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


Part 2522. Rent Adjustments
2522.1 Legal regulated rent adjustments
2522.2 Effective date of adjustment of legal regulated rents
2522.3 Fair Market Rent Appeal
2522.4 Adjustment of legal regulated rent
2522.5 Lease agreements
2522.6 Orders where the legal regulated rent or other facts are in dispute, in doubt, or not known, or where the legal regulated rent must be fixed
2522.7 Consideration of equities
2522.8 Rent adjustments upon vacancy or succession
2522.9 Surcharge for the installation and use of washing machines, dryers and dishwashers
2522.10 Surcharges for submetered electricity or other utility service






9 NYCRR Part 2522 Notes

Statutory authority: N.Y.C. Administrative Code, §§ 26-511(b), 26-518(a). Added Part 2522 on 5/01/87; added 2522.8 on 12/20/00; added 2522.9 on 12/20/00; added 2522.10 on 12/20/00.

9 NYCRR § 2522.1

§ 2522.1 Legal regulated rent adjustments

Legal regulated rents may be increased or decreased only as hereinafter specified.

Statutory authority:
N.Y.C. Administrative Code, §§ 26-511(b), 26-518(a)
History:
Added § 2522.1 on 5/01/87.

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9 NYCRR § 2522.2
§ 2522.2 Effective date of adjustment of legal regulated rents

The legal regulated rent shall be adjusted effective the first rent payment date occurring 30 days after the filing of the application, unless otherwise set forth in the order, or on the effective date of a lease or other rental agreement providing for the rent guidelines board annual rate of adjustments, or upon vacancy or succession as provided in section 2522.8 of this Part. No rent adjustment may take place during a lease term unless a clause in the lease authorizes such increase, or as otherwise provided by law and this Code.

Statutory authority:
N.Y.C. Administrative Code, §§ 26-511(b), 26-518(a)
History:
Added § 2522.2 on 5/01/87; amended § 2522.2 on 12/20/00.

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9 NYCRR § 2522.3
§ 2522.3 Fair Market Rent Appeal

(a) Except as provided in section 2521.1(a)(2) of this Title, an appeal of the initial rent on the ground that it exceeds the fair market rent for the housing accommodation may be filed with the DHCR by the tenant of a housing accommodation which was subject to the City Rent Law on December 31, 1973. This right is limited to the first tenant taking occupancy on or after April 1, 1984, except where such tenant had vacated the housing accommodation prior to the service by the owner of the Notice of Initial Legal Regulated Rent as required by section 2523.1 of this Title. In such event, any subsequent tenant in occupancy shall also have a right to file a fair market rent appeal until the owner mails the required notice and 90 days shall have elapsed without the filing of an appeal by a tenant continuing in occupancy during said 90-day period. Once a fair market rent appeal is filed, no subsequent tenant may file such appeal. Notwithstanding the above, where the first tenant taking occupancy after December 31, 1973, of a housing accommodation previously subject to the City Rent Law, was served with the notice required by section 26 of the former code of the Rent Stabilization Association of New York City, Inc., the time within which such tenant may file a fair market rent appeal is limited to 90 days after such notice was mailed to the tenant by the owner by certified mail. However, no fair market rent appeal may be filed after four years from the date the housing accommodation was no longer subject to the City Rent Law.

(b) The tenant must allege in such appeal:

(1) that the initial rent is in excess of the fair market rent; and

(2) facts which, to the best of his or her information and belief, support such allegation.

(c) Such appeal shall be dismissed where:

(1) the appeal is filed more than 90 days after the certified mailing to the tenant of the initial apartment registration, together with the notice pursuant to section 2523.1 of this Title; or

(2) the appeal is filed more than four years after the vacancy which caused the housing accommodation to no longer be subject to the City Rent Law.

(d)

(1) The order shall direct the affected owner to make the refund of any excess rent to the tenant in cash, check or money order, and to the extent the present owner is liable for all or any part of the refund, such present owner may credit such refund against future rents over a period not in excess of six months. In the absence of collusion between the present owner and any prior owner, where no records sufficient to establish the fair market rent were provided at a judicial sale, or such other sale effected in connection with, or to resolve, in whole or in part, a bankruptcy proceeding, mortgage foreclosure action or other judicial proceeding, an owner who purchases upon or subsequent to such sale shall not be liable for excess rent collected by any owner prior to such sale. An owner who did not purchase at such sale, but who purchased subsequent to such sale shall also not be liable for excess rent collected by any prior owner subsequent to such sale to the extent that such excess rent is the result of excess rent collected prior to such sale. If the refund exceeds the total rent due for six months, the tenant at his or her option may continue to abate his or her rent until the refund is fully credited, or request the present owner to refund any balance outstanding at the end of such six-month period.

(2) Court-appointed receivers. A receiver who is appointed by a court of competent jurisdiction to receive rent for the use or occupation of a housing accommodation shall not, in the absence of collusion or any relationship between such receiver and any owner or other receiver, be liable for excess rent collected by any owner or other receiver, where records sufficient to establish the fair market rent have not been made available to such receiver.

(e) In determining fair market rent appeals, filed pursuant to paragraph (a)(1) of this section, consideration shall be given to the applicable guidelines promulgated for such purposes by the Rent Guidelines Board and to rents generally prevailing for housing accommodations in buildings located in the same area as the housing accommodation involved. In addition, consideration of the rental history of the subject housing accommodation for the period prior to the four-year period preceding the filing of the fair market rent appeal is precluded. The rents for these comparable housing accommodations may be considered where such rents are:

(1) unchallenged rents in effect for housing accommodations subject to this Code on the date the tenant filing the appeal took occupancy; or

(2) at the owner's option, market rents in effect for other comparable housing accommodations on the date the tenant filing the appeal took occupancy, as ted by the owner.


Statutory authority:
New York City Administrative Code, § 26-403, §§ 26-511(b), 26-518(a)
History:
Added § 2522.3 on 5/01/87; amended § 2522.3 on 12/20/00.

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9 NYCRR§ 2522.4
§ 2522.4 Adjustment of legal regulated rent

(a) Increased space and services, new equipment, new furniture or furnishings; major capital improvements; other adjustments.

(1) An owner is entitled to a rent increase where there has been a substantial increase, other than an increase for which an adjustment may be claimed pursuant to paragraph (2) of this subdivision, 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 the tenant's housing accommodation, on written tenant consent to the rent increase. In the case of vacant housing accommodations, tenant consent shall not be required.

(2) An owner may file an application to increase the legal regulated rents of the building or building complex on forms prescribed by the DHCR, on one or more of the following grounds:

(i) There has been a major capital improvement, including an installation, which must meet all of the following criteria:

(a) deemed depreciable under the Internal Revenue Code, other than for ordinary repairs;

(b) is for the operation, preservation and maintenance of the structure;

(c) is an improvement to the building or to the building complex which inures directly or indirectly to the benefit of all tenants, and which includes the same work performed in all similar components of the building or building complex, unless the owner can satisfactorily demonstrate to the DHCR that certain of such similar components did not require improvement; and

(d) the item being replaced meets the requirements set forth on the following useful life schedule, except with DHCR approval of a waiver, as set forth in clause (e) of this subparagraph.