The Loft Law authorizes an Owner who is in compliance with the law to collect rent and to sue tenants in a court of competent jurisdiction for the non-payment of rent. Section 286(2) of the Loft Law states that the rent charged should be the same rent, including escalations, stated in the last lease or rental agreement if the lease or rental agreement remains in effect. If the lease or rental agreement is not in effect or there is no lease or rental agreement, the rent is the rent most recently paid and accepted by the Owner.
The Loft Law allows an Owner to increase the rent for an IMD unit when the Owner achieves a legalization milestone. The amount of the increase depends on when the Owner achieved the milestone. The amount is a percentage of the rent the tenant paid on the effective date of the law, including any escalations.
|Milestone||Increase: achieved before June 1, 2012||Increase: achieved after June 1, 2012||Increase: achieved after June 25, 2019|
The Loft Law authorizes an Owner who has performed legalization work to ask for and receive temporary rent adjustments based on some of the costs of Code Compliance. An Owner may file:
The Loft Board's rules require an Owner to file for this rent adjustment within the nine months after obtaining a residential certificate of occupancy.
See 29 RCNY § 2-01(i)(2), § 2-01(j) through (m) and § 2-01(p) for more information about rent adjustments based on Code Compliance.
After issuance of a residential Certificate of Occupancy, the Owner is eligible for a rent adjustments based on the percentage rent increases established by the RGB. These increases commence on the first day of the first month following the day an Owner submits a Notice of RGB Increase form to the Loft Board.
See 29 RCNY § 2-01(i)(1) for more information on RGB increases.
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