of property, package deal, wash sale or sale to a cooperative; provided,
however, that where an application was filed under this subparagraph (a)
on or before the effective date of this sub-item (ii), the city rent
agency may determine the value of the property on the basis that there
has been a bona fide sale of the property within the period between
March fifteenth, nineteen hundred fifty-eight, and the time of the
filing of the application. In determining whether a sale was on normal
financing terms, such agency shall give due consideration to the
following factors:
(a) the ratio of the cash payment received by the seller to (1) the
sales price of the property and (2) the annual gross income from the
property;
(b) the total amount of the outstanding mortgages which are liens
against the property (including purchase money mortgages) as compared
with the assessed valuation of the property;
(c) the ratio of the sales price to the annual gross income of the
property, with consideration given to the total amount of rent
adjustments previously granted, exclusive of rent adjustments because of
changes in dwelling space, services, furniture, furnishings or
equipment, major capital improvements, or substantial rehabilitation;
(d) the presence of deferred amortization in purchase money mortgages,
or the assignment of such mortgage at a discount;
(e) Any other facts and circumstances surrounding such sale which, in
the judgment of such agency, may have a bearing upon the question of
financing; and
(iii) Where the assessed valuation of the land exceeds four times the
assessed valuation of the buildings thereon, the city rent agency may
determine a valuation of the property equal to five times the assessed
valuation of the buildings, for the purposes of this subparagraph (a).
(2) An application for an increase in any maximum rent under this
subparagraph (a) of this paragraph one may not be filed with respect to
any property if, on the date when the application is sought to be filed:
(i) Less than two years have elapsed since the date of the filing of
the last prior application for an increase under this subparagraph (a)
of this paragraph one with respect to such property, which application
resulted in the granting of an increase; or
(ii) Less than two years have elapsed since the last sale of the
property, and the application is based upon a sale price in excess of
the assessed valuation. This subitem shall not apply, however, where
less than two years have elapsed since the last sale of the property and
the application is based upon a sale within such two-year period at a
price in excess of the assessed valuation, if such price is less than
the price in the last sale which meets the criteria heretofore specified
in this subparagraph (a) occurring prior to two years before the
application is sought to be filed and since February first, nineteen
hundred sixty-one.
(3) No increase in maximum rents shall be granted under this
subparagraph (a) by the city rent agency while there is pending without
final disposition any judicial proceeding to correct the final
determination of the tax commission with respect to the assessed
valuation of such property, (a) for the city fiscal year in which the
landlord filed the application for such increase or (b) for the city
fiscal year immediately preceding the filing of the application for such
increase.
(4) For the purposes of this subparagraph (a): (i) Net annual return
shall be the amount by which the earned income exceeds the operating
expenses of the property, excluding mortgage interest and amortization,
and excluding allowances for obsolescence and reserves, but including an
allowance for depreciation of two per centum of the value of the
buildings exclusive of the land, or the amount shown for depreciation of
the buildings in the latest required federal income tax return,
whichever is lower; provided, however, that no allowance for
depreciation of the buildings shall be included where the buildings have
been fully depreciated for federal income tax purposes or on the books
of the owner; and
(ii) Test year shall be the most recent full calendar year or the
landlord's most recent fiscal year or any twelve consecutive months
ending not more than ninety days prior to the filing of the application
for an increase;
(b) Where a building contains no more than nineteen rental units and
the landlord has not been fully compensated by increases in rental
income sufficient to offset unavoidable increases in property taxes,
fuel, utilities, insurance and repairs and maintenance, excluding
mortgage interest and amortization, and excluding allowance for
depreciation, obsolescence and reserves, which have occurred since the
federal date determining the maximum rent; or
(c) The landlord operates a hotel or rooming house or owns a
cooperative apartment and has not been fully compensated by increases in
rental income from the controlled housing accommodations sufficient to
offset such unavoidable increases in property taxes and other costs as
are allocable to such controlled housing accommodations, including costs
of operation of such hotel or rooming house, but excluding mortgage
interest and amortization, and excluding allowances for depreciation,
obsolescence and reserves, which have occurred since the federal date
determining the maximum rent or the date the landlord commenced the
operation of the property, whichever is later; or
(d) The landlord and tenant in occupancy voluntarily enter into a
valid written lease in good faith with respect to any housing
accommodation, which lease provides for an increase in the maximum rent
on the basis of specified increased services, furniture, furnishings, or
equipment, provided the city rent agency determines that the specified
increased services, furniture, furnishings or equipment have a market
value commensurate with the increased rent, the increase maximum rent is
not in excess of fifteen per centum and the lease is for a term of not
less than two years, provided further that a report of lease is filed as
prescribed by regulations issued by the city rent agency or has been
otherwise accepted by such agency, and provided further, that where the
entire structure, or any lesser portion thereof was vacated by order of
a city department having jurisdiction, on or after November
twenty-second, nineteen hundred sixty-three and any tenants therein were
relocated by the department of relocation, or such structure was boarded
up by the department of real estate, such lease increases in
subsequently executed leases shall not become effective for any housing
accommodations in the structure until such departments have been
reimbursed for expenses necessarily incurred in connection with the
foregoing; provided further, however, that the landlord may obtain such
lease increases without making such reimbursement where the vacating was
caused by fire or accident not resulting from any unlawful act or
omission on the part of the landlord; or
(e) The landlord and tenant by mutual voluntary written agreement
agree to a substantial increase or decrease in dwelling space or a
change in the services, furniture, furnishings or equipment provided in
the housing accommodations. An adjustment under this subparagraph shall
be equal to one-fortieth, in the case of a building with thirty-five or
fewer housing accommodations, or one-sixtieth, in the case of a building
with more than thirty-five housing accommodations where such adjustment
takes effect on or after September twenty-fourth, two thousand eleven,
of the total cost incurred by the landlord in providing such
modification or increase in dwelling space, services, furniture,
furnishings or equipment, including the cost of installation, but
excluding finance charges, provided further that an owner who is
entitled to a rent increase pursuant to this subparagraph shall not be
entitled to a further rent increase based upon the installation of
similar equipment, or new furniture or furnishings within the useful
life of such new equipment, or new furniture or furnishings. The owner
shall give written notice to the city rent agency of any such adjustment
pursuant to this subparagraph; or
(f) There has been since March first, nineteen hundred fifty-nine, an
increase in the rental value of the housing accommodations as a result
of a substantial rehabilitation of the building or housing accommodation
therein which materially adds to the value of the property or
appreciably prolongs its life, excluding ordinary repairs, maintenance
and replacements; or
(g) There has been since July first, nineteen hundred seventy, a major
capital improvement required for the operation, preservation or
maintenance of the structure. An adjustment under this subparagraph (g)
shall be in an amount sufficient to amortize the cost of the
improvements pursuant to this subparagraph (g) over a seven-year period;
or
(h) There have been since March first, nineteen hundred fifty-nine, in
structures containing more than four housing accommodations, other
improvements made with the express consent of the tenants in occupancy
of at least seventy-five per centum of the housing accommodations;
provided, however, that whenever the city rent agency has determined
that the improvements proposed were part of a plan designed for overall
improvement of the structure or increases in services, it may authorize
increases in maximum rents for all housing accommodations affected upon
the express consent of the tenants in occupancy of at least fifty-one
per centum of the housing accommodations, and provided further that no
adjustment granted hereunder shall exceed fifteen per centum unless the
tenants have agreed to a higher percentage of increase, as herein
provided; or
(i) There has been, since March first, nineteen hundred fifty-nine, a
subletting without written consent from the landlord or an increase in
the number of adult occupants who are not members of the immediate
family of the tenant, and the landlord has not been compensated therefor
by adjustment of the maximum rent by lease or order of the city rent
agency or pursuant to the state rent act or the federal act; or
(j) The presence of unique or peculiar circumstances materially
affecting the maximum rent has resulted in a maximum rent which is
substantially lower than the rents generally prevailing in the same area
for substantially similar housing accommodations.
(k) The landlord has incurred, since January first, nineteen hundred
seventy, in connection with and in addition to a concurrent major
capital improvement pursuant to subparagraph (g) of this paragraph,
other expenditures to improve, restore or preserve the quality of the
structure. An adjustment under this subparagraph shall be granted only
if such improvements represent an expenditure equal to at least ten per
centum of the total operating and maintenance expenses for the preceding
year. An adjustment under this subparagraph shall be in addition to any
adjustment granted for the concurrent major capital improvement and
shall be in an amount sufficient to amortize the cost of the
improvements pursuant to this subparagraph over a seven-year period.
(l) (1) The actual labor expenses currently incurred or to be incurred
(pursuant to a collective agreement or other obligation actually entered
into by the landlord) exceed the provision for payroll expenses in the
current applicable operating and maintenance expense allowance under
subdivision a of this section. No application pursuant to this
subparagraph may be granted within one year from the granting of an
adjustment in maximum rent pursuant to this subparagraph (l), or
pursuant to subparagraph (a) of this paragraph. Any rent increase the
applicant would be entitled to, or such portion thereof, shall not
exceed a total increase of seven and one-half per centum per annum of
the maximum rent as provided in paragraph five of subdivision a of this
section.
(2) Any adjustment in the maximum rents pursuant hereto shall be
subject to:
(i) The adjustment in maximum rent for any twelve-month period for any
housing accommodation shall not exceed four percent of the maximum rent
in effect on December thirty-first, nineteen hundred seventy-three.
(ii) Where the increase in labor costs compensable herein is the
result of an industry-wide collective bargaining agreement or a specific
agreement in anticipation of, or subsequent to, an industry-wide
collective bargaining agreement, the adjustment shall be in such amount
(subject to the above limitation) that the increased rental income from
January first, nineteen hundred seventy-four to December thirty-first,
nineteen hundred seventy-six shall reflect the increased labor costs for
the period from April thirtieth, nineteen hundred seventy-three to April
thirtieth, nineteen hundred seventy-six.
(3) For the purpose of this subparagraph (l) the increase in labor
costs shall be the amount by which the labor costs (a) actually in
effect and paid, or (b) actually in effect and paid or payable and fixed
and determined pursuant to agreement on the date of the filing of the
application and projected over the period ending April thirtieth,
nineteen hundred seventy-six, exceed the labor costs for the twelve
calendar months immediately preceding the last day of the month in which
the wage agreement became effective.
(4) Notwithstanding any other provision of this chapter, the
adjustment pursuant to this subparagraph shall be collectible upon the
landlord's filing of a report with the city rent agency, subject to the
provisions of subparagraph (e) of paragraph two of subdivision a of this
section.
(5) No increase in the maximum rent for any housing accommodation may
be granted under this subparagraph (l) if on the date when the
application is sought to be filed, less than the full term of such
agreement has elapsed since the date of the filing of the last prior
application for an increase with respect to such property under this
subparagraph (l), which application resulted in the granting of an
increase. Where, however, the landlord establishes the existence of
unique or peculiar circumstances affecting an increase in labor costs
for the property, the agency may accept such application where it
determines that such acceptance is not inconsistent with the purposes of
this local law.
(6) The increase authorized herein shall be apportioned equitably
among all the housing accommodations in the property whether or not
subject to control under this chapter.
(m) Where the rehabilitation or improvement of sub-standard or
deteriorated housing accommodations has been financed under a
governmental program providing assistance through loans, loan insurance
or tax abatement or has been undertaken under another rehabilitation
program not so financed but approved by the commissioner.
(n)(1) The city rent agency shall hereafter promulgate in January of
each year;
(i) findings regarding the price increase or decrease, respectively,
for all types of heating fuel, including numbers two, four and six home
heating oils, utility supplied steam, gas, electricity and coal,
together with the sales and excise taxes thereon, on December
thirty-first as compared to the January first in any year; and
(ii) standards for consumption of heating fuel, which shall be no more
than two hundred twenty-five gallons per year per room commencing
January first, nineteen hundred eighty-one, for buildings using heating
oils for heat with comparable unit limitations to be established by the
city rent agency for utility supplied steam, gas, electricity, coal and
any other types of heating systems, provided that such consumption
standards for heating fuels shall be reduced by five gallons per room
per year for heating oils and a comparable amount for other heating
fuels for the next succeeding year and ten gallons per room per year for
heating oils and a comparable amount for other heating fuels for two
succeeding years thereafter.
Such findings and consumption standards shall be published in the City
Record.
(2) To obtain a rental adjustment pursuant to this subparagraph (n),
the landlord shall file a report with the agency on forms prescribed by
the agency and shall:
(i) certify the amount of heating fuel consumed in the calendar year
immediately prior to the filing of the report;
(ii) state the type of fuel used and the number of rooms in the
building;
(iii) certify that (a) all essential services required to be provided
have been and will continue to be maintained and (b) there has been no
rent reduction order issued pursuant to this chapter based on the
landlord's failure to provide heat or hot water during the prior twelve
months;
(iv) certify on information and belief, in order to qualify for an
additional rent increase pursuant to this subparagraph (n), that for an
individual housing accommodation, if the maximum rent collectible
pursuant to paragraph five of subdivision a of this section plus actual
rent adjustments pursuant to this subparagraph (n) and such additional
rent increase, is equal to or exceeds the maximum rent established
pursuant to paragraphs three and four of subdivision a of this section
plus the amount calculated pursuant to subitem (i) of item three and
subitem (i) of item four of this subparagraph (n), each to be allocated
to such housing accommodation pursuant to subitem (ii) of item four of
this subparagraph (n), that the landlord will not be earning an amount
in excess of the statutory return specified in subparagraph (a) of
paragraph one of subdivision g of this section after collection of a
rent increase pursuant to this subparagraph (n), with respect to a
building or buildings serviced by a single heating plant;
(v) report any funds received with respect to the housing
accommodations from any governmental grant program compensating such
landlord for fuel price increases during the period for which an
adjustment is obtained pursuant to this subparagraph (n);
(vi) provide such other information as the agency may require.
(3) Rent adjustments for controlled housing accommodations for annual
heating fuel cost increases or decreases experienced after December
thirty-first, nineteen hundred seventy-nine, shall be determined as
follows:
(i) the increase or decrease in heating fuel prices found by the
agency for that year shall be multiplied by the actual consumption, not
to exceed that year's consumption standard established pursuant to
subitem (ii) of item one of this subparagraph; and
(ii) seventy-five percentum of such amount shall be allocated among
all rental space in the building, including commercial, professional and
similar facilities, provided, for the purposes of this subparagraph (n),
that living rooms, kitchens over fifty-nine square feet in area and
bedrooms shall be considered rooms and that bathrooms, foyers and
kitchenettes shall not be considered rooms.
(4) Rent adjustments for controlled housing accommodations for heating
fuel cost increases or decreases experienced from April ninth, nineteen
hundred seventy-nine, through and including December thirty-first,
nineteen hundred seventy-nine, shall be determined as follows:
(i) the increase or decrease in heating fuel prices found by the
agency for that period shall be multiplied by seventy-five percentum of
the actual heating fuel consumption during the period from January
first, nineteen hundred seventy-nine, through and including December
thirty-first, nineteen hundred seventy-nine, which consumption shall not
exceed seventy-five percentum of that year's consumption standard
established by the agency; and
(ii) such amount shall be allocated among all rental space in the
building, including commercial, professional and similar facilities,
provided, for the purposes of this subparagraph (n), that living rooms,
kitchens over fifty-nine square feet in area and bedrooms shall be
considered rooms and that bathrooms, foyers and kitchenettes shall not
be considered rooms.
The city rent agency shall promulgate findings for heating fuel price
increases or decreases and standards for consumption for the periods set
forth in this item four thirty days after this local law is enacted. The
standard for consumption shall be no more than seventy-five percentum of
two hundred thirty gallons per room for buildings using heating oils for
heat with comparable unit limitations to be established by the city rent
agency for utility supplied steam, gas, electricity, coal and any other
types of heating systems.
(5) A landlord who files a report pursuant to this subparagraph and
who falsely certifies shall not be eligible to collect any rent
adjustment pursuant to this subparagraph for two years following a
determination of a false certification and, in addition, any adjustments
obtained pursuant to this subparagraph for up to two years prior to such
determination shall not be collectible for that same two year period.
Such landlord shall also be subject to any additional penalties imposed
by law.
(6) A landlord annually may file a report pursuant to this
subparagraph (n) after promulgation by the agency of the findings and
consumption standards set forth in item one of subparagraph (n). A rent
adjustment pursuant to such report shall be prospectively collectible
upon the landlord's serving and filing the report, provided, however,
that if a landlord files such report within sixty days of the
promulgation of such findings and consumption standards, such rent
adjustment shall be retroactive to and shall be effective as of the
January first of the year in which the report is filed.
(7) A landlord demanding or collecting a rent adjustment pursuant to
this subparagraph (n) shall at the time of either the demand or
collection issue to the tenant either a rent bill or receipt separately
setting forth the amount of the adjustment pursuant to this subparagraph
(n) and the amount of the maximum rent otherwise demanded or collected.
If the tenant has been issued a valid senior citizen rent exemption
order or a valid disability rent exemption order, the owner shall also
separately state the amount payable by the senior citizen or person with
a disability after the exemption.
(8) In the event that a rent reduction order is issued by the city
rent agency based upon the landlord's failure to provide heat or hot
water to housing accommodations for which the landlord is collecting a
rent adjustment pursuant to this subparagraph (n), the rent adjustment
shall not be collected during the time such rent reduction order is in
effect and for twelve months following the date of the restoration of
the rent reduction. In addition, the landlord shall not be eligible to
collect any subsequent rent adjustment pursuant to this subparagraph (n)
until twelve months following the date of the restoration of the rent
reduction.
(9) In the event that the city rent agency promulgates a finding of a
price decrease, if any landlord who has obtained a rent adjustment
pursuant to this subparagraph (n) does not file a report for a rent
adjustment pursuant to this subparagraph (n) within sixty days of the
promulgation of such findings, then all rent adjustments obtained
pursuant to this subparagraph (n) shall not be collectible for a period
of twelve months.
(10) Any rent adjustment obtained pursuant to this subparagraph (n)
shall not be included in the maximum rent established pursuant to
paragraph four or five of subdivision (a) of this section.
(11) The city rent agency shall have the power to promulgate such
regulations as it may consider necessary or convenient to implement and
administer the provisions of this subparagraph (n). The regulations
shall also require that any rent adjustment granted pursuant to this
subparagraph (n) be reduced by an amount equal to any governmental grant
received by the landlord compensating the landlord for any fuel price
increases, but not required by the city, the agency or any granting
government entity to be expended for fuel related repairs or
improvements.
(o) (1) There has been an increase in heating and heating fuel
expenditures in a property resulting from a city-wide rise in heating
fuel costs such that the verifiable expenditures for heating or heating
fuel in a property for nineteen hundred seventy-four exceeds the
verifiable expenditures for such heating or heating fuel during nineteen
hundred seventy-three.
(2) To obtain a rental adjustment pursuant to this subparagraph (o),
the landlord must certify that he or she is presently maintaining all
essential services required to be furnished with respect to the housing
accommodations covered by such certification, and that he or she will
continue to so maintain such essential services for the period of any
such adjustment.
(3) To obtain a rental adjustment pursuant to this subparagraph (o),
the landlord must certify on information and belief that he or she will
not be earning an amount in excess of the statutory return specified in
subparagraph (a) of paragraph one of subdivision g of this section after
collection of such rental adjustment, with respect to the building or
buildings serviced by a single heating plant; and where the building, or
buildings serviced by a single heating plant, contains forty-nine or
fewer housing accommodations, the landlord must certify that the amount
expended directly for heating or heating fuel in nineteen hundred
seventy-four equalled or exceeded ten per cent of the total rental
income which was derived from the property during nineteen hundred
seventy-four; and, where the building, or buildings serviced by a single
heating plant, contains fifty or more housing accommodations the
landlord must certify that the amount expended directly for heating or
heating fuel in nineteen hundred seventy-four equalled or exceeded seven
and one-half percentum of the total rental income which was derived from
the property during nineteen hundred seventy-four.
(4) The total rental adjustments for a property to be allocated or
deemed allocated pursuant to this subparagraph (o) shall not exceed
one-half of the gross amount by which the total verifiable expenditures
for heating or heating fuel for nineteen hundred seventy-four exceeds
the total verifiable expenditures for such heating or heating fuel for
nineteen hundred seventy-three.
(5) Such total rental adjustments shall be allocated or deemed
allocated pursuant to this subparagraph (o) to all housing
accommodations subject to this chapter, to all other housing
accommodations, and to all commercial, professional and similar
facilities in or associated with the property in a manner to be
determined by the agency. In no event shall any adjustment in maximum
rent pursuant to this subparagraph (o) for any housing accommodations
subject to this chapter exceed a monthly increase of two dollars per
room, as defined by item eight below. In any apartment containing five
or more rooms, any increase shall not exceed the total of nine dollars.
(6) Any adjustment pursuant to this subparagraph (o) shall be
effective for all or part of the period July first, nineteen hundred
seventy-five through June thirtieth, nineteen hundred seventy-six. Any
adjustment pursuant to this subparagraph shall automatically expire no
later than June thirtieth, nineteen hundred seventy-six.
(7) The rental increases provided for herein shall be effective and
collectible upon the landlord's filing a report with the agency on forms
prescribed by the agency and upon giving such notice to the tenants as
the agency shall prescribe, subject to adjustments upon order of the
agency.
(8) In determining the amount of an adjustment allocation of an
adjustment pursuant to this subparagraph (o), only living rooms,
kitchens over fifty-nine square feet in area, dining rooms and bedrooms
shall be considered rooms; bathrooms, foyers, and kitchenettes shall not
be considered rooms.
(2) In any case where any housing accommodation was vacated on or
after the effective date of this paragraph two, other than by voluntary
surrender of possession or in the manner provided in this chapter, the
city rent agency may, by regulations having due regard for the equities
involved, bar adjustments pursuant to subparagraphs (f) and (g) of
paragraph one of this subdivision g, except for work which:
(a) is necessary in order to remove violations against the property;
(b) is necessary to obtain a certificate of occupancy if such
certificate is required by law; or
(c) could have been performed with a tenant in physical possession of
the housing accommodation.
(3) Any adjustment pursuant to subparagraph (a), (b), or (c) of
paragraph one of this subdivision shall be subject to the limitation set
forth in paragraph five of subdivision a of this section; provided:
(a) that in ordering an adjustment pursuant to such subparagraph (a),
the city rent agency may waive such limitation where a greater increase
is necessary to make the earned income of the property equal to its
operating expenses; and
(b) that where due to such limitation the landlord will not receive
the full amount of the rent increase to which he or she would otherwise
be entitled, the order of the city rent agency shall increase the
maximum rent by a further additional amount during each succeeding
twelve-month period, not to exceed seven and a half percentum of the
maximum rent in effect on the date of the filing of the application for
an adjustment, under the maximum rent shall reflect the full increase to
which the landlord is entitled.
(4) Any increase in maximum rent shall be apportioned equitably among
all the controlled housing accommodations in the property. In making
such apportionment and in fixing the increases in maximum rents, the
city rent agency shall give due consideration (a) to all previous
adjustments or increases in maximum rents by lease or otherwise; and (b)
to all other income derived from the property, including income from
space and accommodations not controlled, or the rental value thereof if
vacant or occupied rent-free, so there is allocated to the controlled
housing accommodations therein only that portion of the amount of
increases necessary pursuant to subparagraph (a), (b), (c) or (k) of
paragraph one of this subdivision g, as is properly attributable to such
controlled accommodations.
(5) The city rent agency shall compile and make available for public
inspection at reasonable hours at its principal office and at each
appropriate local office, the manual of accounting procedures and
advisory bulletins applicable to applications under subparagraphs (a),
(b) and (c) of paragraph one of this subdivision g, and all amendments
to such manual and bulletins.
(6) (a) No application for an increase in any maximum rent may be
filed under subparagraph (a), (b) or (c) of paragraph one of this
subdivision g with respect to any property unless there is annexed to
such application:
(1) A report of search issued by the agency of the city having
jurisdiction stating either that no violations against such property are
recorded or a receipt (or photocopy thereof) issued by that agency
attesting to the payment of the fee for the report of search or that all
violations recorded against such property have been cleared, corrected
or abated; and
(2) A certification by the landlord of such property that he or she is
maintaining all essential services required to be furnished and that he
or she will continue to maintain such services so long as any such
increase in the maximum rent continues in effect.
(b) Except as provided in subparagraph (c) of this paragraph six and
paragraph four of subdivision h of this section, no landlord shall be
entitled to an increase in the maximum rent on any ground unless he or
she certifies that he or she is maintaining all essential services
furnished or required to be furnished as of the date of the issuance of
the order adjusting the maximum rent and that he or she will continue to
maintain such services so long as the increase in such maximum rent
continues in effect; nor shall any landlord be entitled to any increase
in the maximum rent on any ground where an agency of the city having
jurisdiction certifies that the housing accommodation is a fire hazard
or is a continued dangerous condition or detrimental to life or health
or is occupied in violation of law; nor shall any landlord be entitled
to any increase where the landlord has not removed the violations
recorded against such property as shown in the report of search required
under subparagraph (a) of this paragraph six.
(c) Where an application for an increase in any maximum rent is filed
under subparagraph (f) and/or (g) of paragraph one of this subdivision
g, and the landlord is not entitled to any increase by reason of the
provisions of subparagraph (b) of this paragraph six, the city rent
agency may waive such provisions and issue orders increasing the maximum
rent effective as of the date of the issuance of the orders provided,
however, that the landlord agrees in writing to deposit the entire
amount of such increase in maximum rent into an escrow account
administered by the city rent agency in accordance with rules and
regulations to be promulgated by such agency for the purpose of
obtaining compliance with such provisions and further agrees to obtain
and submit to the city rent agency within one year from the date of
issuance of such orders; a report of search issued by the agency of the
city having jurisdiction stating that the violations shown in the report
of search required under subparagraph (a) of this paragraph six have
been removed, cleared, corrected or abated, and his or her own
certification that he or she is and will continue to maintain all
essential services in accordance with the provisions of subparagraph (b)
of this paragraph six. In the event the landlord fails to fully comply
with such provisions within one year from the date of the issuance of
the order increasing the maximum rent, the city agency may, having due
regard for the equities involved, revoke such orders and direct full
refund to the tenants of the entire increase paid by the tenants as a
result of such orders. Any person serving as escrow agent shall not be
liable except for fraud or misfeasance.
(d) No new maximum rent shall be established pursuant to paragraph
three or four of subdivision a of this section unless not more than one
hundred fifty days nor less than ninety days prior to the effective date
thereof, the landlord has certified that he or she is maintaining all
essential services required to be furnished with respect to the housing
accommodations covered by such certification, and that he or she will
continue to maintain such services so long as such new maximum rent is
in effect. Each such certification filed to obtain a new maximum rent
pursuant to paragraph four of subdivision a of this section shall be
accompanied by a certification by the landlord that he or she has
actually expended or incurred ninety per centum of the total amount of
the cost index for operation and maintenance established for his or her
type of building.
(e) The city rent agency shall establish a counseling service to
provide assistance to tenants and to landlords of buildings containing
nineteen or fewer housing accommodations, by way of instruction in the
management, maintenance and upkeep of housing accommodations, their
respective responsibilities thereto, the programs and enforcement
remedies available in the agency and from other city agencies, and
assistance in the preparation of applications and other forms.
(7) Before ordering any adjustment in maximum rents, the city rent
agency shall accord a reasonable opportunity to be heard thereon to the
tenant and the landlord.
h. (1) Whenever in the judgment of the city rent agency such action is
necessary or proper in order to effectuate the purposes of this chapter,
such agency may, by regulation or order, regulate or prohibit
speculative or manipulative practices or renting or leasing practices,
including practices relating to recovery of possession, which in the
judgment of such agency are equivalent to or are likely to result in
rent increases inconsistent with the purposes of this chapter.
(2) Whenever in the judgment of such agency such action is necessary
or proper in order to effectuate the purposes of this chapter, such
agency may provide regulations to assure the maintenance of the same
living space, essential services, furniture, furnishings and equipment
as were provided on the date determining the maximum rent, and such
agency shall have power by regulation or order to decrease the maximum
rent or take action as provided in paragraph four of this subdivision h
for any housing accommodation with respect to which a maximum rent is in
effect, pursuant to this chapter, if it shall find that the living
space, essential services, furniture, furnishings or equipment to which
the tenant was entitled on such date have been decreased. The amount of
the reduction in maximum rent ordered by such agency under this
paragraph shall be reduced by any credit, abatement or offset in rent
which the tenant has received pursuant to section two hundred
thirty-five-b of the real property law that relates to one or more
conditions covered by such order.
(3) Whenever any agency of the city having jurisdiction certifies that
any housing accommodation is a fire hazard or is in a continued
dangerous condition or detrimental to life or health, or is occupied in
violation of law, the city rent agency may issue an order decreasing the
maximum rent or take action as provided in paragraph four of this
subdivision h for such housing accommodation in such amount as it deems
necessary or proper, until the agency issuing such certification has
certified that such housing accommodation is no longer a fire or other
hazard and is not in a condition detrimental to life and health and is
not occupied in violation of law.
(4) (a) Whenever in the judgment of the city rent agency such action
is necessary or proper in order to effectuate the purposes of this
chapter, such agency may, in lieu of decreasing the maximum rents as
provided in paragraphs two and three of this subdivision h, enter into a
contract wherein the landlord agrees in writing to deposit all income
derived from the property, including income from spaces and
accommodations not controlled, into an escrow or trust account for use
in maintaining or restoring essential services and equipment, for
removing violations against the property or housing accommodations
therein, making such repairs as are necessary to remove a certification
from any city agency having jurisdiction thereof that the housing
accommodation is a fire hazard or is in a continued dangerous condition
or detrimental to life or health, or is occupied in violation of law,
and/or for such other uses as the city rent agency deems necessary or
proper for the preservation, repair or maintenance of the property. The
city rent agency may adopt such rules and regulations and orders as it
may deem necessary or proper to effectuate the purposes of this
paragraph, including but not limited to the issuance of orders adjusting
all controlled rents to the appropriate maximum rent effective as of the
first day of the month following the execution of the contract provided,
however, that in the event the city rent agency shall determine that the
landlord has breached such contract, such agency may issue orders (1)
decreasing the maximum rents pursuant to such contract; (2) containing a
directive that rent collected by the landlord in excess of the rent thus
decreased be refunded to the tenants; and (3) containing such other
determinations and directives as are necessary in order to effectuate
the purposes of this paragraph four.
(b) Notwithstanding any provision of this chapter to the contrary,
whenever in the judgment of the city rent agency action as provided in
paragraph two or three of this subdivision h is necessary or proper in
order to effectuate the purposes of this chapter, such agency may in
lieu of decreasing the maximum rents thereof issue orders adjusting all
controlled rents and directing that rents be paid into an escrow account
for the uses stated in subparagraph (a) of this paragraph four where:
(1) The landlord fails to take corrective action after notice by the
city rent agency of proposed action to decrease the maximum rents
pursuant to paragraph two or three of this subdivision h, and,
(2) The city rent agency has notified all mortgagees who have filed
with the city rent agency a declaration of interest in such property and
in such proposed action, and,
(3) The landlord has failed for three consecutive months to collect
any controlled rents or to commence court proceedings for their
collection or if such proceedings have been commenced, the landlord has
not diligently prosecuted them or such proceedings have not resulted in
judgment in favor of such landlord.
(c) The city rent agency shall promulgate rules and regulations for
the administration of escrow and trust accounts set forth in this
paragraph four. Any person serving as escrow agent or trustee shall not
be liable except for fraud, breach of fiduciary duties or misfeasance.
(5) Whenever the essential services, furnishings, furniture or
equipment of any individual housing accommodation are reduced, impaired,
mutilated, or made unworkable as the result of the neglect, failure to
exercise due care, or failure of the tenant to take practicable
precautions to prevent such condition, the landlord shall restore such
services, furniture, furnishings or equipment and pursuant to
regulations to be prescribed by the city rent agency may make
application for a temporary increase in the maximum rent based upon the
cost of such restoration. In the event of the failure of the tenant to
make restitution within a reasonable time, as determined by the city
rent agency an order shall be issued adjusting the maximum rent for such
tenant in an amount sufficient to recover the cost over twelve monthly
installments, or until the tenant surrenders possession, whichever is
sooner. The provisions of this paragraph shall be in addition to all
other rights and remedies of the landlord.
(6) If at least six months before the effective date of any adjustment
or establishment of rents pursuant to paragraph three or four of
subdivision a of this section, the landlord has not certified to the
agency having jurisdiction that (a) all rent impairing violations (as
defined by section three hundred two-a of the multiple dwelling law),
and (b) at least eighty per centum of all other violations of the
housing maintenance code or other state or local laws that impose
requirements on property that were recorded against the property one
year prior to such effective date have been cleared, corrected, or
abated, no increase pursuant to such paragraphs shall take effect until
he or she shall have entered into a written agreement with the city rent
agency to deposit all income derived from the property into an escrow or
trust account pursuant to subparagraph (a) of paragraph four of this
subdivision, in addition to the procedures set forth in this paragraph
and all other applicable penalties and procedures under this chapter,
such violation shall also be subject to repair or removal by the city
pursuant to the provisions of article five of subchapter five of the
housing maintenance code, the landlord to be liable for the cost
thereof.
i. Any regulation or order issued pursuant to this section may be
established in such form and manner, may contain such classifications
and differentiations, and may provide for such adjustments including the
establishment of new or adjusted maximum rents in whole dollar amounts,
and such reasonable exceptions as in the judgment of the city rent
agency are necessary or proper in order to effectuate the purposes of
this chapter.
j. No increase or decrease in maximum rent shall be effective prior to
the date on which the order therefor is issued, except as hereinafter
provided. If an application for an increase pursuant to subparagraph (a)
of paragraph one of subdivision g of this section submitted on or after
August first, nineteen hundred seventy is accompanied by a certified
statement of expenditures and no order is issued thereon within four
months of the filing of an application based on assessed value or
equalized assessed value, or eight months of the filing of an
application based on sale price, with all required documentation the
increased rent requested shall thereafter be placed in an interest
bearing escrow account until a final determination is made upon such
application by the city rent agency. Upon initial determination by the
agency an order shall be issued providing for the payment of the
increased amount, if any, due to the landlord from the date of first
deposit of rent in said escrow account with interest, and the excess
amount, if any, be paid the tenants entitled thereto, with an
appropriate amount of interest. The city rent agency shall promulgate
rules and regulations for the administration of such escrow accounts.
Any person serving as escrow agent shall not be liable except for fraud
or misfeasance.
k. Regulations, orders, and requirements under this chapter may
contain such provisions as the city rent agency deems necessary to
prevent the circumvention or evasion thereof.
l. The powers granted in this action shall not be used or made to
operate to compel changes in established rental practices, except where
such action is affirmatively found by the city rent agency to be
necessary to prevent circumvention or evasion of any regulation, order,
or requirement under this chapter.
m. Findings. The council finds that there is an acute and continuing
housing shortage; that this shortage has and continues to have an
adverse effect on the population and especially on inhabitants of the
city who are sixty-two years of age or older and of limited means, as
well as persons with disabilities, who cannot pay enough rent to induce
private enterprise to maintain decent housing at rents they can afford
to pay; that this condition is and continues to be particularly acute in
a time of rising costs such as the present; that present rising costs
and the continuing increase in rents pursuant to amendments to the New
York city rent and rehabilitation law may result in such persons being
unable to pay their rent, thus making them subject to eviction; that
such hardships fall with particular severity upon older persons in the
population, as well as persons with disabilities, because of their
particular inability to find alternative accommodations within their
means, because of the trauma experienced by many older persons, as well
as persons with disabilities, who have to relocate and because they may
endanger their health by paying additional sums for shelter and thereby
deprive themselves of other necessities; that hardships imposed upon
such people adversely affect their health and welfare and the general
welfare of the inhabitants of the city. The council is aware of the
provisions set forth in chapter three hundred seventy-two and chapter
one thousand twelve of the laws of nineteen hundred seventy-one. It is
our considered opinion that this legislation extending the rent
exemption to cover the resultant rent increases due to the maximum rents
established January first, nineteen hundred seventy-two, is not more
stringent or restrictive than those presently in effect. It is found and
declared to be necessary for the health, welfare and safety of persons
who are sixty-two years of age or older, persons with disabilities and
inhabitants of the city that the city continue a system of special rent
adjustments for such older persons, as well as extend such special rent
adjustments to persons with disabilities as hereinafter provided.
(1) No increase in maximum rent pursuant to paragraph two or paragraph
three, four or five of subdivision a of this section, or subparagraph
(a), (b), (c), (l) or (n) of paragraph one of subdivision g of this
section, shall be collectible from a tenant to whom there has been
issued a currently valid rent exemption order pursuant to this
subdivision, except as provided in such order.
(2) A tenant is eligible for a rent exemption order pursuant to this
subdivision if:
(i) the head of the household residing in the housing accommodation is
sixty-two years of age or older or is a person with a disability, and is
entitled to the possession or to the use or occupancy of a dwelling
unit. To qualify as a person with a disability for the purposes of this
section, an individual shall submit to such agency as the mayor shall
designate proof (as specified by regulation of such agency as the mayor
shall designate) showing that such individual is currently receiving
social security disability insurance (SSDI) or supplemental security
income (SSI) benefits under the federal social security act or
disability pension or disability compensation benefits provided by the
United States department of veterans affairs, or was previously eligible
by virtue of receiving disability benefits under the supplemental
security income program or the social security disability program and is
currently receiving medical assistance benefits based on determination
of disability as provided in section three hundred sixty-six of the
social services law.
Nothing herein contained shall render ineligible for benefits persons
receiving supplemental security income or additional state payments, or
both, under a program administered by the United States department of
health and human services or by such department and the New York State
department of social services.
(ii) the aggregate disposable income (as defined by regulation of the
department of finance) of all members of the household residing in the
housing accommodation whose head of household is sixty-two years of age
or older does not exceed twenty-five thousand dollars beginning July
first, two thousand five, twenty-six thousand dollars beginning July
first, two thousand six, twenty-seven thousand dollars beginning July
first, two thousand seven, twenty-eight thousand dollars beginning July
first, two thousand eight, and twenty-nine thousand dollars beginning
July first, two thousand nine, per year, after deduction of federal,
state and city income and social security taxes. For purposes of this
subparagraph, "aggregate disposable income" shall not include gifts or
inheritances, payments made to individuals because of their status as
victims of Nazi persecution, as defined in P.L. 103-286, or increases in
benefits accorded pursuant to the social security act or a public or
private pension paid to any member of the household which increase, in
any given year, does not exceed the consumer price index (all items
United States city average) for such year which take effect after the
date of eligibility of a head of the household receiving benefits under
this subdivision whether received by the head of the household or any
other member of the household.
(iii) the aggregate disposable income (as defined by regulation of
such agency as the mayor shall designate) for the current income tax
year of all members of the household residing in the housing
accommodation whose head of the household is a person with a disability
pursuant to this section does not exceed the maximum income above which
such head of the household would not be eligible to receive cash
supplemental security income benefits under federal law during such tax
year. For purposes of this subparagraph, "aggregate disposable income"
shall not include gifts or inheritances, payments made to individuals
because of their status as victims of Nazi persecution, as defined in
P.L. 103-286, or increases in benefits accorded pursuant to the social
security act or a public or private pension paid to any member of the
household which increase, in any given year, does not exceed the
consumer price index (all items United States city average) for such
year which take effect after the date of eligibility of a head of the
household receiving benefits under this subdivision whether received by
the head of the household or any other member of the household.
(iv) (a) in the case of a head of the household who does not receive a
monthly allowance for shelter pursuant to the social services law, the
maximum rent for the housing accommodations exceeds one-third of the
aggregate disposable income or if any expected increase in the maximum
rent pursuant to paragraph two, three, four or five of subdivision a of
this section, or subparagraph (a), (b), (c), (l) or (n) of paragraph one
of subdivision g of this section would cause such maximum rent to exceed
one-third of the aggregate disposable income; or
(b) in the case of a head of the household who receives a monthly
allowance for shelter pursuant to the social services law, the maximum
rent for the housing accommodations exceeds the maximum allowance for
shelter which the head of the household is entitled to receive pursuant
to the social services law or if any expected increase in the maximum
rent pursuant to paragraph two, three, four or five of subdivision a of
this section, or subparagraph (a), (b), (c), (l) or (n) of paragraph one
of subdivision g of this section would cause such maximum rent to exceed
the maximum allowance for shelter which the head of the household is
entitled to receive.
(3) (a) A rent exemption order pursuant to this subdivision shall
provide:
(i) in the case of a head of the household who does not receive a
monthly allowance for shelter pursuant to the social services law, that
the landlord may not collect from the tenant to whom it is issued rent
at a rate in excess of one-third of the aggregate disposable income, or
the maximum collectible rent in effect on December thirty-first of the
year preceding the effective date of the order, whichever is greater; or
(ii) in the case of a head of the household who receives a monthly
allowance for shelter pursuant to the social services law, that the
landlord may not collect from the tenant to whom it is issued rent at a
rate in excess of either the maximum allowance for shelter which the
head of the household is entitled to receive, or the maximum collectible
rent in effect on December thirty-first of the year preceding the
effective date of the order, whichever is greater; except,
(iii) that the landlord may collect from the tenants described in
items (i) and (ii) of this subparagraph increases in rent pursuant to
subparagraphs (d), (e), and (i) of paragraph one of subdivision g of
this section.
(b) Each order shall expire upon termination of occupancy of the
housing accommodation by the tenant to whom it is issued. The landlord
shall notify the department of finance, in the case of a household whose
eligibility for such order is based on the fact that the head of such
household is sixty-two years of age or older, or such agency as the
mayor shall designate, in the case of a household whose eligibility for
such order is based on the fact that the head of such household is a
person with a disability, on a form to be prescribed by such department
or agency, within thirty days of each such termination of occupancy.
(c) When a rent reduction order is issued by the city rent agency, the
amount of the reduction shall be subtracted from the rent payable by the
tenant specified in a currently valid rent exemption order issued
pursuant to this subdivision. The landlord may not collect from the
tenant a sum of rent exceeding the adjusted amount while the rent
reduction order is in effect.
(4) Any landlord who collects, or seeks to collect or enforce, rent
from a tenant in violation of the terms of a rent exemption order shall,
for the purposes of all remedies, sanctions and penalties provided in
this chapter, be deemed to have collected or attempted to collect or
enforce, a rent in excess of the legal maximum rent.
(5) A rent exemption order shall be issued to each tenant who applies
to the department of finance or such agency as the mayor shall designate
(which agency may also be the department of finance) in accordance with
such department's or agency's regulations and who is found to be
eligible under this subdivision. Such order shall take effect on the
first day of the first month after receipt of such application, except
that where the aggregate disposable income of all members of the
household residing in the housing accommodation whose head of the
household is sixty-two years of age or older is greater than five
thousand dollars per year but does not exceed twenty-five thousand
dollars beginning July first, two thousand five, twenty-six thousand
dollars beginning July first, two thousand six, twenty-seven thousand
dollars beginning July first, two thousand seven, twenty-eight thousand
dollars beginning July first, two thousand eight, and twenty-nine
thousand dollars beginning July first, two thousand nine, per year
pursuant to subparagraph (ii) of paragraph two of subdivision m of this
section on orders issued on applications received before July first,
nineteen hundred seventy-five, the effective date of such order shall be
the later of (1) June thirtieth, nineteen hundred seventy-four or (2)
the last day of the month in which a person becomes an eligible head of
household in the housing accommodation in which such person resides at
the time of filing the most recent application for a rent exemption
order; and further, except that where any other application has been
received within ninety days of the issuance of the order increasing the
tenant's maximum rent pursuant to paragraph three, four or six of
subdivision (a) of this section, or subparagraph (a), (b), (c), or (l)
of paragraph (1) of subdivision (g) of this section or pursuant to court
order, whichever is later, the rent exemption order shall without
further order take effect as of the effective date of said order
increasing the tenant's rent including any retroactive increments
collectible pursuant to such orders.
(6) A rent exemption order shall be valid for a period of two years
and may be renewed for further two year periods upon application by the
tenant; provided, that upon any such renewal application being made by
the tenant, any rent exemption order then in effect with respect to such
tenant shall be deemed renewed until such time as the department of
finance or such other agency as the mayor shall designate shall have
found such tenant to be either eligible or ineligible for a rent
exemption order but in no event for more than six additional months. If
such tenant is found eligible, the order shall be deemed to have taken
effect upon expiration of the exemption. In the event that any such
tenant shall, subsequent to any such automatic renewal, not be granted a
rent exemption order, such tenant shall be liable to his or her landlord
for the difference between the amounts he or she has paid under the
provisions of the automatically renewed order and the amounts which he
or she would have been required to pay in the absence of such order. Any
rent exemption order issued pursuant to this subdivision shall include
provisions giving notice as to the contents of this paragraph relating
to automatic renewals of rent exemption orders. Any application or
renewal application for a rent exemption order shall also constitute an
application for a tax abatement under such section. The department of
finance and such other agency as the mayor shall designate may, with
respect to renewal applications by tenants who have been found eligible
for rent exemption orders, prescribe a simplified form including a
certification of the applicant's continued eligibility in lieu of a
detailed statement of income and other qualifications.
(7) Notwithstanding the provisions of this chapter, a tenant who
resides in a housing accommodation which becomes subject to this chapter
upon the sale by the city of New York of the building in which such
housing accommodation is situated may be issued a rent increase
exemption order for increases in rent which occurred during ownership of
such building by the city of New York provided that such tenant would
have been otherwise eligible to receive a rent increase exemption order
at the time of such increase but for the fact that such tenant occupied
a housing accommodation owned by the city of New York and was therefore
not subject to this chapter. Application for such rent increase
exemption orders shall be made within one year from the date such
building is sold by the city of New York or within one year of the
effective date of this provision, whichever is later.
(8) Notwithstanding the provisions of this chapter or chapter four of
this title, when a dwelling unit is subject to regulation under this
chapter or chapter four of this title is reclassified by a city rent
agency order subject to the other chapter, the tenant, who holds a
senior citizen rent increase exemption order or disability rent increase
exemption order at the time of the reclassification or is otherwise
eligible and entitled to an exemption order from one or more rent
increases but for the reclassification of the dwelling unit, may be
issued a rent increase exemption order under the chapter to which the
unit is thereafter subject by virtue of the reclassification continuing
the previous exemption notwithstanding the reclassification of the
dwelling unit or, where no previous rent increase exemption order has
been granted, issuing an initial order exempting the tenant from paying
the rent increase to the extent for which he or she would have been
eligible and entitled to be exempted at the time of the increase and
reclassification but for the fact of reclassification of the dwelling
unit including exemption from the rent increase granted pursuant to
subparagraph (m) of paragraph one of subdivision g of this section to
the extent that it is not predicated upon any improvement or addition in
a category as provided for in subparagraph (d), (e), (f), (g), (h) or
(i) of paragraph one of subdivision g of this section. Application for
such rent increase exemption order shall be made within ninety days from
the date of reclassification or within ninety days of the effective date
of this paragraph, whichever is later. The rent increase exemption order
shall take effect as of the effective date of reclassification including
any retroactive increments pursuant to such rent increase.
(9) Notwithstanding any other provision of law to the contrary, where
a head of household holds a current, valid rent exemption order and,
after the effective date of this paragraph, there is a permanent
decrease in aggregate disposable income in an amount which exceeds
twenty percent of such aggregate disposable income as represented in
such head of the household's last approved application for a rent
exemption order or for renewal thereof, such head of the household may
apply for a redetermination of the amount set forth therein. Upon
application, such amount shall be redetermined so as to re-establish the
ratio of adjusted rent to aggregate disposable income which existed at
the time of the approval of such eligible head of the household's last
application for a rent exemption order or for renewal thereof; provided,
however, that in no event shall the amount of the adjusted rent be
redetermined to be (i) in the case of a head of the household who does
not receive a monthly allowance for shelter pursuant to the social
services law, less than one-third of the aggregate disposable income; or
(ii) in the case of a head of the household who receives a monthly
allowance for shelter pursuant to the social services law, less than the
maximum allowance for shelter which such head of the household is
entitled to receive pursuant to such law. For purposes of this
paragraph, a decrease in aggregate disposable income shall not include
any decrease in such income resulting from the manner in which such
income is calculated pursuant to any amendment to paragraph c of
subdivision one of section four hundred sixty-seven-b of the real
property tax law, any amendment to the regulations of the department of
finance made on or after the effective date of the local law that added
this clause, or any amendment to the regulations of such other agency as
the mayor shall designate made on or after October tenth, two thousand
five. For purposes of this paragraph, "adjusted rent" shall mean maximum
rent less the amount set forth in a rent exemption order.
Section 26-406
§ 26-406 Tax abatement for properties subject to rent exemption
orders. a. Tax abatement, pursuant to the provisions of section four
hundred sixty-seven-b of the real property tax law, shall be granted
with respect to any real property for which a rent exemption order is
issued under subdivision m of section 26-405 of this chapter to the
tenant of any housing accommodation contained therein. The rent
exemption order shall constitute the tax abatement certificate.
b. The real estate tax imposed upon any real property for which a rent
exemption order is issued, shall be reduced and abated by an amount
equal to the difference between (1) the sum of the maximum rents
collectible under such orders, and (2) the sum of rents that would be
collectible from the tenants of such housing accommodations if no
exemption had been granted pursuant to subdivision m of section 26-405
of this chapter.
c. For any individual housing accommodation, the tax abatement
computed pursuant to subdivision b of this section shall be available
with respect to a period commencing on the effective date of the initial
rent exemption order, or January first, nineteen hundred seventy-two,
whichever is later, and ending on the expiration date of such order or
on the effective date of an order terminating the rent exemption.
Notwithstanding any other provision of law, when a head of a household
to whom a then current, valid tax abatement certificate has been issued
under this chapter, chapter four or chapter seven of this title moves
his or her principal residence to a subsequent dwelling unit subject to
regulation under this chapter, the head of the household may apply to
the department of finance or such other agency as the mayor shall
designate for a tax abatement certificate relating to the subsequent
dwelling unit, and such certificate may provide that the head of the
household shall be exempt from paying that portion of the maximum rent
for the subsequent dwelling unit which is the least of the following:
(1) the amount by which the rent for the subsequent dwelling unit
exceeds the last rent, as reduced, which the head of the household was
required to actually pay in the original dwelling unit;
(2) the last amount deducted from the maximum rent or legal regulated
rent meaning the most recent monthly deduction for the applicant in the
original dwelling unit pursuant to this section, section 26-509 or
section 26-605 of this title; or
(3) where the head of the household does not receive a monthly
allowance for shelter pursuant to the social services law, the amount by
which the maximum rent or legal regulated rent of the subsequent
dwelling unit exceeds one-third of the combined income of all members of
the household.
Such certificate shall be effective as of the first day of the month
in which the tenant applied for such exemption or as of the date the
tenant took occupancy of the subsequent dwelling unit, whichever is
later, provided both occur after the effective date of this law.
d. Prior to the commencement of each fiscal year, the department of
finance shall determine the total amount of taxes to be abated under
this section with respect to each property for which rent exemption
orders granted to persons sixty-two years of age or older were in effect
for all or any part of the preceding calendar year. Prior to the
commencement of each fiscal year, such agency as the mayor shall
designate shall determine and, if such agency is not the department of
finance, shall notify the department of finance of the total amount of
taxes to be abated under this section with respect to each property for
which rent exemption orders granted to persons with disabilities were in
effect for all or any part of the preceding calendar year. The
commissioner of finance shall make the appropriate adjustment in the
real estate tax payable in such fiscal year.
e. Tax abatement pursuant to this section shall be in addition to any
other tax abatement authorized by law, but shall not reduce the tax for
any fiscal year below zero. In the event that the tax abatement
certificate authorizes an amount of deduction in excess of the real
estate installment, then the balance may be applied to any subsequent
installment until exhausted. In such a case the owner shall submit with
his or her real estate tax bill and remittance, a verified statement in
such form as prescribed by the commissioner of finance setting forth the
carry over amount and the amounts previously applied; provided, however,
that at the request of the owner such balance shall be paid to the owner
by the commissioner of finance in lieu of being applied to any
subsequent installment, except where the owner is in arrears in the
payment of real estate taxes on any property. For the purposes of this
subdivision, where the owner is a corporation, it shall be deemed to be
in arrears when any of the officers, directors or any person holding an
interest in more than ten percent of the issued and outstanding stock of
such corporation is in arrears in the payment of real estate taxes on
any property; where title is held by a nominee, the owner shall be
deemed to be in arrears when the person for whose benefit such title is
held is in arrears in the payment of real estate taxes on any property.
Section 26-407
§ 26-407 Labor cost pass-along. a. Notwithstanding any provisions of
this chapter, any labor cost pass-along rent increase requested of, or
received from, any tenant on or after July first, nineteen hundred
seventy-two, pursuant to the provisions of subparagraph (1) of paragraph
one of subdivision g of section 26-405 of this title, shall not exceed
the maximum rent adjustment as provided under this chapter after the
effective date of this section.
b. All such increases in excess of such maximum rent are hereby
declared null and void and of no effect. A tenant who paid any such
excess increase shall be repaid by a cash refund or credit, to be
applied against future rent, in equal installments for the same number
of months for which such increase was actually collected, commencing on
January first, nineteen hundred seventy-eight.
Section 26-408
§ 26-408 Evictions. a. No tenant, so long as he or she continues to
pay the rent to which the landlord is entitled, shall be removed from
any housing accommodation which is subject to rent control under this
chapter by action to evict or to recover possession, by exclusion from
possession, or otherwise, nor shall any person attempt such removal or
exclusion from possession notwithstanding the fact that the tenant has
no lease or that his or her lease, or other rental agreement, has
expired or otherwise terminated, notwithstanding any contract, lease
agreement, or obligation heretofore or hereafter entered into which
provides for surrender of possession, or which otherwise provides
contrary hereto, except on one or more of the following grounds, or
unless the landlord has obtained a certificate of eviction pursuant to
subdivision b of this section:
(1) The tenant is violating a substantial obligation of his or her
tenancy other than the obligation to surrender possession of such
housing accommodation and has failed to cure such violation after
written notice by the landlord that the violation cease within ten days,
or within the three month period immediately prior to the commencement
of the proceeding the tenant has wilfully violated such an obligation
inflicting serious and substantial injury to the landlord; or
(2) The tenant is committing or permitting a nuisance in such housing
accommodation; or is maliciously or by reason of gross negligence
substantially damaging the housing accommodation; or his or her conduct
is such as to interfere substantially with the comfort and safety of the
landlord or of other tenants or occupants of the same or other adjacent
building or structure; or
(3) Occupancy of the housing accommodation by the tenant is illegal
because of the requirements of law, and the landlord is subject to civil
or criminal penalties therefor, or both, provided, however, that such
occupancy shall not be considered illegal by reason of violations placed
against the housing accommodations or the building in which same are
located by any department or agency of the city having jurisdiction
unless such department or agency has issued an order requiring the
tenants to vacate said accommodation or building or unless such
occupancy for such building or such violations relied on by the landlord
result from an act, omission or situation caused or created by the
tenant; or
(4) The tenant is using or permitting such housing accommodation to be
used for an immoral or illegal purpose; or
(5) The tenant who had a written lease or other written rental
agreement which terminated or shall terminate on or after May first,
nineteen hundred fifty, has refused upon demand of the landlord to
execute a written extension or renewal thereof for a further term of
like duration not in excess of one year but otherwise on the same terms
and conditions as the previous lease except in so far as such terms and
conditions are inconsistent with this chapter; or
(6) The tenant has unreasonably refused the landlord access to the
housing accommodation for the purpose of making necessary repairs or
improvements required by law or for the purpose of inspection or of
showing the accommodation to a prospective purchaser, mortgagee or
prospective mortgagee, or other person having a legitimate interest
therein; provided, however, that in the latter event such refusal shall
not be ground for removal or eviction if such inspection or showing of
the accommodation is contrary to the provisions of the tenant's lease or
other rental agreement.
(7) The eviction is sought by the owner of a dwelling unit or the
shares allocated thereto where such dwelling unit is located in a
structure owned as a cooperative or as a condominium and an offering
prospectus for the conversion of such structure pursuant to an eviction
plan shall have been submitted to the attorney general pursuant to
section three hundred fifty-two-eeee of the general business law and
accepted for filing by the attorney general, and been declared effective
in accordance with such law, and any right of continued occupancy
granted by such law to a non-purchasing tenant in occupancy of such
dwelling unit shall have expired; provided that the owner of the
dwelling unit or the shares allocated thereto seeks in good faith to
recover possession of a dwelling unit for his or her own personal use
and occupancy or for the use and occupancy of his or her immediate
family.
b. No tenant shall be removed or evicted on grounds other than those
stated in subdivision a of this section unless on application of the
landlord the city rent agency shall issue an order granting a
certificate of eviction in accordance with its rules and regulations
designed to effectuate the purposes of this title, permitting the
landlord to pursue his or her remedies at law. The city rent agency
shall issue such an order whenever it finds that:
(1) The landlord seeks in good faith to recover possession of a
housing accommodation because of immediate and compelling necessity for
his or her own personal use and occupancy or for the use and occupancy
of his or her immediate family provided, however, that this subdivision
shall not apply where a member of the household lawfully occupying the
housing accommodation is sixty-two years of age or older, has been a
tenant in a housing accommodation in that building for twenty years or
more, or has an impairment which results from anatomical, physiological
or psychological conditions, other than addiction to alcohol, gambling,
or any controlled substance, which are demonstrable by medically
acceptable clinical and laboratory diagnostic techniques, and which are
expected to be permanent and which prevent the tenant from engaging in
any substantial gainful employment; or
(2) The landlord seeks in good faith to recover possession of a
housing accommodation for which the tenant's lease or other rental
agreement has expired or otherwise terminated, and at the time of
termination the occupants of the housing accommodation are subtenants or
other persons who occupied under a rental agreement with the tenant, and
no part of the accommodation is used by the tenant as his or her
dwelling; or
(3) The landlord seeks in good faith to recover possession of a
housing accommodation for the immediate purpose of substantially
altering or remodeling it, provided that the landlord shall have secured
such approval therefor as is required by law and the city rent agency
determines that the issuance of the order granting the certificate of
eviction is not inconsistent with the purpose of this chapter; or
(4) The landlord seeks in good faith to recover possession of housing
accommodations for the immediate purpose of demolishing them, and the
city rent agency determines that such demolition is to be effected for
the purpose of constructing a new building, provided that:
(a) If the purpose of such demolition is to construct a new building
containing housing accommodations, no certificate of eviction shall be
granted under this paragraph unless such agency determines that such new
building will contain at least twenty per centum more housing
accommodations consisting of self-contained family units (as defined by
regulations issued by such agency, with due regard for the shortage of
housing accommodations suitable for family occupancy and for the
purposes of this chapter in relation thereto) than are contained in the
structure to be demolished; except, however, that where as a result of
conditions detrimental to life or health of the tenants, violations have
been placed upon the structure containing the housing accommodations by
any agency of the city having jurisdiction over such matters and the
cost of removing such violations would be substantially equal to or
would exceed the assessed valuation of the structure, the new building
shall only be required to make provision for a greater number of housing
accommodations consisting of self-contained family units (as so defined
by regulation) than are contained in the structure to be demolished; and
(b) The city rent agency shall, by regulation, as a condition to the
granting of certificates of eviction under this paragraph, require the
relocation of the tenants in other suitable accommodations, provided
that the city rent agency may, by regulation, authorize the granting of
such certificates as to any tenants or classes of tenants without such
requirement of relocation, where such exemption will not result in
hardship to such tenants or classes of tenants and will not be
inconsistent with the purposes of this chapter; and
(c) The city rent agency may, by regulation, in order to carry out the
purposes of this chapter, impose additional conditions to the granting
of certificates of eviction under this paragraph, including, but not
limited to, the payment of stipends to the tenants by the landlord in
such amounts and subject to such variations and classifications as such
agency may determine to be reasonably necessary; and
(d) No certificate of eviction shall be issued pursuant to this
paragraph unless the landlord shall have secured such approval as is
required by law for the construction sought to be effected, and the city
rent agency determines that the issuance of such certificate is not
inconsistent with the purpose of this chapter.
(5) Notwithstanding any provisions to the contrary contained in this
subdivision or in subdivision d of section 26-410 of this chapter or in
the local emergency housing rent control act:
(a) no application for a certificate of eviction under paragraph three
or four of this subdivision and no application for a certificate of
eviction under paragraph one of subdivision j or under subdivision c of
this section for the purpose of withdrawing a housing accommodation from
the housing market on the grounds that the continued operation of such
housing accommodation would impose undue hardship upon the landlord,
pending or made on or after the effective date hereof shall be granted
by the city rent agency unless the city rent agency finds that there is
no reasonable possibility that the landlord can make a net annual return
of eight and one-half per centum of the assessed value of the subject
property without recourse to the remedy provided in said paragraph three
or four or said subdivision c or j and finds that neither the landlord
nor his or her immediate predecessor in interest has intentionally or
willfully managed the property to impair the landlord's ability to earn
such return; and
(b) the effectiveness of any certificate of eviction or of any order
granting a certificate of eviction pursuant to paragraphs three and four
of this subdivision shall be suspended, and no tenant may be evicted
pursuant to any such certificate or order, unless the city rent agency:
(i) finds that there is no reasonable possibility that the landlord
can make a net annual return of eight and one-half per centum of the
assessed value of the subject property without recourse to the remedy
provided in said paragraphs three and four and finds that neither the
landlord nor his or her immediate predecessor in interest has
intentionally or willfully managed the property to impair the landlord's
ability to earn such return; and
(ii) issues an order reinstating the effectiveness of any certificate
of eviction suspended pursuant to this paragraph. The pendency of any
judicial proceeding or appeal shall in no way prevent the taking effect
of the relief granted in this subparagraph.
(c) the provisions of this paragraph shall not apply to an application
for a certificate of eviction from a housing accommodation when the
landlord seeks in good faith to recover possession thereof for the
immediate purpose of substantially altering or remodelling it or for the
immediate purpose of demolishing it for the purpose of constructing a
new building when such altering or remodelling or the construction of
such new building is to be aided by interest reduction payments under
section two hundred thirty-six of the national housing act.
(6) Neither the provisions of subparagraph (a) of paragraph four of
this subdivision, which require that the new building contain more than
or equal to the number of housing accommodations that are contained in
the structure to be demolished or substantially altered or remodeled nor
the provisions of paragraph five of this subdivision shall apply with
respect to any building in which there remains (A) three or fewer
occupied apartments which constitute ten percent or less of the total
dwelling units in the building or (B) one occupied apartment if the
building contains ten or fewer apartments but only on the condition that
the tenant is provided with the relocation, moving expense, stipend and
any other benefits provided under the corresponding provisions of the
rent stabilization law of nineteen hundred sixty-nine. In the event of a
substantial alteration or remodeling of a building falling within the
limitations of this paragraph, all of the relocation provisions
available to an owner for demolition shall apply.
c. The city rent agency may from time to time, to effectuate the
purposes of this chapter, adopt, promulgate, amend or rescind such
rules, regulations or orders as it may deem necessary or proper for the
control of evictions. Any such rules, regulations or orders may include,
in addition to any other provisions authorized by this subdivision,
provisions restricting the filing of applications for, or the issuance
of orders granting, certificates of eviction where such agency finds
that a course of conduct has been engaged in which is proscribed by
subdivision d of section 26-412 of this chapter. The agency shall also
require, prior to the filing of plans with the department of buildings
for a new building or alteration on the site of controlled housing
accommodations and prior to the filing of an application for a permit
for the demolition or removal of an existing multiple dwelling which
contains controlled housing accommodations, that the applicant certify
to and file with the agency such information and give such notice to
tenants as it deems necessary to prevent evasion of the law and
regulations governing evictions. It may also require that an order
granting a certificate of eviction be obtained from it prior to the
institution of any action or proceeding for the recovery of possession
of any housing accommodation subject to rent control under this chapter
upon the grounds specified in subdivision b of this section or where it
finds that the requested removal or eviction is not inconsistent with
the purposes of this chapter and would not be likely to result in
circumvention or evasion thereof; provided, however, that no such order
shall be required in any action or proceeding brought pursuant to the
provisions of subdivision a of this section.
d. (1) The city rent agency, on its own initiative or on application
of a tenant, may revoke or cancel an order granting a certificate of
eviction at any time prior to the execution of a warrant in a summary
proceeding to recover possession of real property by a court whenever it
finds that:
(a) The certificate of eviction was obtained by fraud or illegality;
or
(b) The landlord's intentions or circumstances have so changed that
the premises, possession of which is sought, will not be used for the
purpose specified in the certificate.
(2) The commencement of a proceeding by the city rent agency to revoke
or cancel an order granting a certificate of eviction shall stay such
order until the final determination of the proceeding regardless of
whether the waiting period in the order has already expired. In the
event the city rent agency cancels or revokes such an order, the court
having jurisdiction of any summary proceeding instituted in such case
shall take appropriate action to dismiss the application for removal of
the tenant from the real property and to vacate and annul any final
order or warrant granted or issued by the court in the matter.
e. Notwithstanding the preceding provisions of this section, the
state, the city, or the New York city housing authority may recover
possession of any housing accommodations operated by it where such
action or proceeding is authorized by statute or regulations under which
such accommodations are administered.
f. Any order of the city rent agency under this section granting a
certificate of eviction shall be subject to judicial review only in the
manner prescribed by subdivision eight of section one of the state
enabling act and sections 26-410 and 26-411 of this chapter.
g. (1) Where after the city rent agency has granted a certificate of
eviction authorizing the landlord to pursue his or her remedies pursuant
to law to acquire possession and a tenant voluntarily removes from a
housing accommodation or has been removed therefrom by action or
proceeding to evict from or recover possession of a housing
accommodation upon the ground that the landlord seeks in good faith to
recover possession of such accommodation:
(a) For his or her immediate and personal use, or for the immediate
and personal use by a member or members of his or her immediate family,
and such landlord or members of his or her immediate family shall fail
to occupy such accommodation within thirty days after the tenant
vacates, or such landlord shall lease or rent such space or permit
occupancy thereof by a third person within a period of one year after
such removal of the tenant; or
(b) For the immediate purpose of withdrawing such housing
accommodation from the rental market and such landlord shall lease or
sell the housing accommodation or the space previously occupied thereby,
or permit use thereof in a manner other than contemplated in such
eviction certificate within a period of one year after such removal of
the tenant; or
(c) For the immediate purpose of altering or remodeling such housing
accommodation, and the landlord shall fail to start the work of
alteration or remodeling of such housing accommodation within ninety
days after the removal, on the ground that he or she required possession
for the purpose of effecting such alteration or remodeling, of the last
tenant whose removal is necessary to enable the landlord to effect such
alteration or remodeling of such accommodation, or if after having
commenced such work shall fail or neglect to prosecute the work with
reasonable diligence; or
(d) For the immediate purpose of demolishing such housing
accommodations and constructing a new building in accordance with
approved plans, or reasonable amendment thereof, and the landlord has
failed to complete the demolition within six months after the removal of
the last tenant or, having demolished the premises, has failed or
neglected to proceed with the new construction within ninety days after
the completion of such demolition, or having commenced such construction
work has failed or neglected to prosecute such work with reasonable
diligence; or
(e) For some purpose other than those specified above for which the
removal of the tenant was sought and the landlord has failed to use the
vacated premises for such purpose; such landlord shall, unless for good
cause shown, be liable to the tenant for three times the damages
sustained on account of such removal plus reasonable attorney's fees and
costs as determined by the court. In addition to any other damage, the
cost of removal of property shall be a lawful measure of damage. The
remedy herein provided for shall be in addition to those provided for in
subdivision h of this section, paragraph (a) of subdivision ten of
section one of the state enabling act and subdivision a of section
26-413 of this chapter.
(2) The acts and omissions mentioned in subparagraphs (a), (b), (c),
(d) and (e) of paragraph one of this subdivision, on the part of a
landlord after issuance of a certificate of eviction, are hereby
declared to be inconsistent with the purposes for which such certificate
of eviction was issued.
h. Where after the city rent agency has granted a certificate of
eviction authorizing the landlord to pursue his or her remedies pursuant
to law to acquire possession for any purpose stated in subdivision b or
j of this section or for some other stated purpose, and a tenant
voluntarily removes from a housing accommodation or has been removed
therefrom by action or proceeding to evict from or recover possession of
a housing accommodation and the landlord or any successor landlord of
the premises does not use the housing accommodation for the purpose
specified in such certificate of eviction, the vacated accommodation or
any replacement or subdivision thereof shall, unless the city rent
agency approves such different purpose, be deemed a housing
accommodation subject to control, notwithstanding any definition of that
term in this chapter to the contrary. Such approval shall be granted
whenever the city rent agency finds that the failure or omission to use
the housing accommodation for the purpose specified in such certificate
was not inconsistent with the purpose of this chapter and would not be
likely to result in the circumvention or evasion thereof. The remedy
herein provided for shall be in addition to those provided for in
subdivision g of this section, paragraph (a) of subdivision ten of
section one of the state enabling act and subdivision a of section
26-413 of this chapter.
i. Any statutory tenant who vacates a housing accommodation without
giving the landlord at least thirty days' written notice by registered
or certified mail of his or her intention to vacate, shall be liable to
the landlord for the loss of rent suffered by the landlord, but not
exceeding one month's rent, except where the tenant has been removed or
vacates pursuant to the provisions of this section. Such notice shall be
postmarked on or before the last day of the rental period immediately
prior to such thirty-day period.
j. (1) Nothing in this chapter shall be construed to require any
person to offer any housing accommodations for rent, but housing
accommodations already on the rental market may be withdrawn only after
prior written approval of the city rent agency, if such withdrawal
requires that a tenant be evicted from such accommodations.
(2) The city rent agency, in order to carry out the purposes of this
chapter, may issue regulations providing for issuance of certificates of
eviction in any case where the landlord seeks such approval in order to
use the premises (including the building or land) (a) for the purpose of
conducting a business, or (b) where the landlord is a hospital, convent,
asylum, public institution, college, school or any institution operated
exclusively for charitable, religious or educational purposes on a non
profit basis and the landlord seeks such approval in order to use the
premises (including the building or land) or any part thereof in
connection with the landlord's charitable, religious or educational
purposes; such agency, if it grants approval, shall condition same upon
compliance by the landlord with designated requirements which may
consist of any conditions that such agency would have authority to
prescribe by regulation under subparagraphs (b) and (c) of paragraph
four of subdivision b of this section with respect to applications for
certificates of eviction under such paragraph four provided, however,
that such agency shall not condition any such approval granted to a
hospital, convent, asylum, public institution, college, school, or any
institution operated exclusively for charitable, religious or
educational purposes upon compliance with requirements exceeding or less
than those applicable to any private owner in similar circumstances.
Nothing contained in this paragraph shall be construed as authorizing or
requiring such agency to approve the withdrawal of any housing
accommodations from the rental market by any landlord for the purpose of
using the premises for any business other than one in existence and
conducted by such landlord at the time such withdrawal is sought. No
certificate of eviction shall be issued to a nonprofit school, college,
hospital, or other charitable institution, including without limitation,
any organization exempt from taxation under the Federal Internal Revenue
Code, which seeks to recover possession of the housing accommodations or
to withdraw such accommodations from the rental or non-rental housing
market, for immediate and personal use and occupancy as housing
accommodations by its employees, students or members of its staff.
k. The city rent agency by order issued pursuant to its regulations
may waive the requirements of subdivision b of this section where (1)
the housing accommodations were vacant at the time when landlord made
application for such waiver, and (2) were vacated by reason of the last
tenant's voluntary surrender thereof, and (3) the landlord, in good
faith, intends to demolish or substantially rehabilitate the building in
which the housing accommodations are located within a period approved by
the city rent agency. The failure of the landlord to comply with the
conditions established by the city rent agency for the granting of the
application shall subject the housing accommodations to all the
provisions of this chapter.
Section 26-409
§ 26-409 Investigation; records; reports. a. The city rent agency is
authorized to make such studies and investigations, to conduct such
hearings, and to obtain such information as it deems necessary or proper
in prescribing any regulation or order pursuant to this chapter or in
administering and enforcing this chapter and the regulations and orders
thereunder or the state rent act and the regulations and orders
thereunder.
b. The city rent agency is further authorized, by regulation or order,
to require any person who rents or offers for rent or acts as broker or
agent for the rental of any housing accommodations to furnish any such
information under oath or affirmation, or otherwise, to make and keep
records and other documents, and to make reports, including, but not
limited to, reports with respect to decontrolled or exempt housing
accommodations, and the city rent agency may require any such person to
permit the inspection and copying of records and other documents and the
inspection of housing accommodations. Any officer or agent designated by
the city rent agency for such purposes may administer oaths and
affirmations and may, whenever necessary, by subpoena, require any such
person to appear and testify or to appear and produce documents, or
both, at any designated place.
c. For the purpose of obtaining any information under this section,
the city rent agency may by subpoena require any other person to appear
and testify or to appear and produce documents, or both, at any
designated place.
d. The production of a person's documents at any place other than his
or her place of business shall not be required under this section in any
case in which, prior to the return date specified in the subpoena issued
with respect thereto, such person either has furnished the city rent
agency with a copy of such documents certified by such person under oath
to be a true and correct copy, or has entered into a stipulation with
the city rent agency as to the information contained in such documents.
e. In case of contumacy by, or refusal to obey a subpoena served upon,
any person referred to in this section, the supreme court in or for any
judicial district in which such person is found or resides or transacts
business, upon application by the city rent agency, shall have
jurisdiction to issue an order requiring such person to appear and give
testimony or to appear and produce documents, or both; and any failure
to obey such order of the court may be punished by such court as a
contempt thereof. The provisions of this subdivision e shall be in
addition to the provisions of paragraph (a) of subdivision nine of
section one of the state enabling act and subdivision a of section
26-412 of this chapter.
f. Witnesses subpoenaed under this section shall be paid the same fee
and mileage as are paid witnesses pursuant to the civil practice law and
rules.
g. Upon any such investigation or hearing, the city rent agency, or an
officer duly designated by the city rent agency to conduct such
investigation or hearing, may confer immunity in accordance with the
provisions of the criminal procedure law.
h. The city rent agency shall not publish or disclose any information
obtained under this chapter that the city rent agency deems confidential
or with reference to which a request for confidential treatment is made
by the person furnishing such information, unless the city rent agency
determines that the withholding thereof is contrary to the public
interest.
i. Any person subpoenaed under this section shall have the right to
make a record of his or her testimony and to be represented by counsel.
j. Without limiting any power granted by this section or any other
provision of law, the city rent agency may by regulation require the
owner of a building or property containing both housing accommodations
subject to this chapter and housing accommodations subject to chapter
four of this title to execute and file registration statements with
respect to the housing accommodations subject to this chapter along with
those filed pursuant to such chapter four. Notwithstanding any other
provisions of law, such agency may promulgate regulations, and take
other necessary or appropriate actions, pursuant to this subdivision
prior to April first, nineteen hundred eighty-four, to take effect on or
after such date.
Section 26-410
§ 26-410 Procedure. a. After the issuance of any regulation or order
by the city rent agency, any person subject to any provision of such
regulation or order may, in accordance with regulations to be prescribed
by such agency, file a protest against such regulation or order
specifically setting forth his or her objections to any such provisions
and affidavits or other written evidence in support of such objections.
Statements in support of any such regulation or order may be received
and incorporated in the record of the proceedings at such times and in
accordance with such regulations as may be prescribed by such agency.
Within a reasonable time after the filing of any protest under this
section, such agency shall either grant or deny such protest in whole or
in part, notice such protest for hearing, or provide an opportunity to
present further evidence in connection therewith. In the event that such
agency denies any such protest in whole or in part, it shall inform the
protestant of the grounds upon which such decision is based, and of any
economic data and other facts of which it has taken official notice.
b. In the administration of this chapter, the city rent agency may
take official notice of economic data and other facts, including facts
found by it as a result of action taken under section 26-405 of this
chapter.
c. Any proceedings under this section may be limited by the city rent
agency to the filing of affidavits, or other written evidence, and the
filing of briefs, except that no multiple-tenant initiated proceeding
for the reduction of rents in a building may be determined without a
hearing.
d. Any protest filed under this section shall be granted or denied by
the city rent agency, or granted in part and the remainder of it denied,
within a reasonable time after it is filed. If such agency does not act
finally within a period of ninety days after the protest is filed, the
protest shall be deemed to be denied. However, such agency may grant one
extension not to exceed thirty days with the consent of the party filing
such protest; any further extension may only be granted with the consent
of all parties to the protest. No proceeding may be brought pursuant to
article seventy-eight of the civil practice law and rules to challenge
any order or determination which is subject to such protest unless such
review has been sought and either (1) a determination thereon has been
made or (2) the ninety-day period provided for determination of the
protest (or any extension thereof) has expired. If such agency does not
act finally within a period of ninety days after the entry of an order
of remand to such agency by the court in a proceeding instituted
pursuant to subdivision eight of section one of the state enabling act
or section 26-411 of this chapter, the order previously made by such
agency shall be deemed reaffirmed. However, such agency may grant one
extension not to exceed thirty days with the consent of the petitioner;
any further extension may only be granted with the consent of all
parties to the petition.
e. The city rent agency shall compile and make available for public
inspection at reasonable hours at its principal office and at each
appropriate local office a copy of each decision rendered by it upon
granting, or denying, in whole or in part, any protests filed under this
section and shall have available at each appropriate local office a
register of properties concerning which a vacate order was issued by a
city department having jurisdiction or proceedings have been brought to
determine whether any housing accommodations therein became vacant as a
result of conduct proscribed by subdivision d of section 26-412 of this
chapter.
Section 26-411
§ 26-411 Judicial review. a. (1) Any person who is aggrieved by the
final determination of the city rent agency in an administrative
proceeding protesting a regulation or order of such agency may, in
accordance with article seventy-eight of the civil practice law and
rules, within sixty days after such determination, commence a proceeding
in the supreme court. The petition shall specify his or her objections
and pray that the regulation or order protested be enjoined or set aside
in whole or in part. Such proceeding may at the option of the petitioner
be instituted in the county where the city rent agency has its principal
office or where the property is located. The city rent agency shall file
with such court the original or a transcript of such portions of the
proceedings in connection with its final determination as are material
under the petition. Such return shall include a statement setting forth,
so far as practicable, the economic data and other facts of which the
city rent agency has taken official notice. Upon the filing of such
petition the court shall have jurisdiction to set aside the regulation
or order protested, in whole or in part, to dismiss the petition, or to
remit the proceeding to the city rent agency, provided, however, that
the regulation or order may be modified or rescinded by the city rent
agency at any time notwithstanding the pendency of such proceeding for
review.
(2) No objection to such regulation or order, and no evidence in
support of any objection thereto, shall be considered by the court,
unless such objection shall have been presented to the city rent agency
by the petitioner in the proceedings resulting in the determination or
unless such evidence shall be contained in the return. If application is
made to the court by either party for leave to introduce additional
evidence which was either offered and not admitted or which could not
reasonably have been offered or included in such proceedings before the
city rent agency, and the court determines that such evidence should be
admitted, the court shall order the evidence to be presented to the city
rent agency. The city rent agency shall promptly receive the same, and
such other evidence as the city rent agency deems necessary or proper,
and thereupon the city rent agency shall file with the court the
original or a transcript thereof and any modification made in such
regulation or order as a result thereof; except that on request by the
city rent agency, any such evidence shall be presented directly to the
court. Upon final determination of the proceeding before the court, the
original record, if filed by the city rent agency with the court, shall
be returned to the city rent agency.
b. No regulation or order of the city rent agency shall be enjoined or
set aside, in whole or in part, unless the petitioner shall establish to
the satisfaction of the court that the regulation or order is not in
accordance with law, or is arbitrary or capricious. The effectiveness of
an order of the court enjoining or setting aside, in whole or in part,
any such regulation or order shall be postponed until the expiration of
thirty days from the entry thereof. The jurisdiction of the supreme
court shall be exclusive and its order dismissing the petition or
enjoining or setting aside such regulation or order, in whole or in
part, shall be final, subject to review by the appellate division of the
supreme court and the court of appeals in the same manner and form and
with the same effect as provided in the civil practice law and rules for
appeals from a final order in a special proceeding. Notwithstanding any
provision of paragraph one of subdivision (b) of section five thousand
seven hundred one of the civil practice law and rules to the contrary,
any order of the court remitting the proceeding to the city rent agency
may, at the election of the city rent agency, be subject to review by
the appellate division of the supreme court and the court of appeals in
the same manner and form and with the same effect as provided in the
civil practice law and rules for appeals from a final order in a special
proceeding. All such proceedings shall be heard and determined by the
court and by any appellate court as expeditiously as possible and with
lawful precedence over other matters. All such proceedings for review
shall be heard on the petition, manuscript and other papers, and on
appeal shall be heard on the record, without requirement of printing.
c. Within thirty days after arraignment, or such additional time as
the court may allow for good cause shown, in any criminal proceeding,
and within five days after judgment in any civil or criminal proceeding,
brought pursuant to subdivision ten of section one of the state enabling
act or section 26-413 of this chapter involving alleged violation of any
provision of any regulation or order of the city rent agency, the
defendant may apply to the court in which the proceeding is pending for
leave to file in the supreme court a petition setting forth objections
to the validity of any provision which the defendant is alleged to have
violated or conspired to violate. The court in which the proceeding is
pending shall grant such leave with respect to any objection which it
finds is made in good faith and with respect to which it finds there is
reasonable and substantial excuse for the defendant's failure to present
such objection in an administrative proceeding before the city rent
agency. Upon the filing of a petition pursuant to and within thirty days
from the granting of such leave, the supreme court shall have
jurisdiction to enjoin or set aside in whole or in part the provision of
the regulation or order complained of or to dismiss the petition. The
court may authorize the introduction of evidence, either to the city
rent agency or directly to the court, in accordance with subdivision a
of this section. The provisions of subdivision b of this section shall
be applicable with respect to any proceedings instituted in accordance
with this subdivision.
d. In any proceeding brought pursuant to subdivision ten of section
one of the state enabling act or section 26-413 of this chapter
involving an alleged violation of any provision of any such regulation
or order, the court shall stay the proceeding:
(1) During the period within which a petition may be filed in the
supreme court pursuant to leave granted under subdivision c of this
section with respect to such provision;
(2) During the pendency of any protest properly filed under section
26-410 of this chapter prior to the institution of the proceeding under
subdivision ten of section one of the state enabling act or section
26-413 of this chapter, setting forth objections to the validity of such
provision which the court finds to have been made in good faith; and
(3) During the pendency of any judicial proceeding instituted by the
defendant under this section with respect to such protest or instituted
by the defendant under subdivision c of this section with respect to
such provision, and until the expiration of the time allowed in this
section for the taking of further proceedings with respect thereto.
e. Notwithstanding the provisions of subdivision d of this section,
stays shall be granted thereunder in civil proceedings only after
judgment and upon application made within five days after judgment.
Notwithstanding the provisions of subdivision d of this section, in the
case of a proceeding under paragraph (a) of subdivision ten of section
one of the state enabling act or subdivision a of section 26-413 of this
chapter, the court granting a stay under subdivision d of this section
shall issue a temporary injunction or restraining order enjoining or
restraining, during the period of the stay, violations by the defendant
of any provision of the regulation or order involved in the proceeding.
If any provision of a regulation or order is determined to be invalid by
judgment of the supreme court which has become effective in accordance
with subdivision b of this section, any proceeding pending in any court
shall be dismissed, and any judgment in such proceeding vacated, to the
extent that such proceeding or judgment is based upon violation of such
provision. Except as provided in subdivisions c and d of this section
and as heretofore provided in this subdivision e, the pendency of any
protest under section 26-410 of this chapter before the city rent agency
or judicial proceeding under this section, shall not be grounds for
staying any proceeding brought pursuant to subdivision ten of section
one of the state enabling act or section 26-413 of this chapter; nor,
except as provided in this subdivision e, shall any retroactive effect
be given to any judgment setting aside a provision of a regulation or
order.
f. The method prescribed herein for the judicial review of a
regulation or order of the city rent agency shall be exclusive.
Section 26-412
§ 26-412 Prohibitions. a. It shall be unlawful, regardless of any
contract, lease or other obligation heretofore or hereafter entered
into, for any person to demand or receive any rent for any housing
accommodations in excess of the applicable maximum rent established
therefor by the city rent agency or otherwise to do or omit to do any
act, in violation of any regulation, order or requirement of the city
rent agency under the state enabling act or under this chapter, or to
offer, solicit, attempt or agree to do any of the foregoing.
b. It shall be unlawful for any person to remove or attempt to remove
from any housing accommodations the tenant or occupant thereof or to
refuse to renew the lease or agreement for the use of said
accommodations, because such tenant or occupant has taken, or proposes
to take, action authorized or required by the state rent act or by this
chapter or any provision of this code, the multiple dwelling law, or the
health code of the city of New York, or any regulation, order or
requirement thereunder.
c. It shall be unlawful for any officer or employee of the city rent
agency or for any official adviser or consultant to the city rent agency
to disclose, otherwise than in the course of official duty, any
information obtained under this chapter, or to use any such information
for personal benefit.
d. It shall be unlawful for any person, with intent to cause any
tenant to vacate housing accommodations or to surrender or waive any
rights of such tenant under this chapter or the regulations promulgated
thereunder, to engage in any course of conduct including, but not
limited to, interruption or discontinuance of essential services which
interferes with or disturbs or is intended to interfere with or disturb
the comfort, repose, peace or quiet of such tenant in his or her use or
occupancy of the housing accommodations.
e. It shall be unlawful for any person to make any statement or entry
false in any material respect in any document or report submitted in any
proceeding before the city rent agency or required to be kept filed
under this chapter or any regulation, order or requirement thereunder,
or to wilfully omit or neglect to make any material statement or entry
required to be made in any such document or report;
f. It shall be unlawful for a landlord or a successor in interest to
use housing accommodations or the site on which same were located for
any purposes other than that specified in the certificate of eviction.
Section 26-413
§ 26-413 Enforcement and penalties. a. Any person who wilfully
violates any provision of section 26-412 of this chapter shall be guilty
of and punishable for a crime as specified in subdivision ten of section
one of the state enabling act, namely such persons shall be subject to a
fine of not more than five thousand dollars, or to imprisonment for not
more than two years in the case of a violation of subdivision c of
section 26-412 of this chapter and for not more than one year in all
other cases, or to both such fine and imprisonment. The city rent agency
may certify such facts, which in its opinion constitute such violation,
to the district attorney having jurisdiction thereof.
b. (1) The city rent agency may, whenever in its judgment any person
has engaged in or is about to engage in acts or practices which
constitute a violation of any provision of section 26-412 of this
chapter, apply to the supreme court for an order (a) enjoining such acts
or practices, (b) enforcing compliance with such provision of said
section or with an order issued by the city rent agency, or (c)
directing the landlord to correct such violation of such provision; and
upon sufficient showing, the supreme court may issue a temporary or
permanent injunction, restraining order or other order, all of which
shall be granted without bond. Jurisdiction shall not be deemed lacking
in the supreme court because a defense is based upon an order of an
inferior court.
(2) The city rent agency may, whenever in its judgment any person has
engaged in acts or practices which constitute a violation of any
provision of section 26-412 of this chapter:
* (a) Impose by administrative order after hearing, a civil penalty
for any violation of said section and bring an action to recover same in
any court of competent jurisdiction. Such penalty in the case of a
violation of subdivision d of such section shall be in the amount of two
thousand dollars for the first offense and ten thousand dollars for each
subsequent offense or for a violation consisting of conduct directed at
the tenants of more than one housing accommodation; and in the case of
any other violation of such section in the amount of one thousand
dollars for the first such offense and two thousand dollars for each
subsequent offense. Such order by the city rent agency shall be deemed a
final determination for the purposes of judicial review as provided in
section 26-411 of this chapter. Such action shall be brought on behalf
of the city and any amount recovered shall be paid into the city
treasury. Such right of action may be released, compromised or adjusted
by the city rent agency at any time subsequent to the issuance of such
administrative order.
* NB Effective until June 16, 2015
* (a) Impose by administrative order after hearing, a civil penalty
for any violation of said section and bring an action to recover same in
any court of competent jurisdiction. Such penalty in the case of a
violation of subdivision d of such section shall be in the amount of two
thousand dollars for a first such offense and ten thousand dollars for
each subsequent offense or for a violation consisting of conduct
directed at the tenants of more than one housing accommodation; and in
the case of any other violation of such section in the amount of one
thousand dollars for the first such offense and two thousand dollars for
each subsequent offense. Such order by the city rent agency shall be
deemed a final determination for the purposes of judicial review as
provided in section 26-411 of this chapter. Such action shall be brought
on behalf of the city and any amount recovered shall be paid into the
city treasury. Such right of action may be released, compromised or
adjusted by the city rent agency at any time subsequent to the issuance
of such administrative order.
* NB Effective June 16, 2015
(b) Commence an action to recover damages, as provided for in
paragraph two of subdivision d of this section in the event that (i) the
tenant has not previously commenced such an action as therein provided
and (ii) more than six months have elapsed since the occurrence of the
violation or issuance of the order. An action instituted by the city
rent agency shall constitute a bar to an action by the person aggrieved.
The city rent agency shall pay over one-half of the sum recovered in
such action to the person aggrieved and one-half to the city treasury,
exclusive of costs and disbursements.
(3) (a) Subject to the provisions of subparagraph (b) of this
paragraph, make a finding of harassment whenever it determines the
existence of a violation of subdivision d of section 26-412 of this
chapter in which event the city rent agency may (i) dismiss any pending
application for a certificate of eviction and grant any subsequent
application for such certificate only upon such terms and conditions as
it deems necessary to prevent the circumvention or evasion of provisions
of this chapter; (ii) determine that such housing accommodations or any
replacement or subdivision thereof (whether or not by demolition,
alteration or substantial rehabilitation) shall constitute housing
accommodations subject to control under the provisions of this chapter,
notwithstanding any definition of that term to the contrary; and (iii)
to refuse to credit any adjustments increasing rent mandated by section
26-405 of this chapter and dismiss any applications for an adjustment
pursuant to said section for such time and under such terms and
conditions as the city rent agency deems necessary to prevent
circumvention or evasion of the provisions of this chapter.
(b) No proceeding to determine whether housing accommodations have
become vacant as a result of harassment may be commenced later than
thirty days after the entire structure shall have been vacated, unless
the landlord failed to certify his or her intent to alter or demolish
the premises as provided by subdivision c of section 26-408 of this
chapter. No proceeding shall be maintained for acts performed in good
faith and in a reasonable manner for the purposes of operating,
maintaining or repairing any building or part thereof. A finding of
harassment shall be attached to and noted upon the registration of the
housing accommodations affected by such findings, and a copy thereof
shall be filed and docketed in the manner of a notice of mechanic's lien
affecting the property. The provisions of this paragraph shall bind all
persons or parties who succeed to the landlord's interest in said
housing accommodations.
(4) Revoke any order or determination based upon any statement or
entry false in any material respect in any document or report submitted
in any proceeding before the city rent agency or required to be kept or
filed under this chapter or any requirements thereunder.
c. (1) Any court shall advance on the docket or otherwise expedite the
disposition of any action or proceeding brought before it pursuant to
the provisions of subdivision b of this section.
(2) The provisions of subdivision b of this section are cumulative.
The enforcement of one provision thereof shall not constitute a bar to
the enforcement by action, proceeding or by making a finding or
determination pursuant to other provisions of said subdivision.
(3) The city rent agency may direct that a refund payment to the
tenant for rent collected in violation of subdivision a of section
26-412 include interest from the date of each excessive payment of rent.
Where the city rent agency has revoked an order or determination
premised on a false statement or entry, it may withhold issuance of an
order granting increase in maximum rent for such housing accommodations
until the landlord has complied with the refund directive, if any,
provided for in such order of revocation.
d. (1) Where after the city rent agency has granted a certificate of
eviction authorizing the landlord to pursue his or her remedies pursuant
to law to acquire possession and a tenant voluntarily removes from a
housing accommodation or has been removed therefrom by action or
proceeding to evict from or recover possession of a housing
accommodation upon the ground that the landlord seeks in good faith to
recover possession of such accommodation:
(a) For his or her immediate and personal use, or for the immediate
and personal use by a member or members of his or her immediate family,
and such landlord or members of his or her immediate family shall fail
to occupy such accommodation within thirty days after the tenant
vacates; or
(b) For the immediate purpose of withdrawing such housing
accommodation from the rental market, and such landlord shall lease or
sell the housing accommodation or the space previously occupied thereby,
or permit use thereof in a manner other than contemplated in such
eviction certificate within a period of one year after such removal of
the tenant; or
(c) For the immediate purpose of altering or remodeling such housing
accommodation, and the landlord (who required possession for the purpose
of effecting such alteration or remodeling) shall fail to start the work
of alteration or remodeling of such housing accommodation within ninety
days after the removal of the last tenant whose removal is necessary to
enable the landlord to effect such alteration or remodeling of such
accommodation, or if after having commenced such work shall fail or
neglect to prosecute the work with reasonable diligence; or
(d) For the immediate purpose of demolishing such housing
accommodations and constructing a new building in accordance with
approved plans, or reasonable amendment thereof, and the landlord has
failed to complete the demolition within six months after the removal of
the last tenant or, having demolished the premises, has failed or
neglected to proceed with the new construction within ninety days after
the completion of such demolition, or having commenced such construction
work, has failed or neglected to prosecute such work with reasonable
diligence; or
(e) For some purpose other than those specified above for which the
removal of the tenant was sought and the landlord has failed to use the
vacated premises for such purposes; such landlord shall, unless for good
cause shown be liable to the tenant for three times the damages
sustained on account of such removal plus reasonable attorney's fees and
costs as determined by the court provided that the tenant commences such
action within three years from the expiration of the applicable time
period as set forth in this subdivision. The damages sustained by the
tenant under this subdivision shall be the difference between the rent
paid for the housing accommodation from which such tenant was evicted,
and the rental value of a comparable housing accommodation on the open
market. In addition to any other damage, the cost of removal of the
tenant's property shall be a lawful measure of damages. The remedy
herein provided shall be in addition to those provided for in
subdivisions a and b of this section. Such acts and omissions on the
part of a landlord after issuance of a certificate of eviction are
hereby declared to be consistent with the purposes for which such
certificate of eviction was issued.
(2) A tenant may bring an action against his or her landlord in any
court of competent jurisdiction for a violation of subdivision a of
section 26-412 of this chapter within: (a) two years from the date of
occurrence of an overcharge, defined to mean the amount by which the
consideration paid by a tenant to a landlord exceeds the applicable
maximum rent, or (b) within one year after the landlord fails to pay a
refund as ordered by the city rent agency, such time to be calculated
from thirty-three days after the date of the issuance of the order or
when the order becomes final, whichever is later, or (c) in the case of
an act proscribed by subdivision e of section 26-412 of this chapter,
within two years after knowledge of such statement or omission and
consequent violation has been made known to the city agency. The
landlord shall be liable for reasonable attorney's fees and costs as
determined by the court, plus whichever of the following sums is the
greater: (i) such amount not more than three times the amount of the
overcharge, or the overcharges, upon which the action is based as the
court in its discretion may determine or (ii) an amount not less than
twenty-five dollars, provided, however, that such amount shall be the
amount of the overcharge or overcharges or twenty-five dollars,
whichever is greater, if the defendant proves that the violation of the
regulation or order in question was neither wilful nor the result of
failure to take practicable precautions against the occurrence of the
violation.
(3) A tenant or occupant who is unlawfully removed by a landlord from
any housing accommodation may, within two years from the date of
occurrence, bring a civil action against the landlord by reason of such
unlawful removal. In such action, the landlord shall be liable to the
tenant for three times the damages sustained on account of such removal
plus reasonable attorney's fees and costs as determined by the court.
The damages sustained by the tenant under this paragraph shall be the
difference between the rent paid for the housing accommodation from
which such tenant was evicted and the rental value of a comparable
housing accommodation on the open market. In addition to any other
damage the cost of removal of the tenant's property shall be a lawful
measure of damage.
e. No person (including, but not limited to any officer or employee of
the city rent agency) shall be held liable for damages or penalties in
any court, on any grounds for or in respect of anything done or omitted
to be done in good faith pursuant to any provision of the state rent act
or of this chapter, or any regulation, order, or requirement thereunder,
notwithstanding that subsequently such provision, regulation, order or
requirement may be modified, rescinded, or determined to be invalid. In
any action or proceeding wherein a party relies for ground of relief or
defense or raises issue or brings into question the construction or
validity of any provision of this chapter or any regulation, order, or
requirement thereunder, the court having jurisdiction of such action or
proceeding may at any stage certify such fact to the city rent agency.
The city rent agency may intervene in any such action or proceeding.
Section 26-414
§ 26-414 Decontrol on basis of vacancy rate. Whenever the city rent
agency shall find, after making such studies and investigations as it
deems necessary for such purpose, or for processing an application
supported by adequate proof filed by an interested party pursuant to
regulation that the percentage of vacancies in all or any particular
class of housing accommodations in the city, as such class is determined
by the city rent agency, is five per centum or more, the controls
imposed on rents and evictions by and pursuant to this chapter, with
respect to the housing accommodations as to which such finding has been
made, shall be forthwith scheduled for orderly decontrol, with due
regard to preventing uncertainty, hardship and dislocation, by order of
such agency; provided, however, that notwithstanding any provision of
this section to the contrary, such agency shall not order the decontrol
of any particular class of housing accommodations as to which it shall
find that the percentage of vacancies is less than five per centum;
provided, further, that no such order shall be made unless such agency
shall hold a public hearing on such proposal at which interested persons
are given a reasonable opportunity to be heard. Notice of such hearing
shall be provided by publication thereof, on at least five days during
the period of fifteen days next preceding the date of the commencement
of such hearing, in the City Record and in at least two daily newspapers
having general circulation in the city.
Section 26-415
§ 26-415 Surveys of need for rent control. As provided in subdivision
three of section one of the local emergency housing rent control act,
the mayor shall cause to be made, and shall present to the council a
report of the results of, a survey of the supply of housing
accommodations within the city, the condition of such accommodations and
the need for continuing the regulation and control of residential rents
and evictions within the city.
To the extent possible under law, Friends of Devin Balkind for Public Advocate has waived all copyright and related or neighboring rights to New York City Administrative Code. This work is published from: United States.
Special thanks to Benjarmin Kallos and Thom Neale who made this content publicly available as a bulk download.