N.Y. Comp. Codes R. & Regs. tit. 9 § 2502.6

Current through Register Vol. 46, No. 36, September 4, 2024

Section 2502.6 - Orders where the legal regulated rent or other facts are in dispute, in doubt, or not known, or where the legal regulated rent must be fixed

(a)

(1) Where the legal regulated rent or any fact necessary to the determination of the legal regulated rent, or the dwelling space, essential services, or equipment required to be provided with the accommodation, is in dispute between the owner and the tenant, or is in doubt, or is not known, the division at any time upon written request of either party, or on its own initiative, may issue an order in accordance with section 2506.1 or section 2506.8, as applicable, of this Title, and other applicable provisions of this Subchapter, determining the facts, including the legal regulated rent, the propriety of any amended registration statements, the dwelling space, essential services and equipment required to be provided with the housing accommodations. Such order shall determine such facts or establish the legal regulated rent in accordance with the provisions of this Title. Where such order establishes the legal regulated rent, it_shall contain a directive that all rent collected by the landlord in excess of the legal regulated rent shall b e refunded to the tenant or any prior tenant, pursuant to the procedures and requirements set forth by section 2506.1 or section 2506.8 of this Title. Orders issued pursuant to this section shall be based upon the law and the ETPA provisions in effect on March 31, 1984, if the complaint was filed prior to April 1, 1984. Where either

(i) no base date, as defined in section 2506.8 of this Title, can be determined, and the rent charged on June 14, 2015 cannot be determined, or

(ii) a full rental history from the base date is not provided, or

(iii) the base date rent is the product of a fraudulent scheme to deregulate the apartment, or (iv) a rental practice proscribed under section 2505.3 (b) or (c) has been committed, the rent shall be established at the lowest of the following amounts set forth in paragraph (2), in section 2506.1 of this Title, or in section 2506.8 of this Title.

(2) These amounts are:

(i) the lowest rent registered pursuant to section 2509.2 of this Title for a comparable apartment in the building in effect on the date the complaining tenant first occupied the apartment; or

(ii) the complaining tenant's initial rent reduced by the percentage adjustment authorized by section 2502.5 of this Title; or

(iii) the last registered rent paid by the prior tenant; or

(iv) if the documentation set forth in (i) through (iii) of this paragraph is not available or is inappropriate, an amount based on data compiled by the division, using sampling methods determined by the division, for regulated housing accommodations.

(3) This subdivision shall also apply where the owner purchases the housing accommodations subsequent to judicial or other sales.

(b) However, in the absence of collusion or any relationship between an owner and any prior owner, where such owner purchases the housing accommodations upon a judicial sale, or such other sale effected in connection with, or to resolve, in whole or in part, a bankruptcy proceeding, mortgage foreclosure action or other judicial proceeding, and no records sufficient to establish the legal regulated rent were made available to such purchaser, such orders shall establish the legal regulated rent on the date of the inception of the complaining tenant's tenancy, or the date six years prior to the date of the filing of an overcharge complaint pursuant to section 2506.1 of this Title, whichever is most recent, based on either:

(1) documented rents for comparable housing accommodations, whether or not subject to regulation pursuant to this Subchapter, submitted by the owner, subject to rebuttal by the tenant; or

(2) if the documentation set forth in paragraph (1) of this subdivision is not available or is inappropriate, data compiled by the division for comparable housing accommodations; or

(3) in the event that the information described in paragraph (1) or (2) of this subdivision is not available, the complaining tenant's rent reduced by the most recent guidelines adjustment. This subdivision shall also apply where the owner purchases the housing accommodations subsequent to such judicial or other sale. In addition, where the amount of rent set forth in the rent registration statement filed six years prior to the date the most recent registration statement was required to have been filed pursuant to Part 2509 of this Title is not challenged within six years of its filing, neither such rent nor service of any registration shall be subject to challenge any time thereafter.

N.Y. Comp. Codes R. & Regs. Tit. 9 § 2502.6

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