§ 10-b. Major capital improvements and individual apartment\nimprovements in rent regulated units. (a) Notwithstanding any other\nprovision of law to the contrary, the division of housing and community\nrenewal, the "division", shall promulgate rules and regulations\napplicable to all rent regulated units that shall:\n 1. establish a schedule of reasonable costs for major capital\nimprovements, which shall set a ceiling for what can be recovered\nthrough a temporary major capital improvement increase, based on the\ntype of improvement and its rate of depreciation;\n 2. establish the criteria for eligibility of a temporary major capital\nimprovement increase including the type of improvement, which shall be\nessential for the preservation, energy efficiency, functionality or\ninfrastructure of the entire building, including heating, windows,\nplumbing and roofing, but shall not be for operational costs or\nunnecessary cosmetic improvements. Allowable improvements must\nadditionally be depreciable pursuant to the Internal Revenue Service,\nother than for ordinary repairs, that directly or indirectly benefit all\ntenants; and no increase shall be approved for group work done in\nindividual apartments that is otherwise not an improvement to an entire\nbuilding. Only such costs that are actual, reasonable, and verifiable\nmay be approved as a temporary major capital improvement increase;\n 3. require that any temporary major capital improvement increase\ngranted pursuant to these provisions be reduced by an amount equal to\n(i) any governmental grant received by the landlord, where such grant\ncompensates the landlord for any improvements required by a city, state\nor federal government, an agency or any granting governmental entity to\nbe expended for improvements and (ii) any insurance payment received by\nthe landlord where such insurance payment compensates the landlord for\nany part of the costs of the improvements;\n 4. prohibit temporary major capital improvement increases for\nbuildings with outstanding hazardous or immediately hazardous violations\nof the Uniform Fire Prevention and Building Code (Uniform Code), New\nYork City Fire Code, or New York City Building and Housing Maintenance\nCodes, if applicable;\n 5. prohibit individual apartment improvement increases for housing\naccommodations with outstanding hazardous or immediately hazardous\nviolations of the Uniform Fire Prevention and Building Code (Uniform\nCode), New York City Fire Code, or New York City Building and Housing\nMaintenance Codes, if applicable;\n 6. prohibit temporary major capital improvement increases for\nbuildings with thirty-five per centum or fewer rent-regulated units;\n 7. establish that temporary major capital improvement increases shall\nbe fixed to the unit and shall cease thirty years from the date the\nincrease became effective. Temporary major capital improvement increases\nshall be added to the legal regulated rent as a temporary increase and\nshall be removed from the legal regulated rent thirty years from the\ndate the increase became effective inclusive of any increases granted by\nthe local rent guidelines board;\n 8. establish that temporary major capital improvement increases shall\nbe collectible prospectively on the first day of the first month\nbeginning sixty days from the date of mailing notice of approval to the\ntenant. Such notice shall disclose the total monthly increase in rent\nand the first month in which the tenant would be required to pay the\ntemporary increase. An approval for a temporary major capital\nimprovement increase shall not include retroactive payments. The\ncollection of any increase shall not exceed two percent in any year from\nthe effective date of the order granting the increase over the rent set\nforth in the schedule of gross rents, with collectability of any dollar\nexcess above said sum to be spread forward in similar increments and\nadded to the rent as established or set in future year
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