§ 2-01.1 and 2-11.1 to be imposed by the Loft Board or the Environmental Control Board, if designated by the Loft Board, for failure to comply with these rules.
RCNY § 2-01
If the Occupant's opposition to the Owner's or Responsible Party's plan does not require DOB review, the Occupant must serve the Owner or Responsible Party and the other Occupants with the Comments describing how the Owner's or Responsible Party's plan will unreasonably interfere with the Occupant's use of the unit or how it will result in a diminution of services to which the Occupant is entitled. The Occupant's Comments must be filed within the requisite time provided in § 2-01(d)(2)(ix)(B), unless extended pursuant to 29 RCNY § 2-01(d)(2)(viii). Proof of service to the Owner or Responsible Party and the other Occupants must be attached to the filing of the Comments with the Loft Board.
(xi)Amendments to Legalization Plan Before Loft Board's Certification. If the Owner or Responsible Party amends the Legalization Plan initially submitted to the Loft Board after the issuance of the notice described in § 2-01(d)(2)(ix)(B) but before the Loft Board issues certification, the Owner or Responsible Party must file two copies of any amended plans with the Loft Board, along with a detailed amendment to the narrative statement listing the changes. Proof of service of the narrative statement on all of the Occupants of the Building and copies of the plans must be filed with the Loft Board in accordance with the procedures described in subparagraph (vi) above. Within forty (40) days of the Loft Board's notice of the revised plan, any Occupant who has not previously done so, may file with the DOB an Alternate Plan Application for work affecting the Occupant's use of the unit, if DOB review is required or may file Comments opposing the Owner's or Responsible Party's revised plan with the Loft Board. The Occupant must comply with all the requirements of subparagraph (ix) above. The Occupant may object to only those items that represent a change from the Owner's or Responsible Party's submissions previously received. The procedures for DOB review provided in subparagraph (x) above shall apply.
(xii)Loft Board's Certification of the Legalization Plan. (A) (a) When the DOB has no further objections to the Owner's or Responsible Party's Alteration Application and Legalization Plan, and if no Comments or Alternate Plan Application has been filed by an Occupant of the Building within the time period provided for filing in this rule, the Loft Board shall issue a letter certifying compliance with all requirements of 29 RCNY § 2-01(d)(2). To receive Loft Board certification, the Owner or Responsible Party must verify to the Loft Board that no revisions have been made to the Legalization Plan since the last filing of the Narrative Statement.
(b)If an Occupant's Alternate Plan Application has been filed and the forty-five (45) day period provided in subparagraph (x) above for addressing objections to the Occupant's Alternate Plan Application has expired without all necessary and reasonable actions having been taken by the Occupant to cure the objections, the Loft Board shall issue a letter certifying the Owner's or Responsible Party's compliance with all requirements of 29 RCNY § 2-01(d)(2). (B) (a) (i) Where the Occupant has submitted an Alternate Plan Application and is unable to agree with the Owner or Responsible Party about the work to be performed, and the DOB has no objections to such Alternate Plan Application, or if the Occupant has cured such objections, the Occupant must advise the Loft Board and refer the Alternate Plan Application to the Loft Board for review and resolution of the dispute. Such referral to the Loft Board will occur no sooner than thirty (30) days after notification of the removal of the last objection or of the lack of objection. In addition, the Loft Board staff may authorize such referral before all objections have been removed if the remaining objections do not need to be resolved in order for the Loft Board to resolve the dispute. If the Owner or Responsible Party and the Occupant come to an agreement, they must immediately inform the DOB and the Loft Board of the agreement in writing and must provide the Loft Board with a copy of the agreement. In such case, the Owner or Responsible Party must amend the Alteration Application and Legalization Plan for the IMD Building to include the changes agreed upon by the parties, if any.
(ii)Where the Occupant has submitted Comments and DOB review is not required, the Comments must be resolved before certification can be issued. The Executive Director may resolve the Comments by issuing an Administrative Determination without starting a Dispute Resolution Proceeding or may start a Dispute Resolution Proceeding about the Comments.
(c)If the Loft Board, after a fact-finding hearing, or the Executive Director, if a fact-finding hearing is not required, finds that the Owner's or Responsible Party's Alteration Application and Legalization Plan would result in an unreasonable interference, the Loft Board or the Executive Director shall order the Owner or Responsible Party to amend its Alteration Application, Legalization Plan and corresponding Narrative Statement to incorporate the Occupant's Alternate Plan Application or Comments within sixty (60) days or may certify the Alternate Plan Application submitted by the Occupant for the space involved. A failure or refusal to comply with such an order or Administrative Determination may constitute a violation of the Owner's or Responsible Party's obligation to take all reasonable and necessary action to obtain an Alteration Permit under § 284 of Art. 7-C and these rules, and the Owner or Responsible Party may be subject to civil penalties in accordance with 29 RCNY § 2-11.1. The Loft Board may also initiate an action to compel specific performance, and seek all applicable penalties authorized by the Loft Board rules or Art. 7-C. If the Owner or Responsible Party has cleared all DOB objections and if the Loft Board or its Executive Director finds that the Owner's or Responsible Party's Alteration Application and Legalization Plan would not unreasonably interfere with the Occupant's use of the unit, the Loft Board or its Executive Director shall issue an order or an Administrative Determination certifying compliance with all requirements of 29 RCNY § 2-01(d)(2).
(xiii)Within ten (10) days after the issuance of a building permit by the DOB, the Owner or Responsible Party must file a copy of the building permit with the Loft Board. In the case of an IMD subject to Art. 7-C pursuant to MDL § 281(5) which has an Alteration Permit on September 11, 2013, the effective date of this rule, the Owner or Responsible Party must file a copy of the building permit with the Loft Board by October 11, 2013, thirty (30) days after the effective date of this rule.
(xiv)Amendments to Legalization Plan after the Loft Board's certification of compliance with 29 RCNY § 2-01(d)(2). (A) If the Owner or Responsible Party intends to amend the Legalization Plan certified by the Loft Board, the Owner or Responsible Party must file with the Loft Board two copies of the amended narrative statement listing the changes and the amended Legalization Plan within ten (10) days after the filing of the amendment with the DOB in accordance with (B) below. The Legalization Plan must identify all of the amendments. (B) The Owner or Responsible Party must follow the procedures for notice to the residential and non-residential Occupants set forth in 29 RCNY § 2-01(d)(1) above, except that notice of the amendment(s) is (are) only required to those units that are affected by the amendment(s). If an Owner or Responsible Party amends the Legalization Plan and the proposed work is located within IMD space, or within the common areas of the Building, the Owner or Responsible Party must serve an amended narrative statement on the Occupants in accordance with the notice provisions provided in 29 RCNY § 2-01(d)(1) above. The Owner or Responsible Party must file proof of service and the amended narrative statement and Legalization Plan with the Loft Board. In accordance with the requirements of 29 RCNY § 2-01(d)(2)(ix) and within forty (40) days from the Loft Board's notice of the Owner's or Responsible Party's revised Legalization Plan, any Occupant: 1) may file with the DOB an Alternate Plan Application or 2) may file with the Loft Board comments opposing the work proposed in the amendment. The Occupant may only object to those items that represent a change from the Legalization Plan certified by the Loft Board. The Owner or Responsible Party must obtain a Loft Board certification described in 29 RCNY § 2-01(d)(2)(xii) for any amended Legalization Plan. If the Occupant and the Owner or Responsible Party are unable to agree to the proposed work in the amended narrative statement and Legalization Plan, the Loft Board must follow the procedures in 29 RCNY § 2-01(d)(2)(xii)(B) regarding the Loft Board-initiated alternate plan dispute.
(xv)Approval of an Owner or Responsible Party 's Legalization Plan by the DOB pursuant to this subsection does not constitute approval of the construction costs for the work proposed in the plan as necessary and reasonable costs of code compliance work for purposes of a rent adjustment based of code compliance costs under these rules.
(3)Procedures for certification of estimated further rent adjustments. Following the DOB's approval of an Owner or Responsible Party's Alteration Application and Legalization Plan or an Occupant's Alternate Plan Application, an Owner or Responsible Party may apply to the Loft Board for certification of estimated future rent adjustments, based on the Legalization Plan and the Loft Board's Chart of Necessary and Reasonable Costs. The filing of an Application for estimated future rent adjustments is at the discretion of the Owner or Responsible Party and shall not be a basis for staying commencement or continuation of work under a valid building permit issued by the DOB. All Applications for certification of estimated future rent adjustments will be processed in accordance with 29 RCNY § 1-21, except as provided herein. The Owner or Responsible Party must file with the Loft Board an Application on a Loft Board approved form. The Application must describe separately: i) the work to be performed in each residential unit; ii) the work to be performed in common areas; and iii) the work to be performed in the non-residential Units. The Application must include a calculation of the necessary and reasonable costs based on the Loft Board schedule and any other necessary and reasonable costs as permitted in the Loft Board's rules. If the Owner or Responsible Party anticipates the use of financing, the Application must also include any statements, letters of intent or commitment, or other materials from institutional or non-institutional lenders regarding the terms or conditions of such financing. In addition, the Owner or Responsible Party must file with the Loft Board two copies of the approved Alteration Application and Legalization Plan. The Owner's or Responsible Party's Application must be served on all of the Building's Occupants by the Owner or Responsible Party in accordance with the service requirements for Applications set forth in 29 RCNY § 1-21. Occupants may review the Alteration Application and Legalization Plan at the DOB in accordance with the DOB's procedures or by appointment at the Loft Board's office. An Occupant may request from the Owner or Responsible Party a reproducible copy of the Alteration Application and Legalization Plan, and the Owner or Responsible Party must supply such a copy within seven (7) days after service of the request at a cost to the Occupant of up to the amounts listed in 1 RCNY § 101-03. Occupants may submit an answer to the Owner's or Responsible Party's Application within twenty (20) days after the date on which service of the Application was completed. The answer may list any objections, comments or suggestions regarding the calculation of necessary and reasonable costs of approved work. The Loft Board may schedule a conference to discuss objections, comments or suggestions raised by the Occupants and responses by the Owner or Responsible Party. Following such a conference, the Application will be processed, and the Loft Board will issue findings on the necessary and reasonable code compliance work and associated costs, and the estimated future rent adjustments. Such findings will be a reasonable estimate based on available information. However, actual rent adjustments will be determined by the Loft Board in accordance with 29 RCNY § 2-01(i) through (l).
(4)Requirement of a Letter of No Objection ("LONO") for Alteration Permits in IMD Buildings.
(i)Proposed work in non-IMD spaces: An Owner or Responsible Party of an IMD Building who is applying to the DOB for an alteration permit to perform work in the non-IMD spaces of such Building, including any commercial space or residential space not covered by Art. 7-C of the MDL, must provide DOB with a LONO from the Loft Board before issuance of an alteration permit.
(iii)Requirements to obtain a Letter of No Objection: (A) Before a LONO may be granted, a Building Owner or Responsible Party must demonstrate compliance with the annual registration requirements set forth in 29 RCNY § 2-11, and all outstanding fees and fines payable to the Loft Board for the Building must be paid or an arrangement for payment must be made. (B) The LONO request must include: (a) a formal request, which must be submitted on the Loft Board approved form, if any, at the time of the request; (b) a copy of the current quarterly report relating to the legalization projects in the Building, in accordance with the requirements of 29 RCNY § 2-01.1(a)(1)(ii); (c) a copy of the alteration application filed with the DOB; (d) a copy of the DOB objection sheet listing the only remaining DOB objection to be the requirement to obtain a LONO from the Loft Board, or proof that all DOB objections have been cleared and all required items have been submitted; and (e) a copy of the corresponding drawings or plans with DOB bar code numbers filed with the DOB, on paper no larger than fourteen by seventeen (14 x 17) inches. (C) The Loft Board's staff will not consider an incomplete request or a request containing inaccurate information for a LONO. (D) The Loft Board's staff may request additional information or documentation, as it deems necessary in its review of the LONO request. If the Owner or Responsible Party does not respond to the Loft Board staff's request within ten (10) days of the request, the request for a LONO will be deemed to be withdrawn. (E) The Loft Board's staff may deny a LONO request for the proposed work where: (a) the Owner or Responsible Party does not have an Alteration Application filed with the DOB to perform the legalization work in the IMD spaces; (b) the Loft Board issued a certification of the legalization work in the IMD spaces pursuant to 29 RCNY § 2-01(d)(2)(xi), and the Owner or Responsible Party does not have a current permit to perform the legalization work in such IMD units; (c) the DOB had issued a temporary certificate of occupancy for the residential portion of the subject Building before the Owner or Responsible Party applied for a LONO, and the temporary certificate of occupancy expired and has not been renewed; (d) the Owner's or Responsible Party's quarterly reports as required in 29 RCNY § 2-01.1(a)(1)(ii) show no advancement of legalization projects in the Building. The Loft Board's staff may supplement its review of the Owner's or Responsible Party's quarterly reports to consider any relevant information contained in the Loft Board's files; (e) the IMD Building already has a final certificate of occupancy, but the Owner or Responsible Party has not applied to the Loft Board for removal; (f) the Owner or Responsible Party applied to the Loft Board for removal of the subject Building before filing the LONO request, but the Owner or Responsible Party has not exercised all diligent efforts to submit additional information that was requested by the Loft Board's staff for processing the removal Application; or (g) any other circumstance exists that indicates to the Loft Board's staff that the Owner or Responsible Party has failed to take all reasonable and necessary action to obtain a final certificate of occupancy for the residential portions of the IMD spaces to legalize the Building or to remove the Building from the Loft Board's jurisdiction. (F) Granting of a LONO is not a finding by the Loft Board that the Owner or Responsible Party is exercising all reasonable and necessary action toward obtaining a final certificate of occupancy for the residential portions of the IMD units to legalize the Building.
(iv)Nature of the proposed work. In granting a LONO request, the Loft Board's staff may consider the effect the proposed work may have on the IMD units and the Protected Occupants of the Building. If the proposed work would (1) result in a change in the use, egress, Buildings' systems, or occupancy of IMD space in the Building, or (2) affect an Occupant of an IMD unit in which there is an active dispute or finding of Harassment by the Loft Board, or (3) adversely affect any Protected Occupants of the IMD units in the Building, the Loft Board's staff may conduct an informal conference with the Protected Occupants and the Owner or Responsible Party upon at least fifteen (15) days' notice. Service of the conference notice by the Loft Board will be sent by regular mail.
(v)Appeal of Decision. (A) If the Loft Board's staff denies a LONO request, the Owner or Responsible Party may appeal to the Executive Director for an Administrative Determination. (B) To be considered timely, the appeal to the Executive Director must be received by the Loft Board within fifteen (15) days from the mailing date of the LONO's denial. An untimely appeal is subject to dismissal by the Executive Director. The appeal to the Executive Director must include: (a) the basis for the appeal; (b) a statement that requirements for the LONO set forth in subparagraph (iii) above are true, correct and complete as of the date of the appeal; (c) a detailed report of the current status of the legalization projects; and (d) a detailed schedule of the work to be performed in connection with achieving compliance with Art. 7-B of the MDL, and a projected compliance date, to the extent the Building is not yet in compliance therewith. (C) The Executive Director will issue a written determination within 30 days of receipt of the request. (D) The Executive Director will not consider any incomplete appeals. Failure to file a complete appeal may result in rejection of the appeal without consideration of the issues raised. (E) Appeals from the written determination of the Executive Director shall be governed in accordance with 29 RCNY § 1-33.
(e)Code compliance for nonconforming units. If the DOB has issued an objection to the owner's alteration application because an IMD unit cannot be brought into compliance under appropriate building codes, provisions of the MDL or the Zoning Resolution because of its size, design, or location within the building, the owner and affected occupant(s) should make every effort to reach accommodations that would permit every covered residential unit to be made code compliant. If the owner and affected occupant are unable to reach a resolution about how to legalize the unit, either the owner or the residential occupant may apply to the Loft Board for a determination as to whether the unit can be made code compliant. In processing such an application the Loft Board may, following a hearing, or if a fact-finding hearing is not necessary, the Executive Director may: (1) Order the owner to apply for a non-use related variance, special permit, minor modification, or administrative certification, where the granting of such an application would make compliance possible; or (2) Order the owner to alter the unit, or to redesign residential units and common area space into a configuration that would allow the legal conversion of the unit to residential use; or (3) Revoke the unit's Article 7-C coverage, if these remedies are unavailing. If the Executive Director or the Loft Board orders (1) or (2) above, a specific date for compliance shall be provided and the occupants will be required to cooperate to achieve code compliance in accordance with the requirements of this section.
(f)Occupant participation in the code compliance process.
(1)The Loft Board encourages the owners and occupants of IMD buildings to work together to achieve code compliance. Such cooperation may include, but is not limited to, occupants' performance of code compliance work. Owners, occupants and their representatives should make good faith efforts to communicate and cooperate with each other throughout the process so as to reduce or eliminate potential disputes during the course of code compliance. Cooperation may result in benefits to all the parties insofar as: (i) Costs incurred by the owner may be minimized, reducing the capital the owner would have to raise and reducing the rent adjustment increases that would have to be passed along to residential occupants; (ii) Access difficulties may be minimized; (iii) Incidents of harassment may be eliminated or reduced; (iv) Losses incurred by nonresidential occupants may be eliminated or minimized; and (v) Code compliance may be achieved in a timely fashion.
(2)While occupants have no right as a matter of law to perform code compliance work, the owner and the occupant may agree voluntarily to allow such occupant to perform code compliance work or any portion thereof, within the building, to the extent permitted by applicable laws and regulations. The owner is required to obtain the appropriate DOB approval for all work to be performed, but where the owner and the occupant have agreed that work will be performed by the the occupant, they may also agree that the occupant will obtain the required DOB approvals, permits, and consents in accordance with all applicable laws, codes and rules on any work so permitted. Should the owner and the occupant agree upon performance of the code compliance work or any portion thereof by such occupant, the owner and the occupant must file a written agreement with the Loft Board in accordance with the procedures set forth in 29 RCNY § 2-01(d)(1). Such agreement must include: (i) an outline specification of all work to be performed and who will perform it; (ii) a time schedule for work to be performed as well as the identification of who is to supervise all construction work; (iii) a certification that the parties will provide all information required in the processing of applications for rent adjustments, if any, by the Loft Board; (iv) a certification by the owner and occupant that all work will be performed in accordance with the code compliance timetable provided in 29 RCNY § 2-01(a). Such agreement by the owner and the occupant must be consistent with the alteration application, corresponding legalization plan certified by the Loft Board, and any other job type alteration applications, limited alteration applications (LAA), electrical work applications, elevator application (EA) or Elevator Building Notice applications (EBN) filed with the DOB and the Loft Board.
(g)Notice to Occupants of proposed work, repairs and inspections and Occupant's obligation to provide access.
(h)Unreasonable interference with use.
(5)Unreasonable interference during the legalization process. An aggrieved occupant may file an application with the Loft Board claiming an unreasonable interference with use of the unit, if, in the course of performing the code-compliance work, the owner or its agent: (i) Engages in work that is outside of the scope authorized by the permit; (ii) Departs significantly from the work described in the owner's narrative statement and legalization plan; (iii) Departs significantly from the estimated time schedule for performance of the work as amended according to the requirements of 29 RCNY § 2-01(d)(2); (iv) Engages in repeated or substantial violations of the notice provisions provided in 29 RCNY § 2-01(g); or (v) Violates the provisions of the tenant protection plan provided in 29 RCNY § 2-01(d)(2)(vi). Such application must provide the factual basis for a claim that such unauthorized work, departure from the schedule, or violation of the tenant protection plan unreasonably interferes with the occupant's use of its unit. A finding by the Loft Board that the owner or its agents engaged in unreasonable interference with an occupant's use may result in civil penalties in accordance with 29 RCNY § 2-11.1 for each violation. A finding by the Loft Board that the owner or its agents engaged in unreasonable and willful interference with an occupant's use of its IMD unit may result in civil penalties in accordance with 29 RCNY § 2-11.1 for each violation, may constitute harassment of occupants, and may subject the owner to penalties resulting from a finding of harassment. As further provided in 29 RCNY § 2-02, the penalties may include, but are not limited to the denial of exemptions from rent regulation provided to an owner pursuant to § 286(6) of the MDL and Loft Board rules.
(a)Limitations of rent adjustments based on costs of compliance.
1.An Owner or Responsible Party who has failed to register its Building as an IMD: (i) on or before December 1, 1985, in the case of a Building covered by Art. 7-C pursuant to MDL § 281(1) or, (ii) on or before February 11, 1993, in the case of a Building which is covered by Art. 7-C solely pursuant to MDL § 281(4) or, (iii) on or before September 11, 2013, the effective date of this rule, in the case of a Building covered by Art. 7-C pursuant to MDL § 281(5), shall be allowed rent adjustments only for necessary and reasonable code compliance costs incurred after registration.
2.An Owner or Responsible Party who fails to register its Building as an IMD: (i) on or before March 1, 1986, in the case of a Building covered by Art. 7-C pursuant to MDL § 281(1) or, (ii) on or before May 11, 1993, in the case of a Building which is covered by Art. 7-C solely pursuant to MDL § 281(4) or, (iii) on or before December 10, 2013, 90 days after the effective of this rule, in the case of a Building covered by Art. 7-C pursuant to MDL § 281(5), shall be allowed only the necessary and reasonable code compliance costs incurred after registration, and such costs shall be based upon the schedule of costs referenced in subdivision (p) below, without indexing, regardless of when such costs were incurred.
(vi)An Owner or Responsible Party may expressly waive its right to a rent adjustment based on the cost of compliance. To do so, it must indicate its waiver decision on the Notice of RGB Increase form described in 29 RCNY § 2-01(i)(1) and follow the procedures therein for notification of the affected Occupants. In addition, an Owner or Responsible Party may be deemed to have waived its right to a rent adjustment based on the cost of compliance pursuant to 29 RCNY § 2-01(i)(2)(ii).
(vii)Whenever service upon parties is required in this 29 RCNY § 2-01(i)(2), service shall be made, and proof of service filed, in accordance with the requirements of 29 RCNY § 2-01(d)(1)(i).
(viii)If the Loft Board finds, following notice and an opportunity to be heard, that an architect or CPA has knowingly made a misleading material statement in the context of a certification issued pursuant to 29 RCNY § 2-01(i)(2)(iii)(B), the Loft Board may refuse to accept subsequent certifications from such architect or CPA, and shall refer its findings to the appropriate licensing agency.
(j)Schedule of costs. The Loft Board schedule of reasonable code compliance costs for obtaining a residential certificate of occupancy promulgated pursuant to §§ 280 and 286(5) of Article 7-C is appended to these regulations. The schedule is current as of September, 1984, will be applicable to applications filed with the Board before June 1, 1989 and shall be indexed annually, both prospectively and retroactively, based upon the average of the annual percentage change reported in the Dodge Building Cost Index and the Engineering News-Record Building Cost Index for New York as of September of each year. However, for periods prior to 1977 and after 1988 only the Engineering News-Record Building Cost Index will be used. The schedule promulgated by the Board on October 25, 1990 will be applied to all rent adjustment applications submitted on or after June 1, 1989 and shall be indexed annually, both prospectively and retroactively, based upon the annual percentage change reported in the Engineering News-Record Building Cost Index for New York as of September of each year. The schedule is intended to include all necessary and reasonable code compliance cost items. It includes the allowable costs of materials and labor for demolition and construction necessary for achieving minimal code compliance. It also includes professional fees and municipal filing fees necessary for code compliance. Rent adjustments shall not be allowed for items not included in the schedule unless upon owner application they are shown to be necessary and reasonable costs of code compliance, nor shall rent adjustments be allowed for costs not necessary to obtain a residential certificate of occupancy. In addition, notwithstanding the existence of a work item on the schedule, rent adjustments shall not be allowed for: (1) costs incurred in repairing or replacing items located in the common or commercial areas of the building or involving its exterior (such as masonry, fire escape, or skylight repairs) to the extent such items are repaired or replaced with a similar or comparable item due to their deteriorated condition (such costs being "deferred maintenance" costs); (2) the costs of curing preexisting violations in the building evidenced by municipal notices of violation to the extent such violations would have to be cured even if the building did not have to be made code compliant pursuant to Article 7-C; and (3) other "soft" costs, such as BRAC payments. The repair or replacement of work items (other than windows, as provided below) located within the residential units of the building shall not constitute a deferred maintenance cost. The foregoing rules are qualified to the following extent; (x) if the roof is required to be repaired or replaced, and it has been replaced within the 10-year period prior to the narrative statement conference for the building, half the necessary and reasonable costs shall be recognized as code compliance costs and allocated equally among any residential units whose occupants had made significant use of the roof during this 10-year period ("significant use" may be evidenced by the presence on the roof of the residential occupants' property, such as outdoor furniture, plants, decking, and clotheslines); otherwise, the costs of roof repair and replacement shall be excluded as deferred maintenance; (y) if windows are required to be repaired or replaced, the necessary and reasonable costs shall be recognized as code compliance costs if incurred to meet residential certificate of occupancy standards, but shall be excluded if they resulted instead from the deteriorated condition of the windows; and (z) the repair or replacement of utility risers, other building system components, or structural components due to their deteriorated condition with similar or comparable items shall constitute deferred maintenance costs unless these components had been installed by a residential tenant. In determining the appropriate rent adjustment for code compliance for each affected unit the Loft Board will decide on a case-by-case basis whether the work item applied for was necessary and reasonable to achieve minimal code compliance in the building. "Minimal code compliance" shall not be limited exclusively to the least expensive method of compliance but may also include other reasonable approaches to meeting legal requirements which are not unduly burdensome to the residential occupants. In assessing the reasonableness of the approach, the Board may consider the construction standards and specifications applied in housing programs financed by the Department of Housing Preservation and Development and other affordable housing programs in New York City. Where the cost of an allowable code compliance item has been included in the initial rent adjustment based upon Article 7-B compliance, the cost of any subsequent work performed to repair or replace that item may not be included in the final rent adjustment based upon issuance of a final residential certificate of occupancy. Rent adjustments for approved work items will be based on the lower of the actual cost or the scheduled amount for the item. In the case of approved work items that do not appear on the schedule, the necessary and reasonable cost of such items will be determined and included in the rent adjustments. Further, if in order to provide heat as required by Loft Board Minimum Housing Maintenance Standards, the landlord is or was required to install a central heating system or individual heating systems or to modify an existing system, the necessary and reasonable costs incurred in purchasing and installing or modifying such system or systems shall be costs that may be passed along to tenants as part of the rent adjustment calculated pursuant to these regulations. If in order to meet utility company standards or rules, an owner is required to perform work such as installing meters or constructing meter rooms, the necessary and reasonable costs of such work shall be costs that may be passed through as rent adjustments pursuant to these rules. Also, if in order to provide elevator services as required by the Department of Buildings or Loft Board Minimum Housing Maintenance Standards, the landlord has modified or replaced an existing elevator, the necessary and reasonable costs of performing such work shall be costs that may be passed along to the tenants as part of the code compliance rent adjustments. As part of the legalization work, the landlord shall also replace elevator hoistway door locks where prohibited with a security device on residential floor landings that provides substantially the same or enhanced security to the tenants, and the necessary and reasonable costs of performing such work shall be costs that may be passed along to the tenants as part of the code compliance rent adjustment. "Substantially the same or enhanced security" shall be defined as follows: (1) a "zero clearance vestibule," if the elevator is equipped with sliding doors and the vestibule may be created without altering their operation; (2) a vestibule extending into the IMD unit, with the minimum dimensions required to meet code requirements, if the elevator is equipped with swinging doors which open into the IMD unit; or (3) any other security arrangement to which the owner and tenant agree which meets DOB and Fire Department requirements. On request of the residential tenant, additional security measures such as mirrors and reinforced vestibule walls shall be installed by the owner, provided they are acceptable to DOB and the Fire Department, and the cost of their installation shall also be a recognized cost of code compliance. If a tenant has performed construction without the owner's consent at any time after the initial narrative statement conference, and additional costs are incurred by the owner as a result, such as architectural fees to revise plans or labor and material costs to perform additional work, these costs may be passed through to the tenant as part of the code compliance rent adjustments. In situations in which the owner alters or reconfigures residential units in a manner which results in changes in residential floor area pursuant to a Loft Board order or agreement among the parties, the Loft Board may determine the base rents to be charged for such spaces reflective of the change. Installation of an elevator vestibule to provide a tenant with security from intruders using the elevator shall not be the basis for an adjustment of base rent. Also, see 29 RCNY § 2-01(0).
(k)Rent adjustments.
(l)Allocation of rent adjustments. The total rent adjustment per IMD determined pursuant to 29 RCNY §§ 2-01(i) through (k) above, for obtaining a residential certificate of occupancy shall be allowed among individual residential units in the following manner: (1) Allowable code compliance costs of work performed in a residential unit to bring the unit into compliance shall be allocated to that residential unit.
(m)Initial legal regulated rents/issuance of residential leases.
(n)Cooperatives and condominiums.
(o)[Reserved.] (p) Schedule of costs.
