(a) No increase in maximum rent, pursuant to
section
2201.3,
2201.4,
2201.5,
2201.6,
2202.8,
2202.9,
2202.10,
2202.11
or
2202.13 of
this Title, shall be collectible from a tenant to whom there has been granted a
rent increase exemption order, pursuant to this section, which became effective
prior to the effective date of such increase, except as provided in such
exemption order or as modified by subsequent exemption order.
(b) No increase in the legal regulated rent
of housing accommodations subject to the provisions of title YY of the New York
City Administrative Code, and the Rent Stabilization Code promulgated
thereunder, shall be collectible from a tenant to whom there has been issued a
currently valid exemption order pursuant to said Administrative Code or
pursuant to this section, except as provided in such order or as modified by
subsequent exemption order, where such increase is a lawful increase provided
under a two-year lease executed pursuant to title YY of the New York City
Administrative Code and Rent Stabilization Code, or under such other terms as
regards housing accommodations subject to the hotel stabilization provisions of
title YY51 of the New York City Administrative Code:
(1) pursuant to an order of the New York City
Rent Guidelines Board; or
(2) based
upon an owner hardship rent increase order issued by the Conciliation and
Appeals Board.
(c) The
city, upon application by the tenant on forms prescribed by HPD, shall issue a
rent increase exemption order where it finds that the tenant is eligible for
such order. A tenant shall be entitled to a rent increase exemption if:
(1) the aggregate disposable income of all
members of the household residing in the housing accommodation does not exceed
$10,000 per year;
(2) the maximum
rent, including rent increases described in subdivisions (a) and (b) of this
section, for the housing accommodation exceeds one third of the aggregate
disposable income of all members of the household;
(3) the tenant is entitled to reside in the
housing accommodation; and
(4) the
head of the household or spouse residing in the housing accommodation was 62
years of age or older on or before the date the application hereunder is filed,
and is not a recipient of public assistance pursuant to the Social Services
Law. However, persons receiving supplemental security income or additional
State payments, or both, under a program administered by the United States
Department of Health and Human Services solely or in combination with the New
York State Department of Social Services shall not be rendered ineligible
thereby.
(d) For the
purpose of this section:
(1) The term
aggregate disposable income shall mean the total income, from whatever source
derived (whether or not subject to Federal income taxation), including but not
limited to all compensation for personal services, wages, salaries,
commissions, tips and earnings from self-employment, inclusive, social security
and supplemental security income benefits, interest and dividends, pension
payments, unemployment, disability and workers' compensation benefits, rents,
royalties, payments from roomers, boarders or subtenants, alimony and support
payment pursuant to agreement or court order, other than gifts and voluntary
assistance payments from relatives and friends of members of the household not
required to provide maintenance or support, received by any member of the
household subject to the following adjustments:
(i) all Federal, State and city income taxes
and social security taxes shall be deducted;
(ii) union dues withheld from wages or
salaries shall be deducted; and
(iii) payments for maintenance or support,
made pursuant to a written agreement or order of a court of competent
jurisdiction by a member of the household to a person not a member of the
household, shall be deducted.
(2) Disposable income to be reported shall be
the income received in the last calendar year prior to the filing of the
application, except that where the applicant retires between the commencement
of such year and the date of filing the application, the income for such year
may be adjusted by excluding employment earnings and projecting expected annual
retirement income.
(3) The term
head of household shall mean the person who customarily pays the rent (or his
spouse, if older).
(4) The term
member of household shall mean any person permanently residing in the housing
accommodation who is not a bona fide roomer, boarder or subtenant.
(e) The rent increase exemption
order shall provide that the landlord may not collect from a tenant, to whom it
is issued, rent at a rate in excess of the greater of the following:
(1) one third of the aggregate disposable
income;
(2) the maximum rent for
rent-controlled housing in effect on December 31st of the calendar year
immediately preceding the year in which the initial exemption is effective;
or
(3) the legal regulated rent for
rent-stabilized housing accommodations in effect on June 30, 1974 or the date
immediately preceding eligibility, whichever is later.
Such order shall expire upon termination of occupancy by
the tenant to whom it is issued, except as provided in subdivision (j) of this
section. The landlord shall file a report of termination of occupancy of such
tenant, on a form prescribed by the city, within 30 days.
(f) The effective date of any
senior citizen rent increase exemption order issued pursuant to this section
shall be:
(1) for rent-controlled housing
accommodations, the first day of the month following the month in which the
application is filed or the applicant becomes eligible, whichever is later.
However, where such tenant could not qualify for senior citizen rent increase
exemption between July 1, 1980 and December 31, 1980, due to the sole reason
that the aggregate disposable income of all members of the household exceeded
$6,500 per year and did not exceed $8,000 per year, but filed for an exemption
on or before December 31, 1980, pursuant to New York City Local Law 61 for
1980, the effective date of that portion of the exemption applicable solely to
the fuel cost adjustment collectible pursuant to section
2202.13 of
this Part shall be July 1, 1980, including any retroactive adjustments
authorized by said section;
(2) for
rent-stabilized housing accommodations, the first day of the month in which the
application is filed or the applicant becomes eligible, whichever is later.
However, where such tenant could not qualify for senior citizen rent increase
exemption between July 1, 1980 and December 31, 1980, due to the sole reason
that the aggregate disposable income of all members of the household exceeded
$6,500 per year and did not exceed $8,000 per year, but filed for an exemption
on or before December 31, 1980, the effective date of the exemption order shall
be July 1, 1980, including any retroactive adjustments collectible
thereby;
(3) for rent-controlled
and rent-stabilized tenants, the effective date of any increase described in
subdivisions (a) and (b) of this section, including any retroactive adjustments
collectible thereby, provided the tenant has filed an application within 90
days after:
(i) any such order was issued
increasing the tenant's rent; or
(ii) in the event no order was issued, any
notice or report prescribed by the city to increase the tenant's rent was
served upon the tenant.
(g) A rent exemption order shall be renewable
annually upon application by the tenant, upon forms prescribed by the city,
which may include a certification of the tenant's continued eligibility in lieu
of the detailed statement of income and other qualifications. Upon the filing
of the renewal application, the prior rent exemption order shall remain in
effect until an order is issued determining the tenant's renewal application,
but in no event for more than six additional months.
(h) The city may audit and review
applications made pursuant to this section, and may cause an order issued
pursuant to this section to be amended, terminated or revoked, and the city may
direct the payment of back rent where it finds that:
(1) the tenant did not qualify for such
order;
(2) the tenant no longer
qualifies for such order due to a change of circumstances; or
(3) the tenant has submitted materially false
statements or has willfully omitted or neglected to make any required material
statement, in violation of subdivision (d) of section
2205.1 of
this Title.
(i) Orders
increasing or establishing maximum rents, pursuant to sections
2202.4
- 2202.7, 2202.12, 2202.19 and 2202.22 of this Part, are not subject to the
provisions of this section, and exemption orders for rent-stabilized tenants
shall provide that landlord may collect increases based on an electrical
inclusion or an increase in dwelling space, services, equipment or major
capital improvement.
(j) When a
tenant holding a senior citizen rent increase exemption order granted under
these rent regulations, title YY of the New York City Administrative Code or
article II, IV, V or VI of the Private Housing Finance Law, moves into a
dwelling unit subject to the title YY or these rent regulations on or after
March 28, 1977, he may apply to the city to carry the exemption from paying
that portion of the maximum rent of the original dwelling unit over to the
dwelling unit into which he moves; provided, however, that the exempt amount
shall be limited to the lowest of the following:
(1) the amount by which the rent for the
subsequent dwelling unit exceeds the rent the tenant was required to pay for
the original dwelling unit, after giving effect to the senior citizen rent
increase exemption;
(2) the most
recent monthly deduction in the original dwelling unit pursuant to senior
citizen's exemption issued under the City Rent and Rehabilitation Law, title YY
of the New York City Administrative Code, or the Private Housing Finance Law;
or
(3) the amount by which the
maximum rent of the subsequent housing accommodation exceeds one third of the
aggregate disposable income of all members of the household.
Such exemption certificate shall be effective the first
day of the month in which the application is filed, or the date the tenant took
occupancy of the subsequent dwelling unit, whichever is later, provided both
the application is filed and the tenant takes occupancy of the subsequent
dwelling unit on or after March 28, 1977.