The increase in the second tier is permanent and the amortization rates are as follows: In a building that
contains 35 or fewer apartments the permitted increase in the legal regulated rent is 1/144th of the total cost of
the improvement. In a building with more than 35 apartments, the permitted increase in the legal regulated rent
is 1/156th of the total cost of the improvements.
For both tiers, owners must file online in ORRA at https://hcr.ny.gov/online-services-owners-and-managers
and select the Individual Apartment Improvement Notification. Owners must then select either the first or the
second tier.
To recover costs for IAIs under the second tier, owners must complete the following steps:
Issued (10/24) OB-2024-2 Page 2 of 8
STEP 1.
Owners must first request certification from DHCR to establish eligibility to recover costs on proposed IAIs.
To recover costs under this tier, the IAI must have been installed in:
A. A currently vacant apartment that was timely registered as vacant for 2022, 2023 and 2024; or
B. A currently vacant apartment following a period of continuous occupancy of at least 25 years that
occurred immediately prior to the commencement of the IAI installation.
An owner may recover costs based on (A) no more than once.
DHCR will issue an order certifying eligibility or denying eligibility to recover costs. DHCR’s order certifying
eligibility is only made to determine if the owner is eligible to file for an IAI with this agency and not an order
approving a rent increase.
STEP 2.