NYS DHCR Operational Bulletin #2014-2

Operational Bulletin 2014-2
New York State
Division of Housing and Community Renewal
Office of Rent Administration

Operational Bulletin 2014-2
(Replaces Operational Bulletin 95-1)

Collectibility of MCI/IAI Increases
Where the Rent is Reduced Because
of Diminution of Services
Implementing
New York City Rent Stabilization Law (RSL)
Emergency Tenant Protection Act of 1974 (ETPA)
New York City Rent and Rehabilitation Law (City Rent Control Law)
Emergency Housing Rent Control Law (State Rent Control Law)

This Operational Bulletin is issued pursuant to section 2527.11 of the Rent Stabilization Code, the Emer-
gency Tenant Protection Regulations adopted under the Emergency Tenant Protection Act; section 2209.8 of the
City Rent and Eviction Regulations; and section 2109.8 of the State Rent and Eviction Regulations. It is intended to
serve as a revised explanatory statement of DHCR’s general policy regarding the effect of rent reduction orders
upon the collectibility of Major Capital Improvement (MCI) and Individual Apartment Improvement (IAI) Rent
Increases.

1. Section 2523.4 of the Rent Stabilization Code authorizes tenants to apply to the Division for a
reduction of the legal regulated rent to the level in effect prior to the most recent guidelines adjustment,
and provides that such order reducing the rent bars the owner from applying for or collecting any further
rent increases until the services are restored. The issuance of a rent restoration order results in the
prospective elimination of this sanction.

2. Section 2503.4 of the Tenant Protection Regulations also authorizes tenants to apply to the Division for
a reduction of the legal regulated rent to the level in effect prior to the most recent guidelines adjustment.