J. Rothken Nicholas Kamillatos DHCR has released proposed amendments to the Rent Stabilization Code (“RSC”). Rosenberg & Estis, P.C. will be holding a webinar to provide all of our clients an opportunity to hear presentations from our expert rent regulation attorneys on the meaning and potential effects of DHCR’s proposed RSC amendments, including whether DHCR has exceeded its authority and the potential attempt to retroactively devalue already rehabilitated buildings, newly created apartments and pending demolition cases by applying the new rules to give them retroactive effect.
Member & Head - Administrative Law Member - Administrative Law zrothken@rosenbergestis.com(212)551-8453 nkamillatos@rosenbergestis.com(212)551-8495 Michael E. ManagingLefkowitzMember AmendmentsProposedmlefkowitz@rosenbergestis.com(212)551-8436 to the Rent Stabilization Code ThursdaySept.22 12:30-1:30pmviaZoom 733 Third Avenue New York, NY 10017 212 867 www.rosenbergestis.com6000
WEBINAR: Expert Speakers
The
About this event:Zachary
2 § 2520.6(c) is amended
Added subdivision (p) to define “Common Ownership” for the purpose of section 2522.4 (IAI, MCI, other adjustments, hardship, modification of services) as: any identity of interest or relationship based on family ties or financial interest between the owner/managing agent of a property and any other entity with which the owner/managing agent conducts business.
5 § 2520.7 is amended
Filing of amendments to RSC: Amendments/revocations to RSC need to be filed with the Sec of State and take effect upon date of publication of the notice of adoption in the State Register unless otherwise specified therein or otherwise required by law.
Coverage for housing accommodations with gov’t fixed initial rents: units for which rentals are fixed by DHCR, HPD, HDC, HFA or other governmental agencies or public benefit corporations of the City or State are exempt from RS, unless after the establishment of initial rents the units are made subject to RS by law or agreement. Also exempt are units subject to the supervision of DHCR or HPD or other governmental agencies or public benefit corporations or under other provisions of law or the NYS Urban Development Corporation, or buildings aided by gov’t insurance under any provision of the National Housing Act to the extent the RSL or any regulation or order issued thereunder is inconsistent with such act.
Presented by
8 § 2520.11(c) is amended
6 § 2520.8 is amended
Amended definitions section. Subparagraph (c) redefines “rent” so as not to include fees, charges or penalties for the purpose of any summary proceeding, but may still be considered a violation of impermissible “rent” pursuant to section 2525 and a “rent” overcharge pursuant to section 2526.
Amendment or revocation: any provision of the RSC may be amended or revoked at any time. Added in the following: However, where a law requires a different rule than set forth in any provision of this Code, which may be implemented in the absence of regulation, DHCR shall follow such law notwithstanding that such conflicting code provision has not yet been amended or revoked.
September
Part Amendment
4 § 2520.6 is amended to add a new subdivision (p)
Effective Date: Code effective May 1, 1987, and amendments become effective in accordance with SAPA or as otherwise required by law. Where implementation would “require new or significantly revised filing procedures or notice requirements”, DHCR may postpone implementation for up to 210 days (used to be 180 days) by Advisory Opinion.
7 § 2520.9 is amended
R&E Webinar: Proposed Amendments to the Rent Stabilization Code Michael E. Lefkowitz, Zachary J. Rothken & Nicholas Kamillatos 22, 2022
3. Permanent units with government contracted services as of 6/14/19 and after, occupied by vulnerable or disabled individuals who are or were homeless or at risk of homelessness, who are considered to be tenants for this purpose.
9 cont.
§ 2520.11(e)(3) is amended and renumbered
§ 2520.11(e)(4) is amended and renumbered
Subparagraph 2 REPEALED: there is no longer an exception to the criteria re: good cause shown for an individual system not being replaced.
§ 2520.11(e) is amended
SUBSTANTIAL REHABILITATION:
9 cont.
Subparagraph 3 renumbered 2: substantial rehabilitation: must have been in a substandard or seriously deteriorated condition. REPEALED the 80% vacancy presumption of substandard or seriously deteriorated condition.
§ 2520.11(e)(2) is repealed, and paragraphs (3), (4), (5), (6) and (7) are renumbered as (2), (3), (4), (5) and (6). New paragraphs (7) and (10) are added.
General intro: Subparagraph (e) exempts from RSL buildings substantially rehabilitated after 1974 “that meet the criteria which, at the DHCR’s discretion, may be effectuated by operational bulletin”
Subparagraph 1 criteria is amended: “a specified percentage of at least (used to be “not to exceed”) 75% of listed building wide and individual housing accommodation systems, must have been replaced.”
9 cont.
§ 2520.11(e)(2) is repealed
9
9 cont.
Subparagraph 4 renumbered 3: substantial rehabilitation: finding of harassment by DHCR or other governmental entity will preclude substantial rehabilitation. That finding (unless by DHCR) shall be deemed to be in force for 3 years unless lifted.
§ 2520.11(e)(7) is added
Added subparagraph 7: substantial rehabilitation: after vacate order, owner must restore building to a layout substantially similar to prior layout, unless owner can demonstrate that doing so would be financially infeasible. Otherwise, tenants may accept a demo stipend or commence an RS tenancy in a reconfigured accommodation with a legal rent “determined based on local comparable stabilized rents”.
9 cont.
§ 2520.11(e)(10) is added
10 § 2520.11(f) is amended
Added subparagraph 10: substantial rehabilitation: sub rehab applicant’s lack of evidence for any reason, including passage of time, not an excuse for obligation to substantiate the application “as required by this section and any related operational bulletins”.
Nonprofit exemption from RS: However, the following are subject to RS:
§ 2520.11(e)(1) is amended
9 cont.
1. Occupied by tenants in occupancy when acquired by NFP
2. Subsequent tenant not affiliated at the time of his initial occupancy
1 "Victim of domestic violence" means any person over the age of sixteen, any married person or any parent accompanied by his or her minor child or children in situations in which such person or such person's child is a victim of an act which would constitute a violation of the penal law, including, but not limited to acts constituting disorderly conduct, harassment, aggravated harassment, sexual misconduct, forcible touching, sexual abuse, stalking, criminal mischief, menacing, reckless endangerment, kidnapping, assault, attempted assault, attempted murder, criminal obstruction of breathing or blood circulation, strangulation, identity theft, grand larceny or coercion; and (i) such act or acts have resulted in actual physical or emotional injury or have created a substantial risk of physical or emotional harm to such person or such person's child; and (ii) such act or acts are or are alleged to have been committed by a family or household member.
Subparagraph 1 is amended: repeal of high rent vacancy deregulation: effective 6/14/19, HRVD “is no longer applicable”. Any apartment lawfully deregulated shall remain deregulated.
15 cont.
12 § 2520.11(k) is amended
Also, a tenant who is paying a nominal rent following a vacate order shall be deemed to be occupying the unit as his or her primary residence.
Exemption from RS after 421 a expiration:
11 § 2520.11(j) is amended
Nonprimary residence exemption from RS: added that for the purpose of determining primary residence, a tenant who is a victim of domestic violence (as defined by Social Services Law §459 a)1 who has left the unit because of such violence, and who asserts an intent to return to the unit, shall be deemed to be occupying the unit as his or her primary residence.
15 § 2520.11(r) is amended
§ 2520.11(r) is amended
as follows: Market rate 421 a(16) units shall be subject to deregulation if initially rented above the deregulation threshold (“DRT”) or, if upon a permanent vacancy, the legal rent was above the DRT in effect at that time.
Subparagraph 1 amended as follows: And became vacant subsequent to the end of the applicable restriction
Nonprofit exemption from RS: units in buildings operated exclusively for charitable purposes on a nonprofit basis are exempt from RS. However, they shall be subject to RS if they are permanent housing accommodations with government contracted services, as of and after 6/14/19, for vulnerable individuals or individuals with disabilities who were homeless or at risk of homelessness, who are considered to be tenants for this purpose.
Subparagraphperiod.3amended
as follows: Affordable units subject to restriction period in 421 a(16) remain regulated at the end of the applicable restriction period with respect to tenant in occupancy when restriction period ends, for the tenant in occupancy and all successor tenants, and will be subject to deregulation only upon a permanent vacancy after the end of the relevant restriction
Subparagraphperiod.4amended
Subparagraph 2 is amended: 421-a(16) HRVD: a market rate unit in a 421 a(16) building may be high rent vacancy deregulated pursuant to RSL 504.2. The DRT shall be increased in January of each year by the same percent as the most recent one year Guideline adjustment.
14 § 2520.11(p) is amended
Repeal of all luxury deregulation.
20 cont.
20 cont.
Subparagraph (m)(3): improper vacancy: The above increases “may” be denied if the vacancy occurred due to harassment, fraud or “other acts of evasion” which may require that the rent be set by application of the default formula.
Subparagraph 1 is amended: repeal of high rent/high income deregulation: except any apartment that was lawfully deregulated shall remain deregulated. “Lawful deregulation” shall be defined as the issuance of an order by DHCR and the expiration of the lease in effect upon issuance of such order expiring prior to June 14, 2019.
17 § 2520.11(u) is amended
Subparagraph (m)(1): combination of units
Subparagraph (m)(2): increase outer dimensions of unit: If “substantially increase” the outer dimensions of a vacant unit, initial rent shall be “the prior rent” of such unit, increased by “a percentage that is equal to the percentage increase in the dwelling space and such other increases authorized by this Title” including Guideline and IAI increases “that could be authorized for the unit prior to the alteration of the outer dimensions.”
• If combine two or more vacant units, or combine a vacant unit with an occupied unit, first rent shall be the combined legal rent for both units, subject to Guidelines and IAI increases “applicable for both housing accommodations.”
16 cont.
20 § 2521.1(m) and (n) are added
NEWLY CREATED APARTMENTS
20 cont
20 cont.
Subparagraph (m)(4): regulatory agreements: If any of these reconfigurations are being made pursuant to a preservation RA with a governmental agency or instrumentality, the legal rents charged thereafter shall be based on an initial rent set by such agency or instrumentality.
• If combine a RS unit with an exempt unit, the resulting unit shall be subject to RS.
§ 2521.1(m) and (n) are added
Subparagraph 2 is amended: repeal of high rent/high income deregulation: effective 6/14/19, no further high rent/high income deregulation proceedings may be commenced, and all pending applications shall be dismissed as not subject to deregulation. An application is considered “pending” if apartment was lawfully deregulated prior to 6/14/19, and subject to review as of 6/14/19 in Court, by PAR to commissioner or by remand to RA.
§ 2521.1(m) and (n) are added
Notice of deregulation
§ 2521.1(m) and (n) are added
16 § 2520.11(s) is amended
Subparagraph (m)(5): substantial decrease of outer dimensions of unit: If “substantially decrease” the outer dimensions of a vacant unit, such initial rent shall be “the prior rent” of such unit, decreased by “the same percentage the square footage of the original apartment was decreased by” and such other authorized increases including Guideline and IAI increases “that could be authorized for the apartment prior to the alteration of the outer dimensions.”
§ 2520.11(s) is amended
§ 2521.1(m) and (n) are added
• If increase the area of an exempt unit by adding space that was “previously part of a rent regulated apartment”, each unit shall be subject to RS.
Between 1/8/14 and 6/14/19, the owner of any unit that was deregulated or subject to NYC rent control, must have given (replaced “shall give”) written notice of deregulation to first tenant. Such notice and exist registration were required to be sent by certified mail.
• The ordinary requirements for IAIs, including all notification requirements, must be met.
21 § 2521.2 (a) is amended
Amended to eliminate reference to removal of preferential rent on renewal.
24 § 2522.3 is amended
Subdivision (a): Date for filing FMRA is changed from four to six years.
Added that for any tenant who has a lease in effect on or after 6/14/19, or is or was entitled to receive a renewal after such date, the rent can be no more than the amount paid by the tenant prior to the renewal plus RGB increases and other increases authorized by law.
§ 2521.2 new (e) added
21 cont.
(f): changes reference to subdivisions of 2522.4 for adjustments of rent.
Owner is required to submit leases back to before a preferential rent was charged on the base date (changed from 4 year period).
22 cont.
For buildings subject to the RSC by virtue of a regulatory agreement, and which received federal project based rental assistance by HUD or any state or location Sec. 8 agency, where rent set by the agency is less than the legal rent, the amount of rent that can be charged on renewal or vacancy may be based on the previously established legal rent provided such vacancy shall not be caused by the owner’s failure to maintain the housing accommodation pursuant to 235 b of RPL.
Subparagraph (m)(7): maintenance of records: Owners shall maintain “the records and “rent histories” of all combined apartments, both prior to and post combination, for the purposes of rent setting, overcharge and all other applicable proceedings.
§ 2521.2 (c) is amended
20 cont.
Subdivision (c): Appeal dismissal date changed from four to six years.
Effective date of adjustment of legal rent: “Except as otherwise provided in this Code or set forth in the order” is added with respect to when rent adjustment takes effect. reference to succession pursuant to 2522.2 is also removed
Subdivision (e): Removal of reference to restriction of reviewing rent history prior to the four yearSubdivisionperiod.
20 cont.
• If combine two or more RS units, owner may use each of the previous units’ remaining IAI allowances for an IAI increase and shall subsequently designate a surviving unit for the purposes of registration that has the same apartment number as one of the prior units. If that prior unit has any reimbursable IAI money remaining after the combination, that money may be reimbursed for future IAIs undertaken within the subsequent 15 years following the combination.
§ 2521.1(m) and (n) are added
§ 2521.1(m) and (n) are added
Subparagraph (m)(6): combinations’ effect on IAIs:
Preferential Rents
22 § 2521.2 new (d) added
23 § 2522.2 is amended
FMRA and Applications for Adjustment of Initial Rent:
MCI rent increases: An owner of a building that contains more than 35% rent regulated units can file an application for a temporary increase.
• For temporary rent increases that took effect after 6/14/19, the increase is 1/168th for buildings containing fewer than 35 units and 1/180th for buildings containing more than 35 units.
• Where an IAI is sought in an occupied unit, DHCR shall provide a form for use by owner to obtain written consent which shall include total estimated cost and estimated monthly rent increase. The form shall be submitted within 90 days of completion of the work and should be retained by the owner.
4. use a licensed contractor where such is required by NY or local government rule.
• Must be essential for preservation, energy efficiency, functionality or infrastructure of the entire building, including heating, windows, plumbing and roofing, but shall not be for operational costs or unnecessary cosmetic improvements.
25 cont. § 2524.4(b) is added
1. provide written informed tenant consent where required.
• Adds reference to the prohibition of temporary MCIs for work done in individual apartments that are not an improvement to the entire building.
• Reasonable costs that can be recovered for qualified MCIs may not exceed the recoverable costs as determined by DHCR. The Reasonable Cost Schedule is the recoverable cost for MCIs in the following categories: (a) Major Systems, (b) Façade, Parapet, Roof and (c) Other Systems (chimney, doors, security system, intercom). Maximum recoverable costs for each type of MCI specified in the Reasonable Cost Schedule shall be based on a survey of such construction costs undertaken for such installation. The initial maximum costs shall be made available for public review and comment in connection with adoption of this regulation.
25 § 2522.4 (a) is repealed and a new (a) is added
• Disallowance will result from use of a contractor sharing common ownership with owner or managing agent.
• Must be depreciable under the Internal Revenue Code.
2. include itemized list of work performed, including a reason for the purpose of such work
5. resolve all outstanding hazardous and immediately hazardous violations. No increase can be collected while these violations are in effect.
• For any work commenced on or after 6/14/19, notification of modification must be submitted to DHCR for verification. Owner must:
Owner is entitled to a temporary rent increase, other than MCI rent increases pursuant to (b) where there is a “reasonable and verifiable modification.”
Individual Apartment Improvements:
• For work commenced on or after 6/14/19, the recoverable cost is limited to $15,000 in aggregate on no more than 3 occasions in any 15 year period.
• Within 90 days of completion of work, owner shall submit to DHCR (a) an itemized list of work and description or explanation of the purpose of the work, and (b) before and after photographs.
• Increase is temporary and shall be removed 30 years from the date it became effective, inclusive of any RGB increases.
3. include photographs of before and after work in an apartment. This must be kept as part of owner’s permanent records to produce upon request.
Rent Increase:
• For increases that took effect prior to 6/14/19, the increase is 1/40th of cost for buildings containing fewer than 35 units and 1/60th for buildings with more than 35 units.
• For MCIs approved on or after 6/16/12 and before 6/16/19, not more than 2% can be collected provided tenant entered into a renewal lease commencing after 6/14/19 or was entitled to receive a lease on or after that date.
• DHCR must annually inspect and audit no less than 25% of applications that have been submitted and approved to ensure owners complied with all obligations. Service Modifications:
• MCI is collectible prospectively on the first of the month beginning 60 days from the mailing date of notice of approval to tenant. This notice shall disclose the total monthly increase and the first month the tenant will be required to pay.
Consideration of Equities:
• Collection shall not exceed 2% in any year from the effective date over the rent set forth in schedule of gross rents.
• Proposes specific requirements for applying for waiver.
right to add to lease “Domestic Partners” in addition to spouses. 33 § 2522.5(h) is renumbered (g) and amended
34
Coop/Condo Building Leases: In Condo/Coop owned buildings, or for buildings where the AG has accepted ‘conversion plans,’ the amendment aligns leases where condo/coop conversion plan is pending to longstanding AG regulations to bar cancellation clauses and preferential rents cannot be increased beyond RGB percentages.
§
2522.6(b) is repealed and replaced
Any rent collected in excess of the established rents are treated as overcharges pursuant to new Section 2526.1 and 2526.7; Subsections (2) and (3) codify the default rent procedure, and include that procedure if the 2015 base date rent cannot be determined.
• Every year DHCR will review and assess the categories of MCIs and maximum recoverable costs in the Reasonable Cost Schedule
• Application should include an itemized list of work performed with a description or explanation of the reason or purpose for the work.
Amendment adds
35 § 2522.7
is amended
2. claimed costs are necessarily priced higher than the costs listed in the Reasonable Cost Schedule due to unique nature of installation or
• Owners may apply for waiver of application of Reasonable Cost Schedule in writing and accompany the application if:
28 § 2522.4(e) is amended
Lease Agreements: Tenants’
Removes equities from determining higher Regulatory agreement legal rents, and expands equitable powers to reduce retroactive rent increases (such as hardship and MCI orders).
1. claimed costs are not identified in Reasonable Cost Schedule or
Reserves the right to issue future updated policy statements regarding electrical submetering conversions. 32 § 2522.5(f) is amended
3. use of Reasonable Cost Schedule will cause undue hardship.
Establishing Legal Rents:
• Temporary increase is 1/144th total cost for building with 35 or fewer housing accommodations and 1/150th for buildings with more than 35 for any determination issued after 6/14/19 and shall be removed 30 years from the date the increase became effective.
Changes record keeping from 4 to six years with the caveat that election not to maintain records “shall not limit the authority of DHCR and courts to conduct a full examination of all available records to determine legal regulated rents pursuant to this subdivision.” Does not limit requirement to 6/15/2015.
§ 2522.9(b)(3) is amended
37
Subsection (a)(1)(2) is amended to make clear that all approved rent increases including MCIs are reduced and frozen by a service reduction order.
§ 2523.7(b) is repealed and replaced with a new subdivision (b)
46 § 2523.8 is amended
§ 2523.5(b) is amended
Added at (c) that in the absence of such notification “DHCR may serve all notices on the last registered owner.”
Removed from the demolition notice to the tenant that plans and financing may be “in the process of being obtained”
Initial Rent Registration:
45
§ 2522.8 is repealed and replaced
§ 2524.2(e) is amended
49
Owner liability to T for not using housing for purpose stated is based on use within 3 rather than 4 years.
Makes this Section consistent with HSTPA limits on rent increases to RGB amounts and no vacancy or succession allowances
§ 2523.4(a) is amended
38 § 2523.1 is amended
39
42
Removes four year time limit for tenant to file a FMRA
§ 2523.7(c) is amended (paragraph (2) of 9)
48 § 2524.4(a) is amended
For owner occupancy added “immediate and compelling necessity”; added detail that it does not apply where a tenant is senior citizen (62 or older) or has an impairment (now specified) or has been a tenant for 15 years (down from 20) or more. Limits recovery to one RS or RC apt.
Subsection (b)(2) is added, which expands the rights of successors to claim succession even if the tenant of record continues to pay rent.
47
Washing machine, dryer and dishwasher surcharges can no longer be added to Legal Rent
Tenant Service Complaints:
Added at (a) that a new owner must provide “an actual, physical street address” to DHCR where it is authorized “to accept service of documents, subpoenas or requests.”
Added that a receiver as well as a purchaser, even in the absence of rent records, is still obligated to register apartments.
Vacancy Leases:
§ 2524.4(b) ((2) and (3) are amended)
44
Lease Renewals:
36
No order granting refusal to renew lease may be issued fewer than 90 days from the date the last affected tenant’s lease has expired.
Removed prohibition on requiring a tenant or prospective tenant to purchase shares prior to acceptance of coop conversion plan
• An order may be revoked or modified if “DHCR determines that the owner has not proceeded in good faith”, DHCR may initiate its own enforcement proceeding and retains jurisdiction “until the project is completed” and failure to complete the project may be found to be a violation of the RSL.
53
57
55 § 2525.5 is amended
§ 2524.5(a) is amended (paragraph (2) of 9)
52
• Requires that Demolition application include proof of financial ability and approved plans. Specifies that demolition means the removal of the entire building including the foundation.
§ 2525.2(b) is amended
§ 2525.6(e) is amended
Demolition
§ 2524.5(b) is amended
§ 2524.4(c) is amended
Clarified that rent increase during subletting is temporary (and removed reference to vacancy allowance for subletting and assignment).
Excludes from primary residence requirement a T who is a victim of domestic violence and a T paying nominal rent. Also provides that affiliated subtenants of certain not for profits are deemed to be tenants for NPR purposes.
Amended “duty” to provide a receipt to “shall” provide a receipt. Requires owner to maintain a record of cash receipts for at least 3 years. Also requires owner to send tenant a notice by certified mail if rent is not received within 5 days of date due per lease.
54
“(g) For housing accommodations which are first made subject to this Code solely by reason of article 7 C of the MDL, nothing herein shall be deemed to prevent or limit the rights of tenants to sell improvements pursuant to MDL section 286(6).”
50
Added to definition of “Harassment” an owner’s “illegal discontinuance of a current tenant’s preferential rent”.
§ 2525.6(g) is repealed
• Does not reduce stipend during PAR.
51
• Stipend is now based on the “average rent for vacant non regulated apartments as set forth in the NYC Housing and Vacancy Survey (HVS) adjusted by a guideline until a new HVS is issued.”
56
§ 2525.3(a) is amended
59
(c) a legal rent is determined by adding “any lawful rent increases and adjustments” to the base date rent.
(d)(8) where the apartment was vacant or temporarily exempt on the date six years prior to a tenant’s complaint.
(e) provides that DHCR shall examine the rent prior to 6/14/2015 pursuant to 2526.1. (f) a tenant may file a complaint of overcharge at any time (g) an owner may file late registrations prior to an order finding overcharge and if there is no overcharge but for the late filing of registrations then there is no penalty (h)(1) DHCR will notify other affected tenants of a proceeding “commenced by the DHCR” and they will have an opportunity to join (h)(2) where a complaining tenant vacates and DHCR continues the proceeding, affected tenants will be given notice and an opportunity to join (i)(1) treble damages on overcharges since base date unless owner proves not willful, in which case interest is applied (i)(2) penalties for overcharges are limited to the six years prior to a complaint but no treble damages prior to 6/15/2017 and no recovery for overcharges prior to 6/15/2015.
Applies to proceedings “commenced” on or after June 14, 2019: (a)(1) base date is “date of the most recent reliable annual rent registration filed and served upon a tenant six or more years prior to filing of a complaint”. Any registration filed contemporaneously with a certification of service shall be presumed to have been served. In no event shall the base date be prior to June 14, 2015.
(a)(2) a reliable rent registration exists if between 6/14/2015 and the date of the registration the rent history contains no unexplained increases.
Post HSTPA Overcharges
(d) DHCR shall examine the rent “prior to the base date and subsequent to June 14, 2015” to make determinations as to: (d)(1) whether the legality of a rental amount is reliable in light of all evidence, including whether an unexplained increase or a fraudulent scheme to destabilize the apartment rendered such rent or registration unreliable (d)(2) whether an accommodation is subject to the ETPA or RSL (d)(3) whether any DHCR or Court order or any regulatory agreement remaining in effect 6 years prior to the filing of a complaint affects the amount of rent allowed (d)(4) whether an overcharge was or was not willful (d)(5) where information regarding the length of occupancy by any tenant is necessary to determine a rent adjustment (d)(6) the existence or terms of a preferential rent and the propriety of a legal rent (d)(7) the legality of the rent “immediately prior to the registration of a preferential rent”
60 § 2526.7 is added
These are the existing RSC rules for determining rents, etc.; New subdivision (i) provides that this subdivision only applies to “proceedings initiated prior to June 14, 2019, except as set forth in section 2526.7”
“Determination of legal regulated rents; penalties; fines; assessment of costs; attorney's fees; rent credits; where the proceeding is commenced prior to June 14, 2019” and a new subdivision (i) is added to read as follows
§ 2526.1 is renamed to
(b) in determining reliability of a rent registration DHCR shall consider all available evidence including rent registrations “regardless of the date to which the registration refers” .
66
or
67
An initial registration shall include “an actual, physical street address from which it conducts business and where the owner or an agent is authorized to accept service of documents, subpoenas or requests.”
63
61 §
§ 2527.3(a)(2)
70
is amended
tenants 60 days from mailing of notice to answer or reply to an MCI application 64 §
§ 2528.2(a) (new paragraph (7) is added)
is amended
“except where otherwise provided for in this Code” a person shall have no less than 20 days to answer reply except in “exceptional circumstances”.
When a notice shall be deemed served; removed reference to Part 2531 which was High Income decontrol
69
68 § 2527.9(a) is amended
Increases $1k $2k $2k $3k second. 2527.2
At any stage of a proceeding DHCR may: “(l) stay proceedings upon such terms as may be appropriate; or (m) permit a tenant to withdraw a complaint”
DHCR may “institute, ‘reclassify or convert’” a proceeding on its own initiative
“DHCR may establish such other procedures for service and filing via electronic or online methods via operational bulletin.”
for first and
Gives 2527.4
penalties for violation of an order of DHCR from $1k for first offense and $2k for second offense to ranges of
Also increases penalties for harassment 62 §
§ 2527.5 (new subdivisions (l) and (m) are added)
§ 2527.9 (new subdivision (e) is added)
for
(i)(4)(ii) complaints filed on or after 4/1/84 and prior to 6/14/2019 shall be determined pursuant to 2526.1 (i)(5)DHCR shall apportion liability between two or more tenants and, at its discretion, may require the owner to attempt to locate prior tenants who are not parties and to make refunds or pay the amount as a fine (i)(6) reasonable costs and attorney’s fees of the proceeding “shall” be assessed (i)(7) a tenant may deduct an overcharge from rent at a rate not in excess of 20 percent per month or the DHCR overcharge may be entered as a judgment in Supreme Court if the amount exceeds $1,000 or the tenant has vacated (i)(8)(ii)(a) for overcharges after 4/1/84 a current owner is responsible for all overcharges, except in the case of a judicial sale where no records sufficient to establish the legal rent were provided as such sale an owner shall not be liable for prior overcharges or treble damages (i)(8)(ii)(b) Court appointed receivers also have limited liability where records sufficient to establish the legal rent are not available (i)(9)a tenant is not entitled to more than one refund for the same overcharge (j) where no rent history is available the rent shall be determined pursuant to 2522.6 2526.2(c)
is amended
§ 2527.7 is amended
Unless as otherwise provided by the RSC “or by the RSL” the Code applies to any proceeding pending or where the code is amended the determination shall be made in accordance with the changed provision.
is amended
High Income Rent Decontrol is repealed
Where a provision of this code is amended during the pendency of a PAR, the determination shall be in accordance with the [removed “changed provision”] statute or code as it existed at the time the Rent Administrator’s order was issued unless the relevant law or regulation states otherwise.”
§ 2531.4 is repealed
The penalty for failure to properly and timely comply [removed “on or after the base date”] with rent registration . . . AND removed “nothing herein shall be construed to permit the examination of a rental history for the period prior to four years before commencement of a proceeding pursuant to 2522.3 and 2526.1.
High Income Rent Decontrol is repealed
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High Income Rent Decontrol is repealed
§ 2531.6 is repealed
77
§ 2528.4(a) is amended
High Income Rent Decontrol is repealed
78
81
§ 2531.7 is repealed
High Income Rent Decontrol is repealed
73 § 2529.10 is amended
Scope of PAR adds “proceedings remanded to the DHCR in an Article 78 may be reconsidered without being remanded to the Rent Administrator”
75
71
High Income Rent Decontrol is repealed
§ 2531.5 is repealed
Originally gave DHCR authority to process Luxury Deregulation applications even if time limits were not met. Replacement notes that LD was repealed, confirms that apartments previously deregulated stay deregulated, provides that high income deregulation required expiration of lease prior to 6/14/2019, AND provides for dismissal of pending applications except that an application shall not be considered pending if the lawful deregulation was prior to 6/14/2019 and the lawful deregulation is still subject to an Article 78, pending PAR or remand to RA.
§ 2531.2 is repealed
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§ 2531.3 is repealed
High Income Rent Decontrol is repealed 83
High Income Rent Decontrol is repealed
79
§ 2531.8 is repealed
§ 2531.9 is repealed and replaced with:
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§ 2531.1 is repealed
72 § 2529.6 is amended
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