§ 30-06 Rent Setting.
RCNY § 30-06
(a)Establishment of Intake Rents. HPD shall from time to time on a program-wide basis establish Intake Rents for all dwelling unit Buildings selected for the Program based upon a minimum rent level per zoning room based on operating costs in similar Buildings. The Intake Rent and the rationale therefore shall be kept on file by HPD and be available for public inspection. HPD shall provide notice of Intake Rent pursuant to 28 RCNY § 30-04(f).
(b)Pre-commitment meeting. After the notice of Project Commencement pursuant to 28 RCNY § 30-04(e), and prior to the issuance of a commitment letter containing the terms and conditions for a Subsidy, HPD shall send a notice informing the Tenants of the time and place of a meeting to discuss the Program at least two business days prior to such meeting. A representative of HPD shall attend such meeting.
(c)Projection of Post-Rehabilitation Rents. HPD shall determine a rent for each dwelling unit in the Building to take effect upon Substantial Completion. The Post-Rehabilitation Rent per occupied dwelling unit may be based upon the Tenants' income or may reflect the expenses for the Building as projected by HPD less the effective annual net commercial income, if any. If the Post-Rehabilitation Rent reflects the Building's expenses, HPD shall project the annual maintenance and operating expenses for the Building after Substantial Completion, including allowances for vacancies and debt service coverage. The expenses shall be projected by HPD based on its experience and knowledge of the operation of similar buildings. For those apartments which are vacant at the time of the sending of the notice of Substantial Completion pursuant to subdivision (h) of this section, HPD shall set Post-Rehabilitation Rents at no greater than one hundred and ten percent (110%) of the FMR for the area in which the Building is located.
(d)Pre-Disposition notice. Following the pre-commitment meeting held pursuant to subdivision (b) of this section, and not less than thirty (30) days prior to Disposition, HPD shall send a notice which shall (1) inform each Tenant of the contemplated Rehabilitation which will be performed in the Project; (2) advise each Tenant of the expected rental increase to result from the Rehabilitation which will take effect after Substantial Completion (i.e., the Post-Rehabilitation Rent); (3) provide information on rental assistance which may be available to the Tenant and the procedures to apply for such assistance in accordance with 28 RCNY § 30-09; (4) apprise each Tenant of such Tenant's right to submit written comments; and (5) advise each Tenant that where relocation during Rehabilitation is necessary, HPD will use its best efforts to minimize inconvenience to affected Tenants.
(e)Implementation of Intake Rent. Commencing no earlier than the date set forth in the notice of Intake Rent sent pursuant to 28 RCNY § 30-04(f), HPD shall charge the Intake Rent, except that rents for Tenants whose rents at such time are greater than the Intake Rent shall not be decreased.
(f)Registration of Rent. Not less than thirty (30) days after Disposition, Sponsor shall register with DHCR the rent charged to each Tenant in the Building at the time of Disposition. Leases shall contain a provision satisfactory to HPD requiring notice to the Tenant of the subsequent establishment of the Post-Rehabilitation Rent.
(g)Increase in Projected Post-Rehabilitation Rents. If the Post-Rehabilitation Rents established by HPD pursuant to subdivision (c) of this section reflect the Building's expenses, and HPD determines that its projection of maintenance and operating costs must be increased based on unforeseen changes in the circumstances and factors which formed the basis of the original projection, including, but not limited to, unexpected increases in fuel or utility costs, HPD shall notify Tenants of the amount of the expected rent increase over and above the Post-Rehabilitation Rent set forth in the pre-Disposition notice sent pursuant to subdivision (d) of this section.
(h)Notice of Substantial Completion. Following Substantial Completion, HPD shall send a notice to each Tenant that the Rehabilitation is substantially complete and that the Tenant's rent will be increased to the Post-Rehabilitation Rent in not less than sixty (60) days. Such notice shall state that the Tenant has an opportunity to comment regarding the quality of Rehabilitation. Such notice shall also include the amount of the Post-Rehabilitation Rent, its effective date, and provide information on rental assistance which may be available to the Tenant and the procedures to apply for such assistance in accordance with 28 RCNY § 30-09. Prior to the establishment of Post-Rehabilitation Rents, HPD shall give due consideration to Tenant comments regarding the quality of the Rehabilitation.
(i)Implementation and Registration of Post-Rehabilitation Rents. Not less than sixty (60) days after the sending of the notice of Substantial Completion pursuant to subdivision (h) of this section, HPD shall complete and sign a rent order, and shall mail such order to the Tenant with a copy to the Sponsor. The rent set forth on each rent order shall be the Post-Rehabilitation Rent for such apartment as was determined in accordance with subdivision (c) of this section and as set forth in the pre-Disposition notice or as adjusted pursuant to subdivision (g) of this section. If an apartment is vacant at the time of establishment of rents, the rent order shall be mailed to the Sponsor. Immediately upon receipt of the rent order or a copy thereof, the Sponsor shall register the Post-Rehabilitation Rent for each Tenant in the Building with DHCR.
(j)Two year leases. The Sponsor must offer two year leases to all Tenants upon Substantial Completion.
