4203 RENT CEILING UPON TERMINATION OF EXEMPTION AND FOR NEWLY COVERED UNITS

4203.1 A rent ceiling shall be established for each rental unit exempt on April 30, 1985 from the Rent Stabilization Program by § 205(a) of the Act upon the occurrence after that date of any event that causes that rental unit to lose its exempt status under §§ 4106 or 4107.

4203.2 For each rental unit in a housing accommodation exempt from the Rent Stabilization Program pursuant to a building improvement plan of the Apartment Improvement Program under § 205(a)(7) of the Act, the rent ceiling, upon termination of that exemption, shall be the rent established in the schedule of rents authorized by the building improvement plan.

4203.3 For each rental unit in a newly constructed housing accommodation for which the building permit was issued after December 31, 1975, and the construction of which required the demolition of a housing accommodation covered by the Rent Stabilization Program of the Act or prior rent control law, the rent ceiling shall be the rent during the first month of residential rental occupancy, as established by the housing provider.

4203.4 For each condominium rental unit being returned to the rental market after April 30, 1975, and for each cooperative rental unit exempt on that date by § 205(a)(5) of the Act, the rent ceiling upon termination of the exemption shall be the rent ceiling authorized by the Act or prior rent control law during the month immediately preceding the date when the unit became exempt, increased by the amount of each rent ceiling adjustment of general applicability authorized during the exemption period by § 206(b) of the Act or by prior rent control law.

4203.5 Notwithstanding the language of § 4203.4, a housing provider may, in addition, petition the Rent Administrator for a rent ceiling increase to recover the cost of capital improvements made to the unit during the exemption period, and the Rent Administrator shall consider and dispose of such petitions pursuant to § 4210.

4203.6 For each rental unit exempt under § 205(a), of the Act, excluding subsections (2), (5) and (7), the rent ceiling for that unit, upon termination of the exemption, shall be the average rent for the unit during the last six (6) months of the exemption period increased by five percent (5%).

4203.7 The rent ceiling for a rental unit established under § 4203 shall be established on the first to occur of:

(a) The date upon which the housing provider first complies with the registration requirements of § 4101.3; or

(b) The date thirty (30) days following the event which causes the unit to lose its § 205(a) exemption.

SOURCE: Notice of Final Rulemaking published at 33 DCR 1336, 1385-1386 (March 7, 1986); as amended by Notice of Final Rulemaking published at 33 DCR 2656, 2664 (May 2, 1986).