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What is NYC AC § 26-407?

Quick Answer

This section regulates labor cost pass-along rent increases, limiting them to maximum adjustments as specified in the chapter. Any increases beyond this limit are deemed null and void, requiring repayment to tenants through cash refunds or credits against future rent. Applies to landlords managing rent increases from tenants.

General informational summary. Not legal advice for your situation. Consult an attorney before acting on any specific matter.

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§ 26-407 Labor cost pass-along.

AC § 26-407

a. Notwithstanding any provisions of this chapter, any labor cost pass-along rent increase requested of, or received from, any tenant on or after July first, nineteen hundred seventy-two, pursuant to the provisions of subparagraph (1) of paragraph one of subdivision g of section 26-405 of this title, shall not exceed the maximum rent adjustment as provided under this chapter after the effective date of this section. b. All such increases in excess of such maximum rent are hereby declared null and void and of no effect. A tenant who paid any such excess increase shall be repaid by a cash refund or credit, to be applied against future rent, in equal installments for the same number of months for which such increase was actually collected, commencing on January first, nineteen hundred seventy-eight.

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