(a) Coverage. These rent guidelines apply to IMD units, which:
(1) are subject to Art. 7-C solely pursuant to MDL § 281(6);
(2) are registered with the Loft Board; and
(3) do not meet the safety and fire protection standards of Art. 7-B. of the MDL.
(b) Definitions. For the purposes of this section, the following definitions apply:
(1) Lease or rental agreement means:
(i) a written lease or rental agreement; or
(ii) an oral agreement for a rental period of one (1) year or less, provided that:
(A) There was a change in the rent for the IMD unit, confirmed by rent checks tendered by the residential Occupant and accepted by the Owner, Landlord or Responsible Party within the year before June 25, 2019; or
(B) There had been a substantial change in the level of services agreed to be provided within the year prior June 25, 2019.
(2) Escalators means additional charges agreed upon by the Occupant and Landlord or Responsible Party to be paid by the Occupant provided in a lease or rental agreement, including but not limited to charges based on real estate taxes, heating fuel, labor, water and sewer, insurance, vault tax and any cost-of-living formulas.
(3) Use-Based Escalators are means charges that are based on a verifiable calculation of the Occupant's usage and the cost to the Landlord or Responsible Party and were part of the last lease or rental agreement in effect on or before June 25, 2019, for units covered pursuant to MDL § 281(6). Use-Based Escalators may include charges related to gas, electricity, and steam.
(4) Garbage Escalators means additional charges related to garbage collection service that were part of the last lease or rental agreement in effect on or before June 25, 2019, for units covered pursuant to MDL § 281(6). Garbage Escalators do not include services provided at no cost to the Owner or Responsible Party.
(5) Total rent.
(i) Lease in effect on June 25, 2019. Except as provided in (iii), total rent is the rent, including Escalators, specified in the lease or rental agreement in effect on June 25, 2019, paid by the Tenant pursuant to said lease or rental agreement.
(ii) No lease in effect on June 25, 2019. Except as provided in (iii), where no lease or rental agreement was in effect on June 25, 2019, the total rent is the rent, including Escalators, paid by the Tenant to the Owner, Landlord, Responsible Party on or before June 25, 2019 pursuant to the last lease or rental agreement before June 25, 2019.
(iii) Total rent shall not include Use-Based Escalators or Garbage Escalators.
(c) Rent adjustments pursuant to MDL § 286(2)(i). For purposes of determining rent adjustments pursuant to MDL § 286(2)(i), there will be no increase permitted above the total rent as defined above for any unit subject to Art. 7-C pursuant to MDL § 281(6).
(d) Permissible rent levels. An Owner or Responsible Party of a unit subject to Art. 7-C pursuant to MDL § 281(6) may not charge a residential Occupant more than:
(1) Total rent, as defined above; plus
(2) Any other rent adjustments authorized pursuant to Art. 7-C and these rules, including allowable rent adjustments authorized pursuant to 29 RCNY § 2-12; plus
(3) Use-Based Escalators, if any; plus
(4) Garbage Escalators, if any.
(e) Overcharges and penalties. Rent payments made before March 31, 2023, the effective date of this rule, in excess of the permissible rent levels as described above in subdivision (d) constitute an overcharge which may be paid, at the Owner's, Landlord's or Responsible Party's option, either in a lump sum to the Tenant or as a twenty (20) percent reduction of the legal rent permitted under this rule as of March 31, 2023, the effective date of the rule, until payment of the full overcharge is completed. No treble damages may be imposed for a violation of this section.
(Added City Record 3/1/2023, eff. 3/31/2023)