New York State
Division of Housing and Community Renewal
Office of Rent Administration
Gertz Plaza, 92-31 Union Hall St.
Jamaica, New York 11433
Public Information: (718)739-6400
TENANT PROTECTION REGULATIONS
NEW YORK CITY RENT STABILIZATION CODE
ADVISORY OPINION: 91-2 (SEPTEMBER 5, 1991)
RENT REGISTRATION WITH THE STATE DIVISION OF HOUSING
AND COMMUNITY RENEWAL ("DHCR") UPON THE TERMINATION OF
REGULATION OTHER THAN PURSUANT TO THE RENT LAWS*
* Emergency Housing Rent Control Law, Emergency Tenant
Protection Act ("ETPA"), New York City Rent And
Rehabilitation Law, Rent Stabilization Law ("RSL").
This Advisory Opinion is issued pursuant to the Emergency Tenant
Protection Regulations ("TPR") adopted under ETPA Section 10, and
Section 2527.11 of the New York City Rent Stabilization Code
("RSC").
The purpose of this Advisory Opinion is to set forth the
procedures for initial registration with the DHCR of rents,
services and other building and housing accommodation
information, by Housing Companies owning buildings which have
been regulated pursuant to Federal, State or municipal laws other
than the Rent Laws, where such Companies elect to terminate such
regulation through dissolution ("buy-out"), or such regulation is
otherwise terminated.
Generally, rental housing accommodations in buildings built
before 1974, containing six or more units in municipalities
subject to the ETPA or the RSL and which were previously
regulated under the Private Housing Finance Law ("PHFL"), or any
other Federal State or municipal law, become subject to
regulation by DHCR's Office of Rent Administration ("ORA") upon
the termination of such previous regulation.
For the purposes of establishing the initial legal registered
rent and required services under the Rent Laws, the date
immediately preceding the date of the buy-out or other
termination of such regulation shall be referred to as the "base
date" for rents and services. Where the cause of such
termination is a buy-out under the PHFL, the buy-out occurs on
the date the Secretary of State accepts the Certificate of
Dissolution for filing.
1. REGISTRATION REQUIREMENTS
RSL Section 26-517 and ETPA Section 12-a, require that housing
accommodations which become subject to the RSL or ETPA must be
registered within ninety (9O) days thereafter. This requirement
applies to Housing Companies which are regulated by Federal,
State or municipal agencies, and is in addition to any submission
of pre-registration information which such agency may require of
owners.
For example, DHCR regulated Housing Companies dissolving after
July 20, 1987 are subject to the Rules for Voluntary Dissolution
(9 NYCRR Part 1750) which require that owners of buildings
becoming subject to the RSL or ETPA must, on DHCR forms, submit
to the Mitchell-Lama supervising unit together with the Notice of
Intent, pre-registration information for all subject housing
accommodations. Owners of Housing Companies regulated by New
York City must, on DHCR forms, submit pre-registration
information, as prescribed in New York City's Rules and
Regulations Governing City-Aided Limited Profit Housing
Companies, Section 11(g) to the City's Department of Housing
Preservation and Development, Division of Housing Supervision.
The forms to be used for both the submission of pre-registration
information and initial registration are:
a. Initial Apartment Registration form (RR-l).
b. Initial Registration Summary form (RR-2).
c. Initial Building Services Registration form (RR-3).
Detailed instructions are available with the forms. The
information to be registered concerns: rents, leases, services
and number of rooms in each apartment.
2. RENTS
a. Apartments occupied on the Base Date
RSC section 2521.1(1) and TPR section 2501.1 (b) require
that the initial legal registered rent shall be the rent
charged to and paid by the tenant n occupancy on the base
date. Income related surcharges which were collectable from
a tenant on the base date will be included as part of the
base rent for that tenant and subsequent tenants of the same
apartment.
b. Apartments vacant on the Base Date
For housing accommodations which are vacant on the base
date, the initial legal registered rent shall be the rent
charged to and paid by the most recent tenant, in addition
to rental subsidies, but excluding surcharges, if any.
Income related surcharges which may have been paid by the
most recent tenant will not be included in the initial legal
registered rent. Upon renting, the initial legal registered
rent shall be subject to vacancy and guideline increases as
well as any applicable adjustment pursuant to the RSL and
ETPA.
c. Rent subsidy on the Base Date
For units subject to occupancy or rent restrictions (such as
units required to be rented to qualified low, moderate or
middle income tenants) on the base date:
(1) where the tenant is participating in the Senior citizen
Rent Increase Exemption program the owner may register
the full legal regulated rent charged; and
(2) where the owner receives capital grant or Section 8
rental subsidies on behalf of the tenant, the owner may
be permitted to register higher and lower initial legal
registered rents (representing the full legal regulated
rent and the full legal regulated rent minus the
capital grant or other rental subsidy, respectively)
pursuant to an agreement entered into between the prior
regulating agency and the ORA, as set forth in an order
Permitting The Registration of Multi-Tier Initial Legal
Rents. This Order will also set forth the conditions
under which the owner may collect the higher and lower
regulated rents as determined by the prior regulating
agency.
Pursuant to Code Section 2521.1(1), when a rental
subsidy is terminated either upon or after the buy-out,
the owner is entitled to collect as rent from the
tenant in occupancy on the base date an amount
equivalent to that portion of the rent paid by such
tenant, not including the subsidy.
d. Additional Charges
Additional charges for the electricity for appliances such
as air conditioners, washer/dryers and dishwashers will be
included in the registered base rent at the rent charged and
paid on the base date. For such appliances brought into an
apartment subsequent to the base date, the owner may be
permitted an additional charge which, in New York City, will
not become part of the base rent. These permitted charges
are promulgated in Operational Bulletins as may be issued by
the ORA. In New York City, the rate allowable as an
additional electrical charge for air conditioners is
promulgated in the Annual Update of Section B of Supplement
No. 1 to Operational Bulletin 84-4. In the ETPA counties,
for air conditioners brought into an apartment subsequent to
the base date, the owner must apply to the District Rent
Office for an Order permitting collection of the air
conditioner charge, which charge becomes part of the base
rent.
e. Ancillary Services - Separate Charge
Garage and other ancillary services for which there is a
legal regulated separate permanent charge must be registered
at the amount paid on the base date. Pursuant to RSC
Section 2520.6 (r)(4)(xi), any increase, other than the
Charge provided in the initial agreement with a tenant to
lease such service subsequent to the base date, shall
conform to the applicable rent guidelines rate.
3. LEASES
a. Terms and Conditions of Replacement Leases
The leases in effect under the various Federal, State and
municipal programs on the base date contain numerous
provisions which may be inconsistent with the ETPA and RSL.
Pursuant to TPR Section 2502.5(c)(7), and RSC Section
2520.12, the ORA directs that such leases shall remain in
force pursuant to the provisions thereof, except that those
provisions which are inconsistent with the ETPA, TPR, RSL or
RSC shall be void and unenforceable.
However, where such leases are so inconsistent as to render
them ineffective in defining the rights and duties of
tenants and owners, then either the Federal, State or
municipal supervising agency as a condition of the buy-out,
or ORA after the buy-out, may order the provision of new
leases, for the unexpired term and at the same rent as the
lease to be replaced. The proffered lease shall be on the
same terms and conditions as the replaced lease but shall
eliminate those terms and conditions which are inconsistent
with the ETPA or RSL and those which require adjudications
by the prior Federal, State or municipal supervising agency.
b. Commencement Dates and Length of Term of Replacement Leases
Where the lease in effect prior to the termination of
regulation other than pursuant to the Rent Laws did not
commence upon the anniversary date of the tenancy, the
tenant shall have the option of substituting the anniversary
date of the tenancy as the commencement date of such lease.
Where there was no lease in effect upon the termination of
regulation other than pursuant to the Rent Laws, the owner
shall offer and the tenant shall have the option of
accepting a lease commencing either on the date following
the expiration date of the last lease or on the anniversary
date of the tenancy.
The term of a lease offered pursuant to this section shall
be: for a three year term or such other term as was
required prior to the termination of the regulation other
than pursuant to the Rent Laws, commencing, at the tenant's
option, either upon the anniversary date of the initial
lease, or the renewal date of the most recent lease.
The tenant, within sixty (60) days after the owner's offer,
must choose the term of the lease, sign the lease offer and
return it to the owner, who must return a fully executed
copy to the tenant within thirty (3O) days. The new lease
shall be at the same rental amount as the rent paid by the
tenant on the base date.
c. Lease Rider
For buildings located in New York City, pursuant to RSL
Section 26-511d, the ORA has promulgated a lease rider which
describes the rights and duties of owners and tenants as
provided for under the RSL and other laws. A copy of this
rider is to be served upon each tenant in occupancy of a
housing accommodation prior to any public information
meeting required by the prior supervisory agency and where
no such meeting is required, no later than the base date,
and pursuant to RSC Section 2522.5(c)(l), upon each tenant
or subsequent tenant signing a vacancy or renewal lease.
d. Lease Renewals
Renewal of a lease which expires after the base date shall
be pursuant to TPR Section 2503.5 in the ETPA counties, and
RSC Section 2523.5 in New York City. These sections provide
that, in the ETPA counties, an owner must offer a renewal
lease no more than 120 days and no less than 90 days before
the expiration of the prior lease, and in New York City, no
more than 150 days and no less than 120 days prior thereto
("window periods"). Any renewal of a lease expiring after
the base date but sooner than such time periods shall not
commence until the tenant has received such window period
notice.
For leases which are anticipated to expire less than 90
(ETPA) or 120 (RSL) days prior to the base date, owners
shall be entitled to satisfy the time requirements of the
previous paragraph by offering renewal leases within such
windows periods, even though the base date may occur during
or after such windows periods.
Where it cannot be determined whether the base date will
occur before or after the expiration date of the lease,
owners shall be permitted to offer a rent stabilized renewal
lease within the appropriate window period, as well as a
renewal of the current lease pursuant to the regulations of
the prior supervising agency. Owners who offer both leases
pursuant to this paragraph should include with such offer a
notice to the tenant explaining the following:
- if the base date occurs prior to the lease expiration
date, the rent stabilized renewal lease will take
effect;
- if the base date occurs after the lease expiration
date, the renewal of the current lease will take
effect.
- Where the base date occurred prior to the effective
date of this Advisory opinion, the renewal lease
procedure shall be as directed by the prior supervising
agency.
4. SERVICES
All building-wide and apartment services provided or required to
have been provided to tenants on the base date must continue to
be provided. Required building-wide services will be registered
on the Initial Building Services Registration form (RR-3), and a
copy of the form must be posted in the building's lobby.
Required apartment services are registered on the Initial
Apartment Registration form (RR-l).
5. NUMBER OF ROOMS
Although the prior regulatory agency may have utilized a
different definition of room, for Rent Stabilization purposes,
going forward, and not for the purpose of adjusting the base rent
as established by the prior regulatory agency, the following are
counted as rooms:
- all rooms that have no windows and contain at least eighty
(80) square feet;
- windowless kitchens Measuring at least fifty-nine (59)
square feet;
- all rooms which have windows and contain at lease sixty (60)
square feet;
- bathrooms, half rooms, walk-in closets and balconies
(whether or not enclosed) are not to be counted as rooms.
September 5, l991
ELLIOT G. SANDER
Deputy Commissioner
for Rent Administration
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DHCR Advisory Opinions are issued by the New York State Division
of Housing and Community Renewal (DHCR) and represent the
agency's interpretation of the rent laws.
On any challenge or appeal, the agency may claim it has wide
"discretion" to interpret the rent laws as it sees fit, as long
as it's interpretation is not arbitrary, capricious or an abuse
of discretion. In such instances, the agency must show it's
interpretation is consistent with past practice and rational.
Discretion is different from mandates where the agency is obliged
to follow certain policies, practices or interpretations.
Mandates are usually based in (and stated in) the law.
In many instances, the agency refuses (or fails) to issue
official interpretations in order to maintain it's discretion. In
practice, such unaccountable discretion is seen by some as an
abuse of the intent of the rent laws.
Electronic versions of the documents on TenantNet
are for informational purposes only and there is no guarantee
they will be accepted by any court (or even DHCR) as true copies
of DHCR policy. The reader is advised to obtain true copies of
these documents from DHCR.
Also see DHCR Policy Statements, DHCR Operational Bulletins, the
Rent Stabilization Code, the Rent Stabilization Law and various
Rent Control Statutes.
Every attempt has been made to conform to the original Advisory
Opinions as issued by DHCR; TenantNet makes no
representation the enclosed material is current or will be
applied as written. The reader is advised that DHCR often fails
to properly apply, interpret or enforce housing laws. Since
housing laws are complex and often contradictory, it is
recommended the reader obtain competent legal advice from a
tenant attorney or counseling from a tenant association or
community group. (rev. 3/13/96) DHCR documents
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For more information or assistance. call the DHCR Rent Infoline
at (718) 739-6400, or visit your Borough Rent Office.
Queens Central Office
92-31 Union Hall St. 4th Fl.
Jamaica, NY 11433
(718) 739-6400
Bronx
One Fordham Plaza
Bronx, NY 10458
(718) 563-5678
Brooklyn
250 Schermerhorn St.
3rd Floor
Brooklyn, NY 11201
(718) 780-9246
Lower Manhattan
156 William Street
9th Floor
NY, NY 10038
(212) 240-6011, 6012
South side of 110th St. and below
Upper Manhattan
163 W. 125th St.
5th Floor
NY, NY 10027
(212) 961-8930
North side of 110th St. and above
Staten Island
350 St. Mark's Place
Room 105
Staten island, NY 10301
(718) 816-0277
Nassau County District Rent Office
50 Clinton Street, 6th Floor
Hempstead, NY 11550
(516) 481-9494
Westchester County District Rent Office
55 Church Street, 3rd Floor
White Plains, NY 10601
(914) 948-4434
Rockland County District Rent Office
94-96 North Main St.
Spring Valley, NY 10977
(914) 425-6575
Albany Regional Office
119 Washington Avenue
Albany, NY 12210
(518) 432-0596
Buffalo Regional Office
Ellicot Square Building
295 Main St., Room 438
Buffalo, NY 14203
(716) 856-1382
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