New York State Division of Housing and Community Renewal Rent Administration - Operational Bulletins New York City Rent Stabilization Code New York City Rent and Eviction Regulations Operational Bulletin 95-1 (August 21, 1994) COLLECTIBILITY OF MCI/OI INCREASES WHERE THE RENT IS REDUCED BECAUSE OF DIMINUTION OF SERVICES Implementing New York City Rent Stabilization Law (RSL) Emergency Tenant Protection Act of 1974 (ETPA) New York City Rent and Rehabilitation Law (City Rent Control Law) Emergency Housing Rent Control Law (State Rent Control Law) This Operational Bulletin is issued pursuant to section 2527.11 of the Rent Stabilization Code, the Emergency Tenant Protection Regulations adopted under the Emergency Tenant Protection Act; section 2209.8 of the City Rent and Eviction Regulations; and section 2109.8 of the State Rent and Eviction Regulations. It is intended to serve as an explanatory statement of DHCR's general policy regarding the effect of rent reduction orders upon the collectibility of Major Capital Improvement (MCI) and Owner Individual Apartment Improvement Rent Increases (OI). 1. Section 2523.4 of the Rent Stabilization Code authorizes tenants to apply to the Division for a reduction of the legal regulated rent to the level in effect prior to the most recent guidelines adjustment, and provides that such order reducing the rent bars the owner from applying for or collecting any further rent increases until the services are restored. The issuance of a rent restoration order results in the prospective elimination of this sanction. 2. Section 2503.4 of the Tenant Protection Regulations also authorizes tenants to apply to the Division for a reduction of the legal regulated rent to the level in effect prior to the most recent adjustment. 3. Similarly, sections 2202.16 and 2102.4 of the City and State Rent and Eviction Regulations, respectively, provide authority for the Administrator to order decreases in rent controlled maximum rents upon a showing of reduction in services. Effective immediately, the above provisions of the Regulations are to be effectuated in the following manner: A. Where an MCI rent increase application was granted and collection of the increase commenced prior to the issuance of a rent reduction order, the owner will be permitted to continue to collect the MCI increase regardless of the effective date of the rent reduction order, even if such date is prior to the effective date of the order granting the MCI increase. B. Similarly, regardless of its effective date, a rent reduction order will not affect the continued collection of an OI increase, if collection of the increase began prior to the issuance of the order, whether or not DHCR approval was required for the collection of the increase.* C. No other rent increases may be collected after the effective date of the rent reduction order, until a rent restoration order is issued. * The Rent Regulation Reform Act, effective July 7, 1993, removed OI's from DHCR's jurisdiction. Prior to that date, owners were required to apply to the Division for approval of an OI in the ETPA and Rent Control jurisdictions. Such approval was not required for owners of rent stabilized housing accommodations located in New York City. Applications filed before July 7, 1993 were either determined by the Division before that date, or subsequently dismissed. Paul A. Roldan Deputy Commissioner for Rent Administration Reissued 7/95 Last updated: 09/16/96 -------------------------------------------------------------- DHCR Operational Bulletins are issued by the New York State Division of Housing and Community Renewal (DHCR) and update agency administration 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 Advisory Opinions, the Rent Stabilization Code, the Rent Stabilization Law and various Rent Control Statutes. Every attempt has been made to conform to the original Operational Bulletins 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 ------------------------------------------------------------