(a) Coverage.
(1) These rent guidelines apply to interim multiple dwelling ("IMD") units, as defined in § 281 of Article 7-C of the Multiple Dwelling Law, which:
(i) are subject to Article 7-C solely pursuant to MDL § 281(4); and
(ii) are registered with the Loft Board; and
(iii) have a residential occupant qualified for protection pursuant to Article 7-C of the Multiple Dwelling Law, who
(A) did not have a lease or rental agreement in effect on July 27, 1987; or
(B) had a lease or rental agreement in effect on July 27, 1987, which expired prior to October 29, 1992 and prior to the IMD unit's compliance with the safety and fire protection standards of Article 7-B of the Multiple Dwelling Law; or
(C) had a lease or rental agreement in effect on July 27, 1987, which is still in effect on October 29, 1992, but which expires prior to the IMD unit's compliance with the safety and fire protection standards of Article 7-B of the Multiple Dwelling Law.
(2) "Lease or rental agreement" shall mean
(i) a written lease or rental agreement; or
(ii) an oral agreement for a rental period of one year or less, provided that
(A) there had been a change from the previous rent, confirmed by rent checks tendered by the residential occupant and accepted by the landlord within the year prior to July 27, 1987, or
(B) there had been a substantial change in the level of services agreed to be provided within the year prior to July 27, 1987.
(b) Effective date. The effective date of these rent increases for registered IMDs will be the next regular rent payment date following October 29, 1992. Where written request for the increase is made of the residential occupant within 30 days of the issuance by the Loft Board of an IMD registration number, such increase shall be retroactive to the first regular rent payment date following the submission of the registration application to the Loft Board. However, any such increase shall not be retroactive to a date earlier than October 29, 1992. Except as indicated above, the rent increases shall apply prospectively only.
(c) Amount of increases. For purposes of these rent guidelines, the following percentages shall be calculated upon the total rent for the residential occupant, including both base rent and escalators. "Escalators" are lease or rental agreement provisions which provided for a residential occupant's payment as rent or additional rent charges based on, but not limited to: real estate taxes; heating fuel; labor; water and sewer; insurance; vault tax; and any cost-of-living increase formulas. Such provisions as relate to gas, electricity and steam charges are excluded from this definition of total rent and these utility escalators, when based on a fair calculation of the occupant's usage, shall be the only escalators permitted following the effective date of the rent increase provided they were part of the last lease or rental agreement in effect on or before July 27, 1987. Total Rent is the amount in base rent and escalators due the landlord from the tenant during the last payment period pursuant to a lease or rental agreement in effect on July 27, 1987, except that the total rent attributable to escalators shall only include the amount demanded by the landlord and paid by the tenant pursuant to said lease or rental agreement. Where no lease or rental agreement was in effect on July 27, 1987, total rent is the rental amount paid by the tenant to the landlord on or before July 27, 1987 pursuant to the last lease or rental agreement in effect. Rent levels for units covered by this order shall reflect no more than the following maximum percentage increases, calculated as of the effective date of this order to such unit:
(1) For units where the last increase in total rent or a utility escalator pursuant to a lease or rental agreement tendered by the tenant and accepted by the landlord was:
(i) Subsequent to October 29, 1990: there will be no increase permitted above the total rent as defined above.
(ii) Between October 29, 1988 and October 29, 1990: the maximum permissible increase shall be 7 percent of the total rent as defined above.
(iii) Between October 29, 1986 and October 28, 1988: the maximum permissible increase shall be 16 percent of the total rent defined above.
(iv) Between October 29, 1984 and October 28, 1986: the maximum permissible increase shall be 24 percent of the total rent defined above.
(v) Before October 29, 1984: the maximum permissible increase shall be 33 percent of the total rent as defined above.
(2) For units which have had no rent increases since the inception of the last lease or rental agreement between the residential occupant and landlord, the maximum percentage increases contained in category (ii), (iii), (iv), and (v) above shall be based upon the date of inception of the last lease or rental agreement. These rent increases shall be a permanent part of the rent.
(d) Overcharges and Penalties. Rent payments made prior to the date of adoption of this rule in excess of the amount prescribed by this rule, or 29 RCNY § 2-06, constitute an overcharge, which may be paid at the owner's option either in a lump sum or as a subtraction from the legal monthly rent payments at a rate equal to 20 percent of the legal rent permitted under this rule as of the date of adoption of this rule (October 29, 1992) until payment of the full overcharge is completed. No treble damages shall be prescribed by this rule or 29 RCNY § 2-06.