New York State
Division of Housing and Community Renewal
Office of Rent Administration
Gertz Plaza, 92-31 Union Hall St.
Jamaica, New York 11433
Public Information: (718)739-6400
NEW YORK CITY RENT STABILIZATION CODE
ADVISORY OPINION: 91-1 (MARCH 27, 1991)
MULTI-TIER RENT ORDERS
This Advisory Opinion is issued pursuant to Section 2527.11 of
the Rent Stabilization Code ("Code").
Code section 2521.1(m) provides:
(m) Notwithstanding any other provision of this Code, except as
provided in paragraph (2) below, governmental agencies or
public benefit corporations may enter into an agreement with
the DHCR, which shall be incorporated into an order of the
DHCR, setting forth the conditions under which:
(1) projects receiving assistance or financing from such
agencies may register higher and lower initial legal
rents for units subject to occupancy and rent
restrictions by such agencies, which rents may then be
adjusted pursuant to the RSL and this Code, and shall
not be subject to the proceedings described in section
2522.3 of this Title (Fair Market Rent Appeals); or
(2) projects whose rentals were previously regulated under
the PHFL or any other state or federal law, other than
the RSL or the City Rent Law, upon the date when such
regulation ends, may register higher and lower initial
legal rents for units which have been subject to
occupancy and rent restrictions pursuant to such laws,
which rents may then be adjusted pursuant to the RSL
and this Code, and shall not be subject to the
proceedings described in section 2522.3 of this Title
(Fair Market Rent Appeals). Where the DHCR was the
agency regulating rentals pursuant to the PHFL, such
terms and conditions shall be incorporated into an
order of the DHCR.
Such agreement or order shall also set forth the
conditions under which the higher and lower legal
regulated rents may be charged, with due consideration
of equities as set forth in section 2522.7 of this
Title (Consideration of Equities).
Paragraph one of subdivision (m) relates to those low and
moderate income projects being developed today which are financed
from multiple funding sources, each with its own statutory rent,
income and time limitations, and which require that more than one
legal regulated rent be established. The governmental agencies
responsible for the development of these projects apply to the
DHCR for an order permitting project owners to register all legal
regulated rents established by the governmental agencies, and
setting forth the conditions under which one or another tier of
the legal regulated rent or a capped rent below one or another
tier may be charged. (A capped rent may be required if
collectible rents are tied to income streams adjusted
periodically by other than guidelines board orders; for example,
shelter allowances adjusted by legislation or percentages of
median income as determined by HUD.) Under this section, all
such rent tiers, once established, are subject to adjustment
pursuant to rent guidelines board and DHCR orders.
Some of the funding sources which may require registration of
more than one legal regulated rent, the current administering
agencies and time limitations include:
1. Housing Trust Fund, administered by DHCR (15-30 year rent
restriction);
2. Homeless Housing Assistance Program ("HHAP"), administered
by the State Department of Social Services (State Financial
Assistance in the form of grants, loans or loan guarantees
pursuant to a minimum 7-year contract);
3. Federal Low Income Housing Tax Credits, administered by HPD
or DHCR (15-30 year rent restriction);
4. Federal Housing Development Action Grants ("HoDAG"),
administered by HPD (20-year rent restriction);
5. Tax Exempt Bonds issued by the New York State Housing
Finance Agency ("HFA") or New York City Housing Development
Corporation ("HDC"); (varies, depending upon bond issuance
dates - minimum 10 years to length of bond term or Section 8
contract term);
6. Low interest loans authorized under the Private Housing
Finance Law administered by HPD (regulated rents in
perpetuity);
7. Municipal Assistance Corporation ("MAC") Subsidies,
administered by Housing Assistance Corporation ("HAC");
(approximately 30-year rent restriction);
8. Administrative Code section 11-243 (formerly J-51-2.5) Tax
Benefits, administered by HPD (12-32) year rent restriction
with a 20-year abatement);
9. Real Property Tax Law Section 421-a Tax Incentives,
administered by HPD (10-year, 15-year or 25-year rent
restriction).
Some conditions under which an owner may be permitted by the
project agency to charge a different tier include:
1. Termination of a subsidy payment, tax benefit or income
stream, such as a shelter allowance: or
2. Change in the income of the current tenant.
Paragraph (2) of subdivision (m) relates to projects which are
subject to regulation by other governmental agencies and which
become subject to rent stabilization upon termination of such
other governmental agency's regulation. Under certain
conditions, upon such termination, more than one legal regulated
rent may be necessary, for example, to preserve an existing low-
income tenancy.
INSTRUCTIONS FOR REGISTRATION OF MULTI-TIER RENTS
An owner authorized, pursuant to a DHCR Multi-Tier Rent Order, to
register more than one rent for a housing accommodation subject
to occupancy and rent restrictions established by a governmental
agency or public benefit corporation should complete the DHCR
Initial Apartment Registration Form and include in the item
entitled, "Legal Registered Rent on the Date the Apartment Became
Subject to the Omnibus Housing Act of 1983" (Item 14 on the
Initial Apartment Registration (form RR-l rev. 6-87), all legal
regulated rents authorized by the agency/ corporation for the
housing accommodation as of the date of initial occupancy or rent
restructuring, whether the rent is paid weekly or monthly, and
the Multi-Tier Rent Order docket number.
In the item entitled, "Actual Rent Paid" (Item 15a on the Initial
Apartment Registration (form RR-l rev. 6-87), the owner should
indicate the actual rent paid on the date of initial occupancy or
rent restructuring as authorized by the agency/corporation. In
the item entitled, "Reason for Difference Between Actual and
Legal Registered Rent (Item 15b on the registration form), the
owner should specify either, (a) "Authorized Tier" - if the rent
paid is one of the legal registered rents indicated in Item 14,
or (b) "Authorized Other Rent" - if the rent paid is a capped
rent required by the agency/corporation.
A copy of the DHCR Multi-Tier Rent Order should be submitted with
to. Initial Registration form. The procedure for the annual
registration is the same, except that the inclusion of a copy of
the Multi-Tier Rent Order is not required.
Upon subsequent renewals, all legal regulated rents shall be
adjusted in accordance with the applicable rent guidelines
increases and any other rent increases authorized pursuant to
Code section 2522.4.
March 27, 1991
ELLIOT G. SANDER
Deputy Commissioner
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DHCR Advisory Opinions are issued by the New York State Division
of Housing and Community Renewal (DHCR) and represent the
agency's interpretation of the rent laws.
On any challenge or appeal, the agency may claim it has wide
"discretion" to interpret the rent laws as it sees fit, as long
as it's interpretation is not arbitrary, capricious or an abuse
of discretion. In such instances, the agency must show it's
interpretation is consistent with past practice and rational.
Discretion is different from mandates where the agency is obliged
to follow certain policies, practices or interpretations.
Mandates are usually based in (and stated in) the law.
In many instances, the agency refuses (or fails) to issue
official interpretations in order to maintain it's discretion. In
practice, such unaccountable discretion is seen by some as an
abuse of the intent of the rent laws.
Electronic versions of the documents on TenantNet
are for informational purposes only and there is no guarantee
they will be accepted by any court (or even DHCR) as true copies
of DHCR policy. The reader is advised to obtain true copies of
these documents from DHCR.
Also see DHCR Policy Statements, DHCR Operational Bulletins, the
Rent Stabilization Code, the Rent Stabilization Law and various
Rent Control Statutes.
Every attempt has been made to conform to the original Advisory
Opinions as issued by DHCR; TenantNet makes no
representation the enclosed material is current or will be
applied as written. The reader is advised that DHCR often fails
to properly apply, interpret or enforce housing laws. Since
housing laws are complex and often contradictory, it is
recommended the reader obtain competent legal advice from a
tenant attorney or counseling from a tenant association or
community group. (rev. 3/13/96) DHCR documents
are public documents; the electronic version of such documents
have been developed by TenantNet and any added value, enhancements
and/or proprietary features are copyright 1994, 1995 and 1996 by
TenantNet. These documents may be freely distributed provided they
remain intact as herein presented, including this and the top
informational banner referencing TenantNet as the original provider.
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For more information or assistance. call the DHCR Rent Infoline
at (718) 739-6400, or visit your Borough Rent Office.
Queens Central Office
92-31 Union Hall St. 4th Fl.
Jamaica, NY 11433
(718) 739-6400
Bronx
One Fordham Plaza
Bronx, NY 10458
(718) 563-5678
Brooklyn
250 Schermerhorn St.
3rd Floor
Brooklyn, NY 11201
(718) 780-9246
Lower Manhattan
156 William Street
9th Floor
NY, NY 10038
(212) 240-6011, 6012
South side of 110th St. and below
Upper Manhattan
163 W. 125th St.
5th Floor
NY, NY 10027
(212) 961-8930
North side of 110th St. and above
Staten Island
350 St. Mark's Place
Room 105
Staten island, NY 10301
(718) 816-0277
Nassau County District Rent Office
50 Clinton Street, 6th Floor
Hempstead, NY 11550
(516) 481-9494
Westchester County District Rent Office
55 Church Street, 3rd Floor
White Plains, NY 10601
(914) 948-4434
Rockland County District Rent Office
94-96 North Main St.
Spring Valley, NY 10977
(914) 425-6575
Albany Regional Office
119 Washington Avenue
Albany, NY 12210
(518) 432-0596
Buffalo Regional Office
Ellicot Square Building
295 Main St., Room 438
Buffalo, NY 14203
(716) 856-1382
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