(a) Definitions. For the purposes of this section, the following definitions apply:
Art. 7-B compliance means compliance with the fire protection and safety standards of Art. 7-B of the MDL, or alternative building codes as authorized by MDL § 287. Art. 7-B compliance must be evidenced by:
(1) DOB's issuance of a temporary residential certificate of occupancy;
(2) DOB's issuance of a final residential certificate of occupancy after June 21, 1992;
(3) DOB records demonstrating that the alterations necessary for issuance of a residential certificate of occupancy have been completed; or
(4) The filing with the Loft Board of a sworn statement by a registered architect or professional engineer licensed in the State of New York stating that the IMD has achieved Art. 7-B compliance and the date of such compliance on the Loft Board approved form.
Maximum permissible rent or maximum rent permissible means "total rent" plus any permissible rent adjustments, as provided in 29 RCNY § 2-06 for units subject to Art. 7-C pursuant to § 281(1), or 29 RCNY § 2-06.1 for units subject to Art. 7-C pursuant to § 281(4). For units subject to Art. 7-C pursuant to § 281(5), "maximum permissible rent" is defined in 29 RCNY § 2-06.2. If one (1) or more rent adjustments pursuant to this section have already been applied, "maximum permissible rent" includes such adjustments.
(b) Eligibility requirements. The owner of an IMD is eligible for one (1) or more rent adjustments pursuant to MDL § 286(2)(ii) if all the following conditions are met:
(1) The Residential Unit for which the rent adjustment is sought is covered under Art. 7-C of the MDL;
(2) The IMD Building in which the covered Residential Unit is located is registered with the Loft Board;
(3) A final certificate of occupancy permitting residential occupancy of the covered unit was not issued on or before June 21, 1992;
(4) The Residential Unit was not rented at market value between June 21, 1982 and June 21, 1992, unless the IMD unit is covered under Art. 7-C pursuant to MDL § 281(5) or MDL § 281(6); and
(5) The Owner or Responsible Party meets or has already met one (1) or more of the code compliance obligations in MDL § 284(1) which requires that the Owner or Responsible Party file an Alteration Application, obtain an approved Alteration Permit, and achieve Art. 7-B compliance. An eligible Owner or Responsible Party is entitled to one (1) or more of the applicable rent adjustments in subdivisions (c) through (e) of 29 RCNY § 2-12.
(c) Alteration Application rent adjustment.
(1) Filing prior to June 21, 1992. An Owner or Responsible Party who otherwise meets the eligibility requirements of 29 RCNY § 2-12(b) and who filed an Alteration Application with the DOB prior to June 21, 1992 is entitled to a six percent (6%) increase over the maximum rent permissible under Loft Board rules for the covered Residential Unit on June 21, 1992.
(2) Filing on or after June 21, 1992. An Owner or Responsible Party who otherwise meets the eligibility requirements of 29 RCNY § 2-12(b) and who files an Alteration Application with the DOB on or after June 21, 1992 is entitled to an increase over the maximum rent permissible as provided in MDL § 286(2)(ii)(A) for the covered Residential Unit on the date the Alteration Application is filed.
(d) Alteration Permit rent adjustment.
(1) Issuance prior to June 21, 1992. An Owner or Responsible Party who otherwise meets the eligibility requirements of 29 RCNY § 2-12(b) and who obtained an Alteration Permit prior to June 21, 1992 is entitled to a fourteen percent (14%) increase over the maximum rent permissible under Loft Board rules for the covered Residential Unit on June 21, 1992.
(2) Issuance on or after June 21, 1992. An Owner or Responsible Party who otherwise meets the eligibility requirements of 29 RCNY § 2-12(b) and who obtains an Alteration Permit from the DOB on or after June 21, 1992 is entitled to an increase over the maximum rent permissible as provided in MDL § 286(2)(ii)(B) for the covered Residential Unit on the date the Alteration Permit is issued by the DOB.
(e) Art. 7-B compliance rent adjustment.
(1) Compliance prior to June 21, 1992. An Owner or Responsible Party who otherwise meets the eligibility requirements of 29 RCNY § 2-12(b) and who achieved Art. 7-B compliance prior to June 21, 1992 is entitled to a twenty percent (20%) increase over the maximum rent permissible under Loft Board rules for a covered Residential Unit on June 21, 1992.
(2) Compliance on or after June 21, 1992. An Owner or Responsible Party who otherwise meets the eligibility requirements of 29 RCNY § 2-12(b) and who achieves Art. 7-B compliance on or after June 21, 1992 is entitled to an increase over the maximum rent permissible as provided in MDL § 286(2)(ii)(C) for the covered Residential Unit on the date Art. 7-B compliance is achieved.
(f) Payment of rent adjustments. Payment of rent adjustments based on filing an Alteration Application, obtaining an Alteration Permit or achieving Art. 7-B compliance shall commence:
(1) the Month immediately after the Month the Alteration Application is filed, the Alteration Permit is obtained or Art. 7-B compliance is achieved, or
(2) on July 1, 1992, whichever is later.
(g) Effect on other rent increases.
(2) Any allowable rent adjustments pursuant to this section will be included in the calculation of the initial legal regulated rent.
(3) Rent adjustments pursuant to this section shall be effective upon filing an Alteration Application, obtaining an Alteration Permit or Art. 7-B compliance regardless of the subsequent expiration of said Alteration Application, Alteration Permit or temporary certificate of occupancy, or the filing of a further qualifying Alteration Application for the building. If the Loft Board or a court of competent jurisdiction determines the sworn statement of Art. 7-B compliance was erroneous, all rent increases based on such statement shall be nullified.
(Amended City Record 3/1/2023, eff. 3/31/2023)