§ 52-12 Preferential Rent.
RCNY § 52-12
(a)A preferential rent, which is lower than the legal regulated rent, will be established as the frozen rent except as set forth in subdivision (b) of this section. The tax abatement credit for such preferential rent will be the difference between the frozen rent and the current preferential rent for all initial preferential rent increase exemption orders that are in effect as of July 1, 2019 or later.
(b)Notwithstanding subdivision (a), the frozen rent for all program renewals whose initial eligibility was June 1, 2019 or earlier shall be the frozen rent in effect on July 1, 2019, except as otherwise adjusted by law.
(c)The tax abatement credit for preferential rent renewals whose initial eligibility was June 1, 2019 or earlier shall be the difference between the frozen rent in effect on July 1, 2019 and the Legal Regulated Rent for the period covered by the rent increase exemption approval order. The tax abatement credit for preferential rent whose initial eligibility was July 1, 2019 or later shall be the difference between the preferential rent in effect upon initial application and any lawful adjustments to the rent for the period covered by the rent increase exemption approval order.
(d)A preferential rent, which is lower than the legal regulated rent, will be established as the frozen rent if the tenant lives in a low income housing tax credit apartment in a low income tax credit building pursuant to section 42 of the Internal Revenue Code.
(e)A preferential rent, which is lower than the legal regulated rent, may not be the frozen rent for buildings subject to paragraph 14 of subdivision c of § 26-511 of the Administrative Code of the City of New York. (Added City Record 5/14/2021, eff. 6/13/2021; amended City Record 2/24/2023, eff. 3/26/2023)
