9 CRR-NY 2502.6NY-CRR
9 CRR-NY 2502.6
9 CRR-NY 2502.6
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.
(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 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 Subchapter. Where such order establishes the legal regulated rent, it may contain a directive that all rent collected by the landlord in excess of the legal regulated rent established under this section for a period commencing with the local effective act or the date of the commencement of the tenancy, if later, be refunded to the tenant in cash or as a credit to the rent thereafter payable, and upon the failure to comply with the directive, that the order may be enforced in the same manner as prescribed in section 2506.1(e) of this Title. Where either:
(i) the rent charged on the base date 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(c) of this Part has been committed, the rent shall be established at the lowest of the following amounts set forth in paragraph (2) of this subdivision.
(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 Part; or
(iii) the last registered rent paid by the prior tenant (if within the four year period of review); or
(iv) if the documentation set forth in subdivisions (a) through (c) of this section is not available or is inappropriate, data compiled by the division, using sampling methods determined by the division, for regulated housing accommodations.
(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 four years prior to the date of the filing of an overcharge complaint pursuant to section 2520.1 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. Notwithstanding the foregoing, this subdivision shall not be deemed to impose any greater burden upon owners with regard to recordkeeping than is provided pursuant to section 12(f)(8) of the act. In addition, where the amount of rent set forth in the rent registration statement filed four 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 four years of its filing, neither such rent nor service of any registration shall be subject to challenge any time thereafter.
9 CRR-NY 2502.6
Current through October 15, 2019
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