New York Codes, Rules and Regulations › Title 9 - EXECUTIVE DEPARTMENT › Subtitle S - Division of Housing and Community Renewal › Chapter VIII - Rent Stabilization Regulations › Subchapter B - Rent Stabilization Code › Part 2522 - Rent Adjustments › Section 2522.4 - Adjustment of legal regulated rent

Current through Register Vol. 46, No. 28, July 10, 2024
(a)
					 Individual Apartment Improvements.
(1)
					 Increase in space, new equipment, new furniture or furnishings; and other
					 adjustments.
(2) An owner is
					 entitled to a temporary rent increase where there has been a reasonable and
					 verifiable modification, other than an increase for which an adjustment may be
					 claimed pursuant to subdivision (b) of this section, of dwelling space,
					 installation of new equipment or improvements, or new furniture or furnishings,
					 provided in or to the tenant's housing accommodation, where the tenant has
					 agreed to such modification or increase and the owner has obtained written
					 informed tenant consent to such rent increase. In the case of vacant housing
					 accommodations, tenant consent shall not be required.
(i) For all work that commenced on or after
					 June 14, 2019, notification of all modifications must be submitted to DHCR for
					 verification. As a part of such verification, an owner shall:
(a) Provide a copy of the written informed
					 tenant consent on an approved DHCR form when tenant consent is
					 required.
(b) Provide the DHCR with
					 an itemized list of work performed, including a description and/or explanation
					 of the reason or purpose for such work.
(c) Provide the DHCR with photographs of the
					 subject apartment where the work will be completed taken prior to such
					 modification or increase as well as photographs taken after, and showing, the
					 work has been completed. Such photographs must be kept as part of the owner's
					 permanent records such that the owner must at any future time produce such
					 photographs upon request by an agency with appropriate jurisdiction.
(d) Use a licensed contractor to complete
					 such work, where using a licensed contractor is required by an appropriate New
					 York State or local governmental agency or rule. The costs for an individual
					 apartment improvement paid to a person or organization contracted to do the
					 improvement or installation work sharing a common ownership with the owner or
					 managing agent of the subject building or apartment will be
					 disallowed.
(e) Resolve, within the
					 dwelling space, all outstanding hazardous and immediately hazardous violations.
					 In no event shall an owner be permitted to begin collection of any rent
					 increase pursuant to this subdivision while there are any hazardous or
					 immediately hazardous violations of the Uniform Fire Prevention and Building
					 Code (Uniform Code), New York City Fire Code, or New York City Building and
					 Housing Maintenance Codes pending against the affected housing
					 accommodation.
(ii) For
					 work commenced on or after June 14, 2019, the recoverable costs incurred by the
					 owner pursuant to this paragraph shall be limited to a total aggregate cost of
					 fifteen thousand dollars ($15,000) that maybe expended on no more than three
					 (3) separate individual apartment improvements in any fifteen (15) year
					 period.
(iii) An owner who is
					 entitled to a rent increase pursuant to this paragraph shall not be entitled to
					 a further rent increase based upon the installation of similar equipment, or
					 new furniture or furnishings within the useful life of such new equipment, or
					 new furniture or furnishings.
(iv)
					 Any increases to the legal regulated rent pursuant to this paragraph shall be
					 temporary and shall be removed from the legal regulated rent thirty (30) years
					 from the date the increase became effective inclusive of any increases granted
					 by the applicable Rent Guidelines Board that had been calculated based upon
					 such rent increase.
(v) For
					 individual apartment improvements pursuant to this subdivision, the DHCR shall
					 maintain an itemized list of work performed and a description or explanation of
					 the reason or purpose of such work, inclusive of photographic evidence
					 documenting the condition prior to and after the completion of the performed
					 work. Such documentation and any other supporting documentation shall be
					 submitted to the DHCR by the owner within 90 days of the completion of the
					 work, retained in a centralized electronic retention system and made available
					 in cases pertaining to the adjustment of legal regulated rents.
(vi) Where an owner seeks a temporary
					 individual apartment improvement rent increase pursuant to this subdivision
					 while the unit is occupied, the DHCR shall provide a form for use by the owner,
					 to obtain written informed consent from the tenant that shall include the
					 estimated total cost of the improvement and the estimated monthly rent
					 increase. Such form shall be completed and submitted to the DHCR by the owner
					 within 90 days of the completion of the work and preserved in a centralized
					 electronic retention system. Nothing herein shall relieve an owner, lessor, or
					 agent thereof of his or her duty to retain proper documentation of all
					 improvements performed or any rent increases resulting from said
					 improvements.
(vii) For rent
					 increases pursuant to this subdivision that took effect prior to June 14, 2019,
					 the increase in the monthly legal regulated rent for the affected housing
					 accommodations when authorized pursuant to this paragraph shall for buildings
					 and complexes containing 35 or fewer housing accommodations be 1/40th of the
					 total cost, including installation but excluding finance charges; and for
					 buildings and complexes containing more than 35 housing accommodations be
					 1/60th of the total cost, including installation but excluding finance
					 charges.
(viii) For temporary rent
					 increases pursuant to this subdivision effective as of or after June 14, 2019,
					 the temporary increase in the monthly legal regulated rent for the affected
					 housing accommodations when authorized pursuant to this paragraph shall for
					 buildings and complexes containing 35 or fewer housing accommodations be
					 1/168th of the total cost, including the cost of installation but excluding
					 finance charges; and for buildings and complexes containing more than 35
					 housing accommodations be 1/180th of the total cost, including the cost of
					 installation but excluding finance charges.