N.Y. Comp. Codes R. & Regs. tit. 9 § 2501.1

Current through Register Vol. 46, No. 45, November 2, 2024

Section 2501.1 - Initial legal regulated rents for housing accommodations

(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.

(d) For housing accommodations made subject to this Title as of June 14, 2019 as set forth in 2500.9(f), (j) and (k) the initial rents thereafter upon vacatur of the not for profit and affiliated subtenant shall be set using the rent in effect for a regulated tenant in occupancy immediately prior to occupancy by the not for profit and the affiliated subtenant plus any applicable increases.

N.Y. Comp. Codes R. & Regs. Tit. 9 § 2501.1

Amended New York State Register November 8, 2023/Volume XLV, Issue 45, eff. 11/8/2023