§ 3-11 Utility Pass-Through, Submetering, Direct Metering.
RCNY § 3-11
(a)Utility pass-through.
(1)Procedure for request of increase.
(i)A housing company which desires to implement an increase in that portion of the rent/carrying charges attributable to utilities must make a request in writing to HPD for permission to do so. Accompanying said request must be photocopies of utility bills for the period of two years prior to the date of request in order to compare current costs with prior costs.
(ii)The housing company must indicate the total annual amount of the increase requested and, in addition, indicate the amount of the increase on a per room per month basis.
(iii)In the case of a mutual housing company, the utility increase request must be accompanied by a board of director's resolution approving same.
(iv)The housing company's accountant shall verify in writing that the supporting figures submitted are correct.
(v)The housing company, upon submission of a request to HPD, shall post the request in a conspicuous public place on the lobby floor of each building. In the case of a rental development, a copy of the request with the back-up data shall be mailed to the President of the Tenants Association for review and comment. Additional copies of the request with back-up data shall be kept by the housing company for inspection by tenant / cooperators requesting same.
(2)Procedure for processing increase. The above data will be analyzed by the Division of Housing Supervision of HPD to determine the validity of the request for a utility pass-through. Tenant / cooperators shall be allowed thirty (30) days from the date of notification to the shareholders or Tenants Association to comment on the request. Upon determination by HPD that a pass-through of increased utility costs is warranted, based on an increase in utility rates, an increase in utility consumption or any combination thereof, HPD shall approve implementation of said utility pass-through and shall notify the housing company in writing of such approval and of the duration of said utility pass-through. In a rental development, a copy of the approval letter shall be sent to the President of the Tenants Association. HPD may deny the request if the housing company has sufficient resources to absorb the increases.
(3)Implementation by housing company.
(b)Submetering of electricity. Wherever allowable as determined by the Public Service Commission, a housing company which is master metered for electricity may, pursuant to HPD approval, install equipment for the submetering of electrical charges within dwelling units and bill tenant / cooperators for their individual consumption, plus administrative costs and amortization of equipment. A housing company seeking to convert to submetering must comply with all requirements of the Public Service Commission with respect to such conversion. Rent/carrying charges shall continue to reflect the cost of electricity for public areas and usages.
(4)Grievance procedures. Grievance procedures prepared by the housing company relating to the submetering of electrical charges shall be submitted to HPD for review and approval before such procedures are implemented by the housing company.
(c)Direct metering of electricity.
(5)A determination will be made by HPD after analysis of existing utility charges as to whether rents or carrying charges at the development require adjustment as a result of the conversion.
