State of New York Codes, Rules and Regulations (NYCRR)
Title 9. Executive Department
Subtitle S. Division of Housing and Community Renewal
Chapter VIII. Rent Stabilization Regulations
Subchapter B. Rent Stabilization Code
Part
2526. Enforcement
2526.1 |
Determination
of legal regulated rents; penalties; fines; assessment of costs;
attorney's fees; rent credits |
2526.2 |
Orders
to enforce the RSL and this Code |
2526.3 |
Injunctions
by Supreme Court |
2526.4 |
Oaths,
subpoenas, hearing officers |
2526.5 |
Confidentiality
of information |
2526.6 |
Inspection
and records |
9
NYCRR Part 2526 Notes
Statutory Authority: N.Y.C.
Administrative Code, §§ 26-511(b), 26-518(a). Added
Part 2526 on 5/01/87.
9
NYCRR § 2526.1
§2526.1 Determination of legal regulated
rents; penalties; fines; assessment of costs; attorney's fees; rent
credits
(a)
(1) Any owner who is found by the DHCR, after a reasonable opportunity
to be heard, to have collected any rent or other consideration in
excess of the legal regulated rent shall be ordered to pay to the
tenant a penalty equal to three times the amount of such excess,
except as provided under subdivision (f) of this section. In no
event shall such treble damage penalty be assessed against an owner
based solely upon the owner's failure to file any timely or proper
rent registration statement. If the owner establishes by a preponderance
of the evidence that the overcharge was not willful, the DHCR shall
establish the penalty as the amount of the overcharge plus interest,
which interest shall accrue from the date of the first overcharge
on or after the base date, at the rate of interest payable on a
judgment pursuant to section 5004 of the Civil Practice Law and
Rules, and the order shall direct such a payment to be made to the
tenant.
(2) A complaint pursuant to this section must be filed with the
DHCR within four years of the first overcharge alleged, and no determination
of an overcharge and no award or calculation of an award of the
amount of an overcharge may be based upon an overcharge having occurred
more than four years before the complaint is filed; additionally:
(i) a penalty of three times the overcharge may not be based
upon an overcharge having occurred more than two years before
the complaint is filed or upon an overcharge which occurred prior
to April 1, 1984; and
(ii) the rental history of the housing accommodation prior to
the four-year period preceding the filing of a complaint pursuant
to this section, and section 2522.3 of this Title, shall not be
examined. This subparagraph shall preclude examination of a rent
registration for any year commencing prior to the base date, as
defined in section 2520.6(f) of this Title, whether filed before
or after such base date. Except in the case of decontrol pursuant
to section 2520.11(r) or (s) of this Title, nothing contained
herein shall limit a determination as to whether a housing accommodation
is subject to the RSL and this Code, nor shall there be a limit
on the continuing eligibility of an owner to collect rent increases
pursuant to section 2522.4 of this Title, which may have been
subject to deferred implementation, pursuant to section 2522.4(a)(8)
in order to protect tenants from excessive rent increases.
(3)
(i) The legal regulated rent for purposes of determining an overcharge
shall be deemed to be the rent charged on the base date, plus
in each case any subsequent lawful increases and adjustments.
(ii) Where the rent charged on the base date cannot be established,
the rent shall be determined by the DHCR in accordance with section
2522.6 of this Title.
(iii) Where a housing accommodation is vacant or temporarily
exempt from regulation pursuant to section 2520.11 of this Title
on the base date, the legal regulated rent shall be the rent agreed
to by the owner and the first rent stabilized tenant taking occupancy
after such vacancy or temporary exemption, and reserved in a lease
or rental agreement; or, in the event a lesser amount is shown
in the first registration for a year commencing after such tenant
takes occupancy, the amount shown in such registration, as adjusted
pursuant to this Code.
(4) Complaints filed prior to April 1, 1984 shall be determined
in accordance with the RSL and Code provisions in effect on March
31, 1984, except that an overcharge collected on or after April
1, 1984 may be subject to treble damages pursuant to this section.
(b) The DHCR shall determine the owner's liability between or among
two or more tenants found to have been overcharged during their
particular occupancy of a housing accommodation, and at its discretion,
may require the owner to make diligent efforts to locate prior tenants
who are not parties to the proceeding, and to make refunds to such
tenants or pay the amount of such penalty as a fine.
(c)
(1) Any affected tenant shall be given notice of and an opportunity
to join in any proceeding commenced by the DHCR pursuant to this
section.
(2) Where a complainant pursuant to this section vacates the housing
accommodation, and the DHCR continues the proceeding, the DHCR shall
give any affected tenant notice of and an opportunity to join in
such proceeding.
(d) An owner who is found to have overcharged by the DHCR may be
assessed and ordered to pay to the tenant as an additional penalty
the reasonable costs and attorney's fees of the proceeding, and
except where treble damages are awarded, interest from the date
of the overcharge occurring on or after April 1, 1984, at the rate
of interest payable on a judgment pursuant to section 5004 of the
Civil Practice Law and Rules.
(e) A tenant may recover any overcharge penalty established by
the DHCR by deducting it from the rent due to the present owner
at a rate not in excess of 20 percent of the amount of the penalty
for any one month's rent. If no such rent credit has been taken,
the order of the DHCR awarding penalties may be entered, filed and
enforced by a tenant in the same manner as a judgment of the Supreme
Court, on a form prescribed by the DHCR, provided that the amount
of the penalty exceeds $1,000 or the tenant is no longer in possession.
Neither of these remedies is available until the expiration of the
period in which the owner may institute a proceeding pursuant to
Part 2530 of this Title.
(f) Responsibility for overcharges.
(1) For overcharges collected prior to April 1, 1984, an owner
will be held responsible only for his or her portion of the overcharges,
in the absence of collusion or any relationship between such owner
and any prior owners.
(2)
(i) For overcharge complaints filed or overcharges collected
on or after April 1, 1984, a current owner shall be responsible
for all overcharge penalties, including penalties based upon overcharges
collected by any prior owner. However, in the absence of collusion
or any relationship between such owner and any prior owner, where
no records sufficient to establish the legal regulated rent were
provided at a judicial sale, or such other sale effected in connection
with, or to resolve, in whole or in part, a bankruptcy proceeding,
mortgage foreclosure action or other judicial proceeding, an owner
who purchases upon or subsequent to such sale shall not be liable
for overcharges collected by any owner prior to such sale, and
treble damages upon overcharges that he or she collects which
result from overcharges collected by any owner prior to such sale.
An owner who did not purchase at such sale, but who purchased
subsequent to such sale, shall also not be liable for overcharges
collected by any prior owner subsequent to such sale to the extent
that such overcharges are the result of overcharges collected
prior to such sale.
(ii) Court-appointed receivers. A receiver who is appointed by
a court of competent jurisdiction to receive rent for the use
or occupation of a housing accommodation shall not, in the absence
of collusion or any relationship between such receiver and any
owner or other receiver, be liable for overcharges collected by
any owner or other receiver, and treble damages upon overcharges
that he or she collects which result from overcharges collected
by any owner or other receiver, where records sufficient to establish
the legal regulated rent have not been made available to such
receiver. Penalties pursuant to this paragraph shall be subject
to the time limitations set forth in paragraph (a)(2) of this
section.
(3) This subdivision shall not be construed to entitle a tenant
to more than one refund for the same overcharge.
(g) The provisions of this section shall not apply to a proceeding
pursuant to section 2522.3 of this Title.
Statutory Authority:
Civil Practice Law & Rules, § 5004, N.Y.C.
Administrative Code, §§ 26-511(b), 26-518(a)
History:
Added § 2526.1 on 5/01/87; amended § 2526.1
heading on 12/20/00; amended § 2526.1(a)(1) on 12/20/00; amended
§ § 2526.1(a)(2) on 12/20/00; amended § 2526.1(a)(3)(i)
on 12/20/00; repealed and added § 2526.1(a)(3)(ii) on 12/20/00;
added § 2526.1(a)(3)(iii) on 12/20/00; amended § 2526.1(f)(2)
on 12/20/00.
9
NYCRR § 2526.2
§ 2526.2 Orders to enforce the RSL and
this Code
(a) Upon notice and reasonable opportunity to be heard,
the DHCR may issue orders it deems appropriate to enforce the RSL
and this Code.
(b) In addition to any other penalties provided for in this Code,
if the DHCR finds that any owner has knowingly violated any provision
of the RSL or this Code, it may assess a penalty of up to $250 for
each such violation against the owner.
(c) If the owner is found by the DHCR:
(1) to have violated an order of the DHCR, the DHCR may impose,
by administrative order after holding a hearing, a penalty in
the amount of $250 for the first such offense and $1,000 for each
subsequent offense; or
(2) to have harassed a tenant to obtain a vacancy of a housing
accommodation, the DHCR may impose, by administrative order after
holding a hearing, a penalty in the amount of:
(i) where the offense was committed prior to July 19, 1997,
up to $1,000 for a first such offense and up to $2,500 for each
subsequent offense or for a violation consisting of conduct
directed at the tenants of more than one housing accommodation;
or
(ii) where the offense is committed on or after July 19, 1997,
not less than $1,000 nor more than $5,000 for each such offense
or for a violation consisting of conduct directed at the tenants
of more than one housing accommodation.
Such order shall be deemed a final determination for the purposes
of judicial review pursuant to Part 2530 of this Title. Such penalty
may, upon the expiration of the period for seeking review pursuant
to article 78 of the Civil Practice Law and Rules, be docketed
and enforced in the manner of a judgment of the Supreme Court;
or
(3) not have utilized a housing accommodation for the purpose
intended under section 2524.4(b)(2) of this Title, the DHCR shall
impose, by administrative order after hearing, a penalty in the
amount of up to $1,000 for each such offense.
(d) Any owner who has been found by the DHCR to have refused to
comply with an order of the DHCR or to have harassed a tenant shall,
in addition to being subject to any other penalties or remedies
permitted by law or by this Code, be barred thereafter from applying
for or collecting any further rent increase for the affected housing
accommodation. The finding by the DHCR that the owner has complied
with such order or that the conduct which resulted in the finding
of harassment has ceased, shall result in the prospective elimination
of the sanctions provided for in this section.
(e) The failure of any owner to pay any fine, penalty or assessment
authorized by the RSL or this Code shall, until such fine, penalty
or assessment is paid, bar an owner from applying for or collecting
any further rent increases for such housing accommodation. The late
payment of any fine, penalty or assessment shall result in the prospective
elimination of such sanction.
Statutory Authority:
Civil Practice Law & Rules, § A78, N.Y.C.
Administrative Code, §§ 26-511(b), 26-518(a)
History:
Added §2526.2 on 5/01/87; amended §2526.2(c)(2)
on 12/20/00.
9
NYCRR § 2526.3
§ 2526.3 Injunctions by Supreme Court
The DHCR may commence proceedings in the Supreme Court
to enjoin violations of the RSL, this Code, or orders issued pursuant
thereto. In any such proceedings, the DHCR shall not be required
to post bond.
Statutory Authority:
N.Y.C. Administrative Code, §§ 26-511(b),
26-518(a)
History:
Added §2526.3 on 5/01/87.
9
NYCRR § 2526.4
§ 2526.4 Oaths, subpoenas, hearing officers
The DHCR may administer oaths, issue subpoenas, conduct
investigations, make inspections and designate officers to hear
and report.
Statutory Authority:
N.Y.C. Administrative Code, §§ 26-511(b),
26-518(a)
History:
Added §2526.4 on 5/01/87.
9
NYCRR § 2526.5
§ 2526.5 Confidentiality of information
The DHCR shall safeguard the confidentiality of information
furnished to it at the request of the person furnishing such information,
unless such information must be made public or available to a governmental
agency in the interest of establishing a record for the future guidance
of persons subject to the RSL.
Statutory Authority:
N.Y.C. Administrative Code, §§ 26-511(b),
26-518(a)
History:
Added §2526.5 on 5/01/87.
9
NYCRR § 2526.6
§ 2526.6 Inspection and records
(a) An owner shall, as the DHCR may from time to time
require, furnish information under oath or affirmation or otherwise,
permit inspection and copying of records and other documents and
permit inspection of any housing accommodations.
(b) An owner shall, as the DHCR may from time to time require,
make and keep records and other documents and make reports.
Statutory Authority:
N.Y.C. Administrative Code, §§ 26-511(b),
26-518(a)
History:
Added §2526.6 on 5/01/87.
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