9 NYCRR § 2522.4 — Adjustment of legal regulated rent (Rent Stabilization Code, via Cornell LII)

Citation
9 NYCRR § 2522.4 — Adjustment of legal regulated rent (Rent Stabilization Code, via Cornell LII)
Jurisdiction
New York (state)
Source verification
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Original Source
https://www.law.cornell.edu/regulations/new-york/9-NYCRR-2522.4 ↗

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Full Text

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(1) An owner may file an application on forms
prescribed by the DHCR, and the DHCR shall grant, on the application of an
owner, appropriate rent adjustments as hereinafter provided, where the gross
rental income is insufficient to yield to the owner an average annual net
income (which shall be computed without regard to debt service, financing costs
or management fees), for the three-year period ending on or within six months
of the date of the filing of the owner's application, equal to the annual
average net income of the property for:

(i)
the period 1968-1970; or

(ii) the
first three years of operation, if the building was completed after 1968;
or

(iii) the first three fiscal
years after a transfer of title to a new owner who acquired title to the
building as a result of a bona fide sale of the entire building, and who has
been unable to obtain requisite records for the fiscal years between 1968
through 1970, despite diligent efforts to obtain the same from predecessors in
title, provided that such new owner submits financial data for not less than
six years of continuous and uninterrupted operation of the property under his
or her ownership.

(2)
Notwithstanding anything to the contrary herein, no increase granted pursuant
to this subdivision shall, when added to the annual gross rents as determined
by the DHCR, exceed the sum of:

(i) the
annual operating expenses;

(ii) an
allowance for management services as determined by the DHCR;

(iii) actual annual mortgage debt service
(interest and amortization) on its indebtedness to a lending institution, an
insurance company, a retirement fund or welfare fund under the supervision of
the banking or insurance laws of the State of New York or the United States;
and