(d) The dwelling or unit is a condominium that has not been sold
separately by the subdivider to a bona fide purchaser for value.
(5) The landlord may establish the initial and all subsequent rental rates
pursuant to this subsection for all existing and new tenancies in effect on or after
January 1, 1999, if the tenancy was created between January 1, 1996 and December 31,
1998.
(D) Rent Defined
(1) For purposes of this regulation, “rent” is defined as the rent in effect for
the immediately preceding tenancy which did not exceed the lawful rent ceiling.
(2) For the purpose of this Regulation, the term “rent” does not include any
fees or charges paid by the tenant to the landlord pursuant to a lawful separate
agreement between the tenant and the landlord as defined in Regulation 1012.
(3) The rent level established by the landlord pursuant to this Regulation shall
become the new rent ceiling for the unit.
(E) Landlord Defined
“Landlord,” as used in this regulation, means an owner of record, lessor, or any
other person or entity entitled to receive rent for the use or occupancy of any rental unit,
or an agent, representative or successor of any of the foregoing.
(F) Prevailing Market Rents
(1) “Prevailing Market Rents” are defined as the rental rate that would be
authorized for comparable units pursuant to 42 U.S.C.A. 1437(f), as calculated by the
United States Department of Housing and Urban Development (HUD) pursuant to Part
888 of Title 24 of the code of Federal regulations. For purposes of this regulation, of
the prevailing market rents shall be referred to as HUD FMRs (“fair market rents”), and
include the cost of utilities except telephone.