N.Y. Comp. Codes R. & Regs. Tit. 9 § 2202.3 - Grounds for increase of maximum rent

(a)

(1) This section and sections 2202.4 to 2202.12, inclusive, of this Part set forth specific standards for the increase of a maximum rent. In applying these standards and issuing an order adjusting a maximum rent, the administrator shall take into consideration all factors bearing on the equities involved, subject to the general limitation that the adjustment can be put into effect without dislocation and hardship inconsistent with the purposes of the Rent Law. On or after November 22, 1963, where any housing accommodations were vacated other than by voluntary surrender of possession or in the manner provided by Part 2204 of this Title, the administrator may, after having due regard to the equities involved, bar adjustments of maximum rents for any and all accommodations in such structure, pursuant to section 2202.4(b) and (c) of this Part, except for work which:

(i) is necessary in order to remove violations against the property;

(ii) is necessary to obtain a certificate of occupancy, if such certificate is required by law; or

(iii) could have been performed with a tenant in physical possession of the housing accommodation at the time that the work was performed.

(2) The administrator shall have the power to revoke or modify any adjustment granted hereunder if there has been a substantial change in the basis upon which such adjustment was granted.

(b)

(1) No application for an increase in any maximum rent may be filed under section 2202.8, 2202.9 or 2202.10 of this Part, unless:

(i) a report of search issued by a city agency having jurisdiction is annexed to such applications, stating either that no violations against such property are recorded or that all violations recorded against such property have been cleared, corrected or abated, or a receipt (or photocopy thereof) issued by such agency attesting to the payment of the fee for the report of search; and

(ii) the landlord certifies that he is maintaining all essential services required to be furnished, and that he will continue to maintain such services so long as such increase in the maximum rent continues in effect.

(2) No new maximum rent shall be established pursuant to section 2201.4 of this Title, and no adjustment shall be made pursuant to section 2201.5(a) of this Title, unless the landlord has certified that he is maintaining all essential services required to be maintained with respect to the housing accommodations covered by such certification, and that he will continue to maintain such services so long as the new maximum rent or the adjustment is in effect. For purposes of this paragraph, essential services shall be defined as: heat during that part of the year when required by law, hot water, cold water, superintendent services, maintenance of front or entrance door security (including but not limited to lock and buzzer), garbage collection, elevator service, gas, electricity and other utility services to both public and required private areas, and such other services wherein failure to provide and/or maintain such would constitute a danger to the life or safety of, or would be detrimental to the health of, the tenant or tenants. Upon a determination that such essential services are not, or were not, being maintained, the Division of Housing and Community Renewal may revoke or modify the new maximum rent established pursuant to section 2201.4 of this Title and/or an adjustment made pursuant to subdivision (a) of section 2201.5, and may direct a refund to the tenants of all or part of the increase paid by the tenants as a result of any such order or orders. Each such certification filed in connection with an adjustment pursuant to section 2201.5 of this Title shall be accompanied by a certification by the landlord that he has actually expended or incurred 90 percent of the total amount of the allowance for operating and maintenance expenses, including the rents collectible from housing accommodations in the property.

(c) Except as provided in subdivision (g) of this section and section 2202.19 of this Part, no landlord shall be entitled to an increase in the maximum rent on any ground unless he certifies that he is maintaining all essential services furnished or required to be furnished as of the date of the issuance of the order adjusting the maximum rent, and that he will continue to maintain such services so long as the increase in such maximum rent continues in effect; nor shall any landlord be entitled to any increase in maximum rent on any ground where an agency of the city having jurisdiction certifies that the housing accommodation is a fire hazard, or is in a continued dangerous condition or detrimental to life or health or is occupied in violation of law; nor shall any landlord be entitled to any increase where the landlord has not removed the violation recorded against such property as shown in the report of search required under subdivision (b) of this section.

(d)

(1) No more than one order adjusting the maximum rent for any housing accommodation under section 2202.8 of this Part may be issued in any 24-month period and, except as provided in section 2202.8 of this Part, the adjustment granted by any such order shall not exceed 15 percent.

(2) Any adjustment pursuant to section 2220.8, 2202.9 or 2202.10 of this Part, shall be collectible only to the extent permitted by section 2201.6 of this Title; provided that, in ordering an adjustment pursuant to section 2202.8, the administrator may waive such limitation where a greater increase is necessary to make the earned income of the property equal to its operating expenses.

(c) That portion of the amount of increase computed under sections 2202.8 through 2202.11 of this Part, as is properly attributable to the controlled housing accommodations, shall be apportioned among them in the manner prescribed in section 2201.4 of this Title for the apportionment of the maximum gross building rental. Each controlled housing accommodation shall bear no more than that portion of the amount of increase as is properly attributable to such housing accommodation, whether or not the amount so attributed shall be fully collectible by reason of an existing lease or, in the case of an adjustment pursuant to section 2202.8, 2202.9 or 2202.10 of this Part, by reason of the limitations provided in section 2201.6 of this Title.

(f)

(1) Any landlord may file an application to increase the maximum rent otherwise allowable, on forms prescribed by the administrator, only on one or more of the grounds stated in sections 2202.4 through 2202.12 of this Part.

(2) Any landlord may file an application to establish the maximum rents to be effective January 1, 1972, pursuant to section Y51-5.0a(3) of the Rent Law, on forms provided by the administrator, on or before the date prescribed by the administrator, and provided that such application shall be accompanied by a fee in the sum of $5 per rent-controlled housing accommodation, based on the number of such accommodations stated in the city report form R-23 filed for the subject building or, if the owner failed to provide this data in the form filed, on the basis of the number of housing accommodations (whether or not subject to control pursuant to these regulations) shown on the records of the Department of Buildings.

(g) Where an application for an increase in any maximum rent is filed under section 2202.4(b) and/or (c), and section 2202.8, 2202.9 or 2202.10 of this Part, and the landlord is not entitled to any increase by reason of the provisions of subdivision (b) of this section, the administrator may waive such provision and issue orders increasing the maximum rent effective as of the date of issuance of such orders; provided, however, that the landlord agrees in writing to deposit the entire amount of such increase in maximum rent into an escrow or trust account administered by the administrator in accordance with procedures adopted by the administrator for the purpose of obtaining compliance with the provisions of subdivision (b) of this section, and further agrees to obtain and submit to the administrator, within one year from the date of issuance of such orders, a report of search issued by the city agency having jurisdiction, stating that the violations shown in the report of search required under subdivision (b) of this section have been removed, cleared, corrected or abated, and his own certification that he is maintaining and will continue to maintain all essential services in accordance with the provisions of subdivision (c) of this section. In the event the landlord fails to fully comply with such provision within one year from the date of the issuance of the orders increasing the maximum rent, the administrator may, having due regard for the equities involved, revoke such orders and direct full refund to the tenants of the entire increase paid by the tenants as a result of such orders.

(h) If, at least six months before the effective date of the establishment of new maximum rents pursuant to section 2201.4 of this Title, or an adjustment of maximum rents pursuant to section 2201.5(a), the landlord has not certified to the Department of Rent and Housing Maintenance that (1) all rent-impairing violations (as defined in section 302-a of the Multiple Dwelling Law), and (2) at least 80 percent of all other violations of the Housing Maintenance Code or Multiple Dwelling Law that were recorded against the property one year prior to such effective date have been cleared, corrected or abated, such new maximum rents or such adjustment shall not take effect until he shall have entered into a written agreement with such department to deposit income derived from the property into an escrow or trust account as prescribed in such agreement for the purpose of correction of such violations.

Notes

N.Y. Comp. Codes R. & Regs. Tit. 9 § 2202.3