NYC Rent Guidelines Board

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
It is important to note that this glossary is not intended as a substitute for the definitions, interpretations, etc., contained in the respective rent regulatory statutes, codes, and regulations themselves, or any administrative or court decision construing such statutes, codes, and regulations, or any order of the New York City or County Rent Guidelines Boards.

A
Adjustable Rate Mortgage (ARM): Similar to a variable rate mortgage except that interest rate adjustments are capped in order to protect lenders and borrowers from sudden upturns or downturns in a market index.

Affordable Housing: As defined by the United States Department of Housing and Urban Development, any housing accommodation for which a tenant household pays 30% or less of its income for shelter.

Aid to Families with Dependent Children (AFDC): A defunct income assistance program designed to help parents with dependent children. In 1997, there were over 700,000 recipients in New York City (see "Temporary Assistance to Needy Families").

Alternative Hardship Increase: See "Hardship."

Ancillary Services: In New York City, rent stabilization services which are not contained within the individual housing accommodation which may include, but are not limited to; garage facilities, laundry facilities, recreational facilities, and security. If these services were provided by the owner on the base date, or were provided or required by law to be provided thereafter, the owner must continue to maintain them.
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Annual Registration: See "Registration."

Apartment Services Registration: See "Registration."

Article 78 Proceeding: An action commenced in Supreme Court (the basic New York trial level court), to review a governmental act already taken, such as the determination of a case or, to compel or stop an action by the government from taking place. If requesting review, it must be brought within sixty days of final DHCR action. It is named after an article of the Civil Practice Law and Rules.

Assignments: The transfer of a tenant's legal interest (the lease) in an apartment to another person. Unless specified in the lease, a tenant may not assign his/her lease without written consent of the owner. Owner's consent may be unconditionally withheld without cause. However, an owner who unreasonably refuses to grant permission to assign the lease, must release the tenant from the lease upon request of the tenant upon 30 days notice. If the owner reasonably withholds consent, the lease may not be assigned and the tenant will not be released from the lease.

A lease assignment conveys to another person all of the tenant's rights to occupy the apartment, whereas a sublet contemplates a temporary absence by the prime tenant with full intent to return to the apartment.
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B
Balloon Loan: A type of loan that is partially amortized, which means that principal is partially paid throughout the term of the loan. At maturity, the borrower still has a substantial sum (balloon) that must be repaid or refinanced.

Base Dates: The date upon which a unit becomes subject to rent regulation and the date which determines the "base" for determining what services the owner must provide and what the lawful rent is.

The base date for essential services for apartments subject to rent control inside New York City is April 30, 1962.
The base date for essential services for apartments subject to rent control elsewhere in New York State is March 1,1950.
The base date for required building-wide and individual services for housing accommodations subject to the Rent Stabilization Law on June 30, 1974 is May 31, 1968.
The base date for housing accommodations subject to the Rent Stabilization Law on June 30, 1971, and exempted thereafter as a result of a vacancy prior to June 30, 1974, is: for building wide services, May 31,1968, for individual dwelling unit services, May 29,1974.
The base date for housing accommodations which became subject to the Rent Stabilization Law on or after July 1, 1974 pursuant to the Emergency Tenant Protection Act is May 29, 1974.

Building Services Registration: See "Registration."
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C
Certificate of Occupancy: A certificate of occupancy is a copy of a document issued by a municipality that authorizes the use of a building for a particular purpose. Typically, a certificate of occupancy, in addition to the name of the municipality and the date of its issuance (or amendments), will state the following information: *A street address for the premises; *The tax block and lot number; *A modified description, which should be compared with the survey and/or survey reading.

Civil Practice Laws and Rules (CPLR): An act in relation to civil practice and prescribing rules of civil procedure governing generally the civil procedure in the courts of the state of New York and before the judges thereof, constituting chapter eight of the consolidated laws; became effective April 4, 1962.

Class A Multiple Dwelling: As defined under the Multiple Dwelling Law, a multiple dwelling building which is generally occupied as a permanent residence. The class includes such buildings as apartment houses, apartment hotels, maisonette apartments, and all other multiple dwellings except Class B dwellings.

Class B Multiple Dwelling: A multiple dwelling which is occupied, as a rule, transiently, as the more or less temporary abode of individuals or families. This class includes such buildings as hotels, lodging houses, rooming houses, boarding schools, furnished room houses, college and school dormitories.

Comparative Hardship Increase: See "Hardship."

Complaint: The initial filing in a tenant-initiated proceeding.

Compliance: Owners are required to adhere to orders issued by DHCR. Orders of the Office of Rent Administration (ORA) are enforced by the ORA's Compliance Unit.

Concession: An agreement between owner and tenant, whereby the tenant is allowed to pay a lower rent than would otherwise be lawful for a limited time but not for the whole term of the lease.
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Conciliation and Appeals Board (CAB): See "New York City Conciliation and Appeals Board (CAB)"

Conditional Rental: A rental agreement that contains various prerequisites or qualifications. Clauses in leases for regulated apartments which condition rental on such things as requiring the prospective tenant to agree not to use the apartment as a primary residence; to only use it for commercial occupancy; or to purchase furniture or other personal properly; are illegal.

Condominium (Condo): A form of property ownership in which units are individually owned and the owners acquire shares in an association that owns and cares for common areas.

Cooperative (Co-op): A form of property ownership in which a building or complex is owned by a corporation. Shares in the corporation are allocated per apartment and the owners of those shares, who are called proprietary lessees, may either live in the apartment for which the shares are allocated or rent that apartment to a subtenant.

Core Manhattan: The area of Manhattan south of 96th Street on the East Side and 110th Street on the West Side. See also "Upper Manhattan."

Cross-sectional: The type of analysis that provides a "snapshot" view of data as it appears in a singular moment or period of time.
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D
Debt Service: Repayment of loan principal and interest; the projected debt service is the determining factor in setting the amount of the loan itself.

Debt Service Ratio: The net operating income divided by the debt service; it measures a borrower’s ability to cover mortgage payments using a building’s net operating income.

Decontrol: See "Deregulation."

Department of Housing Preservation and Development (HPD): The New York City agency with primary responsibility for promulgating and enforcing housing policy and laws in the City.

Deregulation: Also known as "Decontrol" or "Destabilization." Deregulation occurs by action of the owner when an apartment under either rent control or rent stabilization legally meets the criteria for leaving regulation. When an apartment is deregulated, the rent may be set at ‘market rate.’ There are two types of deregulation, commonly referred to as Luxury Decontrol (also High-Income High-Rent Decontrol) and Vacancy Decontrol (also High-Rent Vacancy Decontrol).

Destabilization: See "Deregulation."
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DHCR: See "Division of Housing & Community Renewal."

Disabled Persons: Eligible disabled persons are tenants and/or spouses of tenants who have an impairment resulting from anatomical, physiological or psychological conditions, demonstrable by medically acceptable clinical and laboratory diagnostic techniques, which is expected to be permanent and prevent the person from engaging in any substantial, gainful employment. See also "Succession Rights" and Disabled Persons' Special Rights below.

Disabled Persons’ Special Rights: The law grants certain protections for disabled tenants, which include the right to refuse to purchase their apartments in a building under a Cooperative or Condominium Eviction Plan. In addition, an owner cannot evict a disabled tenant or the spouse of a disabled tenant from a rent stabilized apartment in New York City for the purpose of owner occupancy unless the owner provides an equivalent or superior apartment at the same or lower stabilized rent in an area near the tenant's present apartment. Also an owner cannot evict a disabled tenant from a rent stabilized apartment outside New York City or any rent controlled apartment statewide for purposes of owner occupancy. See also Disability Rent Increase Exemption (DRIE) Program below.

Disability Rent Increase Exemption (DRIE) Program: New program implemented in 2005, similar to SCRIE, in that qualified disabled persons living in certain types of rent regulated housing are exempt from paying future rent increases. Program details available in this pdf document and from the NYC Dept. of Finance website.

Discount Rate: The interest rate Federal Reserve Banks charge for loans to depository institutions.

Distressed Buildings: Buildings that have operating and maintenance expenses greater than gross income are considered distressed.

Division of Housing and Community Renewal (DHCR): The New York State agency with primary responsibility for formulating New York State housing policy, and monitoring and enforcing the provisions of the state’s residential rent regulation laws.
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E
Electrical Inclusion Adjustment: An adjustment to the Legal Regulated Rent promulgated by the New York City Rent Guidelines Board for housing accommodations in which the rent includes electrical service. These adjustments were promulgated between 1974 and 1984.

Electrical Inclusion Building: A building where the electrical charge is included in the rent and tenants do not pay their electrical charge directly to the public utility.

Electrical Exclusion Building: A building where tenants pay their electrical charge directly to the public utility. This charge is not included in the rent.

Emergency Tenant Protection Act of 1974 (ETPA): Chapter 576 Laws of 1974: In Nassau, Rockland and Westchester counties, rent stabilization applies to non-rent controlled apartments in buildings of six or more units built before January 1, 1974 in localities that have declared an emergency and adopted ETPA. In order for rents to be placed under regulation, there has to be a rental vacancy rate of less than 5% for all or any class or classes of rental housing accommodations. Some municipalities limit ETPA to buildings of a specific size, for instance, buildings with 20 or more units. Each municipality declaring an emergency and adopting local legislation pays the cost of administering ETPA (in either Nassau, Rockland or Westchester County). In turn, each municipality can charge the owners of subject housing accommodations a fee (up to $10 per unit per year).

Escalator Clause: A clause specifying a certain increase in rent by amount or percentage, per year. These increases may not be included in leases commencing on or after April 1, 1984, where the effect would be to raise the rent charged above the legal regulated rent, except in certain specified circumstances, such as the annual 2.2 percent increase provided in leases for units built under Sec. 421-a.

Essential Services: Under rent control, the owner must provide and maintain all services furnished or required to be furnished on the base date. These services are called essential services and may include, but are not limited to: repairs, decorating and maintenance, the furnishing of light, heat, hot and cold water, elevator service, kitchen, bath and laundry facilities and privileges, janitor service, and removal of refuse.

Essential services for apartments can be building-wide, such as heat, hot water, elevator service, and maintenance of public areas of the building. The service may also be something furnished within an individual apartment, such as a refrigerator, stove, air conditioning equipment, or painting.

Eviction: An action by a building owner in a court of competent jurisdiction to obtain possession of a tenant's housing accommodation.
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F
Fair Market Rents: In New York City, when a tenant voluntarily vacates a rent controlled apartment, the apartment becomes decontrolled. If that apartment is in a building containing six or more units, the apartment becomes rent stabilized. The owner may charge the first stabilized tenant a fair market rent. All future rent increases are subject to limitations under the Rent Stabilization Law, whether the same tenant renews the lease or the apartment is rented to another tenant. The Rent Stabilization Law permits the first stabilized tenant after decontrol to challenge the first rent charged after decontrol, through a Fair Market Rent Appeal (FMRA), if the tenant believes that the rent set by the owner exceeds the fair market rent for the apartment. The Appeal is decided taking into consideration the Fair Market Rent Special Guideline and rents for comparable apartments. A FMRA must be filed within 90 days after the tenant receives the initial apartment registration.

Fair Market Rent Special Guideline: The percentage increase above the prior rent controlled tenant’s Maximum Base Rent (MBR) or Maximum Collectible Rent (MCR). This is determined each year by the New York City Rent Guidelines Board as applicable to the determination of Fair Market Rent Appeals.

Family Assistance Program (FAP): New York State’s TANF program. See "Temporary Assistance to Needy Families."

Family Member: See definition under "Succession Rights".

Federal Deposit Insurance Corporation (FDIC): Established by the federal government in 1950 to insure the deposits of member banks and savings associations.

Federal Reserve Board: The central bank of the United States founded by Congress in 1913 to provide the nation with a safer, more flexible, and more stable monetary and financial system.
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Federal Funds Rate: Set by the Federal Reserve, this is the rate banks charge each other for overnight loans.

Fees, Administrative: The Rent Stabilization Law (RSL) and the Emergency Tenant Protection Act (ETPA) permit municipalities to charge a fee to owners of housing accommodations subject to the RSL or ETPA. The fee is paid directly to the municipality (in New York City, to the Department of Finance). DHCR receives payment from the municipalities to defray the cost of administering these laws.

All apartments covered by the RSL and ETPA, including temporarily exempt apartments (see definition), are subject to the fee. Only housing accommodations which are permanently exempt (see definition) from the RSL and ETPA are exempt from this fee.

Fees, Attorney’s: A lease provision which provides that owners are entitled to recover reasonable attorneys' fees from tenants when they successfully sue the tenant concerning terms of the lease. If there is such a clause in the lease, the owner will be required to pay the tenant’s attorney's fees if the tenant is successful in defending the owner's court action.

Fees, Brokerage: A commission charged for the service of helping to find an apartment for a prospective tenant. The amount of the commission, usually a percentage of the first year's rent, is not set by law and is negotiated between the parties. The broker must assist the tenant in finding and obtaining an apartment before the commission is charged. The fee is illegal if in connection with the renting of a stabilized apartment, if it is paid to the owner or an associate, agent or employee of the owner.

Fees, Late: A lease provision providing for an additional reasonable payment when the rent is tendered after a specified date.
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Final Order: A final order is an order of a Rent Administrator, not timely and properly appealed to the Commissioner pursuant to regulations for filing a PAR, or an order of the Commissioner. An order is final as of the date of its issuance by the Rent Administrator, unless a petition for administrative review (PAR) is filed against such order. Despite the filing of a PAR by either the owner or the tenant, an order adjusting, fixing or establishing a maximum or legal regulated rent shall continue to remain in effect until further order. An order, or provision of an order, other than one adjusting, fixing or establishing a maximum or legal regulated rent is automatically stayed upon the filing of a PAR, but the Commissioner may issue a specific order granting or revoking a stay.

First Rent: The owner of a stabilized housing accommodation may be entitled to charge a market rent when first renting the apartment after performing qualifying rehabilitation and alteration to an apartment. Subsequent rents are subject to guideline increases. "First Rents" will be granted when a housing accommodation has been created which can be said not to have existed on the "base date." Examples where first rents apply are: where one apartment has been divided into two; two apartments have been combined into one; or a bedroom from another apartment has been added on to the subject apartment. Rearranging walls within the original apartment does not constitute a rehabilitation qualifying for a "first rent". First Rents are also applicable to newly created apartments, such as one created from open space where a previously temporarily occupied apartment such as one which was owner occupied or commercial in nature is rented for the first time to a residential tenant after a prolonged period of exempt occupancy.

Fixed Rate Mortgage (FRM): The interest rate is constant for the term of a mortgage.

421-a Tax Incentive Program: Created in 1970. Offers tax exemptions to qualifying new multifamily properties containing three or more rental units. Apartments built with 421-a tax exemptions are subject to the provisions of the Rent Stabilization Laws during the exemption period. Thus, 421-a tenants share the same tenancy protections as stabilized tenants and initial rents approved by HPD are then confined to increases established by the Rent Guidelines Board.

Fractional Terms: Under rent stabilization, any lease or tenancy for a period up to and including one year shall be deemed a one year lease or tenancy, and a period over one year and up to and including two years shall be deemed a two year lease. Under ETPA, where the tenant vacates prior to the expiration of the lease, the base for computing the rent adjustment for the new tenant is set by adjusting the prior lease rent to the maximum rent that would be permissible, if the last lease with the prior tenant had been for a term ending on the date such prior tenant vacated the housing accommodation.

Fuel Cost Adjustment: The New York City Rent Control Law allows separate adjustments based on the changes, up or down, in the price of various types of heating fuels. The adjustment will be based on fuel price changes between the beginning and end of the prior year. Only tenants in rent controlled apartments located in New York City are subject to this fuel cost adjustment. Early rent stabilized New York City Rent Guidelines Board orders also contained supplementary guidelines adjustments denominating fuel cost adjustments.
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G
Garden-Type Maisonette Dwelling Complex: Such complexes may consist of attached, detached, or semi-attached dwelling units, containing six or more housing accommodations having common facilities such as a sewer line, water main, or heating plant and operated as a unit under common ownership. They are subject to regulation even though Certificates of Occupancy were issued for portions of the complex as one- or two-family dwellings.

Gross City Product (GCP): The dollar measurement of the total citywide production of goods and services in a given year.

Guideline Rent Increases: The percentage increase of the Legal Regulated Rent that is allowed when a new or renewal lease is signed. This percentage is determined by the New York City Rent Guidelines Board for renewal leases signed between October 1 of the current year and September 30 of the following year. The percentage increase allowed is dependent on the term of the lease and whether the lease is a renewal or vacancy lease (see ‘Vacancy Allowance’).

Although the RGB customarily set increases for vacancy leases, it has not done so since the passage of the Rent Regulation Reform Act of 1997, which established statutory vacancy increases. Sometimes additional factors such as the amount of the rent, whether or not electricity is included in the rent and the past rental history have also resulted in varying adjustments.
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H
Harassment: A course of action by an owner intended to cause tenants to vacate their apartments or to give up rights granted them by the rent laws and regulations. An owner, or anyone acting for the owner, may not interfere with the tenant's privacy, comfort, or quiet enjoyment of the apartment. Interference includes intentionally reducing services or engaging in baseless court proceedings.

Hardship: Rent increase provisions under rent control and rent stabilization that allow an owner to apply for an additional rental increase to enable the owner to either meet a property's cash flow requirements or to receive a minimum net financial return. When owners are unable to earn a fair return" from their properties because of administratively imposed restrictions on rent levels, these provisions are intended to provide economic relief.

Hardship, Alternative: A rent adjustment provision provided to owners of rent stabilized buildings, not owned as cooperatives or condominiums, who, as determined by DHCR, are not receiving a total annual gross income that exceeds total annual operating expenses by a sum equal to at least five percent of the annual gross rent income.

Hardship, Comparative: A rent adjustment provision provided to owners of rent stabilized buildings, who, as determined by DHCR, are receiving insufficient average annual net income over a three-year period as compared to a previous three year period. For New York City, criteria include requirements that the net income is below the 1968-1970 (or a subsequent 3 year test period) level and that the owner is not now receiving an 8.5% return on that portion of the fair market value of the property that exceeds the unpaid principal amount of the mortgage indebtedness.
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Hardship, Rent Control: In New York City, a rent adjustment provision provided to owners of rent controlled buildings, who, as determined by DHCR, are not receiving a total annual gross income that exceeds operating and maintenance expenses and a return of 8.5% of the current assessed value multiplied by the current equalization ratio. Outside of New York City a rent adjustment provision provided to owners of rent controlled buildings, who, as determined by DHCR, are not receiving a total annual gross income that exceeds operating and maintenance expenses and a return of 7.5% of property valuation defined as the current assessed value adjusted by the 1954 equalization rate.

Heat and Hot Water Services: By law, building owners must provide New York City multiple dwelling tenants with the following levels of heat and hot water (with similar standards for municipalities outside New York City):

Heat must be provided from October 1 through May 31:
Between 6 a.m. and 10 p.m. heat must register 68 degrees Fahrenheit when the outside temperature falls below 55 degrees;
Between 10 p.m. and 6 a.m. heat must register 55 degrees Fahrenheit when the outside temperature falls below 40 degrees;
Hot water must be provided 24 hours a day for every day of the year, and must register at or above a constant temperature of 120 degrees at the tap.

High-Rent/High-Income Decontrol: Also called "Luxury Decontrol." A rent stabilized apartment can be deregulated when the legal rent on the apartment surpasses $2,000 a month, the annual household income (defined as Federal Adjusted Gross Income) of the tenants has been more than $175,000 a year for the preceding two years, and the owner applies for the deregulation with DHCR. High-Income High-Rent Decontrol was first instituted with the Rent Regulation Reform Act of 1993 which deregulated, upon expiration of the stabilized tenant's lease, units for which the lawful regulated rent is $2,000 per month or more as of October 1, 1993, and for which the total Federal Adjusted Gross Income of all of the tenants occupying the apartment as primary residents on other than a temporary basis was in excess of $250,000 in each of the two calendar years preceding the owner's application for deregulation. Deregulation for rent controlled tenants generally occurs on March 1st of the year following the owner's petition for deregulation. In 1994, New York City allowed for the deregulation of apartments that rent for $2,000 or more after October 1, 1993. In 1997, the Rent Regulation Reform Act of 1997 lowered the income threshold to $175,000. Also see "Vacancy Decontrol."

High-Rent Vacancy Decontrol: See "Vacancy Decontrol."
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Holdover Tenant: A tenant who has stayed in occupancy past the expiration of the lease or past the time to quit the premises specified by statute, administrative decision, or court decision.

Home Relief: See "Safety Net Assistance."

Horizontal Multiple Dwelling: A dwelling complex, which may consist of attached, detached, or semi-attached dwelling units, containing six or more housing accommodations having common facilities such as a sewer line, water main, or heating plant and operated as a unit under common ownership. These units are generally subject to regulation even though Certificates of Occupancy were issued for portions of the complex as one- or two-family dwellings.

Hotel: Under rent stabilization, a multiple dwelling that provides all of the following services included in the rent:

Maid service, consisting of general house cleaning at a frequency of at least once a week;
Linen service, consisting of providing clean linens at a frequency of at least once a week;
Furniture and furnishings, including at a minimum a bed, lamp, storage facilities for clothing, chair and mirror in a bedroom; such furniture to be maintained by the hotel owner in reasonable condition; and
Lobby staffed 24 hours a day, seven days a week by at least one employee.

Hotel Occupant: Under rent stabilization, any person residing in a housing accommodation in a hotel who is not a permanent tenant. Such person shall not be considered a tenant for the purposes of the Rent Stabilization Code, but shall be entitled to become a permanent tenant under certain circumstances.
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Hotel Permanent Tenant: Under rent stabilization, for housing accommodations located in hotels, an individual or such individual's family members residing with such individual, who have continuously resided in the same building as a principal residence for a period of at least six months. In addition, a hotel occupant who requests a lease of six months or more, or who is in occupancy pursuant to a lease of six months or more shall be a permanent tenant even if actual occupancy is less than six months.

Under rent control, a tenant, subtenant, lessee, sublessee or other person entitled to possession or to the use or occupancy of any housing accommodation within a hotel, who has resided in such hotel continuously since December 2, 1949.

Housing Accommodation: Under rent stabilization, that part of any building or structure, occupied or intended to be occupied by one or more individuals as a residence, home, dwelling unit or apartment, and all services, privileges, furnishings, furniture and facilities supplied in connection with the occupation thereof. Under rent control and the Emergency Tenant Protection Act, any building or structure, permanent or temporary, or any part thereof, occupied or intended to be occupied by one or more individuals as a residence home, sleeping place, boarding house, lodging house or hotel, together with the land and building appurtenant thereto, and all services, privileges, furnishings, furniture and facilities supplied in connection with the occupation thereof.

Housing Maintenance Code: The code, enforced by the New York City Department of Housing Preservation and Development, which provides for protection of the health and safety of apartment dwellers by setting standards for the operation, preservation and condition of buildings.

Housing & Vacancy Survey (HVS): A triennial survey of approximately 17,000 households conducted by the United States Census Bureau data. The survey is used, inter alia, to determine the vacancy rate for residential units in New York City, and gather other information necessary for HPD, RGB, DHCR and other housing officials to formulate policy.

HPD: See "Department of Housing Preservation and Development."

HUD: The United States Department of Housing and Urban Development, which is the federal agency primarily responsible for promulgating and enforcing federal housing policy and laws.

HVS: See "Housing and Vacancy Survey."
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I J
I&E: Refers to the annual Income and Expense Study performed by the Rent Guidelines Board drawn from summarized data on RPIE forms, the income and expense statements filed annually by owners of stabilized buildings with the New York City Department of Finance.

Individual Apartment Improvements (IAI or "1/40th"): An increase in rent based on increased services, new equipment, or improvements. This increase is a NYS policy and is in addition to the regular annual Rent Guidelines Board increases for rent stabilized apartments and Maximum Base Rent increases for rent controlled apartments. If owners add new services, improvements, or new equipment to an occupied rent regulated apartment, owners of rent regulated units can add 1/40th or 2.5% of the cost of qualifying improvements to the legal rent of those units excluding finance charges. E.g., (1) if an apartment’s legal rent were $500, and (2) the landlord made $4,000 of qualifying improvements, then (3) the landlord thereafter could add 1/40th of the cost of those improvements–in this example, $100–to the apartment’s existing legal monthly rent for a resulting new legal rent of $600. The 1/40th increase remains permanently in the monthly rent, even after the cost of the improvement is recouped. Owners must get the tenant's written consent to pay the increase and an order from DHCR is not required. If any apartment is vacant, the owner does not have to get written consent of a tenant to make the improvement and pass-on the 1/40th increase.

Illusory Sublets: A sublet which occurs when the named prime tenant, does not and usually has never maintained the apartment as a primary residence and the sublet is intended to evade the Rent Laws and deprive the subtenant of his/her nights.

Initial Legal Registered Rent: Under rent stabilization, the lawful rent for the use and occupancy of housing accommodations under the Rent Stabilization Law or the Emergency Tenant Protection Act, as first registered with the DHCR, which has not been challenged pursuant to regulation, or if challenged, has been determined by the DHCR.

Initial Registration: See "Registration".
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Initial Stabilized Lease: The lease with the first rent stabilized tenant of an apartment.

In Rem: In Rem units include those located in structures owned by the City of New York as a result of an in rem proceeding initiated by the City after the owner failed to pay tax on the property for one or more years. Though many of these units in multiple dwellings had previously been subject to either rent control or rent stabilization, they are exempt from both regulatory systems during the period of city ownership.

Interim Lease: A lease for a housing accommodation executed in connection with an agreement to purchase such housing accommodation or the shares allocated thereto pursuant to a valid co op/condo plan and which terminates tenancy rights upon the co-op/condo closing.

J-51 Program: A program governed by Sections 11-243 and 11-244 of the New York City Administrative Code (formerly numbered J-51) under which, in order to encourage development and rehabilitation, property tax abatements and exemptions are granted. In consideration of receiving these tax abatements and at least for the duration of the abatements, the owner of these buildings agrees to place under rent stabilization those apartments which would not otherwise be subject to rent stabilization (e.g., those in buildings with fewer than 6 apartments or buildings constructed after 12/31/73). This program provides real estate tax exemptions and abatements to existing residential buildings that are renovated or rehabilitated in ways that conform to the requirements of the statute. It also provides these benefits to residential buildings that were converted from commercial structures.
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K L
Key Money: An illegal additional sum above the lawful rent and allowable security deposit for preference in renting a vacant apartment.

Lease: A lease is both a contract and a conveyance of an interest in property which establishes the conditions, rent and terms of tenancy. Possession of the property for a specified period is exchanged for rent. See "Vacancy Lease" and "Renewal Lease."

Lease Rider: A supplement to a lease containing additional terms, conditions or advisements. (See "Rent Stabilization Lease Rider").

Lessee: A person to whom a property is rented under a lease. (See also "Tenant.")

Lessor: One who rents property to another under a lease.

Legal Regulated Rent: The maximum rent level that a landlord is entitled to charge a tenant for a rent regulated unit. The landlord of such a unit must annually register that legal rent with DHCR. Also, the initial legal registered rent as adjusted in accordance with the Rent Stabilization Code, or the rent shown in the annual registration statement filed 4 years prior to the most recent registration statement (or if more recently filed, the initial registration statement), plus in each case, any subsequent lawful increases and adjustments.

Legislature: Refers to the New York State Legislature.
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Loft Board: A New York City agency that regulates lofts. Lofts are governed by Article 7-C of the Multiple Dwelling Law, and are not (until brought up to Code) within DHCR's rent regulatory jurisdiction.

Loan-to-Value Ratio (LTV): An expression of the safety of a mortgage principal based on the value of the collateral (e.g., an LTV of 50% means that a lender is willing to provide a mortgage up to half the value of a building). A decline in LTV may indicate a tightening of lending criteria and vice versa.

Longitudinal: The type of analysis that provides a comparison of identical elements over time, such as comparing data from 1999 to the same data in 2000.

Low Rent Supplement: See "Supplemental Adjustment."

Luxury Decontrol: See "High-Rent/High-Income Decontrol"
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M
Major Capital Improvements (MCI): When owners make improvements or installations to a building subject to the rent stabilization or rent control laws, they may be permitted to increase the building's rent based on the actual, verified cost of the improvement. To be eligible for a rent increase, the MCI must be a new installation and not a repair to old equipment. For example, an owner may receive an MCI increase for a new boiler or a new roof but not for a repaired or rebuilt one. Other building-wide work may qualify as MCls as well, such as "pointing and waterproofing" a complete building where necessary. The Rent Stabilization Code also stipulates that applications for MCI rent increases must be filed within two years of completion of the installation. MCI rent increases must be approved by DHCR.

Maximum Base Rent Program (MBR): The Maximum Base Rent Program is the mechanism for authorizing rent increases for New York City apartments subject to rent control so as to ensure adequate income for their operation and maintenance. New York City Local Law 30 (1970) stipulates that MBR's be established for rent controlled apartments according to a formula calculated to reflect real estate taxes, water and sewer charges, operating and maintenance expenses, return on capital value and vacancy and collection loss allowance. The MBR is updated every two years by a factor that incorporates changes in these operating costs.

Maximum Collectible Rent (MCR): The rent that rent controlled tenants actually pay or are obligated to pay to the owner. In any one calendar year, the collectible rent shall be increased by no more than 7.5% until the MBR is reached. Other increases not associated with the MBR system are possible in the same year, in addition to the 7.5%, such as fuel cost adjustments and approved increases for individual apartment improvements and/or major capital improvements. The MCR generally is less than the MBR. For example, if a tenant's rent (MCR) on 12/31/87 was $200, and his/her MBR was $233, then on 1/1/88 (effective date of MBR) his/her rent (MCR) would rise 7.5% to $215 and the MBR ceiling would rise by 16.4% (1988/89 MBR factor) to $271.22. On 1/1/89, the MBR would remain the same (since MBRs cover a two year period), but the MCR would rise by another 7.5% to $231.12.

Mean and Median Averages: The "mean" is an arithmetic average of numbers. Numbers at the extreme of a range can have a potentially distorting effect on the mean. The "median" is considered by many as a more constant measure of that same set of numbers because it moderates the distorting effect of any extremes or other aberrations, because it is the 50th percentile of the numbers under analysis, or the number in the middle.
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Mitchell-Lama: The New York State Mitchell-Lama Program was created in 1955 as a means of providing affordable rental and cooperative housing to moderate- and middle-income families. New York City and New York State kept rents affordable by providing low-interest mortgages and/or tax exemptions to these buildings. About 269 developments were created with over 105,000 apartments, though a number have withdrawn from the program through the 'buyout' process.

Month-to-Month Tenants: Tenants including regulated tenants (but not rent controlled tenants who are referred to as statutory tenants) who do not have leases and pay rent on a monthly basis.

Multiple Dwelling: A dwelling which is either rented, leased, let or hired out, to be occupied, or is occupied, as the residence or home of three or more families living independently of each other. A multiple dwelling shall also include residential quarters for members or personnel of any hospital staff which are not located in any building used primarily for hospital use, but any building which was erected, altered or converted prior to July first, nineteen hundred fifty-five, to be occupied by such members or personnel or is so occupied on such date shall not be subject to the requirements of this code only so long as it continues to be so occupied if there are local laws applicable to such building and such building is in compliance with such local laws. A multiple dwelling does not include (i) a hospital, convent, monastery, asylum or public institution; or (ii) a fireproof building used wholly for commercial purposes except for not more than one janitor's apartment and not more than one penthouse occupied by not more than two families.

Multiple Dwelling Law: Law protecting tenants against intensive occupation of multiple dwelling sites, overcrowding of multiple dwelling rooms, inadequate provision for light and air, and insufficient protection against the defective provision for escape from fire, and improper sanitation of multiple dwellings in certain areas of the state due to the menace to the health, safety, morals, welfare, and reasonable comfort of the citizens of the state; and that the establishment and maintenance of proper housing standards requiring sufficient light, air, sanitation and protection from fire hazards are essential to the public welfare.

Multi-Tier Rent: Housing developments receiving assistance or financing from governmental agencies or public benefit corporations, or exiting regulation under the Private Housing Finance Law or other state or federal laws, may, by agreement between DHCR and such other government agencies, register higher and lower initial legal regulated rents for units subject to occupancy and rent restrictions under the previous regulatory or governmental financing plan. This dual level of rents is referred to as "multi-tier." These rents may then be adjusted according to the RSL or RSC but cannot be challenged under the Fair Market Rent Appeal.
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N
Net Operating Income or NOI: The amount of income remaining after operating and maintenance expenses are paid is typically referred to as Net Operating Income (NOI). NOI can be used for mortgage payments, improvements, federal, state and local taxes and after all expenses are paid, profit.

New York City Conciliation and Appeals Board (CAB): This Board was the independent, quasi-governmental agency which administered the Rent Stabilization Law and the Emergency Tenant Protection Act in New York City until April 1, 1984. Since April 1, 1984, DHCR has assumed the functions that were performed by the CAB.

New Law Tenement: A "Class A" multiple dwelling constructed between 1901 and 1929 and subject to the regulations of the Tenement House Law. Distinguished from the old law tenement in terms of reduction of hazardous conditions and improved access to light and air.

New York City Housing Authority (NYCHA): The New York City agency that administers public housing and rental assistance programs.

New York City Rent Guidelines Board: See "Rent Guidelines Board"

New York State Real Property Law (RPL): The New York State Real Property Law (RPL) covers the spectrum of Real Property issues, including the relationship between Landlord and Tenant. However, it should not be confused with the Real Property Actions and Proceedings Law (RPAPL) which details the nature of court proceedings that invariably arise from contested real estate issues.

Nominal Dollars: Dollars not adjusted to take inflation into account. See also "Real Dollars."

Non-Evict Co-op: A residential building that has been converted from rentals to cooperative units, wherein the residents living in the building at the time of conversion have the right to remain in their apartments as rental tenants without having to purchase their units. (See also Co-op.)

Notice of Appearances: The form that must be filed whenever an attorney or other authorized representative appears for a party who is involved in a proceeding before the DHCR. An attorney who appears for such party may instead use the letterhead stationery of his or her office as a notice of appearance if the information contained therein substantially conforms to the information required by the DHCR prescribed form.
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O
O&M: Refers to the operating and maintenance expenses in buildings.

Occupant: Under rent stabilization a person, other than a tenant or a member of a tenant's immediate family, occupying a premises with the consent of the tenant. Such person shall not be considered a tenant for the purposes of the Rent Stabilization Code.

Office of Rent Administration (ORA): The office within DHCR that administers the four rent regulatory systems; rent control and rent stabilization for New York City, and rent control and rent stabilization for various municipalities outside New York City.

Old Law Tenement: A "Class A" multiple dwelling constructed before 1901 and subject to the regulations of the Tenement House Law.

Omnibus Housing Act: The law signed by Governor Mario M. Cuomo on June 30, 1983, as Chapter 403, mandated that DHCR assume responsibility for the administration of rent control and rent stabilization in New York City commencing April 1, 1984. In assuming this responsibility, DHCR phased out the regulatory functions of the entities formerly responsible for those systems - the Conciliation and Appeals Board (CAB) which had administered rent stabilization, and the Division of Rent Control of the New York City Department of Housing Preservation and Development's (HPD) Office of Rent and Housing Maintenance, which had administered rent control. It also made many changes in rent and landlord-tenant laws, including the initiation of a system of registration of rents and services by owners with DHCR.
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1/40th Increase: See "Individual Apartment Improvement Rent Increases."

Operating Cost Ratio: The "cost-to-income" ratio, or the percentage of income spent on operating and maintenance (O&M) expenses, is traditionally used by the Rent Guidelines Board to evaluate estimated profitability of stabilized housing, presuming that buildings are better off by spending a lower percentage of revenue on expenses.

Orders: See "Rent Guideline Orders."

Outer Boroughs: Queens, Brooklyn, the Bronx and Staten Island, or the boroughs of New York City not including Manhattan. These boroughs are often grouped together for purposes of analysis because their economic and demographic attributes are more similar to each other than those found in Manhattan.

Overcharge: Any additional charges or fees for a service already included in the rent or in excess of the lawful rent. Examples include illegal brokerage fee; excess security; tax abatement overcharge; excess rent charge; collection of guideline(s) increase when a service reduction is outstanding.

Owner: A fee owner, lessor, sublessor, assignee, net lessee, or a proprietary lessee of a housing accommodation in a structure or premises owned by a cooperative corporation or association, or an owner of a condominium unit or the sponsor of such corporation or association or condominium development, or any other person or entity, or agent of same, receiving or entitled to receive rent for the use or occupation of any housing accommodation.
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P
Permanently Exempt Housing from the RSL or ETPA: These include:

A rent controlled apartment.
Housing accommodations owned by the United States, the State of New York, any political subdivision, agency or instrumentality thereof, any municipality or any public housing authority.
Housing accommodations for which rentals are fixed by DHCR, HPD or UDC pursuant to laws other than the RSL and/or ETPA and which do not become subject to the RSL and Code after the establishment of initial rents pursuant to such other laws.
A building containing fewer than six housing accommodations on the date the building otherwise would have been first subject to the RSL. (which do not go to six or more units thereafter).
Housing accommodations in buildings completed or buildings substantially rehabilitated as family units on or after January 1, 1974, except such buildings which are made subject to stabilization by provisions of the RSL or any other statute.
Housing accommodations owned by a hospital, convent, monastery, asylum, public institution, or college or school dormitory or any institution operated exclusively for charitable or educational purposes on a non-profit basis, and occupied by a tenant whose initial occupancy is contingent upon an affiliation with such institution.
Under RSL, rooms or other housing accommodations in hotels where such housing accommodations were rented on May 31, 1968 for more than $350.00 per month or $88.00 per week or are contained in a hotel which was constructed after July 1, 1969. Under ETPA, all hotel rooms are exempt.
Housing accommodations in any motor court, any trailer, or trailer space used exclusively for transient occupancy or any part thereof; or any tourist home serving transients exclusively.
Housing accommodations in buildings operated exclusively for charitable purposes on a non-profit basis.
Housing accommodations contained in buildings owned as cooperatives or condominiums not occupied by non-purchasing tenants, under RSL, or not occupied by non-purchasing tenants or subsequent rental tenants who moved in before July 7,1993, under ETPA.
Housing accommodations used exclusively for professional, commercial or other non residential purposes in accordance with the certificate of occupancy.
Housing accommodations in buildings completed or substantially rehabilitated as family units on or after January 1, 1974 or located in a building containing less than six housing accommodations, and made subject to the RSL and Code solely as a condition of receiving "J 51 " Tax benefits or Article XVIII PHFL funding; and thereafter receipt of such tax benefits and supervisory period has concluded and such housing accommodations became vacant; or, each lease and each renewal of the tenant in occupancy when the benefit or supervisory period concluded includes a notice informing such tenant that the housing accommodations shall become deregulated upon the expiration of the last lease entered into during the tax benefit or supervisory period and states the approximate date on which such benefits and supervisory period are scheduled to expire.
Same as Item 12 except that the benefit in question is granted under Section 421 -a of the Real Property Tax Law and the housing accommodations became vacant after the expiration of the benefit period; or, for housing accommodations which first became subject to rent stabilization pursuant to 421-a after July 3, 1984 each lease and each renewal of the tenant in occupancy at the time the period of exemption pursuant to 421-a expires, contain the same notice as that discussed in Item 12, above.
Housing accommodations which would be subject to the RSL and Code solely by reason of the Loft Law but are exempted from the Loft Law under Sections 286(6) and 286(12) of the MDL.
High-rent or high-income decontrolled housing accommodations.

The owner is required to file an annual apartment registration as of the April 1st date, following the permanent exemption and need not file subsequent registrations for that apartment.
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Permanent Tenant: See definition under "Succession Rights".

Petition for Administrative Review (PAR): An appeal from an Administrator's Order. An owner, tenant, or other party aggrieved by a Rent Administrator’s order may file a Petition for Administrative Review (PAR) with DHCR. The petition must specify the alleged errors and list the issues upon which the order should be reviewed. The scope of review in the PAR proceeding is generally limited to the facts or evidence that were both presented to the Rent Administrator and raised in the PAR. A PAR must be filed within 35 days after the Administrator's order is issued.

Plain English Lease: Leases must use words with common and everyday meanings and must be clear and coherent.

PIOC: Price Index of Operating Costs. The major research instrument performed by the RGB staff to determine the annual change in prices for a market basket of goods and services used by owners to operate and maintain rent stabilized buildings.

Points: Upfront service fees charged by lenders.

Post-46 or Post-war: A common classification of residential buildings used by City agencies to describe buildings built after World War II. Buildings with six or more residential units constructed between 1947 and 1973, or after 1974 if the units received a tax abatement such as 421-a or J-51, are considered stabilized.
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Preferential Rent: A rent charged by an owner to a tenant that is less than the established legal regulated rent. Depending on language in the lease, owners may not be required to base renewal lease increases on the preferential rent. The current (or new) tenant may be charged the higher legal regulated rent previously established plus the most recent applicable guidelines increases and other such increases as are permitted by law. Also known as the ‘actual rent.’

Pre-47 or Pre-war: A common classification of residential buildings used by City agencies to describe buildings built before the World War II. Specifically, pre-47 buildings are those with six or more units constructed before February 1, 1947, and are considered stabilized when the current tenant moved in on or after July 1, 1971.

Primary Residence: For an apartment to remain in its rent regulated status (stabilized or controlled), the tenant must occupy it as his or her primary residence. The test as to whether a tenant is occupying the apartment as a primary residence includes, but is not limited to, consideration of the following factors: Does the tenant file a New York City Resident Tax Return from the subject address or show a valid reason for not filing, such as an income below taxable level? Does the tenant meet the definition of "resident" for tax purposes, either domicile or residence for 183 days of the year? What do the tenant's driver's license, voter registration card, or other such documents show as to the tenant's address? Does the tenant sublet or assign the apartment? Primary residence issues are now determined by the courts.

Prime Tenant: See "Sublet."
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Q R

Real Dollars: Dollars adjusted to take inflation into account. Real dollar figures offer a comparison between years that are pegged to the value of a dollar in a given year. See also "Nominal Dollars."

RPIE (Real Property Income & Expense) Forms: Owners of stabilized buildings are required by Local Law 63 to file Real Property Income and Expense (RPIE) forms annually with the New York City Department of Finance. RPIE forms contain detailed financial information regarding the revenues earned and the costs accrued in the operation and maintenance of stabilized buildings. Buildings with fewer than 11 units, an assessed value of $40,000 or less, or exclusively residential cooperatives or condominiums are exempt from filing. RPIE forms are also known as I&E forms.

Real Property Law (RPL): See "New York State Real Property Law"

Registration: Owners are required to register all rent stabilized apartments with DHCR by filing an Annual Apartment Registration Form which lists rents, tenancy and services in effect on April 1st of each year.

Registration, Annual: Owners are required to register all rent stabilized apartments with DHCR by filing an Annual Apartment Registration Form which lists rents, tenancy and services in effect on April 1st of each year.

Registration, Apartment Services: On the initial apartment registration form, owners must specify services provided to an apartment, such as a stove or refrigerator. Additionally, on the annual apartment registration form, changes in services resulting in rent increases or decreases must be recorded.

Registration, Building Services: Owners must specify services provided for the building, such as elevator service, on the initial building registration form.

Registration, Initial: The initial registration of a rent stabilized apartment with DHCR. By June 30, 1984 owners were required to file an initial registration for each stabilized apartment they owned, with data as of April 1, 1984. Subsequently, owners are required to file an initial registration, within 90 days, after an apartment first becomes subject to the Rent Stabilization Law. The owner is required to provide the current tenant a copy of this registration and retain proof that the tenant received it. A building registration form, which includes a listing of building wide services, must also be completed at the time of the initial registration of apartments.

Registration, Tenant Challenge: A tenant challenge claiming that the Initial Legal Registered Rent filed by the owner is above the legal rent for the rent stabilized apartment. This claim must be made to DHCR within 90 days of the tenant's receipt of his/her copy of the Initial Apartment Registration form filed by the owner.
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Renewal Lease: The lease of a tenant in occupancy renewing the terms of the first, vacancy lease entered into between the tenant and owner for an additional term. Tenants in rent stabilized apartments have the right to select a lease renewal for a one- or two-year term. The renewal lease must be on the same terms and conditions as the expiring lease unless a change is necessary to comply with a specific law or regulation or is otherwise authorized by the rent regulation. The owner may charge the tenant a Rent Guidelines Board-authorized increase based on the length of the renewal lease term selected by the tenant. The law permits the owner to raise the rent during the lease term if the Rent Guidelines rate was not finalized when the tenant signed the lease renewal offer. A