Where a brand new air conditioner is purchased and installed by the owner in a rent controlled
or rent stabilized apartment, one-one hundred and sixty eighth (1/168th) of the cost of the new air
conditioner in buildings that contain 35 or fewer housing accommodations or one-one hundred and
eightieth (1/180th) of the cost in buildings that contain more than 35 housing accommodations, including
any cost of installation, but excluding finance charges, if any, may be included in the base rent.
However, the recoverable costs incurred by the owner are subject to the limits imposed by the Housing
Stability and Tenant Protection Act (HSTPA) of 2019 on rent increases for Individual Apartment
Improvements (IAI). In the case of a rent controlled apartment, the owner must notify DHCR of the rent
increase and the increase shall be effective as of the first rent payment date following such notification.
While an owner may collect from a rent stabilized tenant any of the charges for an air conditioner without
obtaining a DHCR order, HSTPA requires that the owner file the Supplemental Rent Registration IAI
Notification form with DHCR whether the apartment is occupied or vacant. Where the subject apartment
is occupied, the owner must also obtain and file the tenant’s written informed consent on the
Supplemental Rent Registration IAI Informed Consent form. In the case of a rent stabilized apartment,
the information should also be included in the next annual rent registration statement, and the increase
is effective on the first rent payment date following installation.
For additional details on individual apartment improvement requirements under HSTPA,
please review Operational Bulletin 2016-1.
TERMS AND CONDITIONS