Section 26-501
* § 26-501 Findings and declaration of emergency. The council hereby
finds that a serious public emergency continues to exist in the housing
of a considerable number of persons within the city of New York and will
continue to exist after April first, nineteen hundred seventy-four; 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 which creates a special hardship to persons and families
occupying rental housing; that the legislation enacted in nineteen
hundred seventy-one by the state of New York, removing controls on
housing accommodations as they become vacant, has resulted in sharp
increases in rent levels in many instances; that the existing and
proposed cuts in federal assistance to housing programs threaten a
virtual end to the creation of new housing, thus prolonging the present
emergency; 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 by the council continues to be imperative; that such
action 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, safety and general welfare; 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; and
that the policy herein expressed is now administered locally within the
city of New York by an agency of the city itself, pursuant to the
authority conferred by chapter twenty-one of the laws of nineteen
hundred sixty-two.
The council further finds that, prior to the adoption of local laws
sixteen and fifty-one of nineteen hundred sixty-nine, many owners of
housing accommodations in multiple dwellings, not subject to the
provisions of the city rent and rehabilitation law enacted pursuant to
said enabling authority either because they were constructed after
nineteen hundred forty-seven or because they were decontrolled due to
monthly rental of two hundred fifty dollars or more or for other
reasons, were demanding exorbitant and unconscionable rent increases as
a result of the aforesaid emergency, which led to a continuing
restriction of available housing as evidenced by the nineteen hundred
sixty-eight vacancy survey by the United States bureau of the census;
that prior to the enactment of said local laws, such increases were
being exacted under stress of prevailing conditions of inflation and of
an acute housing shortage resulting from a sharp decline in private
residential construction brought about by a combination of local and
national factors; that such increases and demands were causing severe
hardship to tenants of such accommodations and were uprooting long-time
city residents from their communities; that recent studies establish
that the acute housing shortage continues to exist; that there has been
a further decline in private residential construction due to existing
and proposed cuts in federal assistance to housing programs; that unless
such accommodations are subjected to reasonable rent and eviction
limitations, disruptive practices and abnormal conditions will produce
serious threats to the public health, safety and general welfare; and
that such conditions constitute a grave emergency.
* NB Expires April 1, 2015
Section 26-502
* § 26-502 Additional findings and declaration of emergency. The
council hereby finds that a serious public emergency continues to exist
in the housing of a considerable number of persons within the City of
New York and will continue to exist on and after April first, two
thousand twelve and hereby reaffirms and repromulgates the findings and
declaration set forth in section 26-501 of this title.
* NB Expires April 1, 2015
Section 26-503
* § 26-503 Short title. This law may be cited as the rent
stabilization law of nineteen hundred sixty-nine.
* NB Expires April 1, 2015
Section 26-504
* § 26-504 Application. This law shall apply to:
a. Class A multiple dwellings not owned as a cooperative or as a
condominium, except as provided in section three hundred fifty-two-eeee
of the general business law, containing six or more dwelling units
which:
(1) were completed after February first, nineteen hundred forty-seven,
except dwelling units (a) owned or leased by, or financed by loans from,
a public agency or public benefit corporation, (b) subject to rent
regulation under the private housing finance law or any other state law,
(c) aided by government insurance under any provision of the national
housing act, to the extent this chapter or any regulation or order
issued thereunder is inconsistent therewith, or (d) located in a
building for which a certificate of occupancy is obtained after March
tenth, nineteen hundred sixty-nine; or (e) any class A multiple dwelling
which on June first, nineteen hundred sixty-eight was and still is
commonly regarded as a hotel, transient hotel or residential hotel, and
which customarily provides hotel service such as maid service,
furnishing and laundering of linen, telephone and bell boy service,
secretarial or desk service and use and upkeep of furniture and
fixtures, or (f) not occupied by the tenant, not including subtenants or
occupants, as his or her primary residence, as determined by a court of
competent jurisdiction, provided, however that 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. 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. For the purposes of
this subparagraph where a housing accommodation is rented to a
not-for-profit hospital for residential use, affiliated subtenants
authorized to use such accommodations by such hospital shall be deemed
to be tenants, or (g) became vacant on or after June thirtieth, nineteen
hundred seventy-one, or become vacant, 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 that any housing accommodations exempted by this
paragraph shall be subject to this law to the extent provided in
subdivision b of this section; or (2) were decontrolled by the city rent
agency pursuant to section 26-414 of this title; or (3) are exempt from
control by virtue of item one, two, six or seven of subparagraph (i) of
paragraph two of subdivision e of section 26-403 of this title; and
b. Other housing accommodations in class A or class B multiple
dwellings made subject to this law pursuant to the emergency tenant
protection act of nineteen seventy-four.
c. Dwelling units in a building or structure receiving the benefits of
section 11-243 or section 11-244 of the code or article eighteen of the
private housing finance law, not owned as a cooperative or as a
condominium, except as provided in section three hundred fifty-two-eeee
of the general business law and not subject to chapter three of this
title. Upon the expiration or termination for any reason of the benefits
of section 11-243 or section 11-244 of the code or article eighteen of
the private housing finance law any such dwelling unit shall be subject
to this chapter until the occurrence of the first vacancy of such unit
after such benefits are no longer being received or if each lease and
renewal thereof for such unit for the tenant in residence at the time of
the expiration of the tax benefit period has included a notice in at
least twelve point type informing such tenant that the unit shall become
subject to deregulation upon the expiration of such tax benefit period
and states the approximate date on which such tax benefit period is
scheduled to expire, such dwelling unit shall be deregulated as of the
end of the tax benefit period; provided, however, that if such dwelling
unit would have been subject to this chapter or the emergency tenant
protection act of nineteen seventy-four in the absence of this
subdivision, such dwelling unit shall, upon the expiration of such
benefits, continue to be subject to this chapter or the emergency tenant
protection act of nineteen seventy-four to the same extent and in the
same manner as if this subdivision had never applied thereto.
* NB Expires April 1, 2015
Section 26-504.1
* § 26-504.1 Exclusion of accommodations of high income renters. Upon
the issuance of an order by the division, "housing accommodations" shall
not include 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 26-504.3 of this chapter,
in excess of the deregulation income threshold, as defined in section
26-504.3 of this chapter, for each of the two preceding calendar years;
and (2) have a legal regulated monthly rent that equals or exceeds the
deregulation rent threshold, as defined in section 26-504.3 of this
chapter. Provided, however, that this exclusion shall not apply to
housing accommodations which became or become subject to this law (a) by
virtue of receiving tax benefits pursuant to section four hundred
twenty-one-a or four hundred eighty-nine of the real property tax law,
except as otherwise provided in subparagraph (i) of paragraph (f) of
subdivision two of section four hundred twenty-one-a of the real
property tax law, or (b) by virtue of article seven-C of the multiple
dwelling law.
* NB Expires April 1, 2015
Section 26-504.2
* § 26-504.2 Exclusion of high rent accommodations. a. "Housing
accommodations" shall not include: 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 legal regulated
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 legal regulated 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 legal regulated 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 subdivision shall not apply to housing accommodations which became
or become subject to this law (a) by virtue of receiving tax benefits
pursuant to section four hundred twenty-one-a or four hundred
eighty-nine of the real property tax law, except as otherwise provided
in subparagraph (i) of paragraph (f) of subdivision two of section four
hundred twenty-one-a of the real property tax law, or (b) by virtue of
article seven-C of the multiple dwelling law. This section 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, 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.
b. The owner of any housing accommodation that is not subject to this
law pursuant to the provisions of subdivision a of this section or
subparagraph k of paragraph 2 of subdivision e of section 26-403 of this
code shall give written notice certified by such owner to the first
tenant of that housing accommodation after such housing accommodation
becomes exempt from the provisions of this law or the city rent and
rehabilitation law. Such notice shall contain the last regulated rent,
the reason that such housing accommodation is not subject to this law or
the city rent and rehabilitation law, a calculation of how either the
rental amount charged when there is no lease or the rental amount
provided for in the lease has been derived so as to reach two thousand
dollars or more per month or, for a housing accommodation with a legal
regulated rent or maximum rent of two thousand five hundred dollars or
more per month on or after the effective date of the rent act of 2011,
which is or becomes vacant on or after such effective date, whether the
next tenant in occupancy or any subsequent tenant in occupancy actually
is charged or pays less than a legal regulated rent or maximum rent of
two thousand five hundred dollars or more per month, a statement that
the last legal regulated rent or the maximum rent may be verified by the
tenant by contacting the state division of housing and community
renewal, or any successor thereto, and the address and telephone number
of such agency, or any successor thereto. Such notice shall be sent by
certified mail within thirty days after the tenancy commences or after
the signing of the lease by both parties, whichever occurs first or
shall be delivered to the tenant at the signing of the lease. In
addition, the owner shall send and certify to the tenant a copy of the
registration statement for such housing accommodation filed with the
state division of housing and community renewal indicating that such
housing accommodation became exempt from the provisions of this law or
the city rent and rehabilitation law, which form shall include the last
regulated rent, and shall be sent to the tenant within thirty days after
the tenancy commences or the filing of such registration, whichever
occurs later.
* NB Expires April 1, 2015
Section 26-504.3
* § 26-504.3 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 whose names are
recited as the tenant or co-tenant on a lease who occupy the housing
accommodation and all other persons that occupy the housing
accommodation as their primary residence on other than 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 tenant or co-tenant recited on the
lease who will reoccupy the housing accommodation upon the expiration of
the sublease 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 before 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 legal regulated 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
legal regulated 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 providing that such housing accommodation shall not be subject
to the provisions of this act upon the expiration of the existing lease.
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 named on the
lease 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 being issued by the
division providing that such housing accommodation shall not be subject
to the provisions of this law.
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 providing that such housing
accommodation shall not be subject to the provisions of this law upon
the expiration of the existing lease. 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
providing that such housing accommodation shall not be subject to the
provisions of this law upon the expiration of the current lease. 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 section 26-504.1 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.
* NB Expires April 1, 2015
Section 26-505
* § 26-505 Application to multiple family complex. For purposes of
this chapter a class A multiple dwelling shall be deemed to include a
multiple family garden-type maisonette dwelling complex containing six
or more dwelling units having common facilities such as sewer line,
water main, and heating plant, and operated as a unit under a single
ownership on May sixth, nineteen hundred sixty-nine, notwithstanding
that certificates of occupancy were issued for portions thereof as one-
or two-family dwellings.
* NB Expires April 1, 2015
Section 26-506
* § 26-506 Application to hotels. a. Notwithstanding the provisions of
section 26-504 of this chapter to the contrary, and irrespective of any
decontrol pursuant to subparagraph (c) of paragraph two of subdivision e
of section 26-403 of the city rent and rehabilitation law, this law
shall apply to dwelling units in all hotels except hotels erected after
July first, nineteen hundred sixty-nine, whether classified as a class A
or a class B multiple dwelling, containing six or more dwelling units,
provided that the rent charged for the individual dwelling units on May
thirty-first, nineteen hundred sixty-eight was not more than three
hundred fifty dollars per month or eighty-eight dollars per week; and
further provided that, notwithstanding the foregoing, this law shall
apply to dwelling units in any hotel, whether classified as a class A or
a class B multiple dwelling, eligible for benefits pursuant to the
provisions of section 11-244 of the code.
b. Upon application by a tenant or owner, the division of housing and
community renewal, shall determine if such building is a hotel covered
by this law, based upon the services provided and other relevant
factors. If it is determined that such building is not a hotel, it shall
thereafter be subject to this law pursuant to subdivision b of section
26-504 of this chapter.
* NB Expires April 1, 2015
Section 26-507
* § 26-507 Application to certain multiple dwellings purchased from
the city. a. Notwithstanding the provisions of any local law or
regulation promulgated pursuant to the rent stabilization law of
nineteen hundred sixty-nine or the emergency tenant protection act of
nineteen seventy-four, upon the sale in any manner authorized by law of
a multiple dwelling which was previously subject to the provisions of
any such laws or acts 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, all dwelling units within the
multiple dwelling shall be subject to the rent stabilization law of
nineteen hundred sixty-nine, as amended, at the last rent charged by the
city, or on behalf of the city, for such dwelling unit.
b. If a unit which was subject to this chapter 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, such tenant
shall be offered a one or two year lease at the rent provided in this
section as soon as practical at the sale of the multiple dwelling.
c. This section shall not apply to redemptions from city ownership
pursuant to chapter four of title eleven of the code.
* NB Expires April 1, 2015
Section 26-509
* § 26-509 Application for rent increase exemptions and equivalent tax
abatement for rent regulated property occupied by certain senior
citizens or persons with disabilities. a. Commencement of agency
jurisdiction.
(1) (i) Notwithstanding any provisions of this chapter to the
contrary, the department of finance shall grant rent increase exemption
orders or tax abatement certificates to senior citizens pursuant to this
section and applications for such orders and certificates and renewal
applications shall be made to the department of finance.
(ii) Notwithstanding any provisions of this chapter to the contrary,
such agency as the mayor shall designate (which agency may also be the
department of finance) shall grant rent increase exemption orders or tax
abatement certificates to persons with disabilities pursuant to this
section and applications for such orders and certificates and renewal
applications shall be made to such agency.
(2) The department of finance and such other agency as the mayor shall
designate shall have the power, in relation to any application for a
rent increase exemption order or tax abatement certificate under such
department's or agency's jurisdiction, to determine the lawful
stabilization rent, but shall not receive applications for adjustment of
the initial legal regulated rent pursuant to section 26-513 of this
chapter.
(3) The department of finance and such other agency as the mayor shall
designate may promulgate such rules and regulations as may be necessary
to effectively carry out the provisions of this section.
b. Rent increase exemptions for certain senior citizens and persons
with disabilities.
(1) No increase in the legal regulated rent 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, if
such increase is a lawful increase in the monthly legal regulated rent
over the rent legally payable on the eligibility date which is provided
under a two year lease, or under such other term as regards dwelling
units subject to the hotel stabilization provisions of this chapter, for
an increase in rent:
(i) pursuant to an order of the New York city rent guidelines board,
or
(ii) based upon an owner hardship rent increase order issued by the
state division of housing and community renewal.
(2) A tenant is eligible for a rent exemption order pursuant to this
section 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.
(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 the 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
eligibility date of the head of the household receiving benefits under
this section 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
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
eligibility date of the head of the household receiving benefits under
this section, 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 accommodation exceeds one-third of the
aggregate disposable income, or subject to the limitations contained
within item (c) of subparagraph (i) of paragraph three of this
subdivision, if any expected lawful increase in the maximum rent 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 accommodation exceeds the maximum allowance for
shelter which the head of the household is entitled to receive pursuant
to the social services law, or subject to the limitations contained
within item (c) of subparagraph (i) of paragraph three of this
subdivision, if any expected lawful increase in the maximum rent would
cause such maximum rent to exceed the maximum allowance for shelter
which the head of the household is entitled to receive.
(3) (i) A rent exemption order pursuant to this subdivision shall
provide:
(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, that
the landlord may not collect from the tenant to whom it is issued rent
at a rate in excess of either one-third of the aggregate disposable
income, or the rent in effect immediately preceding the eligibility
date, whichever is greater; or
(b) 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 rent in effect
immediately preceding the eligibility date, whichever is greater; and
(c) that the landlord may collect from the tenant increases in rent
based on an electrical inclusion adjustment or an increase in dwelling
space, services or equipment.
(ii) Each such order shall expire upon termination of occupancy of the
housing accommodation by the tenant to whom it is issued. The landlord
shall notify the department of 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.
(iii) When a rent reduction order is issued by the state division of
housing and community renewal, 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 regulated rent.
(5) A rent exemption order shall be issued to each tenant who applies
to the department of finance in the case of a tenant who is sixty-two
years of age or older or to such agency as the mayor shall designate in
the case of a tenant who is a person with a disability, in accordance
with such department's or agency's applicable 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 by the department of finance or such agency as the mayor
shall designate, except that where there is any other increase in the
legal regulated rent within ninety days of the issuance of the order
increasing the tenant's maximum rent which a tenant is not exempted from
paying, the rent exemption order shall without further order of the
department of finance or such agency as the mayor shall designate take
effect as of the effective date of said order increasing the tenant's
rent including any retroactive increments collectible pursuant to such
order.
(6) A rent exemption order shall be valid for the period of the lease
or renewal thereof 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
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 the owner for the difference between the
amounts the tenant has paid under the provisions of the automatically
renewed order and the amounts which the tenant 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 and shall include provisions giving notice that the
tenant must enter into either a one or two year renewal lease in order
to be eligible for a rent exemption. The notice that each tenant
receives from the owner relating to the right to a renewal lease shall
contain similar information. 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 the 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 any other provisions of law, when a head of a
household to whom a then current, valid rent exemption order has been
issued under this chapter, chapter three 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 rent exemption order relating to the subsequent
dwelling unit, and such order may provide that the head of the household
shall be exempt from paying that portion of the legal regulated rent for
the subsequent dwelling unit which is the least of the following:
(i) 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;
(ii) 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 or section 26-605 of
this title; or
(iii) 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 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 section.
(8) (i) When a dwelling unit subject to regulation under this chapter
is later reclassified to a dwelling unit subject to regulation under
chapter three of this title, the eligibility of a head of the household
to receive a rent increase exemption order upon such reclassification
shall be governed by paragraph eight of subdivision m of section 26-405
of this title.
(ii) When a dwelling unit subject to regulation under this chapter is
later reclassified to a dwelling unit subject to the provisions of
article II, IV, V or XI of the private housing finance law or subject to
a mortgage insured or initially insured by the federal government
pursuant to section two hundred thirteen of the national housing act, as
amended, the eligibility of a head of the household to receive a rent
increase exemption order upon such reclassification shall be governed by
section 26-605.1 of this title.
(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 reestablish the
ratio of adjusted rent to aggregate disposable income which existed at
the time of approval of such 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 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 such law, less than the maximum allowance for shelter which
such head of the household is entitled to receive pursuant to the social
services 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 legal regulated rent less the amount set
forth in a rent exemption order.
c. Tax abatement for properties subject to rent exemption order.
(1) 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 b of this section to the tenant of any housing
accommodation contained therein. The rent exemption order shall also
constitute the tax abatement certificate.
(2) The real estate tax imposed upon any real property for which a
rent exemption is issued, shall be reduced and abated by an amount equal
to the difference between:
(i) the sum of the maximum rents collectible under such orders, and
(ii) the sum of rents that would be collectible from the tenants of
such housing accommodations if no exemption had been granted pursuant to
subdivision b of this section.
(3) For any individual housing accommodation, the tax abatement
computed pursuant to this subdivision shall be available with respect to
a period commencing on the effective date of the initial rent exemption
order, and ending on the expiration date of such order or on the
effective date of an order terminating the rent exemption.
(4) 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.
(5) 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
paragraph, 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.
d. Notwithstanding the provisions of this chapter, a tenant who
resides in a dwelling unit which becomes subject to this chapter upon
the sale by the city of New York of the building in which such dwelling
unit 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 dwelling unit
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.
* NB Expires April 1, 2015
Section 26-510
* § 26-510 Rent guidelines board. a. There shall be a rent guidelines
board to consist of nine members, appointed by the mayor. Two members
shall be representative of tenants, two shall be representative of
owners of property, and five shall be public members each of whom shall
have had at least five years experience in either finance, economics or
housing. One public member shall be designated by the mayor to serve as
chairman and shall hold no other public office. No member, officer or
employee of any municipal rent regulation agency or the state division
of housing and community renewal and no person who owns or manages real
estate covered by this law or who is an officer of any owner or tenant
organization shall serve on a rent guidelines board. One public member,
one member representative of tenants and one member representative of
owners shall serve for a term ending two years from January first next
succeeding the date of their appointment; one public member, one member
representative of tenants and one member representative of owners shall
serve for terms ending three years from the January first next
succeeding the date of their appointment and two public members shall
serve for terms ending four years from January first next succeeding the
dates of their appointment. The chairman shall serve at the pleasure of
the mayor. Thereafter, all members shall continue in office until their
successors have been appointed and qualified. The mayor shall fill any
vacancy which may occur by reason of death, resignation or otherwise in
a manner consistent with the original appointment. A member may be
removed by the mayor for cause, but not without an opportunity to be
heard in person or by counsel, in his or her defense, upon not less than
ten days notice.
b. The rent guidelines board shall establish annually guidelines for
rent adjustments, and in determining whether rents for housing
accommodations subject to the emergency tenant protection act of
nineteen seventy-four or this law shall be adjusted shall consider,
among other things (1) the economic condition of the residential real
estate industry in the affected area including such factors as the
prevailing and projected (i) real estate taxes and sewer and water
rates, (ii) gross operating maintenance costs (including insurance
rates, governmental fees, cost of fuel and labor costs), (iii) costs and
availability of financing (including effective rates of interest), (iv)
over-all supply of housing accommodations and over-all vacancy rates,
(2) relevant data from the current and projected cost of living indices
for the affected area, (3) such other data as may be made available to
it. Not later than July first of each year, the rent guidelines board
shall file with the city clerk its findings for the preceding calendar
year, and shall accompany such findings with a statement of the maximum
rate or rates of rent adjustment, if any, for one or more classes of
accommodations subject to this law, authorized for leases or other
rental agreements commencing on the next succeeding October first or
within the twelve months thereafter. Such findings and statement shall
be published in the City Record.
c. Such members shall be compensated on a per diem basis of one
hundred dollars per day for no more than twenty-five days a year except
that the chairman shall be compensated at one hundred twenty-five
dollars a day for no more than fifty days a year. The chairman shall be
chief administrative officer of the rent guidelines board and among his
or her powers and duties he or she shall have the authority to employ,
assign and supervise the employees of the rent guidelines board and
enter into contracts for consultant services. The department of housing
preservation and development shall cooperate with the rent guidelines
board and may assign personnel and perform such services in connection
with the duties of the rent guidelines board as may reasonably be
required by the chairman.
d. Any housing accommodation covered by this law owned by a member in
good standing of an association registered with the department of
housing preservation and development pursuant to section 26-511 of this
chapter which becomes vacant for any reason, other than harassment of
the prior tenant, may be offered for rental at any price notwithstanding
any guideline level established by the guidelines board for renewal
leases, provided the offering price does not exceed the rental then
authorized by the guidelines board for such dwelling unit plus five
percent for a new lease not exceeding two years and a further five
percent for a new lease having a minimum term of three years, until July
first, nineteen hundred seventy, at which time the guidelines board
shall determine what the rental for a vacancy shall be.
e. With respect to hotel dwelling units, covered by this law pursuant
to section 26-506 of this chapter, the council, after receipt of a study
from the rent guidelines board, shall establish a guideline for rent
increases, irrespective of the limitations on amount of increase in
subdivision d hereof, which guideline shall apply only to permanent
tenants. A permanent tenant is an individual or family who at any time
since May thirty-first, nineteen hundred sixty-eight, or hereafter, has
continuously resided in the same hotel as a principal residence for a
period of at least six months. On January first, nineteen hundred
seventy-one and once annually each succeeding year the rent guidelines
board shall cause a review to be made of the levels of fair rent
increases provided under this subdivision and may establish different
levels of fair rent increases for hotel dwelling units renting within
different rental ranges based upon the board's consideration of
conditions in the market for hotel accommodations and the economics of
hotel real estate. Any hotel dwelling unit which is voluntarily vacated
by the tenant thereof may be offered for rental at the guideline level
for vacancies established by the rent guidelines board. If a hotel
dwelling unit becomes vacant because the prior tenant was evicted
therefrom, there shall be no increase in the rental thereof except for
such increases in rental that the prior tenant would have had to pay had
he or she continued in occupancy.
g. From September twenty-fifth, nineteen hundred sixty-nine until the
rate of permissible increase is established by the council pursuant to
subdivision e of this section, there shall not be collected from any
permanent hotel tenant any rent increase in excess of ten percent over
the rent payable for his or her dwelling unit on May thirty-first,
nineteen hundred sixty-eight, except for hardship increases authorized
by the conciliation and appeals board. Any owner who collects or permits
any rent to be collected in excess of the amount authorized by this
subdivision shall not be eligible to be a member in good standing of a
hotel industry stabilization association.
h. The rent guidelines board prior to the annual adjustment of the
level of fair rents provided for under subdivision b of this section for
dwelling units and hotel dwelling units covered by this law, shall hold
a public hearing or hearings for the purpose of collecting information
relating to all factors set forth in subdivision b of this section.
Notice of the date, time, location and summary of subject matter for the
public hearing or hearings shall be published in the City Record daily
for a period of not less than eight days and at least once in one or
more newspapers of general circulation at least eight 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.
i. Maximum rates of rent adjustment shall not be established more than
once annually for any housing accommodation within the board's
jurisdiction. Once established, no such rate shall, within the one-year
period, be adjusted by any surcharge, supplementary adjustment or other
modification.
* NB Expires April 1, 2015
Section 26-511
* § 26-511 Real estate industry stabilization association. a. The real
estate industry stabilization association registered with the department
of housing preservation and development is hereby divested of all its
powers and authority under this law.
b. The stabilization code heretofore promulgated by such association,
as approved by the department of housing preservation and development,
is hereby continued to the extent that it is not inconsistent with law.
Such code may be amended from time to time, provided, however, that no
such amendments shall be promulgated except by action of the
commissioner of the division of housing and community renewal and
provided further, that prior to the adoption of any such amendments, the
commissioner shall (i) submit the proposed amendments to the
commissioner of the department of housing preservation and development
and allow such commissioner thirty days to make comments or
recommendations on the proposed amendments, (ii) review the comments or
recommendations, if any, made pursuant to clause (i) of this subdivision
and make any revisions to the proposed amendments which the commissioner
of the division of housing and community renewal deems appropriate
provided that any such review and revision shall be completed within
thirty days of receipt of such comments or recommendations and (iii)
thereafter hold a public hearing on the proposed amendments. No
provision of such code shall impair or diminish any right or remedy
granted to any party by this law or any other provision of law.
c. A code shall not be adopted hereunder unless it appears to the
division of housing and community renewal that such code
(1) provides safeguards against unreasonably high rent increases and,
in general, protects tenants and the public interest, and does not
impose any industry wide schedule of rents or minimum rentals;
(2) requires owners not to exceed the level of lawful rents as
provided by this law;
(3) provides for a cash refund or a credit, to be applied against
future rent, in the amount of any rent overcharge collected by an owner
and any penalties, costs, attorneys' fees and interest from the date of
the overcharge at the rate of interest payable on a judgment pursuant to
section five thousand four of the civil practice law and rules for which
the owner is assessed;
(4) includes provisions requiring owners to grant a one or two year
vacancy or renewal lease at the option of the tenant except where a
mortgage or mortgage commitment existing as of April first, nineteen
hundred sixty-nine, provides that the mortgagor shall not grant a one
year lease;
(5) includes guidelines with respect to such additional rent and
related matters as, for example, security deposits, advance rental
payments, the use of escalator clauses in leases and provision for
increase in rentals for garages and other ancillary facilities, so as to
insure that the level of fair rent increase established under this law
will not be subverted and made ineffective, provided further that
notwithstanding any inconsistent provision of law, rule, regulation,
contract, agreement, lease or other obligation, no owner, in addition to
the authorized collection of rent, shall demand, receive or retain a
security deposit or advance payment which exceeds the rent of one month
for or in connection with the use or occupancy of a housing
accommodation by (a) any tenant who is sixty-five years of age or older
or (b) any tenant who is receiving disability retirement benefit or
supplemental security income pursuant to the federal social security act
for any lease or lease renewal entered into after July 1, 2002;
(5-a) provides that, notwithstanding any provision of this chapter,
the legal regulated rent for any vacancy lease entered into after the
effective date of this paragraph shall be as hereinafter provided in
this paragraph. The previous legal regulated rent for such housing
accommodation shall be increased by the following: (i) if the vacancy
lease is for a term of two years, twenty percent of the previous legal
regulated rent; or (ii) if the vacancy lease is for a term of one year
the increase shall be twenty percent of the previous legal regulated
rent less an amount equal to the difference between (a) the two year
renewal lease guideline promulgated by the guidelines board of the city
of New York applied to the previous legal regulated rent and (b) the one
year renewal lease guideline promulgated by the guidelines board of the
city of New York applied to the previous legal regulated rent. In
addition, if the legal regulated rent was not increased with respect to
such housing accommodation by a permanent vacancy allowance within eight
years prior to a vacancy lease executed on or after the effective date
of this paragraph, the legal regulated rent may be further increased by
an amount equal to the product resulting from multiplying such previous
legal regulated rent by six-tenths of one percent and further
multiplying the amount of rent increase resulting therefrom by the
greater of (A) the number of years since the imposition of the last
permanent vacancy allowance, or (B) if the rent was not increased by a
permanent vacancy allowance since the housing accommodation became
subject to this chapter, the number of years that such housing
accommodation has been subject to this chapter. Provided that if the
previous legal regulated rent was less than three hundred dollars the
total increase shall be as calculated above plus one hundred dollars per
month. Provided, further, that if the previous legal regulated rent was
at least three hundred dollars and no more than five hundred dollars in
no event shall the total increase pursuant to this paragraph be less
than one hundred dollars per month. Such increase shall be in lieu of
any allowance authorized for the one or two year renewal component
thereof, but shall be in addition to any other increases authorized
pursuant to this chapter including an adjustment based upon a major
capital improvement, or a substantial modification or increase of
dwelling space or services, or installation of new equipment or
improvements or new furniture or furnishings provided in or to the
housing accommodation pursuant to this section. The increase authorized
in this paragraph may not be implemented more than one time in any
calendar year, notwithstanding the number of vacancy leases entered into
in such year.
(6) provides criteria whereby the commissioner may act upon
applications by owners for increases in excess of the level of fair rent
increase established under this law provided, however, that such
criteria shall provide (a) as to hardship applications, for a finding
that the level of fair rent increase is not sufficient to enable the
owner to maintain approximately the same average annual net income
(which shall be computed without regard to debt service, financing costs
or management fees) for the three year period ending on or within six
months of the date of an application pursuant to such criteria as
compared with annual net income, which prevailed on the average over the
period nineteen hundred sixty-eight through nineteen hundred seventy, or
for the first three years of operation if the building was completed
since nineteen hundred sixty-eight or for the first three fiscal years
after a transfer of title to a new owner provided the new owner can
establish to the satisfaction of the commissioner that he or she
acquired title to the building as a result of a bona fide sale of the
entire building and that the new owner is unable to obtain requisite
records for the fiscal years nineteen hundred sixty-eight through
nineteen hundred seventy despite diligent efforts to obtain same from
predecessors in title and further provided that the new owner can
provide financial data covering a minimum of six years under his or her
continuous and uninterrupted operation of the building to meet the three
year to three year comparative test periods herein provided; and (b) as
to completed building-wide major capital improvements, for a finding
that such improvements are deemed depreciable under the Internal Revenue
Code and that the cost is to be amortized over a seven-year period,
based upon cash purchase price exclusive of interest or service charges.
Notwithstanding anything to the contrary contained herein, no hardship
increase granted pursuant to this paragraph shall, when added to the
annual gross rents, as determined by the commissioner, exceed the sum
of, (i) the annual operating expenses, (ii) an allowance for management
services as determined by the commissioner, (iii) actual annual mortgage
debt service (interest and amortization) on its indebtedness to a
lending institution, an insurance company, a retirement fund or welfare
fund which is operated under the supervision of the banking or insurance
laws of the state of New York or the United States, and (iv) eight and
one-half percent of that portion of the fair market value of the
property which exceeds the unpaid principal amount of the mortgage
indebtedness referred to in subparagraph (iii) of this paragraph. Fair
market value for the purposes of this paragraph shall be six times the
annual gross rent. The collection of any increase in the stabilized rent
for any apartment pursuant to this paragraph shall not exceed six
percent in any year from the effective date of the order granting the
increase over the rent set forth in the schedule of gross rents, with
collectability of any dollar excess above said sum to be spread forward
in similar increments and added to the stabilized rent as established or
set in future years;
(6-a) provides criteria whereby as an alternative to the hardship
application provided under paragraph six of this subdivision owners of
buildings acquired by the same owner or a related entity owned by the
same principals three years prior to the date of application may apply
to the division for increases in excess of the level of applicable
guideline increases established under this law based on a finding by the
commissioner that such guideline increases are not sufficient to enable
the owner to maintain an annual gross rent income for such building
which exceeds the annual operating expenses of such building by a sum
equal to at least five percent of such gross rent. For the purposes of
this paragraph, operating expenses shall consist of the actual,
reasonable, costs of fuel, labor, utilities, taxes, other than income or
corporate franchise taxes, fees, permits, necessary contracted services
and non-capital repairs, insurance, parts and supplies, management fees
and other administrative costs and mortgage interest. For the purposes
of this paragraph, mortgage interest shall be deemed to mean interest on
a bona fide mortgage including an allocable portion of charges related
thereto. Criteria to be considered in determining a bona fide mortgage
other than an institutional mortgage shall include; condition of the
property, location of the property, the existing mortgage market at the
time the mortgage is placed, the term of the mortgage, the amortization
rate, the principal amount of the mortgage, security and other terms and
conditions of the mortgage. The commissioner shall set a rental value
for any unit occupied by the owner or a person related to the owner or
unoccupied at the owner's choice for more than one month at the last
regulated rent plus the minimum number of guidelines increases or, if no
such regulated rent existed or is known, the commissioner shall impute a
rent consistent with other rents in the building. The amount of hardship
increase shall be such as may be required to maintain the annual gross
rent income as provided by this paragraph. The division shall not grant
a hardship application under this paragraph or paragraph six of this
subdivision for a period of three years subsequent to granting a
hardship application under the provisions of this paragraph. The
collection of any increase in the rent for any housing accommodation
pursuant to this paragraph shall not exceed six percent in any year from
the effective date of the order granting the increase over the rent set
forth in the schedule of gross rents, with collectability of any dollar
excess above said sum to be spread forward in similar increments and
added to the rent as established or set in future years. No application
shall be approved unless the owner's equity in such building exceeds
five percent of: (i) the arms length purchase price of the property;
(ii) the cost of any capital improvements for which the owner has not
collected a surcharge; (iii) any repayment of principal of any mortgage
or loan used to finance the purchase of the property or any capital
improvements for which the owner has not collected a surcharge and (iv)
any increase in the equalized assessed value of the property which
occurred subsequent to the first valuation of the property after
purchase by the owner. For the purposes of this paragraph, owner's
equity shall mean the sum of (i) the purchase price of the property less
the principal of any mortgage or loan used to finance the purchase of
the property, (ii) the cost of any capital improvement for which the
owner has not collected a surcharge less the principal of any mortgage
or loan used to finance said improvement, (iii) any repayment of the
principal of any mortgage or loan used to finance the purchase of the
property or any capital improvement for which the owner has not
collected a surcharge, and (iv) any increase in the equalized assessed
value of the property which occurred subsequent to the first valuation
of the property after purchase by the owner.
(7) establishes a fair and consistent formula for allocation of rental
adjustment to be made upon granting of an increase by the commissioner;
(8) requires owners to maintain all services furnished by them on May
thirty-first, nineteen hundred sixty-eight, or as otherwise provided by
law, in connection with the leasing of the dwelling units covered by
this law;
(9) provides that an owner shall not refuse to renew a lease except:
(a) where he or she intends in good faith to demolish the building and
has obtained a permit therefor from the department of buildings; or
(b) where he or she seeks to recover possession of one or more
dwelling units for his or her own personal use and occupancy as his or
her primary residence in the city of New York and/or for the use and
occupancy of a member of his or her immediate family as his or her
primary residence in the city of New York, provided however, that this
subparagraph shall not apply where a tenant or the spouse of a tenant
lawfully occupying the dwelling unit is sixty-two years of age or older,
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, unless such owner offers to provide and
if requested, provides an equivalent or superior housing accommodation
at the same or lower stabilized rent in a closely proximate area. The
provisions of this subparagraph shall only permit one of the individual
owners of any building to recover possession of one or more dwelling
units for his or her own personal use and/or for that of his or her
immediate family. Any dwelling unit recovered by an owner pursuant to
this subparagraph shall not for a period of three years be rented,
leased, subleased or assigned to any person other than a person for
whose benefit recovery of the dwelling unit is permitted pursuant to
this subparagraph or to the tenant in occupancy at the time of recovery
under the same terms as the original lease. This subparagraph shall not
be deemed to establish or eliminate any claim that the former tenant of
the dwelling unit may otherwise have against the owner. Any such rental,
lease, sublease or assignment during such period to any other person may
be subject to a penalty of a forfeiture of the right to any increases in
residential rents in such building for a period of three years; or
(c) where the housing accommodation is owned by a hospital, convent,
monastery, asylum, public institution, college, school dormitory or any
institution operated exclusively for charitable or educational purposes
on a non-profit basis and either:
(i) the tenant's initial tenancy commenced after the owner acquired
the property and the owner requires the unit in connection with its
charitable or educational purposes including, but not limited to,
housing for affiliated persons; provided that with respect to any tenant
whose right to occupancy commenced prior to July first, nineteen hundred
seventy-eight pursuant to a written lease or written rental agreement
and who did not receive notice at the time of the execution of the lease
that his or her tenancy was subject to non-renewal, the institution
shall not have the right to refuse to renew pursuant to this
subparagraph; provided further that a tenant who was affiliated with the
institution at the commencement of his or her tenancy and whose
affiliation terminates during such tenancy shall not have the right to a
renewal lease; or
(ii) the owner requires the unit for a non-residential use in
connection with its charitable or educational purposes; or
(d) on specified grounds set forth in the code consistent with the
purposes of this law; or
(e) where a tenant violates the provisions of paragraph twelve of this
subdivision.
(9-a) provides that where an owner has submitted to and the attorney
general has accepted for filing an offering plan to convert the building
to cooperative or condominium ownership and the owner has presented the
offering plan to the tenants in occupancy, any renewal or vacancy lease
may contain a provision that if a building is converted to cooperative
or condominium ownership pursuant to an eviction plan, as provided in
section three hundred fifty-two-eeee of the general business law, the
lease may only be cancelled upon the expiration of three years after the
plan has been declared effective, and upon ninety days notice to the
tenant that such period has expired or will be expiring.
(10) specifically provides that if an owner fails to comply with any
order of the commissioner or is found by the commissioner to have
harassed a tenant to obtain vacancy of his or her housing accommodation,
he or she shall, in addition to being subject to any other penalties or
remedies permitted by law, be barred thereafter from applying for or
collecting any further rent increase. The compliance by the owner with
the order of the commissioner or the restoration of the tenant subject
to harassment to the housing accommodation or compliance with such other
remedy as shall be determined by the commissioner to be appropriate
shall result in the prospective elimination of such sanctions;
(11) includes provisions which may be peculiarly applicable to hotels
including specifically that no owner shall refuse to extend or renew a
tenancy for the purpose of preventing a hotel tenant from becoming a
permanent tenant; and
(12) permits subletting of units subject to this law pursuant to
section two hundred twenty-six-b of the real property law provided that
(a) the rental charged to the subtenant does not exceed the stabilized
rent plus a ten percent surcharge payable to the tenant if the unit
sublet was furnished with the tenant's furniture; (b) the tenant can
establish that at all times he or she has maintained the unit as his or
her primary residence and intends to occupy it as such at the expiration
of the sublease; (c) an owner may terminate the tenancy of a tenant who
sublets or assigns contrary to the terms of this paragraph but no action
or proceeding based on the non-primary residence of a tenant may be
commenced prior to the expiration date of his or her lease; (d) where an
apartment is sublet the prime tenant shall retain the right to a renewal
lease and the rights and status of a tenant in occupancy as they relate
to conversion to condominium or cooperative ownership; (e) where a
tenant violates the provisions of subparagraph (a) of this paragraph the
subtenant shall be entitled to damages of three times the overcharge and
may also be awarded attorneys fees and interest from the date of the
overcharge at the rate of interest payable on a judgment pursuant to
section five thousand four of the civil practice law and rules; (f) the
tenant may not sublet the unit for more than a total of two years,
including the term of the proposed sublease, out of the four-year period
preceding the termination date of the proposed sublease. The provisions
of this subparagraph shall only apply to subleases commencing on and
after July first, nineteen hundred eighty-three; (g) for the purposes of
this paragraph only, the term of the proposed sublease may extend beyond
the term of the tenant's lease. In such event, such sublease shall be
subject to the tenant's right to a renewal lease. The subtenant shall
have no right to a renewal lease. It shall be unreasonable for an owner
to refuse to consent to a sublease solely because such sublease extends
beyond the tenant's lease; and (h) notwithstanding the provisions of
section two hundred twenty-six-b of the real property law, a
not-for-profit hospital shall have the right to sublet any housing
accommodation leased by it to its affiliated personnel without requiring
the landlord's consent to any such sublease and without being bound by
the provisions of subparagraphs (b), (c) and (f) of this paragraph.
Commencing with the effective date of this subparagraph, whenever a
not-for-profit hospital executes a renewal lease for a housing
accommodation, the legal regulated rent shall be increased by a sum
equal to fifteen percent of the previous lease rental for such housing
accommodation, hereinafter referred to as a vacancy surcharge, unless
the landlord shall have received within the seven year period prior to
the commencement date of such renewal lease any vacancy increases or
vacancy surcharges allocable to the said housing accommodation. In the
event the landlord shall have received any such vacancy increases or
vacancy surcharges during such seven year period, the vacancy surcharge
shall be reduced by the amount received by any such vacancy increase or
vacancy surcharges.
(13) provides that an owner is entitled to a rent increase where there
has been a substantial modification or increase of dwelling space or an
increase in the services, or installation of new equipment or
improvements or new furniture or furnishings provided in or to a
tenant's housing accommodation, on written tenant consent to the rent
increase. In the case of a vacant housing accommodation, tenant consent
shall not be required. The permanent increase in the legal regulated
rent for the affected housing accommodation shall be 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 permanent increase 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 paragraph 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.
(14) provides that where the amount of rent charged to and paid by the
tenant is less than the legal regulated rent for the housing
accommodation, the amount of rent for such housing accommodation which
may be charged upon renewal or upon vacancy thereof may, at the option
of the owner, be based upon such previously established legal regulated
rent, as adjusted by the most recent applicable guidelines increases and
any other increases authorized by law. Where, subsequent to vacancy,
such legal regulated rent, as adjusted by the most recent applicable
guidelines increases and any other increases authorized by law is 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
act of 2011, is two thousand five hundred dollars or more per month,
such housing accommodation shall be excluded from the provisions of this
law pursuant to section 26-504.2 of this chapter.
d. (1) Each owner subject to the rent stabilization law shall furnish
to each tenant signing a new or renewal lease, a rider describing the
rights and duties of owners and tenants as provided for under the rent
stabilization law of nineteen hundred sixty-nine. Such publication shall
conform to the intent of section 5-702 of the general obligations law
and shall be attached as an addendum to the lease. Upon the face of each
lease, in bold print, shall appear the following: "Attached to this
lease are the pertinent rules and regulations governing tenants and
landlords' rights under the rent stabilization law of nineteen hundred
sixty-nine".
(2) The rider shall be in a form promulgated by the commissioner in
larger type than the lease and shall be utilized as provided in
paragraph one of this subdivision.
e. Each owner of premises subject to the rent stabilization law shall
furnish to each tenant signing a new or renewal lease, a copy of the
fully executed new or renewal lease bearing the signatures of owner and
tenant and the beginning and ending dates of the lease term, within
thirty days from the owner's receipt of the new or renewal lease signed
by the tenant.
* NB Expires April 1, 2015
Section 26-512
* § 26-512 Stabilization provisions. a. No owner of property subject
to this law shall charge or collect any rent in excess of the initial
legal regulated rent or adjusted initial legal regulated rent until the
end of any lease or other rental agreement in effect on the local
effective date until such time as a different legal regulated rent shall
be authorized pursuant to guidelines adopted by a rent guidelines board.
b. The initial regulated rent for housing accommodations subject to
this law on the local effective date of the emergency tenant protection
act of nineteen seventy-four or which become subject to this law
thereafter, pursuant to such act, shall be:
(1) For housing accommodations which were regulated pursuant to this
law or the city rent and rehabilitation law prior to July first,
nineteen hundred seventy-one, and which became vacant on or after such
date and prior to the local effective date of the emergency tenant
protection act of nineteen seventy-four, the rent reserved in the last
effective lease or other rental agreement; provided that such initial
rent may be adjusted on application of the tenant pursuant to
subdivision b of section 26-513 of this chapter.
(2) For housing accommodations which were regulated pursuant to the
city rent and rehabilitation law on the local effective date of the
emergency tenant protection act of nineteen seventy-four, and thereafter
become vacant, the rent agreed to by the landlord and the tenant and
reserved in a lease or provided for in a rental agreement; provided that
such initial rent may be adjusted on application of the tenant pursuant
to subdivision b of section 26-513 of this chapter.
(3) For housing accommodations other than those described in
paragraphs one and two of this subdivision, the rent reserved in the
last effective lease or other rental agreement.
(4) For any plot or parcel of land which had been regulated pursuant
to the city rent and rehabilitation law prior to July first, nineteen
hundred seventy-one and which,
(i) became vacant on or after July first, nineteen hundred seventy-one
and prior to July first, nineteen hundred seventy-four, the rent
reserved in a lease or other rental agreement in effect on June
thirtieth, nineteen hundred seventy-four plus increases authorized by
the rent guidelines board under this law for leases or other rental
agreements commencing thereafter; provided that such initial rent may be
adjusted on application of the tenant pursuant to subdivision b of
section 26-513 of this chapter or,
(ii) became vacant on or after July first, nineteen hundred
seventy-four, the rent agreed to by the landlord and the tenant and
reserved in a lease or other rental agreement plus increases authorized
by the rent guidelines board under this law for leases or other rental
agreements commencing thereafter; provided that such initial rent may be
adjusted on application of the tenant pursuant to subdivision b of
section 26-513 of this chapter.
(iii) Where the commissioner has determined that the rent charged is
in excess of the lawful rents as stated in subparagraph (i) or (ii)
hereof, plus lawful increases thereafter, he or she shall provide for a
cash refund or a credit, to be applied against future rent, in the
amount of any rent overcharge collected by an owner and any penalties,
costs, attorneys' fees and interest from the date of the overcharge at
the rate of interest payable on a judgment pursuant to section five
thousand four of the civil practice law and rules for which the owner is
assessed.
c. With respect to accommodations for which the initial legal
regulated rent is governed by paragraph two of subdivision b hereof, no
increase of such initial legal regulated rent pursuant to annual
guidelines adopted by the rent guidelines board shall become effective
until the expiration of the first lease or rental agreement taking
effect after the local effective date of the emergency tenant protection
act of nineteen seventy-four, but in no event before one year after the
commencement of such rental agreement.
d. With respect to accommodations, other than those referred to in
subdivision c, for which a lease is entered into after the local
effective date of the emergency tenant protection act of nineteen
seventy-four, but before the effective date of the first guidelines
applicable to such accommodations, the lease may provide for an
adjustment of rent pursuant to such guidelines to be effective on the
first day of the month next succeeding the effective date of such
guidelines.
e. Notwithstanding any contrary provisions of this law, on and after
July first, nineteen hundred eighty-four, the legal regulated rent
authorized for a housing accommodation subject to the provisions of this
law shall be the rent registered pursuant to section 26-517 of this
chapter subject to any modification imposed pursuant to this law.
f. Notwithstanding any provision of this law to the contrary in the
case where all tenants named in a lease have permanently vacated a
housing accommodation and a family member of such tenant or tenants is
entitled to and executes a renewal lease for the housing accommodation
if such accommodation continues to be subject to this law after such
family member vacates, on the occurrence of such vacancy the legal
regulated rent shall be increased by a sum equal to the allowance then
in effect for vacancy leases, including the amount allowed by paragraph
(five-a) of subdivision c of section 26-511 of this law. Such 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 modification or increase of dwelling space or services, or
installation of new equipment or improvements or new furniture or
furnishings provided in or to the housing accommodation pursuant to
section 26-511 of this law and shall be applicable in like manner to
each second subsequent succession.
* NB Expires April 1, 2015
Section 26-513
* § 26-513 Application for adjustment of initial rent. a. The tenant
or owner of a housing accommodation made subject to this law by the
emergency tenant protection act of nineteen seventy-four may, within
sixty days of the local effective date of this section or the
commencement of the first tenancy thereafter, whichever is later, file
with the commissioner an application for adjustment of the initial legal
regulated rent for such housing accommodation. The commissioner may
adjust such initial legal regulated rent upon a finding that the
presence of unique or peculiar circumstances materially affecting the
initial legal regulated rent has resulted in a rent which is
substantially different from the rents generally prevailing in the same
area for substantially similar housing accommodations.
b. 1. The tenant of a housing accommodation that was regulated
pursuant to the city rent and rehabilitation law or this law prior to
July first, nineteen hundred seventy-one and that became vacant on or
after January first, nineteen hundred seventy-four may file with the
commissioner within ninety days after notice has been received pursuant
to subdivision d of this section, an application for adjustment of the
initial legal regulated rent for such housing accommodation. Such tenant
need only allege that such rent is in excess of the fair market rent and
shall present such facts which, to the best of his or her information
and belief, support such allegation. The rent guidelines board shall
promulgate as soon as practicable after the local effective date of the
emergency tenant protection act of nineteen seventy-four guidelines for
the determination of fair market rents for housing accommodations as to
which any application may be made pursuant to this subdivision. In
rendering a determination on an application filed pursuant to this
subdivision b the commissioner shall be guided by such guidelines and by
the rents generally prevailing in the same area for substantially
similar housing accommodations. Where the commissioner has determined
that the rent charged is in excess of the fair market rent he or she
shall, in addition to any other penalties or remedies permitted by law,
order a refund of any excess paid since January first, nineteen hundred
seventy-four or the date of the commencement of the tenancy, whichever
is later. Such refund shall be made by the landlord in cash or as a
credit against future rents over a period not in excess of six months.
2. The provisions of paragraph one of this subdivision shall not apply
to a tenant of a housing accommodation for which the initial legal
regulated rent is no greater than the maximum rent that would have been
in effect under this law on December thirty-first, nineteen hundred
seventy-three, or for the period commencing January first, nineteen
hundred seventy-four and ending December thirty-first, nineteen hundred
seventy-five as calculated pursuant to the city rent and rehabilitation
law (if no such maximum rent has been calculated for a particular unit
for the period commencing January first, nineteen hundred seventy-four
and ending December thirty-first, nineteen hundred seventy-five, the
division of housing and community renewal shall calculate such a rent),
as the case may be, if such apartment had not become vacant on or after
January first, nineteen hundred seventy-four, plus the amount of any
adjustment which would have been authorized under this law for renewal
leases or other rental agreement, whether or not such housing
accommodation was subject to this law, for leases or other rental
agreements commencing on or after July first, nineteen hundred
seventy-four.
c. Upon receipt of any application filed pursuant to this section, the
commissioner shall notify the owner or tenant, as the case may be, and
provide a copy to him or her of such application. Such owner or tenant
shall be afforded a reasonable opportunity to respond to the
application. A hearing may be held upon the request of either party, or
the commissioner may hold a hearing on his or her own motion. The
commissioner shall issue a written opinion to both the tenant and the
owner upon rendering his or her determination.
d. Within thirty days after the local effective date of the emergency
tenant protection act of nineteen seventy-four the owner of housing
accommodations as to which an application for adjustment of the initial
legal regulated rent may be made pursuant to subdivision b of this
section shall give notice in writing by certified mail to the tenant of
each such housing accommodation on a form prescribed by the commissioner
of the initial legal regulated rent for such housing accommodation, the
maximum rent at the time such housing accommodation became vacant and of
such tenant's right to file an application for adjustment of the initial
legal regulated rent of such housing accommodation.
e. Notwithstanding any contrary provision in this law an application
for an adjustment pursuant to this section must be filed within ninety
days from the initial registration. This subdivision shall not extend
any other time limitations imposed by this law.
* NB Expires April 1, 2015
Section 26-514
* § 26-514 Maintenance of services. In order to collect a rent
adjustment authorized pursuant to the provisions of subdivision d of
section 26-510 of this chapter an owner must file with the state
division of housing and community renewal, on a form which the
commissioner shall prescribe, a written certification that he or she is
maintaining and will continue to maintain all services furnished on the
date upon which the emergency tenant protection act of nineteen
seventy-four becomes a law or required to be furnished by any state law
or local law, ordinance or regulation applicable to the premises. In
addition to any other remedy afforded by law, any tenant may apply to
the state division of housing and community renewal, for a reduction in
the rent to the level in effect prior to its most recent adjustment and
for an order requiring services to be maintained as provided in this
section, and the commissioner shall so reduce the rent if it is found
that the owner has failed to maintain such services. The owner shall
also be barred from applying for or collecting any further rent
increases. The restoration of such services shall result in the
prospective elimination of such sanctions. The owner shall be supplied
with a copy of the application and shall be permitted to file an answer
thereto. A hearing may be held upon the request of either party, or the
commissioner may hold a hearing upon his or her own motion. The
commissioner may consolidate the proceedings for two or more petitions
applicable to the same building or group of buildings or development. If
the commissioner finds that the owner has knowingly filed a false
certification, it shall, in addition to abating the rent, assess the
owner with the reasonable costs of the proceeding, including reasonable
attorneys' fees, and impose a penalty not in excess of two hundred fifty
dollars for each false certification. The amount of the reduction in
rent ordered by the state division of housing and community renewal
under this subdivision 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.
* NB Expires April 1, 2015
Section 26-515
* § 26-515 Recovery of possession. a. An owner seeking to recover
possession pursuant to subparagraph (c) of paragraph nine of subdivision
c of section 26-511 of this chapter shall notify the tenant in occupancy
not more than one hundred fifty and not less than one hundred twenty
days prior to the end of the tenant's lease term, by mail, of such
owner's intention not to renew such lease in order to recover the
dwelling unit for its charitable or educational purposes. The owner may
give such notice within one hundred twenty days of the expiration of the
tenant's lease term, provided it may not commence a summary proceeding
to recover the dwelling unit until the expiration of one hundred twenty
days from the giving of such notice and, provided, further, that the
tenant may remain in occupancy until the commencement of such proceeding
at the same rent and upon the same terms and conditions as were provided
in his or her expired lease. The notice of intention not to renew the
tenant's lease shall be accompanied by a notice on a form prescribed by
the division of housing and community renewal setting forth the
penalties to which an owner may be subject for his or her failure to
utilize the tenant's dwelling unit for the charitable or educational
purpose for which recovery of the dwelling unit is sought.
b. If any owner who recovers a dwelling unit pursuant to such
subparagraph (c), or any successor in interest, utilizes such unit for
purposes other than those permitted under such subparagraph, then such
owner or successor shall, unless for good cause shown, be liable to the
removed 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 such tenant commences such action within three
years from the date of recovery of the unit. The damages sustained by
such tenant shall be the difference between the rent paid by such tenant
for the recovered dwelling unit, and the rental value of a comparable
rent regulated dwelling unit on the open market. In addition to any
other damage, the reasonable cost of removal of the tenant's property
shall be a lawful measure of damages.
c. Where a dwelling unit has been recovered pursuant to such
subparagraph (c) and within four years of such recovery is rented to a
person or entity for purposes other than those permitted pursuant to
such subparagraph (c), unless for good cause shown, the rent charged by
such owner or any successor in interest for four years following such
recovery shall not exceed the last regulated rent payable prior to such
recovery.
d. If the owner is found by the commissioner, to have recovered
possession of a dwelling unit pursuant to such subparagraph (c) and
within four years of such recovery such owner or any successor in
interest shall have utilized such unit for purposes other than those
permitted pursuant to such subparagraph (c), unless for good cause
shown, the commissioner shall impose upon such owner or successor in
interest, by administrative order after hearing, a civil penalty for any
such violation. Such penalty shall be in an amount of up to one thousand
dollars for each offense. Such order shall be deemed a final
determination for the purposes of judicial review. Such penalty may,
upon the expiration of the period for seeking review pursuant to article
seventy-eight of the civil practice law and rules, be docketed and
enforced in the manner of a judgment of the supreme court.
* NB Expires April 1, 2015
Section 26-516
* § 26-516 Enforcement and procedures. a. Subject to the conditions
and limitations of this subdivision, any owner of housing accommodations
who, upon complaint of a tenant, or of the state division of housing and
community renewal, is found by the state division of housing and
community renewal, after a reasonable opportunity to be heard, to have
collected an overcharge above the rent authorized for a housing
accommodation subject to this chapter shall be liable to the tenant for
a penalty equal to three times the amount of such overcharge. In no
event shall such treble damage penalty be assessed against an owner
based solely on said owner's failure to file a timely or proper initial
or annual rent registration statement. If the owner establishes by a
preponderance of the evidence that the overcharge was not willful, the
state division of housing and community renewal shall establish the
penalty as the amount of the overcharge plus interest. (i) Except as to
complaints filed pursuant to clause (ii) of this paragraph, the legal
regulated rent for purposes of determining an overcharge, shall be the
rent indicated in the annual registration statement filed four years
prior to the most recent registration statement, (or, if more recently
filed, the initial registration statement) plus in each case any
subsequent lawful increases and adjustments. Where the amount of rent
set forth in the annual rent registration statement filed four years
prior to the most recent registration statement is not challenged within
four years of its filing, neither such rent nor service of any
registration shall be subject to challenge at any time thereafter.
(ii) As to complaints filed within ninety days of the initial
registration of a housing accommodation, the legal regulated rent shall
be deemed to be the rent charged on the date four years prior to the
date of the initial registration of the housing accommodation (or, if
the housing accommodation was subject to this chapter for less than four
years, the initial legal regulated rent) plus in each case, any lawful
increases and adjustments. Where the rent charged on the date four years
prior to the date of the initial registration of the accommodation
cannot be established, such rent shall be established by the division.
Where the rent charged on the date four years prior to the date of
initial registration of the housing accommodation cannot be established,
such rent shall be established by the division provided that where a
rent is established based on rentals determined under the provisions of
the local emergency housing rent control act such rent must be adjusted
to account for no less than the minimum increases which would be
permitted if the housing accommodation were covered under the provisions
of this chapter. Where the amount of rent set forth in the annual rent
registration statement filed four years prior to the most recent
registration statement is not challenged within four years of its
filing, neither such rent nor service of any registration shall be
subject to challenge at any time thereafter.
(1) The order of the state division of housing and community renewal
shall apportion the owner's liability between or among two or more
tenants found to have been overcharged by such owner during their
particular tenancy of a unit.
(2) Except as provided under clauses (i) and (ii) of this paragraph, a
complaint under this subdivision shall be filed with the state division
of housing and community renewal within four years of the first
overcharge alleged and no determination of an overcharge and no award or
calculation of an award of the amount of an overcharge may be based upon
an overcharge having occurred more than four years before the complaint
is filed. (i) No penalty of three times the overcharge may be based upon
an overcharge having occurred more than two years before the complaint
is filed or upon an overcharge which occurred prior to April first,
nineteen hundred eighty-four. (ii) Any complaint based upon overcharges
occurring prior to the date of filing of the initial rent registration
as provided in section 26-517 of this chapter shall be filed within
ninety days of the mailing of notice to the tenant of such registration.
This paragraph shall preclude examination of the rental history of the
housing accommodation prior to the four-year period preceding the filing
of a complaint pursuant to this subdivision.
(3) Any affected tenant shall be notified of and given an opportunity
to join in any complaint filed by an officer or employee of the state
division of housing and community renewal.
(4) An owner found to have overcharged may be assessed the reasonable
costs and attorney's fees of the proceeding and interest from the date
of the overcharge at the rate of interest payable on a judgment pursuant
to section five thousand four of the civil practice law and rules.
(5) The order of the state division of housing and community renewal
awarding penalties may, upon the expiration of the period in which the
owner may institute a proceeding pursuant to article seventy-eight of
the civil practice law and rules, be filed and enforced by a tenant in
the same manner as a judgment or not in excess of twenty percent thereof
per month may be offset against any rent thereafter due the owner.
b. In addition to issuing the specific orders provided for by other
provisions of this law, the state division of housing and community
renewal shall be empowered to enforce this law and the code by issuing,
upon notice and a reasonable opportunity for the affected party to be
heard, such other orders as it may deem appropriate.
c. If the owner is found by the commissioner:
(1) to have violated an order of the division the commissioner may
impose by administrative order after hearing, a civil penalty in the
amount of one thousand dollars for the first such offense and two
thousand dollars for each subsequent offense; or
** (2) to have harassed a tenant to obtain vacancy of his or her
housing accommodation, the commissioner may impose by administrative
order after hearing, a civil penalty for any such violation. Such
penalty shall be in the amount of two thousand dollars for a first such
offense and up to ten thousand dollars for each subsequent offense or
for a violation consisting of conduct directed at the tenants of more
than one housing accommodation.
** NB Effective until June 16, 2015
** (2) to have harassed a tenant to obtain vacancy of his or her
housing accommodation, the commissioner may impose by administrative
order after hearing, a civil penalty for any such violation. Such
penalty shall be in the amount of two thousand dollars for a first such
offense and up to ten thousand dollars for each subsequent offense or
for a violation consisting of conduct directed at the tenants of more
than one housing accommodation.
** NB Effective June 16, 2015
Such order shall be deemed a final determination for the purposes of
judicial review. Such penalty may, upon the expiration of the period for
seeking review pursuant to article seventy-eight of the civil practice
law and rules, be docketed and enforced in the manner of a judgment of
the supreme court.
d. Any proceeding pursuant to article seventy-eight of the civil
practice law and rules seeking review of any action pursuant to this
chapter shall be brought within sixty days of the expiration of the
ninety day period and any extension thereof provided in subdivision h of
this section or the rendering of a determination, whichever is later.
Any action or proceeding brought by or against the commissioner under
this law shall be brought in the county in which the housing
accommodation is located.
e. Violations of this law, or of the code and orders issued pursuant
thereto may be enjoined by the supreme court upon proceedings commenced
by the state division of housing and community renewal which shall not
be required to post bond.
f. In furtherance of its responsibility to enforce this law, the state
division of housing and community renewal shall be empowered to
administer oaths, issue subpoenas, conduct investigations, make
inspections and designate officers to hear and report. The division
shall safeguard the confidentiality of information furnished to it at
the request of the person furnishing same, unless such information must
be made public in the interest of establishing a record for the future
guidance of persons subject to this law.
g. Any owner who has duly registered a housing accommodation pursuant
to section 26-517 of this chapter shall not be required to maintain or
produce any records relating to rentals of such accommodation for more
than four years prior to the most recent registration or annual
statement for such accommodation.
h. The state division of housing and community renewal may, by
regulation, provide for administrative review of all orders and
determinations issued by it pursuant to this chapter. Any such
regulation shall provide that if a petition for such review is not
determined within ninety days after it is filed, it shall be deemed to
be denied. However, the division may grant one extension not to exceed
thirty days with the consent of the party filing such petition; any
further extension may only be granted with the consent of all parties to
the petition. 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 administrative review 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
petition for review (or any extension thereof) has expired.
* NB Expires April 1, 2015
Section 26-517
* § 26-517 Rent registration. a. Each housing accommodation which is
subject to this law shall be registered by the owner thereof with the
state division of housing and community renewal prior to July first,
nineteen hundred eighty-four upon forms prescribed by the commissioner.
The data to be provided on such forms shall include the following: (1)
the name and address of the building or group of buildings or
development in which such housing accommodation is located and the owner
and the tenant thereof; (2) the number of housing accommodations in the
building or group of buildings or development in which such housing
accommodation is located; (3) the number of housing accommodations in
such building or group of buildings or development subject to this code
and the number of such housing accommodations subject to the local
emergency housing rent control act; (4) the rent charged on the
registration date; (5) the number of rooms in such housing
accommodation; and (6) all services provided on the date that the
housing accommodation became subject to this chapter.
a-1. Within thirty days of changing his address, the managing agent
or, if there is no managing agent, the owner, of a building or group of
buildings or development, such agent or owner shall advise the state
division of housing and community renewal and all tenants of his new
address.
b. Registration pursuant to this section shall not be subject to the
freedom of information law provided that registration information
relative to a tenant, owner, lessor or subtenant shall be made available
to such party or his or her authorized representative.
c. Housing accommodations which become subject to this chapter after
the initial registration period must be registered within ninety days
thereafter. Registration of housing accommodations subject to the local
emergency housing rent control act immediately prior to the date of
initial registration as provided in this section shall include, in
addition to the items listed above, where existing, the maximum base
rent immediately prior to the date that such housing accommodations
become subject to this chapter.
d. Copies of the registration shall be filed with the state division
of housing and community renewal in such place or places as it may
require. In addition, one copy of that portion of the registration
statement which pertains to the tenant's unit must be mailed by the
owner to the tenant in possession at the time of initial registration or
to the first tenant in occupancy if the apartment is vacant at the time
of initial registration.
e. The failure to file a proper and timely initial or annual rent
registration statement shall, until such time as such registration is
filed, bar an owner from applying for or collecting any rent in excess
of the legal regulated rent in effect on the date of the last preceding
registration statement or if no such statements have been filed, the
legal regulated rent in effect on the date that the housing
accommodation became subject to the registration requirements of this
section. The filing of a late registration shall result in the
prospective elimination of such sanctions and provided that increases in
the legal regulated rent were lawful except for the failure to file a
timely registration, the owner, upon the service and filing of a late
registration, shall not be found to have collected an overcharge at any
time prior to the filing of the late registration. If such late
registration is filed subsequent to the filing of an overcharge
complaint, the owner shall be assessed a late filing surcharge for each
late registration in an amount equal to fifty percent of the timely rent
registration fee.
f. An annual statement shall be filed containing the current rent for
each unit and such other information contained in subdivision a of this
section as shall be required by the division. The owner shall provide
each tenant then in occupancy with a copy of that portion of such annual
statement as pertains to the tenant's unit.
g. Each housing accommodation for which a timely registration
statement was filed between April first, nineteen hundred eighty-four
and June thirtieth, nineteen hundred eighty-four, pursuant to
subdivision a of this section shall designate the rent charged on April
first, nineteen hundred eighty-four, as the rent charged on the
registration date.
* NB Expires April 1, 2015
Section 26-517.1
* § 26-517.1 Fees. a. The Department of Finance shall collect from the
owner of each housing accommodation registered pursuant to Section
26-517 of this law an annual fee in the amount of ten dollars per year
for each unit subject to this law, in order to defray costs incurred by
the city pursuant to subdivision c of section eight of the emergency
tenant protection act of nineteen hundred seventy-four.
b. (1) Pursuant to the provisions of subdivision d of section eight of
the emergency tenant protection act of nineteen seventy-four, the
failure to pay the fee imposed by the provisions of subdivision a of
this section shall constitute a charge due and owing the city. All such
fees due and owing the city shall constitute a debt recoverable from the
owner and the city may commence an action or proceeding for the recovery
of such fees or may file a lien upon the building and lot. If the
payment of such fees is not received by the city within sixty days of
the date contained in the written notice requesting such payment, the
city shall provide a second written notice to the owner setting forth
the amount of fees due and owing the city and a demand for payment
within thirty days thereof.
(2) If such payment is not made to the city within such time, all
unpaid fees shall constitute a lien upon the premises and shall be filed
in the office of the city collector as an entry of the account stated in
the book in which such charges against the premises are to be entered.
Such lien shall have priority over all other liens and encumbrances on
the premises except for the lien of taxes and assessments. However, no
lien created pursuant to this subdivision against any premises shall be
enforced against an owner or mortgagee of such premises who acquired in
good faith an interest therein subsequent to the period for which the
fee was imposed but prior to the creation of any such lien.
(3) A notice pursuant to paragraph one of this subdivision, stating
the amount due and the nature of the charge, shall be mailed by the city
collector, within five days after such entry, to the last known address
of the owner or agent.
(4) If such charge is not paid within thirty days from the date of
entry, it shall be the duty of the city collector to receive interest
thereon at the same rate as is imposed on a delinquent tax on real
property, to be calculated to the date of payment from the date of
entry.
(5) Such charge and the interest thereon shall continue to be, until
paid, a lien on the premises. Such lien shall be a tax lien within the
meaning of sections 11-319 and 11-401 of this code and may be sold,
enforced or foreclosed in the manner provided in chapters three and four
of title eleven of this code.
(6) The provisions set forth in this subdivision shall be the sole
remedy for the enforcement of this section.
c. The provisions of subdivision a of this section shall be deemed to
have been in full force and effect as of April first, nineteen hundred
eighty-four.
* NB Expires April 1, 2015
Section 26-518
* § 26-518 Hotel industry stabilization association. a. The hotel
industry stabilization association registered with the department of
housing preservation and development is hereby divested of all its
powers and authority under this law. The stabilization code heretofore
promulgated by such association, as approved by the department of
housing preservation and development, is hereby continued to the extent
that it is not inconsistent with law. Such code may be amended from time
to time provided, however, that no such amendments shall be promulgated
except by action of the commissioner of the division of housing and
community renewal and provided further, that prior to the adoption of
any such amendments, the commissioner shall (i) submit the proposed
amendments to the commissioner of the department of housing preservation
and development and allow such commissioner thirty days to make comments
or recommendations on the proposed amendments, (ii) review the comments
or recommendations, if any, made pursuant to clause (i) of this
subdivision and make any revisions to the proposed amendments which the
commissioner of the division of housing and community renewal deems
appropriate provided that any such review and revision shall be
completed within thirty days of receipt of such comments or
recommendations and (iii) thereafter hold a public hearing on the
proposed amendments. No provision of such code shall impair or diminish
any right or remedy granted to any party by this law or any other
provision of law.
b. A code shall not be approved hereunder unless it appears to the
commissioner of the division of housing and community renewal that it
provides for a cash refund or a credit to be applied against future
rent, in the amount of the excess, if any, of rent paid since January
first, nineteen hundred sixty-nine, over the permissible fair increase,
and that it gives a hotel tenant the right to request a six month lease
at the permissible rent rate within thirty days of the approval of such
code, or, if his or her tenancy commences after such thirty day period,
within thirty days of the commencement of his or her tenancy, and that
is in compliance with the standards set forth in subdivision c of
section 26-511 to the extent such standards are applicable to the hotel
industry, and that it provides specifically that no owner shall refuse
to extend or renew a tenancy for the purpose of preventing a hotel
tenant from becoming a permanent tenant.
c. Each landlord who is made subject to this law pursuant to section
26-505 or 26-506 of this code shall furnish to each permanent tenant
signing a new or renewal lease, a rider describing the rights and duties
of owners and tenants as provided under the rent stabilization law of
nineteen hundred sixty-nine. Such rider shall be in a form promulgated
by the commissioner and shall conform to the intent of section 5-702 of
the general obligations law and shall be in a print size larger than the
print size of the lease to which the rider is attached.
* NB Expires April 1, 2015
Section 26-519
* § 26-519 Suspension of registration. The department of housing
preservation and development may, after notice and opportunity for
hearing, suspend the registration of an association if it finds that the
articles, code, rules or other conduct thereof do not conform to the
requirements of this law and any such suspension shall remain in effect
until such administration issues an order determining that such
articles, rules, code or other conduct have been modified to conform
with such requirements. For the purposes of this law, the members in
good standing of the association shall be deemed to be members in good
standing of an association registered with the department of housing
preservation and development during and only during, the first sixty
days of such period of suspension.
* NB Expires April 1, 2015
Section 26-520
* § 26-520 Expiration date. This chapter shall expire on April first,
two thousand fifteen unless rent control shall sooner terminate as
provided in subdivision three of section one of the local emergency
housing rent control law.
* NB Expires April 1, 2015
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.