§ 22-04 Rent Setting.
RCNY § 22-04
(a)Establishment of disposition rent. HPD may establish a Disposition Rent for each dwelling unit in a Building based upon the estimated cost of (i) operating the Building in private ownership, and (ii) the repayment of City investment in the Building, including, but not limited to, any City investments during City ownership and any City loan prior to City ownership. The Disposition Rent per dwelling unit shall reflect the expenses for the Building for the first year following disposition. Such expenses may include, but shall not be limited to: allowances for vacancies, debt service coverage, debt service, fuel, common space utilities, repair and maintenance, cleaning supplies, insurance, custodial services, management fees, professional services, operating reserve, capital replacement reserve, real estate taxes, return on equity, anticipated capital repairs and water and sewer charges. The expenses shall be projected by HPD based on its experience and knowledge of the operation of similar buildings.
(b)Notice of opportunity to comment. Prior to establishment of the Disposition Rent, HPD shall notify the Tenants of the proposed amount of the Disposition Rent and afford them a thirty (30) day opportunity to submit written comments to HPD.
(c)Notice of disposition rent. Once a Disposition Rent has been established, HPD shall send a written notice of the amount of the Disposition Rent to all Tenants at least thirty (30) days before the effective date of the new Disposition Rent. The notice of Disposition Rent may be combined with any notice of Disposition.
