§ 14-04 Disposition Rent Increases.
RCNY § 14-04
(a)Disposition rent increases are necessary to raise rents to a level sufficient to cover the maintenance and operating expenses in a particular building during the first year of private ownership.
(b)The DAMP Lessee may prepare a request to the appropriate DAMP Program Director for a disposition rent increase for Tenants to take effect prior to the sale of the particular building.
(c)If a request for a disposition rent increase is not submitted, the DAMP Program Director may propose a disposition rent increase in accordance with the provisions of this chapter.
(d)The DAMP Lessee or DAMP Program Director shall prepare a statement of estimated maintenance and operating expenses which form the basis for the disposition rent increase, a history not to exceed the prior year of billing and collection of rents in the particular building and a current rent roll. The statement of estimated maintenance and operating expenses shall contain: (1) the past actual expenditures for maintenance and operation of a particular building, including, but not limited to: the cost of fuel for heat and hot water, payments for common space utilities, repair and maintenance, supplies, insurance and custodial services; fees for management and professional services; and a capital and/or operating reserve, if any.
(2)a proposed budget for the maintenance and operation of the particular building setting forth the projected operating expenses during the first year of private ownership, including, but not limited to: the cost of fuel for heat and hot water, expenditures for common space utilities, repair and maintenance, cleaning supplies, insurance, custodial services, fees for management and professional services, a reserve for vacancies and uncollectible debts, a capital and/or operating reserve, if any, real estate taxes, water and sewer charges and debt service.
(3)a calculation of the rent required on a per Room per month and per dwelling unit per month rate.
