Fact
Sheet #27 - Air Conditioners
Electrical
Inclusion Buildings
For
rent controlled and rent stabilized apartments, where the rent includes
the use of electricity, an owner may charge a tenant a surcharge for the
use of electricity for each air conditioner that has been installed.
On
October 1st of each year after the air conditioner has been installed the
surcharge will be adjusted upward or downward for rent stabilized and rent
controlled apartments with electricity included in the rent. Each annual
adjustment of this electrical surcharge will be based on the increase or
decrease in electrical cost stated in the Price Index of Operating Costs
for Rent Stabilized Apartment Houses in New York City. The Price Index
is prepared by the New York City Rent Guidelines Board, or an independent
company chosen by the Board. This annual adjustment applies to air conditioners
installed after October 1, 1985. If an owner collected a rent increase
for the electricity consumed by an air conditioner installed in a rent
stabilized apartment before October 1, 1985, that rent increase remains
in effect and is not affected by this annual adjustment, because that rent
increase is already part of the rent and subject to guidelines increases
applicable to rent stabilized leases.
Electrical
Exclusion Buildings - Tenant Provides New Air Conditioner
When
the tenant in a rent controlled or rent stabilized apartment in an electrical
exclusion building, which is a building in which the tenant pays a public
utility for electricity, purchases and installs an air conditioner unit
that protrudes beyond the window line, the owner may collect a five dollar
($5.00) per-month surcharge for each unit installed. Once installed and
after the $5.00 surcharge has been collected, the tenant may not, without
the owner's permission remove the air conditioner and demand that the surcharge
be dropped.
Owner
Provides New Air Conditioner
When
the owner purchases and installs a new air conditioner in an occupied rent
controlled or rent stabilized apartment, after having obtained the written
consent from the tenant, the owner may charge the tenant one fortieth (1/40th)
of the cost of the unit, including the installation cost, but excluding
the finance charges. When the owner purchases and installs a new air conditioner
in a vacant apartment, tenant consent is not required for the owner to
collect the increase from the next tenant. This charge becomes part of
the Maximum Base Rent (MBR) of a rent controlled apartment or the legal
regulated rent of a rent stabilized apartment.
Adjustments
To Rent
For
rent stabilized apartments, where the air conditioner was installed on
or after October 1, 1985, the five dollar ($5.00) per-month surcharge and
the monthly surcharge for electrical inclusion buildings, do not become
part of the legal regulated rent for the purpose of computing other rent
stabilized increases. Only the 1/40th charge for a new air conditioner
purchased and installed by an owner becomes part of the legal regulated
rent.
For
rent controlled apartments, the five dollar ($5.00) per-month surcharge
and the monthly electrical inclusion surcharge become part of the Maximum
Collectible Rent (MCR), but they do not affect the compounding of the Maximum
Base Rent (MBR). Only the 1/40th charge for a new air conditioner purchased
and installed by an owner becomes part of the MBR.
Collection
Procedure For Rent Stabilized Apartments
An
owner may collect from a rent stabilized tenant any of the charges for
an air conditioner without obtaining a DHCR order. An owner must charge
a tenant for an air conditioner at the time the units are initially installed,
or within a reasonable period of time after its installation. If the owner
fails to charge the tenant within a reasonable period of time after the
installation, the owner waives the right to collect the charge.
Collection
Procedure For Rent Controlled Apartments
Where
an owner purchases and installs a new air conditioner in a rent controlled
apartment, the owner is not required to obtain a DHCR order allowing the
owner to collect the 1/40th charge. However, before the owner may collect
this charge, the owner must file with DHCR an "Owner's Notice of
a Rent Increase Based on Increased Services/New Furnishings/Equipment/Painting:
and Tenant's Statement of Consent," (DHCR Form RN-79b, Part A).
Before
collecting either the five dollar ($5.00) per-month surcharge or the monthly
electrical inclusion surcharge from rent controlled tenants, the owner
must apply to DHCR for permission to collect the surcharge by filing the "Owner's
Application for Air Conditioner Charges," (DHCR Form RN-79b, Part
B). Either surcharge may not be collected until DHCR issues an order authorizing
the surcharge.
For
both rent controlled and rent stabilized apartments, the five dollar ($5.00)
per-month surcharge and the electrical inclusion surcharge are payable
by the tenant each month of the year.
The
permissible surcharges for air conditioners that were installed before
October 1, 1985 will be determined by the rules in effect before October
1, 1985.
For
more information or assistance, call the DHCR Rent InfoLine (718-739-6400)
or visit your Borough or County Rent Office.
DHCR
Version 6/18/07
RGB Page Updated 8/8/08
