N.Y. Comp. Codes R. & Regs. tit. 9, § 2202.13 – Fuel cost adjustments.

(a) Increases or decreases in heating fuel costs, based on findings promulgated by the Division of Housing and Community Renewal for heating fuel price increases and decreases, inclusive of sales and excise taxes and standards for consumption thereof for all types of heating fuels, shall be the bases for rent adjustments; provided, however, no increase shall be authorized unless a report, certification and notice, upon forms prescribed by the administrator, have been served upon the tenant, and the report, with prescribed schedules and proof of service, filed with the Division of Housing and Community Renewal. No increase shall be effective or collectible prior to January 1, 1980.
(b) Such report shall contain a certified statement by the landlord:
1. (1) of the amount of heating fuel delivered in the calendar year immediately prior to the filing of the report;
2. (2) of the type of fuel used, and the total number of rooms in the building;
3. (3) that he has been maintaining and will continue to maintain all essential services provided;
4. (4) that no rent reduction order based upon landlord's failure to provide heat or hot water has been in effect during the prior 12 months;
5. (5) listing any funds received with respect to housing accommodations from any governmental grant program compensating such landlord for fuel price increases during the period for which an adjustment is obtained pursuant to this section;
6. (6) that the landlord shall provide such other information as the agency may require; and
7. (7) in order to qualify for rent increases for any individual housing and accommodations, where the maximum collectible rent, plus the cumulative rent adjustments pursuant to this section, is equal to or exceeds the maximum base rent, plus the cumulative amounts calculated as the annual fuel cost adjustments for such housing accommodations, pursuant to the applicable provisions of paragraphs (c)(1)-(2), (d)(1)-(2) of this section, a separate certification that, on information and belief, he will not be earning an amount in excess of the statutory 8½ percent return, computed in accordance with section Y51-5.0g(1)(a) of the Rent Law, after collection of the rent increase prescribed under this section for that housing accommodation, with respect to one or more buildings serviced by a single heating plant.
(c) The basis for the 1980 rent increases shall be as follows:
1. (1) The heating fuel price increase for the period April 9, 1979 through December 31, 1979 for the particular type of fuel used by the landlord in the building, multiplied by 75 percent of the lesser of:
  1. (i) the amount of heating fuel actually delivered for the building between January 1 and December 31, 1979, divided by the number of rooms in the building to determine the annual fuel consumed per room; or
  2. (ii) the annual maximum fuel consumption standard per room for such particular type of fuel, as promulgated by the city in 1980.
2. (2) Such 1979 fuel consumption standard shall not exceed 230 gallons per room in buildings using heating oils for heat, with comparable unit limitations to be established by the Division of Housing and Community Renewal for other types of heating fuels.
3. (3) The annual fuel cost increase per room shall be divided by 12 to determine the monthly fuel cost increase per room, and that amount shall be multiplied by the number of rooms in each apartment to determine the monthly rent increase.
4. (4) In determining the number of rooms in the entire building for the purposes of this section, stores, offices and other commercial units shall be assigned the same room count as an equivalent area of residential space. Only living rooms, kitchens over 59 square feet in area, dining rooms and bedrooms shall be considered rooms. Bathrooms, foyers, kitchenettes, kitchens 59 square feet or less in area, alcoves, pantries and closets shall not be considered rooms.
(d) The basis for rent adjustment for 1981 and each year subsequent thereto for the period January 1, 1980 to and including December 31, 1980, and annually thereafter, shall be as follows:
1. (1) The heating fuel price increase or decrease promulgated by the Division of Housing and Community Renewal for the particular type of heating fuel for the year immediately preceding the service and filing of the report required under this section, multiplied by the amount of fuel actually delivered to the building during that particular year, and divided by the number of rooms determined in the manner set forth in paragraph (c)(4) of this section.
2. (2) Commencing January 1, 1981, the 1980 annual standard of fuel consumption for buildings using heating oils for heat shall be no more than 225 gallons per room per year, with comparable unit limitations for other types of heating fuels. Such consumption standards for heating oils, with comparable unit limitations for other types of heating fuels, shall be further reduced as follows:
  1. (i) commencing January 1, 1982, by five gallons per room per year for heating oils;
  2. (ii) commencing January 1, 1983, by 10 gallons per room per year for heating oils; and
  3. (iii) commencing January 1, 1984, by 10 gallons per room per year for heating oils.
3. (3) Seventy-five percent of the annual fuel cost increase per room shall be allocated among the apartments in the manner set forth in paragraph (c)(3) of this section.
(e) If the report is served and filed within 60 days of the date of promulgation of the findings of fuel price increase and standards of consumption by the Division of Housing and Community Renewal, the rent adjustment shall be retroactive to and shall become effective as of January first of the calendar year in which the report is filed. If the report is not served and filed within such period, the rent increase shall become effective on the first day of the month immediately following the service and filing. No more than one report may be served or filed within any calendar year. Where a landlord has obtained one or more rent adjustments under this section and there is a finding of fuel price decrease, and the landlord fails to serve and file a report of rent decrease within 60 days of the promulgation of findings, the landlord shall lose all right to collect any rent adjustments granted under this section for a period of 12 months, and the rent decrease shall be retroactive and effective January first of the calendar year in which the finding was promulgated.
(f) A landlord who filed a report under this section containing a false certification shall not be authorized nor eligible to collect any rent adjustment under this section for two years following the date of the order of determination of a false certification and, in addition, any rent adjustment obtained within two years prior to such determination shall not be effective nor collectible for the same two-year period following the date of the determination. Such landlord shall also be subject to any additional penalties imposed by law, including but not limited to the refund of any increases obtained by a false certification under this section.
(g) No increase provided for in this section shall be collectible from a tenant to whom there has been issued a currently valid senior citizen rent increase exemption order, insofar as it exceeds one third of the tenant's monthly disposable income. A senior citizen who applies for a rent increase exemption shall receive an order retroactive to the effective date of the annual fuel cost increase adjustment immediately preceding such application.
(h) In the event a rent reduction order, based upon the landlord's failure to provide heat or hot water to housing accommodations for which a landlord is collecting a rent adjustment provided for in this section, is issued by the Division of Housing and Community Renewal, such rent adjustment shall not be authorized nor collected for the time such rent reduction order remains in effect. In addition, the landlord shall not be authorized nor eligible to collect (1) such rent adjustment and (2) any subsequent rent adjustment provided for in this section, until 12 months after the effective date of the order restoring the maximum rent and terminating the rent reduction.
(i) The increase provided pursuant to this section shall not be incorporated into the maximum base rent or the maximum collectible rent for purposes of calculating percentage adjustments to such rents.
(j) A landlord demanding or collecting a rent adjustment provided for in this section shall, at the time of either the demand or collection of rent, issue to the tenant a rent bill or receipt setting forth the amounts of any fuel cost adjustments separate from the amount of rent otherwise demanded or collected. If the tenant has been issued a currently valid senior citizen rent increase exemption order, the landlord shall also state the amount actually payable by the senior citizen after crediting the exemption.
(k) Any rent adjustment granted pursuant to this section shall be reduced by an amount equal to any governmental grant received by the landlord compensating him for any fuel price increase, prorated for all rental space for which the grant was given or limited; provided, however, that such grant is not required, by the city, the agency or any governmental entity, to be expended for fuel-related repairs or improvements.