Section 26-405. General powers and duties of the city rent agency

a. (1) At
  the time this chapter shall become effective, the city rent agency shall
  establish maximum rents which, subject to the provisions of  subdivision
  b  of  this  section,  shall  be  the  maximum  rents in effect on April
  thirtieth, nineteen hundred sixty-two pursuant to the state rent act and
  the regulations thereunder.
    (2) (a) Notwithstanding the foregoing provision of  this  subdivision,
  and  except  as  provided  in  subparagraph  (b)  of this paragraph two,
  effective August first, nineteen hundred seventy, the  maximum  rent  in
  effect  on July thirty-first, nineteen hundred seventy shall be adjusted
  as follows:  (i) For any individual housing accommodation for which  one
  or  more  but  less  than two full fifteen per centum rent increases has
  been granted since May first, nineteen hundred fifty-three  pursuant  to
  former  subparagraph  (d)  of  paragraph  one  of  subdivision g of this
  section the maximum rent shall be increased by eight per centum.
    (ii) For any  individual  housing  accommodation  for  which  no  full
  fifteen  per  centum  rent  increase  has  been granted since May first,
  nineteen hundred fifty-three pursuant  to  former  subparagraph  (d)  of
  paragraph one of subdivision g of this section the maximum rent shall be
  increased  by  fifteen  per  centum,  except  that  if there was no such
  increase for any individual housing accommodation for which a first rent
  was established pursuant to former subdivision m of this  section  after
  July  thirty-first, nineteen hundred sixty-five and before August first,
  nineteen hundred sixty-eight, the maximum rent  shall  be  increased  by
  five  per  centum, and except that if there was no such increase for any
  individual housing accommodation for which a first rent was  established
  pursuant  to such subdivision on or after August first, nineteen hundred
  sixty-eight there shall be no increase in  maximum  rent.  On  or  after
  August  first, nineteen hundred seventy, a landlord may file application
  for labor cost rent adjustment pursuant to subparagraph (l) of paragraph
  (1) of subdivision g of this section. In lieu of such  labor  cost  rent
  adjustment,  the  landlord  of  a  building with twenty or fewer housing
  accommodations shall have the option of filing for  a  five  per  centum
  increase  in  maximum  rent for any individual housing accommodation for
  which two or more full fifteen per centum increases  have  been  granted
  since  May  first,  nineteen  hundred  fifty-three  pursuant  to  former
  subparagraph (d) of paragraph one of subdivision g of this section.
    Nothing contained in this subparagraph (a)  however,  shall  have  the
  effect  of  establishing  the  maximum  rent  in an amount less than the
  maximum rent in effect on July thirty-first,  nineteen  hundred  seventy
  nor  of  increasing by more than fifteen per centum the maximum rent for
  any housing accommodation.
    (b) Where the maximum rent in effect on  July  thirty-first,  nineteen
  hundred  seventy  for  any individual housing accommodation is less than
  sixty dollars per month such rent shall be  increased  effective  August
  first,  nineteen  hundred  seventy  by  ten  dollars per month where the
  housing accommodation is comprised of three rooms or less and by fifteen
  dollars per month where the housing accommodation is comprised  of  more
  than three rooms.
    (c) Where a lease is in effect for any housing accommodation on August
  first,  nineteen hundred seventy, no adjustment of maximum rent for such
  accommodation shall become effective until the expiration of such lease.
  Where a housing accommodation becomes vacant on or after  August  first,
  nineteen  hundred  seventy  and  before  January first, nineteen hundred
  seventy-two by voluntary surrender  of  possession  by  the  tenant  the
  maximum  rent shall be increased by no more than fifteen per centum over
  the maximum rent established for such  accommodation  at  the  time  the
  vacancy  occurred,  provided  that  a report is filed with the city rent

  agency as prescribed by its regulations. If the city rent  agency  shall
  make  a  finding  of harassment in violation of subdivision d of section
  26-412 of this chapter for the purpose of obtaining such a  vacancy,  in
  addition to all other civil or criminal penalties, injunctive relief and
  enforcement  remedies  authorized  by section 26-413 of this chapter, no
  housing accommodation in the building shall thereafter  be  entitled  to
  the  benefit of a rental increase as a result of becoming vacant between
  the aforesaid dates.
    (d) The total of (i) the increase pursuant to subparagraph (a) of this
  paragraph, or (ii) any increases granted between December  thirty-first,
  nineteen  hundred sixty-nine and December thirty-first, nineteen hundred
  seventy-one pursuant to subparagraph (a), (b), or (c) of  paragraph  one
  of  subdivision  g  of this section and (iii) any increase granted on or
  after the effective date of this paragraph pursuant to subparagraph  (l)
  of  paragraph  one  of  subdivision  g  of this section shall not exceed
  fifteen per centum of  the  "1970  base  rent".  For  purposes  of  this
  subparagraph,  the  "1970  base  rent"  is  the  maximum  rent  on  July
  thirty-first, nineteen hundred seventy minus the amount of any  increase
  granted  between  December thirty-first, nineteen hundred sixty-nine and
  July thirty-first, nineteen hundred  seventy  pursuant  to  subparagraph
  (a), (b), or (c) of paragraph one of subdivision g of this section. This
  subparagraph  shall not operate to decrease any maximum rent existing on
  its effective date.
    (e) The rent increases provided for in this  paragraph  two  shall  be
  collectible  upon  the  landlord's  filing  a  report with the city rent
  agency on forms to be prescribed by such  agency,  including  simplified
  forms   for   landlords  of  buildings  with  twelve  or  fewer  housing
  accommodations, and giving such notice to the tenant as such agency  may
  prescribe, subject to adjustment upon order of the city rent agency. The
  report shall contain a certified statement by the landlord that there is
  no  legally  habitable  rent  controlled  housing  accommodation  in the
  building which has not been rented for a period of six months or more on
  the date of the filing of such report,  or  that  if  there  is  such  a
  housing  accommodation, the reasons it has not been rented is that it is
  being altered pursuant to a permit issued by the department of buildings
  no later than three months after the  vacancy  commenced  and  that  the
  alteration  is  of  such  a  nature  that the accommodation must be kept
  vacant while it is being made or for such other cause found by the  city
  rent  agency  not  to  be inconsistent with the purpose of this chapter,
  provided further that in the case  of  an  alteration  it  is  commenced
  within sixty days from the issuance of said permit. A copy of the permit
  and the application therefor shall accompany the report. No report shall
  be  accepted  for  filing  and  no  rent  increase  provided for in this
  paragraph two shall be collected in the absence of  any  such  certified
  statement  by  the landlord. Any excess shall be credited to the tenants
  in full commencing with the rental payment following the receipt by  the
  landlord  of  such  order  of  adjustment. If such report is filed on or
  before October thirty-first,  nineteen  hundred  seventy,  the  increase
  shall  take effect August first, nineteen hundred seventy. If the report
  is filed thereafter, such increase shall  take  effect  with  the  first
  rental payment following filing.
    (f) The rent increases provided for in this paragraph two shall not be
  collected  for  the  period between March thirty-first, nineteen hundred
  and seventy-one and December thirty-first, nineteen hundred  seventy-one
  until  the  landlord  shall  have  filed  with  the  city  rent agency a
  certified statement attesting that for every month for which he  or  she
  has  received  a  rent increase pursuant to subparagraphs (a) and (b) of
  this paragraph two, he or she has expended or incurred in the operation,

  maintenance and improvements of the housing  accommodations  from  which
  increases  were collected an amount which equals the amount expended per
  month for such purpose averaged over the preceding five years,  or  such
  lesser  period that he or she has been landlord of such properties, plus
  ninety per centum of all increased rents so collected.
    (3) The city rent agency shall establish maximum rents to be effective
  January first, nineteen hundred  seventy-two  by  dividing  the  maximum
  gross  building  rental  from all housing accommodations in the property
  whether or not subject to or exempt from control under this  chapter  by
  the  number  of  such accommodations, after giving consideration to such
  factors as may be prescribed by formula, such as size  and  location  of
  housing  accommodations and number of rooms. Such maximum gross building
  rental shall be computed on the basis of real estate taxes, water  rates
  and  sewer charges and an operation and maintenance expense allowance, a
  vacancy allowance not in excess of two per cent, and a  collection  loss
  allowance,  both as prescribed by such agency, and an eight and one-half
  per centum return  on  capital  value.  The  operating  and  maintenance
  expense  allowance  shall  include  provision  for  the  cost  of  fuel,
  utilities,  payroll,  maintenance  repairs,  replacement  reserves   and
  miscellaneous  charges  attributed  to  the property, excluding mortgage
  interest and amortization, and may be varied by the agency for different
  types  of  properties  depending  upon  such  factors  as  the  year  of
  construction, elevator or non-elevator buildings, and the average number
  of  rooms per individual housing accommodations in the building. Capital
  value shall be equalized assessed valuation based upon  the  appropriate
  tax  class  ratio which is established pursuant to article twelve of the
  real property tax law. Where the property receives income  from  sources
  other  than  such  housing  accommodations,  the  taxes, water and sewer
  charges and the capital value attributed to the  portion  consisting  of
  housing  accommodations  shall  be in the same ratio of the total taxes,
  water and sewer charges (where not computed separately)  and  the  total
  capital  value  as  the  gross  income  from  such portion consisting of
  housing  accommodations  bears  to  the  total  gross  income  from  the
  property, as prescribed by the agency.
    The agency shall report to the council on or before October fifteenth,
  nineteen  hundred  seventy-one  as  to  the status of preparation of the
  formulas necessary to implement the rent  adjustments  to  be  effective
  January first, nineteen hundred seventy-two.
    (4)  The  city  rent  agency  shall  establish maximum rents effective
  January first, nineteen hundred seventy-four and  biennially  thereafter
  by  adjusting  the  existing maximum rent to reflect changes, if any, in
  the  factors  which  determine  maximum  gross  building  rental   under
  paragraph  three  of  this  subdivision  except  that commencing January
  first, nineteen hundred eighty-two, said maximum rent  shall  no  longer
  recognize  or  reflect  the  adjustment  allocable to changes in heating
  costs after April ninth, nineteen hundred seventy-nine.
    Notwithstanding  any  other  provisions  in  this  paragraph  to   the
  contrary,  commencing  January first, nineteen hundred seventy-four, the
  city rent  agency  shall  require  each  owner  to  make  available  for
  examination his or her books and all other financial records relating to
  the  operation  of  each  building under his or her ownership containing
  accommodations subject to this chapter at least once every  three  years
  for  the  purpose  of  determining  whether  the maximum formula rent is
  appropriate for each building in light of actual  expenditures  therefor
  and  shall also alter such formula rent to take into account significant
  variations between the formula and actual cost  experience.  The  agency
  shall also establish maximum costs for the factors under paragraph three
  of  this  subdivision  which  determine maximum gross building rental to

  preclude  increases  which  would  otherwise  results   from   excessive
  expenditures  in  the  operation  and  maintenance  of the building. The
  return allowed on capital may be revised from time to time by local law.
    (5)  Where  a  maximum rent established pursuant to this chapter on or
  after January first, nineteen hundred seventy-two, is  higher  than  the
  previously existing maximum rent, the landlord may not collect more than
  seven and one-half percentum increase from a tenant in occupancy on such
  date in any one year period, provided however, that where the period for
  which  the  rent  is established exceeds one year, regardless of how the
  collection thereof is averaged over such period, the rent  the  landlord
  shall be entitled to receive during the first twelve months shall not be
  increased  by  more  than seven and one-half percentum over the previous
  rent and additional annual rents shall not  exceed  seven  and  one-half
  percentum of the rent paid during the previous year. Notwithstanding any
  of  the foregoing limitations in this paragraph five, maximum rent shall
  be increased if ordered by the agency  pursuant  to  subparagraphs  (d),
  (e),  (f),  (g),  (h),  (i),  (k),  (l),  (m) or (n) of paragraph one of
  subdivision g  of  this  section.  Commencing  January  first,  nineteen
  hundred  eighty,  rent  adjustments  pursuant  to  subparagraph  (n)  of
  paragraph one of subdivision g of this section shall  be  excluded  from
  the  maximum  rent  when  computing  the  seven  and  one-half percentum
  increase  authorized  by  this   paragraph   five.   Where   a   housing
  accommodation  is vacant on January first, nineteen hundred seventy-two,
  or becomes vacant thereafter by voluntary surrender of possession by the
  tenants, the maximum rent established for  such  accommodations  may  be
  collected.
    (6)  Where  a new maximum rent has been established pursuant to former
  subdivision  m  of  this  section  or,  following  the  repeal  of  such
  subdivision,   pursuant   to   subparagraph  (m)  of  paragraph  one  of
  subdivision g  of  this  section,  a  new  maximum  rent  shall  not  be
  established pursuant to paragraph three of this subdivision. Except with
  respect  to  a  housing  accommodation  to  which the preceding sentence
  applies, where the  maximum  rent  on  December  thirty-first,  nineteen
  hundred seventy-one is higher than the maximum rent established pursuant
  to  paragraph  three  of this subdivision, such prior maximum rent shall
  continue in effect until the maximum  rent  under  paragraph  three,  as
  adjusted  from  time to time pursuant to the provisions of this chapter,
  shall equal or exceed such prior maximum rent, at which time the maximum
  rent for such housing accommodations shall  be  as  prescribed  in  this
  chapter.
    (7) Section eight housing assistance.
    (a)  Notwithstanding any provision of this chapter, if during a rental
  period  in  which  the  landlord  is  eligible  for  an  adjustment   or
  establishment  of  rents  pursuant  to  paragraph  three or four of this
  subdivision, housing assistance payments  are  being  made  pursuant  to
  section  eight  of  the  United  States  housing act of nineteen hundred
  thirty-seven, as amended, with  respect  to  any  housing  accommodation
  covered by this chapter, the maximum rent collectible from the tenant in
  occupancy shall be the lesser of:
    (1)  the  maximum rent established pursuant to paragraph three of this
  subdivision as adjusted  pursuant  to  this  chapter,  computed  without
  regard  to  the  limitations  of  paragraph  five  of  this  subdivision
  (provided that in any case the rent paid by the tenant pursuant to  this
  chapter  without  regard to this paragraph is higher than such rent, the
  rent paid shall be substituted for such rent), or
    (2) the  contract  or  fair  market  rent  approved  for  the  housing
  accommodation pursuant to federal law or regulation.

    (b)  Prior  to the collection of any increase in maximum rent pursuant
  to this paragraph, the landlord shall advise the city rent agency of his
  or her intent to compute the maximum rent pursuant to this paragraph.
    (c)  If  a  housing  accommodation  to  which this subdivision applies
  ceases for any reason to be governed by this paragraph, the maximum rent
  collectible from the tenant shall be computed as if this  paragraph  had
  not  applied and any adjustments thereto which would have been permitted
  pursuant to this chapter during the period such rent  was  set  by  this
  paragraph shall be proper rental adjustments.
    (8)  Notwithstanding  the provisions of this chapter, upon the sale in
  any manner authorized by law of a multiple dwelling which was previously
  subject to the provisions of such chapter and which was acquired by  the
  city  in  a tax foreclosure proceeding or pursuant to article nineteen-A
  of the real property actions and proceedings law, for  a  dwelling  unit
  which  was  subject  to  this  chapter  pursuant  to the local emergency
  housing rent control act at the time the  city  so  acquired  title,  is
  occupied by a tenant who was in occupancy at the time of acquisition and
  remains  in occupancy at the time of sale, the maximum rent shall be the
  last rent charged by the city, or  on  behalf  of  the  city,  for  such
  dwelling unit, which rent shall not exceed the rent computed pursuant to
  paragraph  three  of  this  subdivision, computed as of the time of such
  sale. This paragraph shall not apply to redemptions from city  ownership
  pursuant to chapter four of title eleven of the code.
    (9)  The  city  rent  agency, prior to establishing biennially maximum
  base rents pursuant to this chapter and before  establishing  a  maximum
  base  rent  which is different from the previously existing maximum base
  rent for dwellings covered by this law, shall hold a public  hearing  or
  hearings  for the purpose of collecting information the city rent agency
  may consider in establishing maximum base rents.  Notice  of  the  date,
  time,  location  and summary of subject matter for the public hearing or
  hearings shall be published in the City Record for a period of not  less
  than  fourteen  days,  and  at  least  once in one or more newspapers of
  general circulation at least fourteen days  immediately  preceding  each
  hearing  date,  at  the expense of the city of New York, and the hearing
  shall be open for testimony from any individual, group,  association  or
  representative thereof who wants to testify.
    b.  Such  agency,  to  effectuate the purposes of this chapter, and in
  accordance with the standards set forth in paragraph two of  subdivision
  c  of this section, may set aside and correct any maximum rent resulting
  from illegality, irregularity in vital matters or fraud, occurring prior
  to or after May first, nineteen hundred sixty-two.
    c. (1) Whenever such agency determines that such action  is  necessary
  to  effectuate  the  purposes  of  this  chapter,  it may also establish
  maximum rents for housing accommodations to which this chapter  applies,
  where  no  maximum  rent  with  respect  thereto  was in effect on April
  thirtieth,  nineteen  hundred  sixty-two,  or  where   no   registration
  statement  had  been filed with respect thereto as required by the state
  rent act, or where for any other reason the provisions of subdivision  a
  of  this  section are not susceptible to application to any such housing
  accommodations.
    (2) Such rents shall be established, having  regard  for  the  maximum
  rents for comparable housing accommodations or any other factors bearing
  on the equities involved, consistent with the purposes of this chapter.
    d. Where any housing accommodations, which are decontrolled (including
  those  decontrolled  by  order) or exempted from control pursuant to the
  provisions of subparagraph (i) of paragraph  two  of  subdivision  e  of
  section  26-403 of this chapter, are certified by any city agency having
  jurisdiction to be a fire hazard or in a continued  dangerous  condition

  or  detrimental  to life or health, the city rent agency shall establish
  maximum rents for such housing accommodations,  having  regard  for  the
  maximum rents for comparable housing accommodations or any other factors
  bearing  on  the equities involved, consistent with the purposes of this
  chapter.
    e. Notwithstanding any other provision of this chapter, and subject to
  the provisions of subdivision f of this section, provision shall be made
  pursuant to regulations prescribed by  the  city  rent  agency  for  the
  establishment, adjustment and modification of maximum rents with respect
  to  rooming  house and single room occupancy accommodations, which shall
  include those housing accommodations subject to control pursuant to  the
  provisions  of  subparagraph  (c)  of  paragraph two of subdivision e of
  section 26-403 of this chapter (other than those accommodations  subject
  to  control  under  the  last  proviso of such subparagraph (c)), having
  regard for any factors bearing on the equities involved, consistent with
  the purposes of this  chapter,  to  correct  speculative,  abnormal  and
  unwarranted increases in rent.
    f.  On  or before June thirtieth, nineteen hundred sixty-two, the city
  rent agency shall undertake a survey and investigation  of  all  factors
  affecting  rents, rental conditions and rental practices with respect to
  rooming houses and single room occupancy accommodations within the  city
  for  the  purpose  of determining whether the provisions of this chapter
  and  the  regulations  thereunder  relating  to  the  establishment  and
  adjustment  of maximum rents for rooming house and single room occupancy
  accommodations  are  reasonably  designed   to   prevent   exaction   of
  unreasonable  and  oppressive  rents.  Not later than January fifteenth,
  nineteen hundred sixty-three, such agency shall submit to the council  a
  report  setting  forth  the  results  of  such survey and investigation,
  together with the findings and recommendations of such  agency  and  any
  amendments  to  this  chapter  and the regulations thereunder which such
  agency may deem necessary or desirable for  the  accomplishment  of  the
  purposes  of this chapter in relation to such accommodations. During the
  period between May first, nineteen hundred sixty-two and  the  thirtieth
  day  next  succeeding  the  date of the submission of such report to the
  council (1) no application for an increase in any maximum rent  for  any
  rooming  house  or  single room occupancy accommodations may be filed on
  any ground other than those specified in subparagraphs (f)  and  (g)  of
  paragraph one of subdivision g of this section, and (2) no maximum rents
  for  any  rooming house or single room occupancy accommodations shall be
  increased  on  any  grounds  other  than   those   specified   in   such
  subparagraphs (f) and (g); provided that where the maximum rents for any
  such accommodations were or are decreased prior to or during such period
  because of the landlord's reduction of living space, essential services,
  furniture,  furnishings  or  equipment,  and  such  reduction  has  been
  corrected, an application for restoration of the rent  decrease  may  be
  filed  and  such  rents may be adjusted so as to fix maximum rents which
  the city rent agency  may  determine  to  be  proper,  pursuant  to  the
  provisions  of subdivision e of this section, but which shall not in any
  event exceed  the  maximum  rents  for  such  accommodations  in  effect
  immediately prior to such rent decrease.
    g.  (1)  The city rent agency may from time to time adopt, promulgate,
  amend or rescind such rules, regulations  and  orders  as  it  may  deem
  necessary  or  proper  to  effectuate  the  purposes  of  this  chapter,
  including practices relating to recovery of  possession;  provided  that
  such  regulations  can  be  put into effect without general uncertainty,
  dislocation and hardship inconsistent with the purposes of this chapter;
  and provided further that such regulations shall be designed to maintain
  a system of rent controls at levels  which,  in  the  judgment  of  such

  agency,  are  generally fair and equitable and which will provide for an
  orderly transition from and termination of  emergency  controls  without
  undue  dislocations,  inflationary  price rises or disruption. Provision
  shall  be  made,  pursuant to regulations prescribed by such agency, for
  individual adjustment of maximum rents where:
    (a) The rental income from a property yields a net  annual  return  of
  less than six per centum of the valuation of the property.
    (1) Such valuation shall be the current assessed valuation established
  by  the  city,  which  is  in  effect  at  the time of the filing of the
  application for an adjustment  under  this  subparagraph  (a);  provided
  that:
    (i)  The  city rent agency may make a determination that the valuation
  of the property is an amount  different  from  such  assessed  valuation
  where  there has been a reduction in the assessed valuation for the year
  next preceding the effective date of the current assessed  valuation  in
  effect at the time of the filing of the application; and
    (ii)  Such  agency  may  make  a  determination  that the value of the
  property is an amount different from the assessed valuation where  there
  has  been  a  bona  fide sale of the property within the period February
  first, nineteen hundred  sixty-one,  and  the  time  of  filing  of  the
  application,  as  the result of a transaction at arm's length, on normal
  financing terms, at a readily ascertainable  price,  and  unaffected  by
  special circumstances such as but not limited to a forced sale, exchange
  of property, package deal, wash sale or sale to a cooperative; provided,
  however, that where an application was filed under this subparagraph (a)
  on  or  before  the  effective date of this sub-item (ii), the city rent
  agency may determine the value of the property on the basis  that  there
  has  been  a  bona  fide  sale of the property within the period between
  March fifteenth, nineteen hundred  fifty-eight,  and  the  time  of  the
  filing  of  the application. In determining whether a sale was on normal
  financing terms,  such  agency  shall  give  due  consideration  to  the
  following factors:
    (a)  the  ratio  of the cash payment received by the seller to (1) the
  sales price of the property and (2) the annual  gross  income  from  the
  property;
    (b)  the  total  amount  of  the outstanding mortgages which are liens
  against the property (including purchase money  mortgages)  as  compared
  with the assessed valuation of the property;
    (c)  the  ratio  of  the sales price to the annual gross income of the
  property,  with  consideration  given  to  the  total  amount  of   rent
  adjustments previously granted, exclusive of rent adjustments because of
  changes   in   dwelling   space,  services,  furniture,  furnishings  or
  equipment, major capital improvements, or substantial rehabilitation;
    (d) the presence of deferred amortization in purchase money mortgages,
  or the assignment of such mortgage at a discount;
    (e) Any other facts and circumstances surrounding such sale which,  in
  the  judgment  of  such  agency, may have a bearing upon the question of
  financing; and
    (iii) Where the assessed valuation of the land exceeds four times  the
  assessed  valuation  of  the buildings thereon, the city rent agency may
  determine a valuation of the property equal to five times  the  assessed
  valuation of the buildings, for the purposes of this subparagraph (a).
    (2)  An  application  for  an  increase in any maximum rent under this
  subparagraph (a) of this paragraph one may not be filed with respect  to
  any property if, on the date when the application is sought to be filed:
    (i)  Less  than two years have elapsed since the date of the filing of
  the last prior application for an increase under this  subparagraph  (a)

  of  this  paragraph one with respect to such property, which application
  resulted in the granting of an increase; or
    (ii)  Less  than  two  years  have  elapsed since the last sale of the
  property, and the application is based upon a sale price  in  excess  of
  the  assessed  valuation.  This  subitem shall not apply, however, where
  less than two years have elapsed since the last sale of the property and
  the application is based upon a sale within such two-year  period  at  a
  price  in  excess  of the assessed valuation, if such price is less than
  the price in the last sale which meets the criteria heretofore specified
  in this subparagraph  (a)  occurring  prior  to  two  years  before  the
  application  is  sought  to  be filed and since February first, nineteen
  hundred sixty-one.
    (3)  No  increase  in  maximum  rents  shall  be  granted  under  this
  subparagraph  (a) by the city rent agency while there is pending without
  final  disposition  any  judicial  proceeding  to  correct   the   final
  determination  of  the  tax  commission  with  respect  to  the assessed
  valuation of such property, (a) for the city fiscal year  in  which  the
  landlord  filed  the  application  for such increase or (b) for the city
  fiscal year immediately preceding the filing of the application for such
  increase.
    (4) For the purposes of this subparagraph (a): (i) Net  annual  return
  shall  be  the  amount  by which the earned income exceeds the operating
  expenses of the property, excluding mortgage interest and  amortization,
  and excluding allowances for obsolescence and reserves, but including an
  allowance  for  depreciation  of  two  per  centum  of  the value of the
  buildings exclusive of the land, or the amount shown for depreciation of
  the  buildings  in  the  latest  required  federal  income  tax  return,
  whichever   is   lower;   provided,   however,  that  no  allowance  for
  depreciation of the buildings shall be included where the buildings have
  been fully depreciated for federal income tax purposes or on  the  books
  of the owner; and
    (ii)  Test  year  shall  be  the most recent full calendar year or the
  landlord's most recent fiscal year  or  any  twelve  consecutive  months
  ending  not more than ninety days prior to the filing of the application
  for an increase;
    (b) Where a building contains no more than nineteen rental  units  and
  the  landlord  has  not  been  fully  compensated by increases in rental
  income sufficient to offset unavoidable  increases  in  property  taxes,
  fuel,  utilities,  insurance  and  repairs  and  maintenance,  excluding
  mortgage  interest  and  amortization,  and  excluding   allowance   for
  depreciation,  obsolescence  and reserves, which have occurred since the
  federal date determining the maximum rent; or
    (c) The  landlord  operates  a  hotel  or  rooming  house  or  owns  a
  cooperative apartment and has not been fully compensated by increases in
  rental  income  from the controlled housing accommodations sufficient to
  offset such unavoidable increases in property taxes and other  costs  as
  are allocable to such controlled housing accommodations, including costs
  of  operation  of  such  hotel  or rooming house, but excluding mortgage
  interest and amortization, and excluding  allowances  for  depreciation,
  obsolescence  and  reserves,  which have occurred since the federal date
  determining the maximum rent or the  date  the  landlord  commenced  the
  operation of the property, whichever is later; or
    (d)  The  landlord  and  tenant  in occupancy voluntarily enter into a
  valid  written  lease  in  good  faith  with  respect  to  any   housing
  accommodation,  which lease provides for an increase in the maximum rent
  on the basis of specified increased services, furniture, furnishings, or
  equipment, provided the city rent agency determines that  the  specified
  increased  services,  furniture,  furnishings or equipment have a market

  value commensurate with the increased rent, the increase maximum rent is
  not in excess of fifteen per centum and the lease is for a term  of  not
  less than two years, provided further that a report of lease is filed as
  prescribed  by  regulations  issued  by the city rent agency or has been
  otherwise accepted by such agency, and provided further, that where  the
  entire  structure, or any lesser portion thereof was vacated by order of
  a  city  department  having   jurisdiction,   on   or   after   November
  twenty-second, nineteen hundred sixty-three and any tenants therein were
  relocated by the department of relocation, or such structure was boarded
  up   by   the  department  of  real  estate,  such  lease  increases  in
  subsequently executed leases shall not become effective for any  housing
  accommodations  in  the  structure  until  such  departments  have  been
  reimbursed for expenses necessarily  incurred  in  connection  with  the
  foregoing;  provided further, however, that the landlord may obtain such
  lease increases without making such reimbursement where the vacating was
  caused by fire or accident  not  resulting  from  any  unlawful  act  or
  omission on the part of the landlord; or
    (e)  The  landlord  and  tenant  by mutual voluntary written agreement
  agree to a substantial increase or  decrease  in  dwelling  space  or  a
  change  in the services, furniture, furnishings or equipment provided in
  the housing accommodations. An adjustment under this subparagraph  shall
  be  equal  to one-fortieth of the total cost incurred by the landlord in
  providing such modification or increase  in  dwelling  space,  services,
  furniture, furnishings or equipment, including the cost of installation,
  but  excluding  finance  charges,  provided further than an owner who is
  entitled to a rent increase pursuant to this subparagraph shall  not  be
  entitled  to  a  further  rent  increase  based upon the installation of
  similar equipment, or new furniture or  furnishings  within  the  useful
  life  of  such new equipment, or new furniture or furnishings. The owner
  shall give written notice to the city rent agency of any such adjustment
  pursuant to this subparagraph.; or
    (f) There has been since March first, nineteen hundred fifty-nine,  an
  increase  in  the rental value of the housing accommodations as a result
  of a substantial rehabilitation of the building or housing accommodation
  therein  which  materially  adds  to  the  value  of  the  property   or
  appreciably  prolongs  its life, excluding ordinary repairs, maintenance
  and replacements; or
    (g) There has been since July first, nineteen hundred seventy, a major
  capital  improvement  required  for  the  operation,   preservation   or
  maintenance  of the structure. An adjustment under this subparagraph (g)
  shall  be  in  an  amount  sufficient  to  amortize  the  cost  of   the
  improvements pursuant to this subparagraph (g) over a seven-year period;
  or
    (h) There have been since March first, nineteen hundred fifty-nine, in
  structures  containing  more  than  four  housing  accommodations, other
  improvements made with the express consent of the tenants  in  occupancy
  of  at  least  seventy-five  per  centum  of the housing accommodations;
  provided, however, that whenever the city  rent  agency  has  determined
  that  the improvements proposed were part of a plan designed for overall
  improvement of the structure or increases in services, it may  authorize
  increases  in maximum rents for all housing accommodations affected upon
  the express consent of the tenants in occupancy of  at  least  fifty-one
  per  centum  of the housing accommodations, and provided further that no
  adjustment granted hereunder shall exceed fifteen per centum unless  the
  tenants  have  agreed  to  a  higher  percentage  of increase, as herein
  provided; or
    (i) There has been, since March first, nineteen hundred fifty-nine,  a
  subletting  without  written consent from the landlord or an increase in

  the number of adult occupants who  are  not  members  of  the  immediate
  family of the tenant, and the landlord has not been compensated therefor
  by  adjustment  of  the  maximum rent by lease or order of the city rent
  agency or pursuant to the state rent act or the federal act; or
    (j)  The  presence  of  unique  or  peculiar  circumstances materially
  affecting the maximum rent has resulted  in  a  maximum  rent  which  is
  substantially lower than the rents generally prevailing in the same area
  for substantially similar housing accommodations.
    (k)  The  landlord has incurred, since January first, nineteen hundred
  seventy, in connection with  and  in  addition  to  a  concurrent  major
  capital  improvement  pursuant  to  subparagraph  (g) of this paragraph,
  other expenditures to improve, restore or preserve the  quality  of  the
  structure.  An  adjustment under this subparagraph shall be granted only
  if such improvements represent an expenditure equal to at least ten  per
  centum of the total operating and maintenance expenses for the preceding
  year.  An adjustment under this subparagraph shall be in addition to any
  adjustment granted for the  concurrent  major  capital  improvement  and
  shall   be  in  an  amount  sufficient  to  amortize  the  cost  of  the
  improvements pursuant to this subparagraph over a seven-year period.
    (l) (1) The actual labor expenses currently incurred or to be incurred
  (pursuant to a collective agreement or other obligation actually entered
  into by the landlord) exceed the provision for payroll expenses  in  the
  current  applicable  operating  and  maintenance expense allowance under
  subdivision  a  of  this  section.  No  application  pursuant  to   this
  subparagraph  may  be  granted  within  one year from the granting of an
  adjustment in  maximum  rent  pursuant  to  this  subparagraph  (l),  or
  pursuant  to  subparagraph  (a) of this paragraph. Any rent increase the
  applicant would be entitled to,  or  such  portion  thereof,  shall  not
  exceed  a  total  increase of seven and one-half per centum per annum of
  the maximum rent as provided in paragraph five of subdivision a of  this
  section.
    (2)  Any  adjustment  in  the  maximum  rents pursuant hereto shall be
  subject to:
    (i) The adjustment in maximum rent for any twelve-month period for any
  housing accommodation shall not exceed four percent of the maximum  rent
  in effect on December thirty-first, nineteen hundred seventy-three.
    (ii)  Where  the  increase  in  labor  costs compensable herein is the
  result of an industry-wide collective bargaining agreement or a specific
  agreement  in  anticipation  of,  or  subsequent  to,  an  industry-wide
  collective  bargaining agreement, the adjustment shall be in such amount
  (subject to the above limitation) that the increased rental income  from
  January  first,  nineteen hundred seventy-four to December thirty-first,
  nineteen hundred seventy-six shall reflect the increased labor costs for
  the period from April thirtieth, nineteen hundred seventy-three to April
  thirtieth, nineteen hundred seventy-six.
    (3) For the purpose of this subparagraph (l)  the  increase  in  labor
  costs  shall  be  the  amount  by  which the labor costs (a) actually in
  effect and paid, or (b) actually in effect and paid or payable and fixed
  and determined pursuant to agreement on the date of the  filing  of  the
  application  and  projected  over  the  period  ending  April thirtieth,
  nineteen hundred seventy-six, exceed the  labor  costs  for  the  twelve
  calendar months immediately preceding the last day of the month in which
  the wage agreement became effective.
    (4)   Notwithstanding   any  other  provision  of  this  chapter,  the
  adjustment pursuant to this subparagraph shall be collectible  upon  the
  landlord's  filing of a report with the city rent agency, subject to the
  provisions of subparagraph (e) of paragraph two of subdivision a of this
  section.

    (5) No increase in the maximum rent for any housing accommodation  may
  be  granted  under  this  subparagraph  (l)  if  on  the  date  when the
  application is sought to be filed, less  than  the  full  term  of  such
  agreement  has  elapsed  since  the date of the filing of the last prior
  application  for  an  increase  with respect to such property under this
  subparagraph (l), which application  resulted  in  the  granting  of  an
  increase.  Where,  however,  the  landlord  establishes the existence of
  unique or peculiar circumstances affecting an increase  in  labor  costs
  for  the  property,  the  agency  may  accept  such application where it
  determines that such acceptance is not inconsistent with the purposes of
  this local law.
    (6) The increase authorized  herein  shall  be  apportioned  equitably
  among  all  the  housing  accommodations  in the property whether or not
  subject to control under this chapter.
    (m)  Where  the  rehabilitation  or  improvement  of  sub-standard  or
  deteriorated   housing   accommodations   has   been  financed  under  a
  governmental program providing assistance through loans, loan  insurance
  or  tax  abatement  or  has been undertaken under another rehabilitation
  program not so financed but approved by the commissioner.
    (n)(1) The city rent agency shall hereafter promulgate in  January  of
  each year;
    (i)  findings  regarding the price increase or decrease, respectively,
  for all types of heating fuel, including numbers two, four and six  home
  heating  oils,  utility  supplied  steam,  gas,  electricity  and  coal,
  together  with  the  sales  and  excise  taxes  thereon,   on   December
  thirty-first as compared to the January first in any year; and
    (ii) standards for consumption of heating fuel, which shall be no more
  than  two  hundred  twenty-five  gallons  per  year  per room commencing
  January first, nineteen hundred eighty-one, for buildings using  heating
  oils  for heat with comparable unit limitations to be established by the
  city rent agency for utility supplied steam, gas, electricity, coal  and
  any  other  types  of  heating  systems,  provided that such consumption
  standards for heating fuels shall be reduced by five  gallons  per  room
  per  year  for  heating  oils  and a comparable amount for other heating
  fuels for the next succeeding year and ten gallons per room per year for
  heating oils and a comparable amount for other  heating  fuels  for  two
  succeeding years thereafter.
    Such findings and consumption standards shall be published in the City
  Record.
    (2)  To  obtain a rental adjustment pursuant to this subparagraph (n),
  the landlord shall file a report with the agency on forms prescribed  by
  the agency and shall:
    (i)  certify  the amount of heating fuel consumed in the calendar year
  immediately prior to the filing of the report;
    (ii) state the type of fuel used  and  the  number  of  rooms  in  the
  building;
    (iii)  certify that (a) all essential services required to be provided
  have been and will continue to be maintained and (b) there has  been  no
  rent  reduction  order  issued  pursuant  to  this  chapter based on the
  landlord's failure to provide heat or hot water during the prior  twelve
  months;
    (iv)  certify  on  information  and belief, in order to qualify for an
  additional rent increase pursuant to this subparagraph (n), that for  an
  individual  housing  accommodation,  if  the  maximum  rent  collectible
  pursuant to paragraph five of subdivision a of this section plus  actual
  rent  adjustments  pursuant to this subparagraph (n) and such additional
  rent increase, is equal to  or  exceeds  the  maximum  rent  established
  pursuant  to  paragraphs three and four of subdivision a of this section

  plus the amount calculated pursuant to subitem (i)  of  item  three  and
  subitem  (i) of item four of this subparagraph (n), each to be allocated
  to such housing accommodation pursuant to subitem (ii) of item  four  of
  this  subparagraph  (n), that the landlord will not be earning an amount
  in excess of the statutory  return  specified  in  subparagraph  (a)  of
  paragraph  one  of  subdivision  g of this section after collection of a
  rent increase pursuant to this  subparagraph  (n),  with  respect  to  a
  building or buildings serviced by a single heating plant;
    (v)   report   any   funds   received  with  respect  to  the  housing
  accommodations from any governmental  grant  program  compensating  such
  landlord  for  fuel  price  increases  during  the  period  for which an
  adjustment is obtained pursuant to this subparagraph (n);
    (vi) provide such other information as the agency may require.
    (3) Rent adjustments for controlled housing accommodations for  annual
  heating  fuel  cost  increases  or  decreases experienced after December
  thirty-first, nineteen hundred  seventy-nine,  shall  be  determined  as
  follows:
    (i)  the  increase  or  decrease  in  heating fuel prices found by the
  agency for that year shall be multiplied by the actual consumption,  not
  to  exceed  that  year's  consumption  standard  established pursuant to
  subitem (ii) of item one of this subparagraph; and
    (ii) seventy-five percentum of such amount shall  be  allocated  among
  all rental space in the building, including commercial, professional and
  similar facilities, provided, for the purposes of this subparagraph (n),
  that  living  rooms,  kitchens  over  fifty-nine square feet in area and
  bedrooms shall be  considered  rooms  and  that  bathrooms,  foyers  and
  kitchenettes shall not be considered rooms.
    (4) Rent adjustments for controlled housing accommodations for heating
  fuel  cost increases or decreases experienced from April ninth, nineteen
  hundred  seventy-nine,  through  and  including  December  thirty-first,
  nineteen hundred seventy-nine, shall be determined as follows:
    (i)  the  increase  or  decrease  in  heating fuel prices found by the
  agency for that period shall be multiplied by seventy-five percentum  of
  the  actual  heating  fuel  consumption  during  the period from January
  first, nineteen hundred seventy-nine,  through  and  including  December
  thirty-first, nineteen hundred seventy-nine, which consumption shall not
  exceed  seventy-five  percentum  of  that  year's  consumption  standard
  established by the agency; and
    (ii) such amount shall be allocated among  all  rental  space  in  the
  building,  including  commercial,  professional  and similar facilities,
  provided, for the purposes of this subparagraph (n), that living  rooms,
  kitchens  over  fifty-nine  square  feet  in  area and bedrooms shall be
  considered rooms and that bathrooms, foyers and kitchenettes  shall  not
  be considered rooms.
    The  city rent agency shall promulgate findings for heating fuel price
  increases or decreases and standards for consumption for the periods set
  forth in this item four thirty days after this local law is enacted. The
  standard for consumption shall be no more than seventy-five percentum of
  two hundred thirty gallons per room for buildings using heating oils for
  heat with comparable unit limitations to be established by the city rent
  agency for utility supplied steam, gas, electricity, coal and any  other
  types of heating systems.
    (5)  A  landlord  who files a report pursuant to this subparagraph and
  who falsely  certifies  shall  not  be  eligible  to  collect  any  rent
  adjustment  pursuant  to  this  subparagraph  for  two years following a
  determination of a false certification and, in addition, any adjustments
  obtained pursuant to this subparagraph for up to two years prior to such
  determination shall not be collectible for that same  two  year  period.

  Such  landlord shall also be subject to any additional penalties imposed
  by law.
    (6)   A   landlord  annually  may  file  a  report  pursuant  to  this
  subparagraph (n) after promulgation by the agency of  the  findings  and
  consumption  standards set forth in item one of subparagraph (n). A rent
  adjustment pursuant to such report shall  be  prospectively  collectible
  upon  the  landlord's  serving and filing the report, provided, however,
  that  if  a  landlord  files  such  report  within  sixty  days  of  the
  promulgation  of  such  findings  and  consumption  standards, such rent
  adjustment shall be retroactive to and shall  be  effective  as  of  the
  January first of the year in which the report is filed.
    (7)  A  landlord demanding or collecting a rent adjustment pursuant to
  this subparagraph (n)  shall  at  the  time  of  either  the  demand  or
  collection  issue to the tenant either a rent bill or receipt separately
  setting forth the amount of the adjustment pursuant to this subparagraph
  (n) and the amount of the maximum rent otherwise demanded or  collected.
  If  the  tenant  has  been  issued a valid senior citizen rent exemption
  order or a valid disability rent exemption order, the owner  shall  also
  separately state the amount payable by the senior citizen or person with
  a disability after the exemption.
    (8)  In  the  event  that a rent reduction order is issued by the city
  rent agency based upon the landlord's failure to  provide  heat  or  hot
  water  to  housing accommodations for which the landlord is collecting a
  rent adjustment pursuant to this subparagraph (n), the  rent  adjustment
  shall  not  be collected during the time such rent reduction order is in
  effect and for twelve months following the date of  the  restoration  of
  the  rent  reduction. In addition, the landlord shall not be eligible to
  collect any subsequent rent adjustment pursuant to this subparagraph (n)
  until twelve months following the date of the restoration  of  the  rent
  reduction.
    (9)  In the event that the city rent agency promulgates a finding of a
  price decrease, if any landlord  who  has  obtained  a  rent  adjustment
  pursuant  to  this  subparagraph  (n)  does not file a report for a rent
  adjustment pursuant to this subparagraph (n) within sixty  days  of  the
  promulgation  of  such  findings,  then  all  rent  adjustments obtained
  pursuant to this subparagraph (n) shall not be collectible for a  period
  of twelve months.
    (10)  Any  rent  adjustment obtained pursuant to this subparagraph (n)
  shall not be included  in  the  maximum  rent  established  pursuant  to
  paragraph four or five of subdivision (a) of this section.
    (11)  The  city  rent  agency  shall have the power to promulgate such
  regulations as it may consider necessary or convenient to implement  and
  administer  the  provisions  of  this  subparagraph (n). The regulations
  shall also require that any rent adjustment  granted  pursuant  to  this
  subparagraph (n) be reduced by an amount equal to any governmental grant
  received  by  the  landlord compensating the landlord for any fuel price
  increases, but not required by the city,  the  agency  or  any  granting
  government   entity   to   be  expended  for  fuel  related  repairs  or
  improvements.
    (o) (1) There has  been  an  increase  in  heating  and  heating  fuel
  expenditures  in  a  property resulting from a city-wide rise in heating
  fuel costs such that the verifiable expenditures for heating or  heating
  fuel  in  a  property  for  nineteen  hundred  seventy-four  exceeds the
  verifiable expenditures for such heating or heating fuel during nineteen
  hundred seventy-three.
    (2) To obtain a rental adjustment pursuant to this  subparagraph  (o),
  the  landlord  must  certify that he or she is presently maintaining all
  essential services required to be furnished with respect to the  housing

  accommodations  covered  by  such certification, and that he or she will
  continue to so maintain such essential services for the  period  of  any
  such adjustment.
    (3)  To  obtain a rental adjustment pursuant to this subparagraph (o),
  the landlord must certify on information and belief that he or she  will
  not  be earning an amount in excess of the statutory return specified in
  subparagraph (a) of paragraph one of subdivision g of this section after
  collection of such rental adjustment, with respect to  the  building  or
  buildings serviced by a single heating plant; and where the building, or
  buildings  serviced  by  a  single heating plant, contains forty-nine or
  fewer housing accommodations, the landlord must certify that the  amount
  expended  directly  for  heating  or  heating  fuel  in nineteen hundred
  seventy-four equalled or exceeded ten  per  cent  of  the  total  rental
  income  which  was  derived  from  the  property during nineteen hundred
  seventy-four; and, where the building, or buildings serviced by a single
  heating  plant,  contains  fifty  or  more  housing  accommodations  the
  landlord  must  certify that the amount expended directly for heating or
  heating fuel in nineteen hundred seventy-four equalled or exceeded seven
  and one-half percentum of the total rental income which was derived from
  the property during nineteen hundred seventy-four.
    (4) The total rental adjustments for a property  to  be  allocated  or
  deemed  allocated  pursuant  to  this  subparagraph (o) shall not exceed
  one-half of the gross amount by which the total verifiable  expenditures
  for  heating  or  heating fuel for nineteen hundred seventy-four exceeds
  the total verifiable expenditures for such heating or heating  fuel  for
  nineteen hundred seventy-three.
    (5)  Such  total  rental  adjustments  shall  be  allocated  or deemed
  allocated  pursuant  to   this   subparagraph   (o)   to   all   housing
  accommodations   subject   to   this   chapter,  to  all  other  housing
  accommodations,  and  to  all  commercial,  professional   and   similar
  facilities  in  or  associated  with  the  property  in  a  manner to be
  determined by the agency. In no event shall any  adjustment  in  maximum
  rent  pursuant  to  this subparagraph (o) for any housing accommodations
  subject to this chapter exceed a monthly increase  of  two  dollars  per
  room,  as  defined by item eight below. In any apartment containing five
  or more rooms, any increase shall not exceed the total of nine dollars.
    (6)  Any  adjustment  pursuant  to  this  subparagraph  (o)  shall  be
  effective  for  all  or  part of the period July first, nineteen hundred
  seventy-five through June thirtieth, nineteen hundred  seventy-six.  Any
  adjustment  pursuant  to this subparagraph shall automatically expire no
  later than June thirtieth, nineteen hundred seventy-six.
    (7) The rental increases provided for herein shall  be  effective  and
  collectible upon the landlord's filing a report with the agency on forms
  prescribed  by  the agency and upon giving such notice to the tenants as
  the agency shall prescribe, subject to adjustments  upon  order  of  the
  agency.
    (8)  In  determining  the  amount  of  an  adjustment allocation of an
  adjustment  pursuant  to  this  subparagraph  (o),  only  living  rooms,
  kitchens  over fifty-nine square feet in area, dining rooms and bedrooms
  shall be considered rooms; bathrooms, foyers, and kitchenettes shall not
  be considered rooms.
    (2) In any case where any housing  accommodation  was  vacated  on  or
  after  the effective date of this paragraph two, other than by voluntary
  surrender of possession or in the manner provided in this  chapter,  the
  city  rent agency may, by regulations having due regard for the equities
  involved, bar adjustments pursuant  to  subparagraphs  (f)  and  (g)  of
  paragraph one of this subdivision g, except for work which:
    (a) is necessary in order to remove violations against the property;

    (b)  is  necessary  to  obtain  a  certificate  of  occupancy  if such
  certificate is required by law; or
    (c)  could have been performed with a tenant in physical possession of
  the housing accommodation.
    (3) Any adjustment pursuant  to  subparagraph  (a),  (b),  or  (c)  of
  paragraph one of this subdivision shall be subject to the limitation set
  forth in paragraph five of subdivision a of this section; provided:
    (a)  that in ordering an adjustment pursuant to such subparagraph (a),
  the city rent agency may waive such limitation where a greater  increase
  is  necessary  to  make  the  earned income of the property equal to its
  operating expenses; and
    (b) that where due to such limitation the landlord  will  not  receive
  the  full amount of the rent increase to which he or she would otherwise
  be entitled, the order of  the  city  rent  agency  shall  increase  the
  maximum  rent  by  a  further  additional  amount during each succeeding
  twelve-month period, not to exceed seven and a  half  percentum  of  the
  maximum  rent in effect on the date of the filing of the application for
  an adjustment, under the maximum rent shall reflect the full increase to
  which the landlord is entitled.
    (4) Any increase in maximum rent shall be apportioned equitably  among
  all  the  controlled  housing  accommodations in the property. In making
  such apportionment and in fixing the increases  in  maximum  rents,  the
  city  rent  agency  shall  give  due  consideration  (a) to all previous
  adjustments or increases in maximum rents by lease or otherwise; and (b)
  to all other income derived from the  property,  including  income  from
  space  and accommodations not controlled, or the rental value thereof if
  vacant or occupied rent-free, so there is allocated  to  the  controlled
  housing  accommodations  therein  only  that  portion  of  the amount of
  increases necessary pursuant to subparagraph (a), (b),  (c)  or  (k)  of
  paragraph one of this subdivision g, as is properly attributable to such
  controlled accommodations.
    (5)  The  city rent agency shall compile and make available for public
  inspection at reasonable hours at  its  principal  office  and  at  each
  appropriate  local  office,  the  manual  of  accounting  procedures and
  advisory bulletins applicable to applications under  subparagraphs  (a),
  (b)  and  (c) of paragraph one of this subdivision g, and all amendments
  to such manual and bulletins.
    (6) (a) No application for an increase in  any  maximum  rent  may  be
  filed  under  subparagraph  (a),  (b)  or  (c)  of paragraph one of this
  subdivision g with respect to any property unless there  is  annexed  to
  such application:
    (1)  A  report  of  search  issued  by  the  agency of the city having
  jurisdiction stating either that no violations against such property are
  recorded or a receipt (or  photocopy  thereof)  issued  by  that  agency
  attesting to the payment of the fee for the report of search or that all
  violations  recorded  against such property have been cleared, corrected
  or abated; and
    (2) A certification by the landlord of such property that he or she is
  maintaining all essential services required to be furnished and that  he
  or  she  will  continue  to  maintain  such services so long as any such
  increase in the maximum rent continues in effect.
    (b) Except as provided in subparagraph (c) of this paragraph  six  and
  paragraph  four  of  subdivision h of this section, no landlord shall be
  entitled to an increase in the maximum rent on any ground unless  he  or
  she  certifies  that  he  or  she  is maintaining all essential services
  furnished or required to be furnished as of the date of the issuance  of
  the order adjusting the maximum rent and that he or she will continue to
  maintain  such  services  so  long  as the increase in such maximum rent

  continues in effect; nor shall any landlord be entitled to any  increase
  in  the  maximum  rent  on any ground where an agency of the city having
  jurisdiction certifies that the housing accommodation is a  fire  hazard
  or  is  a continued dangerous condition or detrimental to life or health
  or is occupied in violation of law; nor shall any landlord  be  entitled
  to  any  increase  where  the  landlord  has  not removed the violations
  recorded against such property as shown in the report of search required
  under subparagraph (a) of this paragraph six.
    (c) Where an application for an increase in any maximum rent is  filed
  under  subparagraph  (f) and/or (g) of paragraph one of this subdivision
  g, and the landlord is not entitled to any increase  by  reason  of  the
  provisions  of  subparagraph  (b)  of  this paragraph six, the city rent
  agency may waive such provisions and issue orders increasing the maximum
  rent effective as of the date of the issuance of  the  orders  provided,
  however,  that  the  landlord  agrees  in  writing to deposit the entire
  amount  of  such  increase  in  maximum  rent  into  an  escrow  account
  administered  by  the  city  rent  agency  in  accordance with rules and
  regulations to  be  promulgated  by  such  agency  for  the  purpose  of
  obtaining  compliance  with such provisions and further agrees to obtain
  and submit to the city rent agency within one  year  from  the  date  of
  issuance  of such orders; a report of search issued by the agency of the
  city having jurisdiction stating that the violations shown in the report
  of search required under subparagraph (a) of  this  paragraph  six  have
  been  removed,  cleared,  corrected  or  abated,  and  his  or  her  own
  certification that he or she  is  and  will  continue  to  maintain  all
  essential services in accordance with the provisions of subparagraph (b)
  of  this  paragraph six. In the event the landlord fails to fully comply
  with such provisions within one year from the date of  the  issuance  of
  the  order  increasing the maximum rent, the city agency may, having due
  regard for the equities involved, revoke such  orders  and  direct  full
  refund  to  the  tenants of the entire increase paid by the tenants as a
  result of such orders. Any person serving as escrow agent shall  not  be
  liable except for fraud or misfeasance.
    (d)  No  new  maximum  rent shall be established pursuant to paragraph
  three or four of subdivision a of this section unless not more than  one
  hundred fifty days nor less than ninety days prior to the effective date
  thereof,  the  landlord  has certified that he or she is maintaining all
  essential services required to be furnished with respect to the  housing
  accommodations  covered  by  such certification, and that he or she will
  continue to maintain such services so long as such new maximum  rent  is
  in  effect.  Each  such certification filed to obtain a new maximum rent
  pursuant to paragraph four of subdivision a of  this  section  shall  be
  accompanied  by  a  certification  by  the  landlord  that he or she has
  actually expended or incurred ninety per centum of the total  amount  of
  the  cost index for operation and maintenance established for his or her
  type of building.
    (e) The city rent agency  shall  establish  a  counseling  service  to
  provide  assistance  to tenants and to landlords of buildings containing
  nineteen or fewer housing accommodations, by way of instruction  in  the
  management,  maintenance  and  upkeep  of  housing accommodations, their
  respective  responsibilities  thereto,  the  programs  and   enforcement
  remedies  available  in  the  agency  and  from other city agencies, and
  assistance in the preparation of applications and other forms.
    (7) Before ordering any adjustment in maximum  rents,  the  city  rent
  agency  shall accord a reasonable opportunity to be heard thereon to the
  tenant and the landlord.
    h. (1) Whenever in the judgment of the city rent agency such action is
  necessary or proper in order to effectuate the purposes of this chapter,

  such  agency  may,  by  regulation  or  order,  regulate   or   prohibit
  speculative  or  manipulative practices or renting or leasing practices,
  including practices relating to recovery of  possession,  which  in  the
  judgment  of  such  agency  are equivalent to or are likely to result in
  rent increases inconsistent with the purposes of this chapter.
    (2) Whenever in the judgment of such agency such action  is  necessary
  or  proper  in  order  to  effectuate the purposes of this chapter, such
  agency may provide regulations to assure the  maintenance  of  the  same
  living  space,  essential services, furniture, furnishings and equipment
  as were provided on the date determining  the  maximum  rent,  and  such
  agency  shall  have power by regulation or order to decrease the maximum
  rent or take action as provided in paragraph four of this subdivision  h
  for any housing accommodation with respect to which a maximum rent is in
  effect,  pursuant  to  this  chapter,  if  it shall find that the living
  space, essential services, furniture, furnishings or equipment to  which
  the  tenant was entitled on such date have been decreased. The amount of
  the reduction  in  maximum  rent  ordered  by  such  agency  under  this
  paragraph  shall  be  reduced by any credit, abatement or offset in rent
  which  the  tenant  has  received  pursuant  to  section   two   hundred
  thirty-five-b  of  the  real  property  law  that relates to one or more
  conditions covered by such order.
    (3) Whenever any agency of the city having jurisdiction certifies that
  any housing accommodation  is  a  fire  hazard  or  is  in  a  continued
  dangerous  condition or detrimental to life or health, or is occupied in
  violation of law, the city rent agency may issue an order decreasing the
  maximum rent or take action  as  provided  in  paragraph  four  of  this
  subdivision  h for such housing accommodation in such amount as it deems
  necessary or proper, until the agency  issuing  such  certification  has
  certified  that  such housing accommodation is no longer a fire or other
  hazard and is not in a condition detrimental to life and health  and  is
  not occupied in violation of law.
    (4)  (a)  Whenever in the judgment of the city rent agency such action
  is necessary or proper in order  to  effectuate  the  purposes  of  this
  chapter,  such  agency  may,  in lieu of decreasing the maximum rents as
  provided in paragraphs two and three of this subdivision h, enter into a
  contract wherein the landlord agrees in writing to  deposit  all  income
  derived   from   the   property,   including   income  from  spaces  and
  accommodations not controlled, into an escrow or trust account  for  use
  in  maintaining  or  restoring  essential  services  and  equipment, for
  removing violations  against  the  property  or  housing  accommodations
  therein,  making such repairs as are necessary to remove a certification
  from any city  agency  having  jurisdiction  thereof  that  the  housing
  accommodation  is a fire hazard or is in a continued dangerous condition
  or detrimental to life or health, or is occupied in  violation  of  law,
  and/or  for  such  other uses as the city rent agency deems necessary or
  proper for the preservation, repair or maintenance of the property.  The
  city  rent  agency may adopt such rules and regulations and orders as it
  may deem  necessary  or  proper  to  effectuate  the  purposes  of  this
  paragraph, including but not limited to the issuance of orders adjusting
  all controlled rents to the appropriate maximum rent effective as of the
  first day of the month following the execution of the contract provided,
  however, that in the event the city rent agency shall determine that the
  landlord  has  breached  such contract, such agency may issue orders (1)
  decreasing the maximum rents pursuant to such contract; (2) containing a
  directive that rent collected by the landlord in excess of the rent thus
  decreased be refunded to the tenants;  and  (3)  containing  such  other
  determinations  and  directives  as are necessary in order to effectuate
  the purposes of this paragraph four.

    (b) Notwithstanding any provision of this  chapter  to  the  contrary,
  whenever  in  the judgment of the city rent agency action as provided in
  paragraph two or three of this subdivision h is necessary or  proper  in
  order  to  effectuate  the  purposes of this chapter, such agency may in
  lieu  of decreasing the maximum rents thereof issue orders adjusting all
  controlled rents and directing that rents be paid into an escrow account
  for the uses stated in subparagraph (a) of this paragraph four where:
    (1) The landlord fails to take corrective action after notice  by  the
  city  rent  agency  of  proposed  action  to  decrease the maximum rents
  pursuant to paragraph two or three of this subdivision h, and,
    (2) The city rent agency has notified all mortgagees  who  have  filed
  with the city rent agency a declaration of interest in such property and
  in such proposed action, and,
    (3)  The  landlord  has failed for three consecutive months to collect
  any  controlled  rents  or  to  commence  court  proceedings  for  their
  collection  or if such proceedings have been commenced, the landlord has
  not diligently prosecuted them or such proceedings have not resulted  in
  judgment in favor of such landlord.
    (c)  The  city  rent agency shall promulgate rules and regulations for
  the administration of escrow  and  trust  accounts  set  forth  in  this
  paragraph  four. Any person serving as escrow agent or trustee shall not
  be liable except for fraud, breach of fiduciary duties or misfeasance.
    (5)  Whenever  the  essential  services,  furnishings,  furniture   or
  equipment of any individual housing accommodation are reduced, impaired,
  mutilated,  or  made unworkable as the result of the neglect, failure to
  exercise due  care,  or  failure  of  the  tenant  to  take  practicable
  precautions  to  prevent such condition, the landlord shall restore such
  services,  furniture,  furnishings  or   equipment   and   pursuant   to
  regulations   to  be  prescribed  by  the  city  rent  agency  may  make
  application for a temporary increase in the maximum rent based upon  the
  cost  of such restoration.  In the event of the failure of the tenant to
  make restitution within a reasonable time, as  determined  by  the  city
  rent agency an order shall be issued adjusting the maximum rent for such
  tenant  in  an amount sufficient to recover the cost over twelve monthly
  installments, or until the tenant surrenders  possession,  whichever  is
  sooner.  The  provisions  of  this paragraph shall be in addition to all
  other rights and remedies of the landlord.
    (6) If at least six months before the effective date of any adjustment
  or establishment of  rents  pursuant  to  paragraph  three  or  four  of
  subdivision  a  of  this  section, the landlord has not certified to the
  agency having jurisdiction that (a) all rent  impairing  violations  (as
  defined  by  section  three hundred two-a of the multiple dwelling law),
  and (b) at least eighty per  centum  of  all  other  violations  of  the
  housing  maintenance  code  or  other  state  or  local laws that impose
  requirements on property that were recorded  against  the  property  one
  year  prior  to  such  effective  date  have been cleared, corrected, or
  abated, no increase pursuant to such paragraphs shall take effect  until
  he or she shall have entered into a written agreement with the city rent
  agency to deposit all income derived from the property into an escrow or
  trust  account  pursuant  to  subparagraph (a) of paragraph four of this
  subdivision, in addition to the procedures set forth in  this  paragraph
  and  all  other  applicable penalties and procedures under this chapter,
  such violation shall also be subject to repair or removal  by  the  city
  pursuant  to  the  provisions  of article five of subchapter five of the
  housing maintenance code,  the  landlord  to  be  liable  for  the  cost
  thereof.
    i.  Any  regulation  or  order  issued pursuant to this section may be
  established in such form and manner, may  contain  such  classifications

  and differentiations, and may provide for such adjustments including the
  establishment  of new or adjusted maximum rents in whole dollar amounts,
  and such reasonable exceptions as in  the  judgment  of  the  city  rent
  agency  are  necessary  or proper in order to effectuate the purposes of
  this chapter.
    j. No increase or decrease in maximum rent shall be effective prior to
  the date on which the order therefor is issued,  except  as  hereinafter
  provided. If an application for an increase pursuant to subparagraph (a)
  of  paragraph one of subdivision g of this section submitted on or after
  August first, nineteen hundred seventy is  accompanied  by  a  certified
  statement  of  expenditures  and  no order is issued thereon within four
  months of the filing of  an  application  based  on  assessed  value  or
  equalized   assessed  value,  or  eight  months  of  the  filing  of  an
  application based on sale price, with  all  required  documentation  the
  increased  rent  requested  shall  thereafter  be  placed in an interest
  bearing escrow account until a final determination  is  made  upon  such
  application  by  the city rent agency. Upon initial determination by the
  agency an order shall  be  issued  providing  for  the  payment  of  the
  increased  amount,  if  any,  due to the landlord from the date of first
  deposit of rent in said escrow account with  interest,  and  the  excess
  amount,   if  any,  be  paid  the  tenants  entitled  thereto,  with  an
  appropriate amount of interest. The city rent  agency  shall  promulgate
  rules  and  regulations  for the administration of such escrow accounts.
  Any person serving as escrow agent shall not be liable except for  fraud
  or misfeasance.
    k.  Regulations,  orders,  and  requirements  under  this  chapter may
  contain such provisions as the  city  rent  agency  deems  necessary  to
  prevent the circumvention or evasion thereof.
    l.  The  powers  granted  in  this action shall not be used or made to
  operate to compel changes in established rental practices, except  where
  such  action  is  affirmatively  found  by  the  city  rent agency to be
  necessary to prevent circumvention or evasion of any regulation,  order,
  or requirement under this chapter.
    m.  Findings.  The council finds that there is an acute and continuing
  housing shortage; that this  shortage  has  and  continues  to  have  an
  adverse  effect  on  the population and especially on inhabitants of the
  city who are sixty-two years of age or older and of  limited  means,  as
  well  as persons with disabilities, who cannot pay enough rent to induce
  private enterprise to maintain decent housing at rents they  can  afford
  to pay; that this condition is and continues to be particularly acute in
  a  time  of  rising costs such as the present; that present rising costs
  and the continuing increase in rents pursuant to amendments to  the  New
  York  city  rent and rehabilitation law may result in such persons being
  unable to pay their rent, thus making them  subject  to  eviction;  that
  such  hardships  fall with particular severity upon older persons in the
  population, as well as  persons  with  disabilities,  because  of  their
  particular  inability  to  find  alternative accommodations within their
  means, because of the trauma experienced by many older persons, as  well
  as  persons with disabilities, who have to relocate and because they may
  endanger their health by paying additional sums for shelter and  thereby
  deprive  themselves  of  other  necessities; that hardships imposed upon
  such people adversely affect their health and welfare  and  the  general
  welfare  of  the  inhabitants  of  the city. The council is aware of the
  provisions set forth in chapter three hundred  seventy-two  and  chapter
  one  thousand  twelve of the laws of nineteen hundred seventy-one. It is
  our  considered  opinion  that  this  legislation  extending  the   rent
  exemption to cover the resultant rent increases due to the maximum rents
  established  January  first,  nineteen  hundred seventy-two, is not more

  stringent or restrictive than those presently in effect. It is found and
  declared to be necessary for the health, welfare and safety  of  persons
  who  are  sixty-two years of age or older, persons with disabilities and
  inhabitants  of the city that the city continue a system of special rent
  adjustments for such older persons, as well as extend such special  rent
  adjustments to persons with disabilities as hereinafter provided.
    (1) No increase in maximum rent pursuant to paragraph two or paragraph
  three,  four  or  five of subdivision a of this section, or subparagraph
  (a), (b), (c), (l) or (n) of paragraph one  of  subdivision  g  of  this
  section,  shall  be  collectible  from  a  tenant to whom there has been
  issued  a  currently  valid  rent  exemption  order  pursuant  to   this
  subdivision, except as provided in such order.
    (2)  A  tenant is eligible for a rent exemption order pursuant to this
  subdivision if:
    (i) the head of the household residing in the housing accommodation is
  sixty-two years of age or older or is a person with a disability, and is
  entitled to the possession or to the use  or  occupancy  of  a  dwelling
  unit.  To qualify as a person with a disability for the purposes of this
  section, an individual shall submit to such agency as  the  mayor  shall
  designate  proof (as specified by regulation of such agency as the mayor
  shall designate) showing that such  individual  is  currently  receiving
  social  security  disability  insurance  (SSDI) or supplemental security
  income  (SSI)  benefits  under  the  federal  social  security  act   or
  disability  pension  or disability compensation benefits provided by the
  United States department of veterans affairs, or was previously eligible
  by virtue  of  receiving  disability  benefits  under  the  supplemental
  security income program or the social security disability program and is
  currently  receiving  medical assistance benefits based on determination
  of disability as provided in section  three  hundred  sixty-six  of  the
  social services law.
    Nothing  herein contained shall render ineligible for benefits persons
  receiving supplemental security income or additional state payments,  or
  both,  under  a  program administered by the United States department of
  health and human services or by such department and the New  York  State
  department of social services.
    (ii)  the aggregate disposable income (as defined by regulation of the
  department of finance) of all members of the household residing  in  the
  housing  accommodation whose head of household is sixty-two years of age
  or older does not exceed twenty-five  thousand  dollars  beginning  July
  first,  two  thousand  five,  twenty-six thousand dollars beginning July
  first, two thousand six, twenty-seven thousand  dollars  beginning  July
  first,  two thousand seven, twenty-eight thousand dollars beginning July
  first, two thousand eight, and twenty-nine  thousand  dollars  beginning
  July  first,  two  thousand  nine, per year, after deduction of federal,
  state and city income and social security taxes. For  purposes  of  this
  subparagraph,  "aggregate  disposable income" shall not include gifts or
  inheritances, payments made to individuals because of  their  status  as
  victims of Nazi persecution, as defined in P.L. 103-286, or increases in
  benefits  accorded  pursuant  to  the social security act or a public or
  private pension paid to any member of the household which  increase,  in
  any  given  year,  does  not  exceed the consumer price index (all items
  United States city average) for such year which take  effect  after  the
  date  of eligibility of a head of the household receiving benefits under
  this subdivision whether received by the head of the  household  or  any
  other member of the household.
    (iii)  the  aggregate  disposable  income (as defined by regulation of
  such agency as the mayor shall designate) for  the  current  income  tax
  year   of   all  members  of  the  household  residing  in  the  housing

  accommodation whose head of the household is a person with a  disability
  pursuant  to this section does not exceed the maximum income above which
  such head of the  household  would  not  be  eligible  to  receive  cash
  supplemental  security income benefits under federal law during such tax
  year. For purposes of this subparagraph, "aggregate  disposable  income"
  shall  not  include  gifts or inheritances, payments made to individuals
  because of their status as victims of Nazi persecution,  as  defined  in
  P.L.  103-286,  or increases in benefits accorded pursuant to the social
  security act or a public or private pension paid to any  member  of  the
  household  which  increase,  in  any  given  year,  does  not exceed the
  consumer price index (all items United States  city  average)  for  such
  year  which  take  effect after the date of eligibility of a head of the
  household receiving benefits under this subdivision whether received  by
  the head of the household or any other member of the household.
    (iv) (a) in the case of a head of the household who does not receive a
  monthly  allowance  for shelter pursuant to the social services law, the
  maximum rent for the housing accommodations  exceeds  one-third  of  the
  aggregate  disposable  income or if any expected increase in the maximum
  rent pursuant to paragraph two, three, four or five of subdivision a  of
  this section, or subparagraph (a), (b), (c), (l) or (n) of paragraph one
  of subdivision g of this section would cause such maximum rent to exceed
  one-third of the aggregate disposable income; or
    (b)  in  the  case  of  a head of the household who receives a monthly
  allowance for shelter pursuant to the social services law,  the  maximum
  rent  for  the  housing accommodations exceeds the maximum allowance for
  shelter which the head of the household is entitled to receive  pursuant
  to  the  social  services law or if any expected increase in the maximum
  rent pursuant to paragraph two, three, four or five of subdivision a  of
  this section, or subparagraph (a), (b), (c), (l) or (n) of paragraph one
  of subdivision g of this section would cause such maximum rent to exceed
  the  maximum  allowance  for  shelter which the head of the household is
  entitled to receive.
    (3) (a) A rent exemption order  pursuant  to  this  subdivision  shall
  provide:
    (i)  in  the  case  of  a head of the household who does not receive a
  monthly allowance for shelter pursuant to the social services law,  that
  the  landlord  may not collect from the tenant to whom it is issued rent
  at a rate in excess of one-third of the aggregate disposable income,  or
  the  maximum  collectible rent in effect on December thirty-first of the
  year preceding the effective date of the order, whichever is greater; or
    (ii) in the case of a head of the household  who  receives  a  monthly
  allowance  for  shelter  pursuant  to  the social services law, that the
  landlord may not collect from the tenant to whom it is issued rent at  a
  rate  in  excess  of  either the maximum allowance for shelter which the
  head of the household is entitled to receive, or the maximum collectible
  rent in effect on  December  thirty-first  of  the  year  preceding  the
  effective date of the order, whichever is greater; except,
    (iii)  that  the  landlord  may  collect from the tenants described in
  items (i) and (ii) of this subparagraph increases in  rent  pursuant  to
  subparagraphs  (d),  (e),  and  (i) of paragraph one of subdivision g of
  this section.
    (b) Each such order shall expire upon termination of occupancy of  the
  housing  accommodation  by the tenant to whom it is issued. The landlord
  shall notify the department of finance, in the case of a household whose
  eligibility for such order is based on the fact that the  head  of  such
  household  is  sixty-two  years  of  age or older, or such agency as the
  mayor shall designate, in the case of a household whose eligibility  for
  such  order  is  based  on the fact that the head of such household is a

  person with a disability, on a form to be prescribed by such  department
  or agency, within thirty days of each such termination of occupancy.
    (c) When a rent reduction order is issued by the city rent agency, the
  amount of the reduction shall be subtracted from the rent payable by the
  tenant  specified  in  a  currently  valid  rent  exemption order issued
  pursuant to this subdivision. The landlord  may  not  collect  from  the
  tenant  a  sum  of  rent  exceeding  the  adjusted amount while the rent
  reduction order is in effect.
    (4) Any landlord who collects, or seeks to collect  or  enforce,  rent
  from a tenant in violation of the terms of a rent exemption order shall,
  for  the  purposes  of all remedies, sanctions and penalties provided in
  this chapter, be deemed to have collected or  attempted  to  collect  or
  enforce, a rent in excess of the legal maximum rent.
    (5)  A rent exemption order shall be issued to each tenant who applies
  to the department of finance or such agency as the mayor shall designate
  (which agency may also be the department of finance) in accordance  with
  such  department's  or  agency's  regulations  and  who  is  found to be
  eligible under this subdivision. Such order shall  take  effect  on  the
  first  day  of the first month after receipt of such application, except
  that where the aggregate dispos- able  income  of  all  members  of  the
  household  residing  in  the  housing  accommodation  whose  head of the
  household is sixty-two years of  age  or  older  is  greater  than  five
  thousand  dollars  per  year  but  does  not exceed twenty-five thousand
  dollars beginning July first, two  thousand  five,  twenty-six  thousand
  dollars  beginning  July  first, two thousand six, twenty-seven thousand
  dollars beginning July first, two thousand seven, twenty-eight  thousand
  dollars  beginning  July  first,  two  thousand  eight,  and twenty-nine
  thousand dollars beginning July  first,  two  thousand  nine,  per  year
  pursuant  to subparagraph (ii) of paragraph two of subdivision m of this
  section on orders issued on applications  received  before  July  first,
  nineteen hundred seventy-five, the effective date of such order shall be
  the  later  of  (1) June thirtieth, nineteen hundred seventy-four or (2)
  the last day of the month in which a person becomes an eligible head  of
  household  in  the housing accommodation in which such person resides at
  the time of filing the most recent  application  for  a  rent  exemption
  order;  and  further,  except  that where any other application has been
  received within ninety days of the issuance of the order increasing  the
  tenant's  maximum  rent  pursuant  to  paragraph  three,  four or six of
  subdivision (a) of this section, or subparagraph (a), (b), (c),  or  (l)
  of paragraph (1) of subdivision (g) of this section or pursuant to court
  order,  whichever  is  later,  the  rent  exemption  order shall without
  further order take effect  as  of  the  effective  date  of  said  order
  increasing  the  tenant's  rent  including  any  retroactive  increments
  collectible pursuant to such orders.
    (6) A rent exemption order shall be valid for a period  of  two  years
  and  may be renewed for further two year periods upon application by the
  tenant; provided, that upon any such renewal application being  made  by
  the tenant, any rent exemption order then in effect with respect to such
  tenant  shall  be  deemed  renewed  until such time as the department of
  finance or such other agency as the mayor  shall  designate  shall  have
  found  such  tenant  to  be  either  eligible  or  ineligible for a rent
  exemption order but in no event for more than six additional months.  If
  such  tenant  is found eligible, the order shall be deemed to have taken
  effect upon expiration of the exemption. In  the  event  that  any  such
  tenant shall, subsequent to any such automatic renewal, not be granted a
  rent exemption order, such tenant shall be liable to his or her landlord
  for  the  difference  between  the  amounts he or she has paid under the
  provisions of the automatically renewed order and the amounts  which  he

  or she would have been required to pay in the absence of such order. Any
  rent  exemption  order issued pursuant to this subdivision shall include
  provisions giving notice as to the contents of this  paragraph  relating
  to  automatic  renewals  of  rent  exemption  orders. Any application or
  renewal application for a rent exemption order shall also constitute  an
  application  for  a  tax abatement under such section. The department of
  finance and such other agency as the mayor  shall  designate  may,  with
  respect  to renewal applications by tenants who have been found eligible
  for rent exemption orders,  prescribe  a  simplified  form  including  a
  certification  of  the  applicant's  continued  eligibility in lieu of a
  detailed statement of income and other qualifications.
    (7) Notwithstanding the provisions  of  this  chapter,  a  tenant  who
  resides in a housing accommodation which becomes subject to this chapter
  upon  the  sale  by  the  city of New York of the building in which such
  housing  accommodation  is  situated  may  be  issued  a  rent  increase
  exemption order for increases in rent which occurred during ownership of
  such  building  by  the city of New York provided that such tenant would
  have been otherwise eligible to receive a rent increase exemption  order
  at  the time of such increase but for the fact that such tenant occupied
  a housing accommodation owned by the city of New York and was  therefore
  not  subject  to  this  chapter.  Application  for  such  rent  increase
  exemption orders shall be made  within  one  year  from  the  date  such
  building  is  sold  by  the  city  of New York or within one year of the
  effective date of this provision, whichever is later.
    (8) Notwithstanding the provisions of this chapter or chapter four  of
  this  title,  when  a  dwelling unit is subject to regulation under this
  chapter or chapter four of this title is reclassified  by  a  city  rent
  agency  order  subject  to  the  other  chapter, the tenant, who holds a
  senior citizen rent increase exemption order or disability rent increase
  exemption order at the time of  the  reclassification  or  is  otherwise
  eligible  and  entitled  to  an  exemption  order  from one or more rent
  increases but for the reclassification of  the  dwelling  unit,  may  be
  issued  a  rent  increase exemption order under the chapter to which the
  unit is thereafter subject by virtue of the reclassification  continuing
  the  previous  exemption  notwithstanding  the  reclassification  of the
  dwelling unit or, where no previous rent increase  exemption  order  has
  been  granted, issuing an initial order exempting the tenant from paying
  the rent increase to the extent for which he  or  she  would  have  been
  eligible  and  entitled  to  be exempted at the time of the increase and
  reclassification but for the fact of reclassification  of  the  dwelling
  unit  including  exemption  from  the  rent increase granted pursuant to
  subparagraph (m) of paragraph one of subdivision g of  this  section  to
  the extent that it is not predicated upon any improvement or addition in
  a  category  as  provided for in subparagraph (d), (e), (f), (g), (h) or
  (i) of paragraph one of subdivision g of this section.  Application  for
  such rent increase exemption order shall be made within ninety days from
  the date of reclassification or within ninety days of the effective date
  of this paragraph, whichever is later. The rent increase exemption order
  shall take effect as of the effective date of reclassification including
  any retroactive increments pursuant to such rent increase.
    (9)  Notwithstanding any other provision of law to the contrary, where
  a head of household holds a current, valid  rent  exemption  order  and,
  after  the  effective  date  of  this  paragraph,  there  is a permanent
  decrease in aggregate disposable  income  in  an  amount  which  exceeds
  twenty  percent  of  such  aggregate disposable income as represented in
  such head of the  household's  last  approved  application  for  a  rent
  exemption  order  or for renewal thereof, such head of the household may
  apply for a redetermination  of  the  amount  set  forth  therein.  Upon

  application, such amount shall be redetermined so as to re-establish the
  ratio  of  adjusted rent to aggregate disposable income which existed at
  the time of the approval of such eligible head of the  household's  last
  application for a rent exemption order or for renewal thereof; provided,
  however,  that  in  no  event  shall  the amount of the adjusted rent be
  redetermined to be (i) in the case of a head of the household  who  does
  not  receive  a  monthly  allowance  for  shelter pursuant to the social
  services law, less than one-third of the aggregate disposable income; or
  (ii) in the case of a head of  the  household  who  receives  a  monthly
  allowance for shelter pursuant to the social services law, less than the
  maximum  allowance  for  shelter  which  such  head  of the household is
  entitled  to  receive  pursuant  to  such  law.  For  purposes  of  this
  paragraph,  a  decrease in aggregate disposable income shall not include
  any decrease in such income resulting from  the  manner  in  which  such
  income  is  calculated  pursuant  to  any  amendment  to  paragraph c of
  subdivision one of  section  four  hundred  sixty-seven-b  of  the  real
  property  tax law, any amendment to the regulations of the department of
  finance made on or after the effective date of the local law that  added
  this clause, or any amendment to the regulations of such other agency as
  the  mayor  shall designate made on or after October tenth, two thousand
  five. For purposes of this paragraph, "adjusted rent" shall mean maximum
  rent less the amount set forth in a rent exemption order.