§ 26-08 Phase-In of New Rents of For-Profit Tenants.
RCNY § 26-08
(a)Where the Commercial Rent Restructuring Committee determines that the difference between the new rent and the current rent of a commercial unit is an increase of more than 15 percent of the current rent, the Committee shall direct that the new rent be phased in over a period of not more than five (5) years. The current rent of such unit shall be increased each year until the rent shall equal the new rent, but each such increase shall be no more than 15 percent of the prior year's rent for each of the first four years. On the fourth anniversary of the Commercial Rent Restructuring Committee's implementation of the rent increase, the remainder of any difference between the rent then being charged and the new rent shall be the amount of the increase for the final year of the phase-in period.
(b)Notwithstanding subdivision (a) above, in no event shall the first rent increase of the phase-in result in a rent less than: (1) 25 percent of FMR or current rent plus 15 percent, whichever is more, for a commercial unit of 1,000 square feet or more; or (2) $300 or FMR, whichever is less, for a commercial unit of less than 1,000 square feet.
