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.
ELECTRICAL EXCLUSION BUILDINGS