DHCR FACT SHEET #27 Division of Housing and Community Renewal AIR CONDITIONERS ELECTRICAL INCLUSION BUILDINGS In rent controlled and rent stabilized apartments, where tenants pay their electrical charge to the owner as part of the monthly rent (electrical inclusion buildings), owners may charge tenants a surcharge for each air-conditioner that has been installed. On October 1st of each year after the air conditioner has been installed the surcharges will be adjusted upward or downward for rent stabilized and rent controlled apartments with electricity included in the rent. Each annual adjustment of this electrical charge will be based on the increase or decrease in electrical cost stated in the Price Index of Operating Costs for Rent Stabilized Apartment Houses in New York City. The Price Index is prepared by the New York City Rent Guidelines Board, or an independent company chosen by the Board. This adjustment applies to air conditioners installed after October 1, 1985. It there has been an increase for an air conditioner installed before October 1,1985 that increase remains in effect and is not increased by this adjustment, because it is already part of the rent and subject to usual guidelines increases. ELECTRICAL EXCLUSION BUILDINGS TENANT PROVIDES NEW AIR CONDITIONER When the tenant in a rent controlled or rent stabilized electrical exclusion building purchases and installs an air conditioner unit that protrudes beyond the window line, owners may collect five dollars ($5.00 ) per month surcharge for each unit installed. Once installed and after the $5.00 charge has been established, the tenant may not, without the owner's permission, demand that the charge be dropped it the tenant removes the air conditioner. OWNER PROVIDES NEW AIR CONDITIONER When the owner purchases and installs a brand new air conditioning unit, after obtaining written consents from rent stabilized and rent controlled tenants, the owner may charge tenants one fortieth (1/40th) of the cost of each air conditioner. This 1/40th of the cost charge will become part of the Maximum Base Rent (MBR), or legal regulated rent. ADJUSTMENTS TO RENT Under the rent stabilization law and code, the five-dollar ($5.00) surcharge and the annual charge for electrical inclusion buildings (after 1985) do not become part of the legal regulated rent for the purpose of computing rent guidelines or other increases rent stabilized apartments. Only the 1/40th charge for brand new air conditioners purchased and installed by the owner will become part of the legal regulated rent. When the tenant installs an air conditioning unit in a rent controlled apartment, the five-dollar (55.00) per month surcharge and the electrical inclusion charge (increased or decreased annually) become part of the Maximum Collectible Rent (MCR), but they do not affect the compounding of the Maximum Base Rent. COLLECTION PROCEDURE FOR RENT STABILIZED APARTMENTS Owners collecting air conditioner charges from rent stabilized tenants need not obtain a DHCR order to collect the additional charge. Owners must charge tenants for air conditioners at the time the units are initially installed, or within a reasonable period of time. It the owner tails to charge the tenant within a reasonable period of time after the installation, the owner waives the right to collect the surcharge. COLLECTION PROCEDURE FOR RENT CONTROLLED APARTMENTS Before collecting charges from rent controlled tenants. the owners must apply to the DHCR by submitting the Owner's Application for a Rent Increase Based on Increased Services, Furnishings or Equipment [DHCR form RA-79B]. The rent increase may not be collected until an order increasing the rent is issued by DHCR. The air conditioner surcharges are payable by the tenant throughout the entire year. The amount charged for all air conditioners which were installed before October 1, 1985 will be determined by the laws in effect during that period. ------------------------------------------------------------ DHCR Fact Sheets (series of thirty) are issued by the New York State Division of Housing and Community Renewal (DHCR) as plain- english informational publications. For official agency policies, see DHCR Policy Statements, Advisory Opinions and Operational Bulletins. Also refer to the Rent Stabilization Code, the Rent Stabilization Law and various Rent Control Statutes. Electronic versions of these 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 may obtain true copies of these documents from DHCR. Every attempt has been made to conform to the original Fact Sheets 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 are public documents; the electronic version of such documents have been developed by TenantNet and any added value, enhancements and/or proprietary features are copyright 1994, 1995 and 1996 by TenantNet. These documents may be freely distributed provided they remain intact as herein presented, including this and the top informational banner referencing TenantNet as the original provider. ------------------------------------------------------------ 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 ------------------------------------------------------------