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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
2521. Legal Registered and Regulated Rents
| 2521.1 |
Initial
legal regulated rents for housing accommodations |
| 2521.2 |
Preferential
Rents |
| 2521.3 |
Classification
of buildings |
9
NYCRR Part 2521 Notes
Statutory authority: N.Y.C.
Administrative Code, §§ 26-511(b), 26-518(a) Added
Part 2521 on 5/01/87.
9
NYCRR § 2521.1
§ 2521.1 Initial legal regulated rents for
housing accommodations
(a)
(1) For housing accommodations which on March 31, 1984 were subject
to the City Rent Law, and became vacant after that date, and which
are no longer subject to the City Rent Law, and are rented thereafter
subject to the RSL, the initial legal regulated rent shall be the
rent agreed to by the owner and the tenant and reserved in a lease
or provided for in a rental agreement subject to the provisions
of this Code, and subject to a tenant's right to a Fair Market Rent
Appeal to adjust such rent pursuant to section 2522.3 of this Title.
(2) For housing accommodations which on March 31, 1984 were subject
to the penalties provided in former section YY51-4.0 of the Administrative
Code of the City of New York, and which become vacant thereafter,
the initial legal regulated rent for the first rent stabilized tenant
shall be the rent established by the DHCR for the prior tenant,
increased by the guidelines rate of rent adjustments applicable
to the new lease plus such other rent increases as are authorized
pursuant to section 2522.4 of this Title, and shall not be subject
to a Fair Market Rent Appeal pursuant to section 2522.3 of this
Title.
(b)
(1) The initial legal regulated rent for a housing accommodation
for which an overcharge complaint or a Fair Market Rent Appeal was
filed by a tenant prior to April 1, 1984, and not finally determined
prior thereto, shall be the April 1, 1984 rent as subsequently determined
by the DHCR. Such determination will be based upon the law or code
provision in effect on March 31, 1984.
(2) Upon determination of the initial legal regulated rent in paragraph
(1) of this subdivision, legal regulated rents subsequent to April
1, 1984 shall be determined in accordance with section 2520.6(e)
of this Title.
(c) The initial legal regulated rent for a housing accommodation
first made subject to the RSL and this Code pursuant to article
7-C of the MDL shall be the rent established by the Loft Board under
section 286(4) of the MDL applicable to a lease offered pursuant
to MDL section 286(3). Such rent shall not be subject to the proceedings
described in section 2522.3 of this Title. Notwithstanding that
the rent charged and paid during the first lease term may have been
less than such initial legal regulated rent, the owner may request
that the next lease rental be the initial legal regulated rent plus
the allowable increase established by the Rent Guidelines Board,
and such other rent increases as are authorized pursuant to section
2522.4 of this Title.
(d) Notwithstanding the provisions of any outstanding lease or
other rental agreement, the initial legal regulated rent for a housing
accommodation in a multiple dwelling for which a loan is made under
the PHFL shall be the initial rent established pursuant to such
law. Such rent, whether or not the housing accommodation was previously
subject to the RSL, shall not be subject to the proceeding described
in section 2522.3 of this Title. Such rent for housing accommodations
occupied prior to the granting of the loan made pursuant to the
PHFL shall take effect on the date specified in the order establishing
the rent. Notwithstanding any other provision of the RSL or this
Code, the owner of such housing accommodation shall offer any tenant
in occupancy on such effective date or upon initial occupancy a
one- or two-year lease at the tenant's option at such rent, which
offer shall be made as soon as practicable after such rent is established,
whether or not the rent has taken or is then permitted to take effect;
and refusal of such tenant to sign such lease, at such rent, and
otherwise upon the same terms and conditions as the expiring lease,
if any, shall constitute grounds for an action or proceeding to
evict and recover possession of the housing accommodation; provided,
however, that following the tenant's receipt of the offer of such
lease at such rent as lawfully established, a tenant in occupancy
on such date shall be allowed 30 days to sign such lease and, if
during such 30-day period, such tenant gives the owner written notice
of an intention to terminate such tenancy and pays the rent established
pursuant to law for such month and for any extended period, the
tenant shall not be required to surrender the housing accommodation
until 60 days after receipt of such offer. Notwithstanding that
the rent charged and paid during the first lease term may have been
less than such initial legal regulated rent, the owner may request
that the next lease rental be the initial legal regulated rent plus
the allowable increase established by the Rent Guidelines Board.
(e) Notwithstanding any other provision of this Code, the initial
legal regulated rent for a housing accommodation first made subject
to the RSL and this Code pursuant to article XIV of the PHFL or
section 2429 of article 8 of the Public Authorities Law shall be
the rent established pursuant to law which reflects the improvements
or rehabilitation and shall be subject to subsequent adjustment
by the DHCR. Such rent shall not be subject to the proceedings described
in section 2522.3 of this Title. Notwithstanding any other provision
of the RSL or this Code: the owner of such housing accommodation
shall offer a tenant in occupancy who first became subject to the
RSL and this Code on the effective date of such rent a one- or two-year
lease at the tenant's option at such rent, which offer shall be
made as soon as practicable after such rent is effective; and refusal
of such tenant to sign such lease at such rent, and otherwise upon
the same terms and conditions as the expiring lease, if any, shall
constitute grounds for an action or proceeding to evict and recover
possession of the housing accommodation; provided, however, that
following tenant's receipt of the offer of such lease at such rent,
a tenant in occupancy on such effective date shall be allowed 30
days to sign such lease and, if during such 30-day period, such
tenant gives the owner written notice of an intention to terminate
such tenancy and pays the rent established pursuant to law while
in occupancy, the tenant shall not be required to surrender the
housing accommodation until 60 days after receipt of such offer.
Notwithstanding that the rent charged and paid during the first
lease term may have been less than such initial legal regulated
rent, the owner may request that the next lease rental be the initial
legal regulated rent plus the allowable increase established by
the Rent Guidelines Board.
(f) If a housing accommodation is rehabilitated pursuant to either
article XIV of the PHFL or section 2429 of article 8 of the Public
Authorities Law, and article XV of the PHFL, the provisions in subdivision
(d) of this section shall apply, rather than the provisions of subdivision
(e), if HPD elects to establish rents for the housing accommodation
pursuant to article XV of the PHFL.
(g) The initial legal regulated rent for a housing accommodation
constructed pursuant to section 421-a of the Real Property Tax Law
shall be the initial adjusted monthly rent charged and paid but
not higher than the rent approved by HPD pursuant to such section
for the housing accommodation or the lawful rent charged and paid
on April 1, 1984, whichever is later.
(h) The initial legal regulated rent for housing accommodations
subject this Code solely as a condition of receiving or continuing
to receive benefits pursuant to section 11-243 (formerly J51-2.5)
or 11-244 (formerly J51-5.0) of the Administrative Code, as amended,
shall be the rent charged the initial rent-stabilized tenant or
the lawful rent charged and paid on April 1, 1984, whichever is
later, and shall not be subject to a Fair Market Rent Appeal pursuant
to section 2522.3 of this Title. However, as to any housing accommodation
which previously received tax benefits pursuant to section 11- 243
(formerly J51-2.5) or 11-244 (formerly J51-5.0), was not covered
by the provisions of the RSL on June 18, 1985, and was made subject
to such law by the provisions of chapters 288 and 289 of the Laws
of New York for the year 1985 (as amended), the initial legal regulated
rent shall be the rent charged and paid on May 30, 1985, or the
maximum rent which could have been charged if the housing accommodation
had been continuously subject to the RSL for the entire tenancy
of the tenant in occupancy on May 30, 1985, whichever is greater.
(i) Notwithstanding the provisions of the RSL or any other provision
of this Code, the initial legal regulated rent upon completion of
the rehabilitation of a Class B multiple dwelling, Class A multiple
dwelling used for single-room occupancy purposes, lodging house
or a substantially vacant building intended to be used after rehabilitation
for single-room occupancy purposes for which a loan is made for
such rehabilitation on or after September 1, 1985, under article
VIII or VIII-A of the PHFL, shall be the initial rent established
by HPD pursuant to such law. Such rent, whether or not the housing
accommodation was previously subject to the RSL, shall not be subject
to the proceeding described in section 2522.3 of this Title. Such
rent shall take effect on the date specified in the order establishing
the rent. Notwithstanding the provisions of the RSL or any other
provision of this Code, the owner of such housing accommodation
shall offer any tenant in occupancy on such effective date a one-
or two-year lease, at the tenant's option, at such rent, which offer
shall be made as soon as practicable after such rent is established.
Refusal of such tenant to sign such lease at such rent, and otherwise
upon the same terms and conditions as the expiring lease, if any,
shall constitute grounds for an action or proceeding to evict and
recover possession of the housing accommodation; provided, however,
that following the tenant's receipt of the offer of such lease at
such rent as lawfully established, a tenant in occupancy on such
date shall be allowed 30 days to sign such lease and, if during
such 30-day period, such tenant gives the owner written notice of
an intention to terminate such tenancy and pay the rent established
pursuant to law for such month and for any extended period, the
tenant shall not be required to surrender the housing accommodation
until 60 days after receipt of such lease offer. Notwithstanding
that the rent charged and paid during the first lease term may have
been less than such initial legal regulated rent, the owner may
request that the next lease rental be the initial legal regulated
rent plus the allowable increase established by the Rent Guidelines
Board, and such other rent increases as are authorized pursuant
to section 2522.4 of this Title.
(j) For housing accommodations whose rentals were previously regulated
under the PHFL, or any other State or Federal law, other than the
RSL or the City Rent Law, upon the termination of such regulation,
the initial legal regulated rent shall be the rent charged to and
paid by the tenant in occupancy on the date such regulation ends.
For housing accommodations which are vacant on the date the building
first becomes subject to the RSL and this Code, such rent shall
be the most recent rent approved by the supervising agency, which
shall be subject to all increases permitted by law and this Code,
and which shall not be subject to a Fair Market Rent Appeal pursuant
to section 2522.3 of this Title.
(k) Notwithstanding any other provision of this Code, except as
provided in paragraph (2) of this subdivision, governmental agencies
or public benefit corporations may enter into an agreement with
the DHCR, which shall be incorporated into an order of the DHCR,
setting forth the conditions under which:
(1) projects receiving assistance or financing from such agencies
may register higher and lower initial legal rents for units subject
to occupancy and rent restrictions by such agencies, which rents
may then be adjusted pursuant to the RSL and this Code, and shall
not be subject to the proceedings described in section 2522.3 of
this Title; or
(2) projects whose rentals were previously regulated under the
PHFL or any other State or Federal law, other than the RSL or the
City Rent Law, upon the date when such regulation ends, may register
higher and lower initial legal rents for units which have been subject
to occupancy and rent restrictions pursuant to such laws, which
rents may then be adjusted pursuant to the RSL and this Code, and
shall not be subject to the proceedings described in section 2522.3
of this Title. Where the DHCR was the agency regulating rentals
pursuant to the PHFL, such terms and conditions shall be incorporated
into an order of the DHCR.
Such agreement or order shall also set forth the conditions under
which the higher and lower legal regulated rents may be charged,
with due consideration of equities as set forth in section 2522.7
of this Title. No further agreements shall be entered into pursuant
to this subdivision on or after January 1, 2000.
Statutory authority:
Multiple Dwelling, § A7-C, § 286;
Public Authorities, § 2429, § A8; Private Housing Finance Law, §
A8, § A8-A; New York City Administrative Code, § 11-243, § 11-244,
§ 26-404; Private Housing Finance Law, § A15; Real Property Tax
Law, § 421-A, N.Y.C. Administrative Code,
§§ 26-511(b), 26-518(a)
History:
Added § 2521.1 on 5/01/87; amended § 2521.1
on 12/20/00.
9
NYCRR § 2521.2
§ 2521.2 Preferential Rents
Where the legal regulated rent is established and documented
in a manner prescribed by the DHCR, and a rent lower than such rent
is charged and paid by the tenant, such lower rent shall be a preferential
rent, which shall be subject to all adjustments provided by law
and this Code. Upon vacancy of the tenant who pays a preferential
rent, the legal regulated rent shall be the legal regulated rent
previously established by record within four years prior thereto,
plus all intervening guidelines increases, plus such other rent
increases as are authorized by law and this Code.
Statutory authority:
N.Y.C. Administrative Code, §§ 26-511(b), 26-518(a)
History:
Added § 2521.2 on 5/01/87; amended § 2521.2
on 12/20/00.
9
NYCRR § 2521.3
§ 2521.3 Classification of buildings
(a) Upon application by a tenant or owner, the DHCR
shall issue an order determining a building's classification based
upon the services provided and other relevant factors. Except as
provided in subdivisions (c) and (d) of this section, if it is determined
that such building is not a hotel, the DHCR shall classify the building
as an apartment building unless the owner restores sufficient services
to maintain a hotel classification in accordance with subdivision
(b) of this section. If the building is reclassified, then the housing
accommodations therein shall thereafter be subject to the provisions
of this Code applicable to apartment buildings, at the legal regulated
rent for each housing accommodation as determined by the order of
the DHCR, plus lawful increases and adjustments allowed pursuant
to this Code. In order for an owner to retain or continue the building's
classification as a hotel, he or she must provide, in addition to
any other services he or she is or was providing pursuant to section
2520.6(r) of this Title, all four of the following services:
(1) maid service, consisting of general housecleaning at a frequency
of at least once a week;
(2) linen service, consisting of providing clean linens at a
frequency of at least once a week;
(3) furniture and furnishings, including at a minimum a bed,
lamps, storage facilities for clothing, chair and mirror in a
bedroom; such furniture to be maintained by the hotel owner in
reasonable condition; and
(4) lobby staffed 24 hours a day, seven days a week by at least
one employee.
(b) A building's classification as a hotel will not be retained
or continued where the DHCR determines that 51 percent of the permanent
tenants are not receiving maid and linen service, except that all
tenants receiving such services shall be entitled to receive the
services for the duration of their occupancy. Where an owner is
providing maid and linen service to 51 percent of the permanent
tenants and the owner wishes to maintain the building's classification
as a hotel, the owner shall be afforded 90 days to restore all four
hotel services described above, without any additional rent increase
for such services, to all of the building's permanent tenants, except
that those tenants whose housing accommodations were rented to them
as apartment (not hotel) housing accommodations shall have the option
of rejecting restoration of hotel services and be subject to the
RSL, pursuant to the provisions of this Code applicable to apartment
buildings, until they vacate, at which time the owner shall be required
to restore hotel services to the housing accommodations.
(c) Notwithstanding the provisions of subdivision (a) of this section,
single-room occupancy facilities such as single-room occupancy hotels
or rooming houses, as defined in the MDL, shall not be subject to
reclassification pursuant to this section. However, such housing
accommodations shall be included in the definition of hotel as set
forth in section 2520.6(b) of this Title for all other purposes
of this Code, except that the four minimum services enumerated in
such section shall not be required to be provided unless such services
were provided on the applicable base dates pursuant to section 2520.6(r)(4)
of this Title.
(d) Notwithstanding the provisions of subdivision (a) of this section,
the DHCR may decline to reclassify a hotel to apartment building
status if it finds that the owner has reduced any of the four hotel
services listed in such subdivision (a) for the purpose of reclassification
of the building.
Statutory authority:
N.Y.C. Administrative Code, §§ 26-511(b), 26-518(a)
History:
Added § 2521.3 on 5/01/87.
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