2. 9 NYCRR § 2520.6(c), (d), (f), and (p) amending definitions of the terms “Rent,” “Tenant,”, and “Base date” and adds the definition of “common ownership”.

3. 9 NYCRR § 2520.7 adds “otherwise required by law”.

4. 9 NYCRR § 2520.8 adds language that DHCR shall follow the law in absence of regulation or where a conflicting code provision has not been amended or revoked.

5. 9 NYCRR § 2520.9 adds “publication of the notice of adoption in the State Register” and

“or otherwise required by law”.

6. 9 NYCRR § 2520.11(c) clarifies applicability of rent stabilization to housing accommodations for which rentals are fixed by DHCR and other agencies or public benefit corporations.

7. 9 NYCRR § 2520.11(e) codifies and clarifies the requirements for establishing substantial rehabilitation of a building. For example, requires a minimum of seventy-five percent of the buildings’ systems be replaced, not including systems that are not in need of replacement; repeals a presumption regarding the deteriorated condition of the premises due to being at least 80% vacant, broadens exception based on findings of harassment to include findings of other agencies or courts, provides that regulated tenants who remain in their apartments during rehabilitation shall be regulated until they vacate, provides that the burden of establishing substantial rehabilitation is on the owner, codifies the circumstances and procedures surrounding “dollar orders” where a tenant seeks to preserve their right of return where an apartment is destroyed by fire or similar circumstance.

8. 9 NYCRR § 2520.11(f) and (j) provides for rent stabilization for supportive housing units to comply with the Housing Stability and Tenant Protection Act of 2019, Ch.36 of the Laws of 2019 (“HSTPA”).

9. 9 NYCRR § 2520.11(k) adds language regarding the determination of primary residency for domestic violence victims and tenants paying a nominal rent pursuant to Part 2520.11(e)(6).

10. 9 NYCRR § 2520.11(l) adds language regarding the applicability of rent stabilization upon “deconversion” of cooperatives.

11. 9 NYCRR § 2520.11(p) clarifies applicability of rent stabilization to housing accommodations in buildings subject to regulation solely as a condition of receiving tax benefits pursuant to 421-a of the Real Property Tax Law.

12. 9 NYCRR § 2520.11(r) and (u) repeal high rent vacancy deregulation to comply with HSTPA.

13. 9 NYCRR § 2520.11(s), repeals high rent/high income deregulation to comply with HSTPA.

14. 9 NYCRR § 2520.12 repeals extraneous language.

15. 9 NYCRR § 2521.1(b), (c), (d), (e), (g), (i), and (n) adds language regarding the determination of initial legal regulated rents to comply with HSTPA.

16. 9 NYCRR § 2521.1 new subdivision (m) adds requirements pertaining to the

combination of two or more vacant apartments or other apartment reconfigurations and the resulting legal regulated rent.

17. 9 NYCRR § 2521.1 new subdivision (n) added to provide for the determination of the

initial rent upon the vacatur of a not for profit and affiliated subtenant.

18. 9 NYCRR § 2521.2(a), (c) and new subdivisions (d) and (e) provide the requirements for “preferential rents” to comply with HSTPA.

19. 9 NYCRR § 2522.2 clarifies the effective date of adjustment of legal regulated rent;

20. 9 NYCRR § 2522.3(a), (c), (e) and (f) amends time limits for Fair Market Rent Appeals, to six years to comply with HSTPA.

21. 9 NYCRR § 2522.4 amendments largely mandated by HSTPA for Individual Apartment Improvements (“IAI”) and Major Capital Improvements (“MCI”). For IAIs the amendments include: requiring written tenant consent from tenant for IAIs; requiring filings with DHCR supported by before and after photographs; an itemized list of work performed and the reason for such work; limiting the amount the rent can be increased to 1/168th or 1/180th of the cost of the improvement depending on the number of building units; allows no more than three separate IAI increases collected over a 15-year period and the total cost of eligible improvements cannot exceed $15,000; with limited exception, all work must be done by a licensed contractor with no common ownership between the contractor and the owner; prohibition on increases based upon the installation of similar equipment or furnishings within the useful life of such new equipment or furnishings; prohibitions on increases where there are any outstanding hazardous and immediately hazardous violations at the time of installation that pertain to the subject apartment and; new IAI increases collected for the first time after June 14, 2019, are temporary and will be removed from the rent in thirty years. For MCIs, the amendments include: definition which incorporates new “green” installation; removal of MCI increases after thirty years; amortization of costs over twelve or twelve and a half years depending on the number of building units, modification of the annual cap on collectability to two percent per year; a reasonable cost schedule; prohibition of rent increases due to immediately hazardous violations and hazardous violations; MCIs are no longer allowed for work done in individual apartments that is not otherwise an improvement to the entire building; and prohibition of MCIs in buildings with 35 percent or fewer rent regulated units.

22. 9 NYCRR § 2522.4(e) updates contact information and changes “shall” to “may” in several instances.

23. 9 NYCRR § 2522.5(d)(3) and (d)(4) provides a correct cross reference.

24. 9 NYCRR § 2522.5(f) and (g) clarification regarding the requirement that lease agreements have the same terms and conditions as an expired lease and regarding leases for housing accommodations in cooperative or condominium-owned buildings.

25. 9 NYCRR § 2522.6(b) amendment regarding determinations of the legal regulated rent.

26. 9 NYCRR § 2522.7 language added that DHCR’s consideration of equities includes the creation of undue hardship or prejudice in determining the retroactive application of orders which create rent arrears.

27. 9 NYCRR § 2522.8 modifies the rent adjustments allowable on vacancy to comply with HSTPA.

28. 9 NYCRR § 2522.9(b)(3) revokes the inclusion of the surcharge for washing machine/dryer/dishwasher in the legal regulated rent.

29. 9 NYCRR § 2523.1 adds that for notice of the initial legal regulated rent, compliance with § 2528.2 shall be considered compliance with this section.

30. 9 NYCRR § 2523.4(a) adds clarifying language regarding rent reduction orders and the collection of MCI rent increases, (b) clarifies the effective date for complaints regarding provision of hotel services, (g) clarifies the use of affidavits in complaints relating to

maintenance of services.

31. 9 NYCRR § 2523.5(b), (f) modification and clarification of requirements for establishing succession rights.

32. 9 NYCRR § 2523.7(b), (c) rental records retention requirements.

33. 9 NYCRR § 2523.8 amended to include the requirement that the owner provide DHCR with an actual physical, street address for service.

34. 9 NYCRR § 2524.2(e) clarifies that the notices referenced in the section relate to an application for demolition.

35. 9 NYCRR § 2524.4(a), (b), (c) requirements for recovery of a rent stabilized unit for owner occupancy to comply with HSTPA; amendments regarding requirements of primary residency.

36. 9 NYCRR § 2524.5(a),(b) amendments of the requirements for demolition including: a “good faith” requirement, that the applicant at the time of the application submit proof of financial ability to complete the proposed work, along with proof that the Department of Buildings (“DOB”) has already approved demolition plans, requires that the entire building be removed, including the foundation, increases the stipends given to residents displaced by demolition by calculating it based on the average rent for non-regulated vacant apartments multiplied by six years, allows DHCR to revoke a demolition order if the owner fails to act in good faith or fails to undertake construction within a reasonable time, permits DHCR to initiate enforcement proceedings sua sponte for failure to comply and make those penalties applicable to subsequent purchasers, and provides that no order may be issued less than 90 days from the date the last affected tenant’s lease has expired.

37. 9 NYCRR § 2525.2(b) amends the requirements for rent receipts.

38. 9 NYCRR § 2525.3(a) amended to remove conditional rental language regarding purchase of shares to an apartment.

39. 9 NYCRR § 2525.5 amends the definition of owner harassment to include the illegal discontinuance of a current tenant’s preferential rent.

40. 9 NYCRR § 2525.6(e), (g) amended to remove language regarding collection of vacancy increases in a sublease to comply with HSTPA.

41. 9 NYCRR § 2526.1 renames the section “Determination of legal regulated rents; penalties; fines; assessment of costs; attorney’s fees; rent credits; where the proceeding is commenced prior to June 14, 2019” and adds section (i) to clarify that the section only applies to proceedings initiated prior to June 14, 2019.

42. 9 NYCRR § 2526.2(c), amendment of the civil penalties for violation of DHCR orders to comply with HSTPA.

43. 9 NYCRR § 2526.7 is added and named “Determination of legal regulated rents; penalties; fines; assessment of costs; attorney’s fees; rent credits; where the proceeding is commenced on or after to June 14, 2019” and contains the HSTPA requirements including, for example: extension of a prior 4-year rule to a 6 or more year rule, use of the most “reliable” registration as a benchmark in certain overcharge processing, consideration of all available evidence reasonably necessary to make a determination of the legal rent, recognition of concurrent jurisdiction with respect to overcharge claims “subject to the tenant’s choice of forum, provides that tenants may file a claim “at any time,” provides that tenants can now receive up to six years of rent overcharges and six years of treble damages and reasonable costs and attorneys’ fees; provides a new rolling base date and grandfathering of all claims that reflect the review of time periods prior to the enactment of HSTPA.

44. 9 NYCRR § 2527.2 adds language to allow DHCR to reclassify or convert a proceeding on its own initiative.

45. 9 NYCRR § 2527.3(a)(2) adds language to provide tenants, in a proceeding to increase the legal regulated rent, with sixty days from the date of DHCR’s mailing of the notice of the proceeding to answer or reply.

46. 9 NYCRR § 2527.4 adds language to provide clarity regarding times to answer in other proceedings.

47. 9 NYCRR § 2527.5(j) and (k) contain typographical corrections. Addition of

subdivisions (l) and (m) providing that DHCR may stay proceedings as appropriate and permit a tenant to withdraw a complaint.

48. 9 NYCRR § 2527.7 adds “or by the RSL”.

49. 9 NYCRR § 2527.9(a) removes a reference to a section being repealed; (e) added to allow DHCR to establish procedures for service and filing via electronic methods via operational bulletin.

50. 9 NYCRR § 2528.2(a) adds the requirement of that owner’s provide an actual, physical street address in the initial registration.

51. 9 NYCRR § 2528.4(a) deletes base date language to comply with HSTPA.

52. 9 NYCRR § 2529.6 adds language providing that proceedings remanded to DHCR following an Article 78 proceeding may be reconsidered without being remanded to the rent administrator.

53. 9 NYCRR § 2529.10 provides that where a code provision or applicable statute is enacted or amended during the pendency of a PAR, the determination shall be in accordance with the statute or code as it existed at the time the rent administrator’s order was issued, unless the relevant law or regulation states otherwise.

54. 9 NYCRR § 2529.12, provides correction of cross-references.

55. 9 NYCRR § 2531.1, § 2531.2, § 2531.3, § 2531.4, § 2531.5, § 2531.6, § 2531.7, § 2531.8, repeal of high rent/high income deregulation sections as of June 14, 2019, pursuant to HSTPA.

56. 9 NYCRR § 2531.9 is repealed as of June 14, 2019, pursuant to HSTPA and replaced with language providing that any apartment lawfully deregulated as of June 14, 2019, remains deregulated.

1. STATUTORY AUTHORITY

§ 26-511(b) and § 26-518(a) of the Administrative Code of the City of New York, (also known as “the Rent Stabilization Law” or “RSL”) provide authority to the Division of Housing and Community Renewal (“DHCR”) to amend the implementing regulations (also known as “the Rent Stabilization Code” or “RSC”). The Housing Stability and Tenant Protection Act of 2019, Ch.36 of the Laws of 2019 (“HSTPA”), enacted June 14, 2019, and Ch. 39 of the Laws of 2019 (“Clean-up law”) further empowered and required DHCR to promulgate rules and regulations to implement and enforce various provisions of HSTPA.

2. LEGISLATIVE OBJECTIVES

The overall legislative objectives are contained in RSL § 26-501 and § 26-502 and Section 2 of the Emergency Tenant Protection Act (“ETPA”). The legislature has determined that, because of a serious public emergency, the regulation of residential rents and evictions is necessary to prevent the exaction of unreasonable rents and rent increases and to forestall other disruptive practices that would produce threats to public health, safety, and general welfare.

DHCR is specifically authorized by RSL § 26-511(c)(1) to promulgate regulations to protect tenants and the public interest and is specifically empowered by HSTPA to promulgate regulations to implement and enforce new provisions added, as well as provisions amended or repealed by HSTPA and the accompanying Clean-up law.

3. NEEDS AND BENEFITS

DHCR has not engaged in an extensive amendment process with respect to these regulations since 2014. As noted, in June 2019 there were significant amendments to the rent laws by HSTPA and there has already been significant litigation interpreting those laws. In addition, DHCR has had years of experience in administration which informs this regulatory process, as does its continuing dialogue during this period with owners, tenants, and their respective advocates.

DHCR personnel have engaged in forums and meetings since the passage of HSTPA where the administration and implementation of the law was discussed. The needs and benefits of some of the specific modifications proposed are detailed in the full Regulatory Impact Statement available on DHCR’s website at https://hcr.ny.gov/regulatory-information. Some of those are highlighted below:

a. Individual Apartment Improvements (IAIs) (9 NYCRR § 2522.4)

HSTPA itself mandated most of the regulatory amendments made with respect to this section

b. Major Capital Improvements (MCIs) (9 NYCRR § 2522.4)

These provisions are another area that HSTPA changed and directed that DHCR promulgate regulations.

c. Rent Regulation for Supportive Housing Units (9 NYCRR § 2520.11 and § 2524.4)

HSTPA also amended three sections of the Emergency Tenant Protection Act

McK.Unconsol. Laws § 8625(a)(6) and (10) to extend rent stabilization to previously exempt housing accommodations (§ 8625(a)(10)) or to buildings (§ 8625(a)(6)) used by not-for-profit corporations that were providing permanent housing accommodations with governmental services for vulnerable individuals with disabilities who were homeless or at risk of homelessness. These new inclusions are applicable to such housing accommodations provided “as of and after” the effective date of HSTPA.

d. High Rent/High Income Deregulation (9 NYCRR § 2531)

HSTPA repealed the high rent/high income provisions of the rent laws with an exception with respect to the rules governing Real Property Tax Law § 421-a(16). The Clean-up law clarified that units lawfully deregulated, prior to the effective date of HSTPA, remain deregulated. Modifications to the regulations on this topic are required by HSTPA.

e. Rent Overcharges (9 NYCRR § 2526.1)

The HSTPA made changes with respect to the processing and determination of

rent overcharge cases which are reflected in these regulations. The proposed amendments are consistent with the legislature’s requirements and with the Court of Appeals decision in Matter of Regina Metropolitan Co. LLC v. New York State Division of Housing and Community Renewal, 2020 NY Slip. Op. 02127 (2020).

f. Apartment Reconfigurations (9 NYCRR § 2521.1)

While not expressly addressed by the HSTPA, other provisions of the HSTPA made these amendments necessary.

g. Succession Rights (9 NYCRR § 2523.5)

Family members remaining in a rent stabilized unit after the vacatur of the named lease holder have the right to remain in the apartment and continue to receive renewal leases. The regulations require contemporaneous occupancy by the family members with the named leaseholder for two years as their primary residence prior to the permanent vacatur of the named leaseholder (9 NYCRR § 2523.5(b)).

Presently, there is a split between the Appellate Division, 1st Department and 2nd Department as to how to measure the two-year period. DHCR’s regulations reflect that true fraud and an extended period of misrepresentation will not be rewarded by adopting the approach of the 2nd Department. However, evicting long term family residents because the named leaseholder may have been in the process of moving out during the renewal period or was simply postponing an anticipated difficult and problematic interaction with their landlord over whether remaining family had the right to stay is simply too harsh a rule.

h. Rent Guidelines Board/Rent Guideline Increase on Vacancy (9 NYCRR § 2522.8)

HSTPA requires the Rent Guidelines Board to establish a single “unitary” guideline applicable to both vacancy and renewal leases. HSTPA also includes a repeal of

the ETPA and RSL provisions allowing for the imposition of what was commonly called

the “vacancy bonus” which is also reflected in these regulations. However, HSTPA did not intend to place a greater burden on existing tenants by excluding new tenants upon execution of their leases from the guideline increases.

i. Affordable Housing Regulatory Agreements (9 NYCRR § 2521.2 and § 2020.11)

The proposed regulation will implement HSTPA by allowing other federal project based rental assistance administered by a public housing agency eligible to administer section 8 subsidies, to obtain these increases upon renewal with a supervising agency’s consent.

j. Deconversion (9 NYCRR § 2520.11)

DHCR, by these amendments, provides that upon “deconversion,” the rent may be determined by a number of different processes, based on a variety of factors.

k. High Rent Vacancy Deregulation (9 NYCRR § 2520.11)

HSTPA eliminates high rent vacancy (as well as high rent/high income) deregulation as of June 14, 2019, with the exceptions previously noted.

l. Applying changed rules at PAR

The proposed regulation provides that when a law or regulation changes during the pendency of a PAR proceeding, the rules in effect at the time the Rent Administrator (RA) makes its decision controls unless the equities or avoiding undue hardship require otherwise. The regulation also allows DHCR, when a new rule requires a higher rent and is imposed, to make the increase prospective, rather than from the initiation of the RA proceeding. This rule reverses the presumptions built into the prior regulation of generally applying new rules on PAR subject to the equitable and hardship exceptions. The rule change conforms with the major implementation requirements of HSTPA based on Regina Metropolitan.

m. Actual Physical Address for Registration (9 NYCRR § 2528.2 and § 2533.8)

Part of the requirements of the rent stabilization law is that each owner registers their building and each apartment annually. The proposed regulation requires owners to provide a brick-and-mortar address instead of utilizing a post office box address.

n. Substantial Rehabilitation (9 NYCRR § 2520.11)

There is an exclusion from regulation of buildings that were “substantially rehabilitated” as family units after January 1, 1974. The amendments include among other things, reinforcement of the regulatory requirement by stating more explicitly that a minimum of seventy-five percent of the buildings’ systems need to be replaced.

o. Demolition (9 NYCRR § 2524.5)

The new regulations add a “good faith” requirement to demolition and require the applicant at the time of the application to submit proof of financial ability to complete the proposed work, along with proof that the Department of Buildings (“DOB”) has already approved the plans for demolition, brings the definition of demolition in line with the DOB definition, which requires that the entire building be removed, including the foundation, increases the stipends given to residents displaced by demolition, allows DHCR to revoke a demolition order if the owner fails to act in good faith or fails to undertake construction within a reasonable time, and permits DHCR to initiate enforcement proceedings sua sponte for failure to comply and make those penalties applicable to subsequent purchasers. The amended regulations clarify the existence of DHCR's powers with respect to enforcement.

4. COSTS

The regulated parties are residential tenants and the owners of the rent stabilized housing accommodations in which such tenants reside. There are no additional direct costs imposed on tenants or owners by these amendments as owner direct costs are capped at $20 per unit per year. The amended regulations do not impose any new program, service, duty or responsibility upon any state agency or instrumentality thereof, or local government. Owners of regulated housing accommodations will need to be more vigilant to assure their compliance with changes and the changes themselves in many instances do require additional filings by owners. Compliance costs are already a generally accepted expense of owning regulated housing. In general, the increased compliance costs are less a product of the promulgation of these regulations, but the enactment of HSTPA.

There are increased penalties in some instances if the regulations are violated. However, these consequences are consistent with the existing law or otherwise necessary to secure compliance. Tenants will not incur any additional direct costs through implementation of the proposed regulations.

5. LOCAL GOVERNMENT MANDATES

The proposed rulemaking will not impose any new program, service, duty or responsibility upon any level of local government.

6. PAPERWORK

The amendments will increase the paperwork burden essentially due to the changes made by HSTPA. There will be additional costs associated with filings and the need for additional record retention. Owners need, with the new overcharge provisions, to retain proof of the legality of rent for a longer period, but a prudent owner would have already retained that information for other purposes, such as assuring that an increase was not part of a fraudulent scheme to deregulate an apartment, making sure leases were offered on the same terms and conditions, assuring that a preferential rent was correct, and to resolve possible jurisdictional disputes. Specific claims that a changed regulation may create hardship or inequity can and will be raised in the context of the administrative applications, themselves, where such factual claims can be assessed. However, consistent with HSTPA and the court decisions interpreting it, DHCR has mitigated some of these additional paperwork concerns by expressly promulgating a regulation that makes the application of these new statutory standards on PAR the exception rather than the rule.

7. DUPLICATION

The amendments do not add any provisions that duplicate any known State or Federal requirements except to the extent required by law. There are instances where a rent stabilized property participates in another State, City or Federal housing program. In those instances, there may be a need to comply with the RSC requirements as well as the mandates of that City, State or Federal program.

8. ALTERNATIVES

As stated previously, much of these new regulations are a product of HSTPA, itself foreclosing much examination of alternatives. Nevertheless, DHCR considered a variety of alternatives to certain rules which were not exactly proscribed by HSTPA. Most often however, the choices were questions of appropriate statutory interpretation rather than policy choices. A more detailed discussion of the alternatives for the proposed amendments is contained in the full Regulatory Impact Statement available on DHCR’s website at: https://hcr.ny.gov/regulatory-information

9. FEDERAL STANDARDS

The proposed amendments do not exceed or duplicate Federal standards. Many of HSTPA’s provisions and rent regulation generally are the subject of current litigation as to their constitutionality.

10. COMPLIANCE SCHEDULE

By the time of final promulgation of these rules, HSTPA will have been extant for a significant period. Therefore, it is not anticipated that regulated parties will uniformly require time to comply with the proposed rules. To the extent that DHCR believes they do reflect rules not required by HSTPA, the rules themselves are generally made expressly prospective. Moreover, DHCR regulations provide for an option of additional grace periods for implementation.

1. EFFECT OF RULE

The Rent Stabilization Code (“RSC”) applies only to rent stabilized housing units in New York City. The class of small businesses affected by these proposed amendments would be limited to certain small property owners, who own limited numbers of rent stabilized units. DHCR has sought to provide alternative and tailored methods of compliance with the requirements to provide options to small businesses to limit any additional regulatory burden. These amendments are expected to have no impact on local governments.

2. COMPLIANCE REQUIREMENTS

The proposed amendments would require small businesses that own regulated residential housing units to perform some additional recordkeeping and reporting. Such businesses will continue to need to keep records of rent increases and improvements made to the properties in order to qualify for rent increases authorized under the proposed changes.

3. PROFESSIONAL SERVICES

The proposed amendments may require small businesses to obtain new or

additional professional services in the form of architecture or engineering services if it seeks a waiver of the reasonable cost schedule, which was previously promulgated and is now being incorporated into the larger major capital improvement (MCI) regulation. However, such services are often already used with respect to a contested MCI application. Further, the regulation will require review of costs for MCIs when contracting for the services to comply with the reasonable cost schedule.

4. COMPLIANCE COSTS

There is no indication that the proposed amendments will impose significant costs upon small businesses or upon the local government that were not anticipated by the passage of HSTPA. Small business owners of regulated housing accommodations will need to be more vigilant to assure their compliance with these changes. Compliance costs are already a generally accepted expense of owning regulated housing. There are also increased penalties in some instances if the regulations are violated. However, the costs of conforming present business practices to the change in standards are not substantial. In addition, these consequences are consistent with existing law or otherwise necessary to secure compliance.

5. ECONOMIC AND TECHNOLOGICAL FEASIBILITY

Compliance is not anticipated to require any unusual, new, or burdensome technological applications.

6. MINIMIZING ADVERSE IMPACT

The proposed regulations have no adverse impact on local government. They may have some costs to businesses which must be weighed against the fact that the rule is required by statute and necessary to enforce statutes designed to protect the public health, safety and welfare. The regulations do not create different regulatory standards for small businesses. It is difficult, on a blanket regulatory basis, to make exceptions for small businesses, but the regulations do allow small businesses to use exceptions available to owners under certain circumstances. Outside of the administrative proceedings themselves, where complaints and applications are reviewed on an individual basis, it is difficult to ascertain the size of the businesses subject to these regulations. To the extent the approaches suggested in SAPA section 202-b are appropriate, present procedures take these into account.

7. SMALL BUSINESS AND LOCAL GOVERNMENT PARTICIPATION

The rent laws and regulations empower DHCR to enforce the law. Meetings have been held with both business owners and affected tenant interest groups, including but not limited to: CHIP (Community Housing Improvement Program), Legal Services NYC, Brooklyn Legal Services, the Legal Aid Society, REBNY (Real Estate Board of New York), SHNNY (Supportive Housing Network of New York), RSA (Rent Stabilization Association of NYC, Inc.), UHAB (Urban Homesteading Assistance Board), HCC (Housing Conservation Coordinators), Tenants & Neighbors, as well as with members of the state senate and assembly. In addition, the Office of Rent Administration’s Office of Public Information has attended at least twenty-five community meetings per year since 2019. While many of these meetings have been geared primarily for tenant-based audiences, owners and owner groups are entitled to attend and there have been meetings more directed to owners and their representatives. DHCR has also issued fact sheets and operational bulletins prior to this regulatory process to inform the public as to how HSTPA impacted many of the processes and procedures of the Office of Rent Administration. The New York legislature itself held public hearings prior to the passage of the HSTPA. At the outset of this regulatory process, the Office of Rent Administration sent out an email advising all those on the email distribution list of the regulatory process and the opportunity to participate in this process. DHCR’s email distribution list consists of owners, tenants and their representatives. In addition, all interested parties will have an opportunity to comment as part of this SAPA process and all issues raised by concerned parties will be carefully reviewed and considered by DHCR prior to final promulgation. This process includes public hearings and a review by the New York City Department of Housing Preservation and Development as required by law prior to final adoption.

8. FOR RULES THAT EITHER ESTABLISH OR MODIFY A VIOLATION OR PENALTIES ASSOCIATED WITH A VIOLATION

DHCR has not by these regulations increased the penalties on violations or added any additional penalties except beyond those mandated by statute. HSTPA in the context of modifying the procedures governing overcharges specifically modified a prior DHCR policy regarding repayment of overcharges prior to the time that an owner was required to respond to an overcharge complaint.

The proposed rules will not impose any reporting, recordkeeping, or other compliance requirements on public or private entities located in any rural area pursuant to Subdivision 10 of SAPA Section 102.

It is not anticipated that there will be an adverse impact on jobs and employment opportunities by the promulgation of these regulations. To the extent that there is any impact, these regulations are, in large part, mandated by statute.