New York Codes, Rules and Regulations › Title 9 - EXECUTIVE DEPARTMENT › Subtitle S - Division of Housing and Community Renewal › Chapter VIII - Rent Stabilization Regulations › Subchapter A - Emergency Tenant Protection Regulations › Part 2501 - Legal Regulated Rents › Section 2501.1 - Initial legal regulated rents for housing accommodations

Current through Register Vol. 46, No. 28, July 10, 2024
(a) For housing accommodations which on the
					 local effective date of the act were under rent control pursuant to the
					 Emergency Housing Rent Control Law, and on or after that date become vacant and
					 are no longer under rent control, and which are rented thereafter and subject
					 to the act, the initial legal regulated rent shall be the rent agreed to by the
					 landlord and the tenant and reserved in a lease or provided for in a rental
					 agreement.
(b) For all other
					 housing accommodations subject to the act, the initial legal regulated rent
					 shall be the rent reserved in the last effective lease or other rental
					 agreement prior to the local effective date of the act.
(c)
(1)
					 Where an owner combines two or more vacant housing accommodations or combines a
					 vacant housing accommodation with an occupied accommodation, such initial rent
					 for such new housing accommodation shall be the combined legal rent for both
					 previous housing accommodations, subject to any applicable guideline increases
					 and any other increases authorized by this Title including any individual
					 apartment improvement increases applicable for both housing accommodations. If
					 an owner combines a rent regulated accommodation with an apartment not subject
					 to rent regulation, the resulting apartment shall be subject to the ETPA. If an
					 owner increases the area of an apartment not subject to rent regulation by
					 adding space that was previously part of a rent regulated apartment, each
					 apartment shall be subject to the ETPA.
(2) Where an owner substantially increases
					 the outer dimension of a vacant housing accommodation, such initial rent shall
					 be the prior rent of such housing accommodation, increased by a percentage that
					 is equal to the percentage increase in the dwelling space and such other
					 increases authorized by this Title including any applicable guideline increase
					 and individual apartment improvement increase that could be authorized for the
					 unit prior to the alteration of the outer dimensions.
(3) Notwithstanding the above, the above
					 increases may be denied based on the occurrence of such vacancy due to
					 harassment, fraud, or other acts of evasion which may require that such rent be
					 set in accordance with Part 2506 of this Title.
(4) Where the vacant housing accommodations
					 are combined, modified, divided or the dimension of such housing accommodation
					 otherwise altered and these changes are being made pursuant to a preservation
					 regulatory agreement with a federal, state or local governmental agency or
					 instrumentality, the rent stabilized rents charged thereafter shall be based on
					 an initial rent set by such agency or instrumentality.
(5) Where an owner substantially decreases
					 the outer dimensions of a vacant housing accommodation, such initial rent shall
					 be the prior rent of such housing accommodation, decreased by the same
					 percentage the square footage of the original apartment was decreased by and
					 such other increases authorized by this Title including any applicable
					 guideline increase and individual apartment improvement increases that could be
					 authorized for the apartment prior to the alteration of the outer
					 dimensions.
(6) Apartment
					 combinations and individual apartment improvements.
(i) When an owner combines two or more rent
					 regulated apartments, the owner may use each of the previous apartments'
					 remaining individual apartment improvement allowances for the purposes of a
					 temporary individual apartment improvement rent increase. The owner shall
					 subsequently designate a surviving apartment for the purposes of registration
					 that has the same apartment number as one of the prior apartments. If that
					 prior apartment has any reimbursable individual apartment improvement money
					 remaining after the combination, that money may be reimbursed for future
					 individual apartment improvements undertaken within the subsequent fifteen
					 years following the combination.
(ii) In order for an owner to qualify for a
					 temporary individual apartment improvement rent increase when apartments are
					 combined, the requirements for an individual apartment improvement, including
					 all notification requirements under Section
					 2502.4(c)(2) of
					 this Title must be met.
(7) Owners shall maintain the records and
					 rent histories of all combined apartments, both prior to and post combination,
					 for the purposes of rent setting, overcharge and all other proceedings to which
					 the records are applicable.