§ 52-03 Rent Increase Exemption Orders.
RCNY § 52-03
(a)Effective Date and Duration.
(1)A rent increase exemption order will be issued to each tenant who applies to the Department and is found to be eligible for SCRIE or DRIE benefits, except that SCRIE benefits for 467-c apartments are administered by the Department of Housing Preservation and Development (HPD) and are not governed by this rule. The effective date of a new rent increase exemption order for rent controlled and rent stabilized apartments is the first day of the first month after receipt of an initial application for SCRIE or DRIE benefits. The tenant's order will set forth the benefit period, tenant's frozen rent, tenant's current rent, building owner's monthly TAC (i.e. SCRIE or DRIE Credit) and the total number of months the order will be in effect. The building owner's order will set forth the benefit period, tenant's frozen rent, tenant's current rent, owner's monthly TAC, total number of months the order will be in effect and total TAC for benefit period.
(2)A new rent increase exemption order for a rent controlled apartment will be for a term of two years. A new rent increase exemption order for a rent stabilized apartment will be for the duration of the lease in effect on the first day of the first month after receipt of the initial application. The effective date of a new DRIE rent increase exemption order for a 467-c apartment will be the date of the first increase in maximum rent that takes effect after the tenant is first determined to be eligible for DRIE benefits, and will be for a term of one year.
(b)The tenant will be required to pay the building owner the rent set forth in the rent exemption order.
(3)The rent the tenant will be required to pay for a 467-c apartment, pursuant to an initial or renewal application, will be the maximum rent in effect on the tenant's initial DRIE eligibility date, except as set forth herein. The tenant will continue to pay the same maximum rent for subsequent DRIE renewals except as set forth in these rules.
(4)The rent the tenant will be required to pay for a rent stabilized apartment may be increased based upon an electrical inclusion adjustment or an increase in dwelling space, services or equipment.
(5)If a rent stabilized apartment is subject to a rent reduction order the amount of the rent reduction shall be subtracted from the rent payable by the tenant specified in the rent exemption order and the TAC amount will remain the same. If the rent reduction order is canceled, the SCRIE or DRIE TAC will be adjusted to reflect the difference between the frozen rent and the legal regulated rent. If a rent reduction order is issued after the initial SCRIE or DRIE approval order the amount of the reduction shall be subtracted from the rent payable by the tenant specified in the rent exemption order and the TAC amount will remain the same. The TAC for the rent stabilized apartment as of the effective date of the rent restoration order will be the difference between the frozen rent and the legal regulated rent. Any increase in the amount of the TAC will be prospective from the effective date of the restoration order. For example: If the tenant has a frozen rent of $650 and the legal regulated rent for the rent stabilized apartment was $700 at the time a rent reduction order of $100 was issued in 2015, during the effective period of such rent reduction order, the tenant would pay $550 in rent and the TAC would be $50. If a HCR rent restoration order is issued with an effective date of July 1, 2020 and the legal regulated rent for the apartment as of such date was $800, the tenant will pay the frozen rent of $650 and the TAC will be increased from $50 to $150 on a prospective basis from July 1, 2020 forward.
(c)The rent the tenant will be required to pay for a rent controlled apartment may be adjusted under the following circumstances: (1) The building owner and the tenant in occupancy voluntarily enter into a valid written lease in good faith with respect to any housing accommodation that provides for an increase in the maximum rent on the basis of specified increased services, furniture, furnishings, or equipment and such increases are approved by HCR.
(ii)Cleaning service.
(iii)Air conditioning.
(iv)Painting.
(v)Garages.
(vi)Parking.
(vii)Storage facility.
(viii)Security deposits.
(ix)New appliances (e.g. stove, refrigerator, etc.).
(x)Any other increase for an individual apartment improvement, other than a building wide improvement.
(xi)Vacancy increases.
(xii)Changes in household (i.e. an increase in the number of people living in the apartment). (Added City Record 5/14/2021, eff. 6/13/2021)
