9 NYCRR § 2102.3 — Grounds for increase of maximum rent (State Rent & Eviction Regs., via Cornell LII)

Citation
9 NYCRR § 2102.3 — Grounds for increase of maximum rent (State Rent & Eviction Regs., via Cornell LII)
Jurisdiction
New York (state)
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Original Source
https://www.law.cornell.edu/regulations/new-york/9-NYCRR-2102.3 ↗

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(iv) Operating expenses.
All operating expenses necessary in the operation and maintenance of the
property and properly allocable to the test year, excluding mortgage interest
and amortization, but including an allowance for depreciation of two per cent
of the valuation of the buildings exclusive of the land, as defined in
paragraph (1) of this subdivision, or the amount shown for depreciation of the
buildings in the latest required federal income tax return, whichever is lower;
provided, however, that no allowance for depreciation of the buildings shall be
included where the buildings have been fully depreciated for federal income tax
purposes or on the books of the owner. Increases or decreases in real estate
taxes, water or sewage charges and wages currently in effect may be projected
in computing operating expenses.

(v) Test year. The most recent full calendar
year or fiscal year, or any 12 consecutive months ending not more than 90 days
prior to the filing of the application.

(3) If, as determined by the Administrator, a
property is earning a net annual return of less than six percent of the
valuation of the property, the Administrator shall grant an adjustment in the
maximum rents.