FIGHTING FOR FAIRNESS IN NEW YORK'S HOUSING MARKET DOF

April 2013 Vol. 32 Issue 4 FIGHTING FOR FAIRNESS IN NEW YORK'S HOUSING MARKET DOF Reverses SCRIE Terminations at Urging of RSA Recently, the Department of Finance (DOF) mailed over 6,000 letters alerting owners that their tenants Senior Citizen Rent Increase Exemptions (SCRIE) had been terminated because the tenants had not filed their income certifications with the City. Owners were then placed in the unenviable position of having to bring eviction proceedings in Housing Court against some of the City s most vulnerable tenants in order to have benefits restored or foregoing the lost rental income. However, under DOF policy, even if those benefits were restored they would be restored only prospectively, not retroactively, and the tenants would remain at risk of eviction for the rents due between the termination and renewal of their benefits. While some tenants were only recently terminated due to their failure to re-certify, others had been terminated over the past two years. As a result, RSA contacted DOF and DOF agreed to extend the time for tenants to re-certify for sixty SEMINAR: Purchasing and Managing Rent Regulated Property (Update 2013) Tuesday April 30, 2013 9:00AM 12:00PM See Page 7 for details days until May 24 th and to apply the tax credits retroactively if the tenants qualify. This situation highlights two important points: The City s policy regarding these tenants places the burden of the tenant s non-compliance almost entirely on owners, and The need for owners to track the expiration of SCRIE and Disability Rent Increase Exemption (DRIE) benefits on the DOF website (a separate article on Page 11 of this month s RSA Reporter elaborates on these procedures). In response to RSA s outreach, DOF reviewed its policy. Ordinarily, after a tenant fails to re-certify, DOF is required by law to extend the benefits for six months to allow for the further opportunity to re-certify. However, because DOF did not mail a revocation notice during the six month period to these tenants, the policy was revised to address the current situation. DOF issued the following statement: (Continued on Page 4 ) SAVE THE DATES: Rent Guidelines Board Meetings Schedule Preliminary Vote (Public Meeting): Tuesday, April 30, 2013 at 5:30 PM, Manhattan Public Testimony (Public Meeting): Thursday, June 13, 2013 at 10:00 AM, Manhattan Final Vote (Public Meeting): Thursday, June 20, 2013 at 5:30 PM, TBD (See Page 6 for more information ) CONTENTS: 1 DOF Reverses SCRIE Terminations of Urging by RSA 2 President s Message INSIDE THE RSA 5 Getting to Know RSA Member Raul Quiroz 6 Rent Guidelines Process Begins: Owner Participation is Essential CITY & STATE ROUNDUP 9 Spring 2013 DOS S.A.F.E. Disposal Events 10 TPU: Owners Beware! 11 SCRIE and DRIE: Don t Lose Your Abatement! IN THE COURTS 8 RSA Plays Key Roles at Housing Court Conference 12 New Resources from OCA on the Web 14 Benchmarking and Energy Audit Updates 16 Calendar of Events

MESSAGE FROM RSA PRESIDENT JOE STRASBURG State Budget Approved After several all-nighters by the State Legislature, the 2013-14 budget was passed on-time at the end of March with many compromises by both Republicans and Democrats on hot button issues such as minimum wage and gun controls. With one exception, issues of concern to our industry were not a subject of these budget deliberations and I do not expect housing issues to arise in any substantial way for the remainder of this legislative session. The exception in this budget cycle involved funding for Governor Cuomo s Tenant Protection Unit (TPU). Neither the Assembly nor Senate where willing to keep the $5.4 million line item funding for the TPU, so funding was not included in the budget. Ultimately, the TPU will be funded, but funding will come from other monies that will be reappropriated or rolled over from unused funds from last year. You will not see [TPU funding] in the budget, but the Governor has stated that that provision will be carried out internally with existing resources There will still be a unit, said Assemblyman Vito Lopez (D-Brooklyn), cochair of the Joint Budget Subcommittee on the Environment, Agriculture, and Housing, to the Legislative Gazette. It will be paid for differently. The TPU has increased its enforcement this month by sending out another 300 audit letters requesting additional information from owners regarding their individual apartment improvement rent increases. RSA senior leadership will continue to work with the TPU to make sure that property owners are treated fairly and reasonably. More information about the newest TPU enforcement efforts can be found in an article on Page 10 of this month s RSA Reporter. Rent Registration It s that time of year again: RENT REGISTRATION! I d like to thank RSA Member Eleuterio Sanchez Perocier for being the first to return complete rent registration worksheets! This year in particular, because of increased TPU enforcement, it is important that RSA members are current with their rent registration. The TPU has been targeting owners who have missed filing rent registration with the Division of Housing and Community Renewal (DHCR). According to the TPU, over 14,000 apartment in the City, mostly smaller buildings, have registered because of their efforts. Additionally, timely filing of rent registrations is necessary to avoid rent rollbacks and severe financial penalties. RSA s Rent Registration Service provides a one-step process for everything you need to thoroughly complete your rent registration. Simply provide your rent roll information either on paper or online and RSA will send out tenant notices with a proof of mailing and submit all required forms to DHCR electronically. Remember, DHCR will not accept paper registrations this year, so if you are uncomfortable submitting this important information on the computer, then RSA s Rent Registration is the way to go. More information about how our Rent Registration Service can meet your needs can be found on Page 3. RSA Membership Meetings I d also like to encourage members to come to the Monthly Membership Meetings we have been holding at the RSA offices. These have proven to be an invaluable resource for RSA members. Not only are questions answered by RSA senior staff, but it has become a great forum for owners to share information and their experiences with each other. In addition, many RSA Associate Members have begun to attend to educate members on how they can help them run their buildings more efficiently as well as help them comply with new regulations. Our next Membership (Continued on Page 4 ) Rent Stabilization Association 123 William Street New York, NY 10038-3804 http://www.rsanyc.org (212) 214-9200 Disclaimer: Every effort is made to provide accurate and up-to-date information in RSA publications and bulletins. However, information or advice provided in these publications should not be taken as legal opinions. Always consult your attorney when in doubt. The RSA Reporter is intended for the exclusive use of RSA members. This publication may not be reproduced, in whole or in part, without the written permission of the RSA. The RSA welcomes comments, suggestions and questions from its members. Editor: Jack Freund Assistant Editor: Courtney Ronner Production: Christine Chu. Copyright 2013, Rent Stabilization Association of N.Y.C., Inc., 123 William Street, NY, NY 10038. The RSA Reporter (ISSN #1089-9375) is published monthly (except August) by the Rent Stabilization Association of N.Y.C., Inc., 123 William Street, New York, NY 10038-3804. Periodicals postage paid at New York, NY. POSTMASTER: Send address changes to The RSA Reporter, 123 William Street, 14th Floor, New York, NY 10038-3804. 2 April 2013

INSIDE RSA HOW TO AVOID THE TPU COMING AFTER YOU? REGISTER YOUR APARTMENTS NOW! Governor Cuomo s Tenant Protection Unit (TPU) has been targeting owners who have missed filing rent registration with the Division of Housing and Community Renewal (DHCR). Don t let the TPU trip you up, let RSA handle your rent registration. 2013 Annual Rent Registration New York State law requires stabilized rents to be registered with the Division of Housing and Community Renewal (DHCR) each year. April 1 st rents must be registered by July 31, 2013. Failure to do so can result in rent rollbacks and severe financial penalties. IMPORTANT NOTICE Please make every effort to complete your rent registration prior to June 1, 2013. As a result of processing changes imposed by DHCR, the RSA cannot guarantee that we will be able to process rent registration information submitted after June 1, 2013. If you submit rent registration information to RSA and receive a Correction Worksheet, the RSA will not be able to submit your rent data to DHCR until the corrected information is returned to RSA. Please return Correction Worksheets as soon as possible. RSA, the leading organization providing services and representation for owners of rental properties, has offered annual rent registration services for more than 25 years. We keep you updated on the latest requirements to make mandated rent registrations as quick and efficient as possible. RSA PROVIDES ONE-STEP PROCESSING! Simply submit your tenant rent information online or on a worksheet. RSA does the rest! RSA sends out tenant notices with a proof of mailing and submits all required forms electronically to DHCR. IMPORTANT: RSA Online Rent Registration is now open! If you completed the 2012 Rent Registration using RSA s online service, you will NOT receive a worksheet in the mail. If you would like a hard copy worksheet sent to you in the mail, even though you will be using the online service, please call an RSA Counselor at (212) 214-9200. April 2013 3

MESSAGE FROM RSA PRESIDENT JOE STRASBURG Meeting will be held on Wednesday, May 1, 2013 at the RSA office in Manhattan. RGB Participation Starting this month, the Rent Guidelines Board (RGB) process begins. As you know, this process is one of the single most important factors that affect the economics of your building and business. Property owners MUST be active this year during the entire RGB process. Last year was the first time in many years that property owners had a large presence at the RGB, perhaps equal to or larger than the tenants. As a result, the RGB responded positively by re-instating the minimum rent increase after letting it lapse for several years. We want that momentum to continue, and grow, in 2013. True, the guidelines last year were not as high as they should have been and that is why an even stronger owner presence is necessary this year to show the RGB how important and President s Message (Continued from Page 2 ) vital rent increases are to maintaining the City s housing. The RGB process is a time to make your voice heard as a property owner. On April 18 th, the RGB will release the Price Index of Operating Costs (PIOC), the single most important report that rent increases are based upon. A week after the PIOC is released, the RGB will establish a preliminary range for rent increases on April 30 th. And on June 20, you will have a chance to make your voice heard. Please save the dates located on the cover of the newsletter and plan to attend. If for some reason you cannot attend the Public Hearing, you can still submit written testimony as many owners did last year. If you are unsure of what should be included in your oral or written testimony, contact Courtney Ronner, RSA Director of Communications, for assistance. Ms. Ronner can provide you with bullet points as well as assistance in putting together your individual testimony. Ms. Ronner can be reached at 212-214-9235 or cronner@rsanyc.org. DOF Reverses SCRIE Terminations at Urging of RSA (Continued from Cover ) SCRIE recently sent out many revocation letters to SCRIE tenants who failed to renew benefits because they never returned the pre-populated renewal application mailed to them by SCRIE. In recent years, SCRIE also made calls to tenants who were losing their benefits. As a result of SCRIE not sending out a revocation notice during the six month grace period, DOF is extending a one-time 60 day renewal/appeal process to this population of tenants. Beginning the week of March 24, 2013, SCRIE will be sending a letter to these tenants, as well as their landlords, informing them that if they can present documentation proving eligibility since their benefit expired, SCRIE will reinstate them retroactively to their benefit expiration date. The landlords will be credited tax abatement credit (TAC) on the bill following the reinstatement. This retroactive reinstatement will only be for this group. Going forward this will be the SCRIE process: expires (current procedure) days after lease expires, a reminder notice will be sent to tenant and landlord (NEW) application 90 days after lease expires, a revocation notice will be sent to tenant and landlord (NEW) revocation through 180 days after lease expires (as per 6 month grace period, as defined by law) Please note that all benefits to the landlord stop as soon as the SCRIE benefit expires. Additionally, all benefit approval letters that are sent to tenants and landlords when the benefit is granted clearly indicate the benefit expiration date. DOF s statement makes clear that while the agency has revised its policy with regard to this particular group of tenants, going forward it will terminate the benefits of tenants who do not re-certify. Therefore, while the tenants remain legally responsible for re-certifying, as a practical matter the burden is on owners to ensure that these tenants (or their families on their behalf) fulfill their responsibilities so that owners can continue to receive the tax credits to which they are entitled. All active SCRIE tenants and current TAC information is updated regularly by docket number on the SCRIE website at http://on.nyc.gov/fk5kq6. 4 April 2013

INSIDE RSA Getting to Know RSA Member Raul Quiroz Tell Us a Little Bit About Yourself. I am a native New Yorker, a first generation Argentine-American, and was raised in the beautiful and boisterous borough of The Bronx in the Marble Hill section. I now reside on the ever-shifting border between the Upper West Side and Morningside Heights neighborhoods near Cathedral Parkway. In addition to my property management responsibilities, I also own a live broadcast and news television production company called Digital Broadcasting Systems (DBS). Where are your buildings and how did you come to manage them? I own five buildings total: three in the Upper West Side/Morningside Heights area, one in Washington Heights in Upper Manhattan and the last in the Fordham/ Belmont neighborhood in The Bronx. I have been personally administering and operating the buildings since 2003. I had just recently completed my college studies and my father no longer had the energy to run them all by himself in addition to his main occupation in the food distribution industry. So I was suddenly put in charge of administering the buildings at the ripe age of twenty-three: in other words, baptism by fire. I became responsible for the proper operation, administration, and maintenance of multiple-dwelling residential buildings with nearly one hundred tenants. You recently took part in RSA s PR campaign and recorded a radio commercial. What made you want to get involved in our PR campaign? Why was it important to you? As I grew into the responsibilities, ranging from annual boiler maintenance requirements to understanding the complex and arcane rent regulations that govern our industry, I came to appreciate the difference a concerned property owner could make in improving his/her local community. I had always admired the RSA s mission to protect and defend the small guy. In a city notorious for magnates in the real estate business, the working public has come to believe the misconception that anyone who owns land in New York City is a wealthy and heartless. That delusion is anything but the truth. The current system is driving out small, independent mom & pop shops who cannot afford increases in real estate taxes and water and sewer charges. Most residential property owners that I have encountered are hard-working New Yorkers who are immigrants or first generation Americans, such as myself, hoping to earn additional income. If people took the time to learn and understand what it takes to operate and maintain a building in a city with outdated laws, increasing regulations and RSA member Raul Quiroz in the studio recording one of RSA s radio commercials. capped revenues imposed to cover those costs, I think we would have less vocal RGB rallies every June and more cooperation by all parties to create a better system. I find it important to be involved in the RSA s campaign because if I can assist in creating a better understanding between both tenants and small landlords by educating the public, I firmly believe we can create a better city to live and work in together. Let RSA s Co t & C edit /Te nt S e i g S vi e fulfill yo r t nt e i g d Court & Credit Tenant Screening Service Offers: Credit Histories Available Through All Three Major Credit Bureaus TruAlert Applicant Verification Housing Court/Eviction Reports National Criminal Records Search New York State County/Boro Criminal Records Search National Sex Offender Report Illegal Tenant Report Get Started Today! Please contact: Leo Lehrer, Director of Marketing and Sales at (212) 214-9255 or email LLehrer@rsanyc.org. April 2013 5

INSIDE RSA Rent Guidelines Process Begins: Owner Participation is Essential The annual rent guidelines process has begun with Rent Guidelines Board (RGB) meetings being held to consider staff reports such as the Mortgage Survey, the Owner Income and Expense Report as well as other reports about the housing market and housing affordability. The most important report, however, is always the Price Index of Operating Costs (PIOC), which will be released on April 18th and which inevitably under-estimates the true increase in costs experienced by property owners. Following release of the PIOC, the RGB will vote on Preliminary Guidelines on April 30 th. In recent years, the preliminary guidelines are established as a range of possible rent guideline increases for one- and two-years leases. While the Preliminary Guidelines vote is a public meeting with no opportunity for public comment, this event generally draws a large group of tenant advocates expressing their pleasure or displeasure at various proposals put to a vote. The RSA encourages owners to make their presence felt as well, to avoid the impression that owners are not interested in the results of this process. The real opportunity for property owners occurs on June 13 th when the RGB holds a Public Hearing on the proposed guidelines at which all interested parties have an opportunity to express their views (in contrast to prior years, in which the RGB held two public hearings, there will only be one public hearing this year beginning at 10:00AM. and running into the evening). RSA member involvement is more important than ever this year because there will be two new Public Members sitting on the RGB and it is generally the five Public Members who carry the final vote. The new Public Members need to hear about the issues confronting property owners including the escalation in real estate taxes and water and sewer charges, as well as the unfunded government mandates such as the installation of back-flow prevention devices and the cost of converting to clean burning fuels. Every owner is confronted with their own unique challenges in trying to provide decent housing in New York City, and no one is better able to explain these difficulties than you, the property owner and manager. We encourage all owners to mark June 13 th on your calendar and plan to attend the RGB Public Hearing. Even if you don t plan on testifying, come down to support those owners who will be testifying. This will be your only opportunity to get more reasonable rent guidelines this year. If you cannot attend a Public Hearing, you can still submit written testimony as many owners did last year and it s never too early to do so. If you are unsure of what should be included in your oral or written testimony, contact Courtney Ronner, RSA Director of Communications, for assistance. Ms. Ronner can provide you with bullet points as well as assistance in putting together your individual testimony. Ms. Ronner can be reached at 212-214-9235 or cronner@rsanyc.org. NEXT MEMBERSHIP MEETING: Wednesday, May 1, 2013 from 3:00-4:30PM at the RSA Office 123 William St., 14 th Fl., Manhattan Q&A with RSA senior staff, political/regulatory update and networking. Register by calling 212-214-9243 or via email at mduran@rsanyc.org. 6 April 2013

INSIDE RSA SEMINAR: Purchasing and Managing Rent Regulated Property (Update 2013) Tuesday April 30, 2013 9:00AM 12:00PM New York County Lawyers Association 14 Vesey Street, 2 nd Floor Auditorium New York, NY Check-In: 8:30AM 9:00AM Credits: 3.5 MCLE RSA Member (Non-Attorney): $35 RSA Member (Attorney with CLE): $75 (Non-Member Rates Also Available) This popular seminar will provide an overview of managing and purchasing rent regulated residential property in the City. The program will include information on due diligence, property insurance, tenant screening, improving your bottom line and many other topics. REGISTER NOW Advance registration is recommended. Members can register by visiting the NYCLA website at http://bit.ly/wgauss or by calling NYCLA at 212-267-6646, ext. 215 or 250. April 2013 7

IN THE COURTS RSA Plays Key Roles at Housing Court Conference On March 11 th, RSA s Executive Vice-President Jack Freund and RSA s General Counsel Mitch Posilkin represented the residential real estate industry at an all-day program held at the City Bar Association marking the 40 th anniversary of the creation of the Housing Court. In addition to his participation, Mr. Posilkin was also a member of the Advisory Committee, which assisted in the planning for the event. The program was attended by a large audience of Housing Court judges, administrators from the Office of Court Administration including the Chief Administrative Judge of the State of New York, Judge Gail Prudenti, the Administrative Judge of the Civil Court, Judge Fern Fisher, attorneys representing both owners and tenants, and others. Mr. Freund s panel, entitled Housing Court, the Economics of Rental Housing, and the Quality of Life in NYC, was moderated by Professor Vicki Been from New York University s Law School and Furman Center. In addition to Mr. Freund, the panel included Professor Peter Marcuse from Columbia University, Thomas Waters from the Community Service Society, Professor Matthew Desmond from Harvard University, and Professor Ingrid Gould Ellen from New York University s Furman Center. Mr. Freund emphasized that rising real estate taxes, water and sewer charges, and other government mandates were primarily responsible for RSA s Executive Vice-President Jack Freund driving up rents and creating economic difficulties for both owners and tenants. Mr. Posilkin s panel, entitled The Politics of Housing Court, addressed numerous issues relating to the administration of the Housing Court, including the issue of whether the term of appointment for Housing Court judges, which is currently five years, should be changed. Mr. Posilkin s panel included Judge Judith Gische from the Appellate Division, First Department, Gary Connor, HCR s General Counsel and Chair of the Housing Court Advisory Counsel. The focus of Mr. Posilkin s presentation emphasized that unless there is dramatic improvement in the time frame in which warrants are processed and issued in each borough, and there is an equally dramatic reduction in the numbers of orders to show cause signed by Housing Court judges, it would be premature to discuss lengthening the terms of Housing Court judges. The other panels meeting throughout the day discussed the history and challenges of the Housing Court, the potential use of technology, Housing Courts in other jurisdictions and additional topics relevant to Housing Court operations. Tenants have commenced litigation in New York State Supreme Court, based upon the warranty of habitability, and are seeking class action status on behalf of all tenants in New York State who suffered a loss of services as the result of Superstorm Sandy. In addition, the tenants are seeking to have all property owners included in the proposed class action as defendants. The case, known as Adler v. Ogden CAP Properties, LLC, seeks rent abatements from every residential landlord and/ or management company in the State of New York that accepted and retained rent payments for the period when Hurricane Sandy rendered uninhabitable the residential apartments, or cooperative units, of [tenants]. RSA has joined with the Real Estate Board of New York (REBNY) and the Community Housing Improvement Program (CHIP) to submit an amicus brief to the Court, opposing class certification for both tenants and property owners, arguing that the facts relating to each and every tenant, as well as each and every owner, will vary depending upon the facts and circumstances of each particular instance. For example, a tenant residing on the second floor of a building would have a different claim than a tenant on the thirtieth floor. Similarly, the loss of services in each building, the length of time where services were lost or reduced, and the efforts made by each particular owner to address the loss of electric, water or other services will vary as well. We will keep you apprised of the developments in this case. RSA and the other organizations are represented by Janice MacAvoy, Esq., and Alan Harris, Esq., from the law firm of Fried, Frank, Harris, Shriver & Jacobson. 8 April 2013

CITY & STATE ROUNDUP Spring 2013 DOS S.A.F.E. Disposal Events The NYC Department of Sanitation (DOS) is holding S.A.F.E. (Solvents, Automotive, Flammable, Electronics) Disposal Events this spring to provide NYC residents and owners with a one-stop method to get rid of potentially harmful household products. A list of common harmful household products can be found at http://on.nyc.gov/jwqezr. All events will be held from 10am to 4pm (rain or shine): DATE/TIME BOROUGH LOCATION Sunday, April 7 th 10AM-4PM Sunday, April 14 th 10AM-4PM Saturday, April 20 th 10AM-4PM Sunday, April 28 th 10AM-4PM Brooklyn Staten Island Bronx Manhattan Prospect Park Park Circle, corner of Parkside Ave. & Prospect Park SW; cars approach from Ocean Ave. & Lincoln Rd. Prospect Park Park Circle, corner of Parkside Ave. & Prospect Park SW; cars approach from Ocean Ave. & Lincoln Rd. Yankee Stadium 151 st Street Lot River Ave. and E. 151 st St.; cars approach from E. 150 th St. up River Ave. Columbia University/ Teachers College W. 120 th St between Broadway & Amsterdam Ave.; cars approach from W. 122 nd St. down Amsterdam Ave. Non-Payment Workshop at RSA Wednesday, April 17 th 2013 12:00 4:00PM RSA s offices, 123 William Street, 14 th Floor, Manhattan today, property owners who want to represent themselves or better understand this complex process can t afford to miss RSA s Non- Payment Workshops. The workshops are open to all dues-paid RSA call (212) 214-9243 or email LRichmond@rsanyc.org as soon as possible. April 2013 9

CITY & STATE ROUNDUP The Tenant Protection Unit, established by Governor Cuomo, has initiated its second major round of audits of owners who recently increased their rents by substantially more than the 20% statutory vacancy allowance provided for by State law. According to the TPU, another 300 audit letters were issued in March requesting additional information from owners regarding their individual apartment improvement (IAI) rent increases. One of the major issues with the audits conducted by the TPU is that, for many years, IAI work was done, and records maintained, in accordance with the owner s business practices. While subject to the requirement that they needed to be able to defend against a rent overcharge claim arising from the IAI, each owner did so on an individualized basis. A universal standard for record-keeping to comply with State-initiated audits does not exist. TPU: Owners Beware! costs claimed for the IAI need to be broken down and itemized. This confusion is then exacerbated by the next sentences in the TPU s letter: Many renovations include non-allowable costs which our staff will be unable to segregate if a complete breakdown is not submitted. If the TPU cannot determine which items are allowable, it could result in the entire IAI being found unacceptable, which, in turn, may lead to a finding that the rent is too high and further administrative or legal proceedings. Once again, if the owner is relying upon the affidavit or the documents provided to the owner by the contractor, this segregation of costs is simply unavailable. While the need for these records can be addressed as owners perform IAI work in the future, the information available to owners for work previously performed may not be adequate. As a result, while some owners who performed IAI work may have received and retained invoices explicitly detailing the cost of the work for electrical, plumbing and other costs, other owners were content to receive a general invoice in which such details were not set forth. In October 2012, after RSA had raised this issue with the TPU, the TPU agreed that an affidavit from the owner providing as much information as possible would suffice if a specific breakdown of costs was not available. However, the most recent letter issued by the TPU has only served to further confuse this issue and cause uncertainty for affected property owners. On the one hand, the TPU letter requests all supporting documents that justify the cost of the IAI and a lengthy list of such documents as well as a new requirement (having nothing to do with specifically proving the IAI work) that the owner provide the calculations for the new legal regulated rent. The letter also goes on to state that an owner may submit an affidavit if the itemized breakdown of costs from the contractor is not available. On the other hand, the new letter, immediately after it states that an owner can use the affidavit when the itemized breakdown of costs are not available, provides that the owner s affidavit must provide a breakdown of the cost of the work. Obviously, if the owner is using the affidavit, it is precisely because the documentation which is available to the owner does not provide that breakdown or other requested information. This request for the breakdown is then reiterated in bold print: Please note that all What is the consequence of non-compliance with the TPU audit? Owners who fail to respond initially to the TPU letter or who, in the judgment of the TPU do not respond adequately, will receive at least one if not two follow-up letters from the TPU. In cases where TPU requests further information, they will highlight what they call omissions/discrepancies and require further information, including bills, cancelled checks, contracts and invoices to the extent they were not provided previously. An owner s failure to respond at all will result in a third letter in actuality, a subpoena which adds further legal weight to the TPU s demand for compliance. The consequences for non-compliance remain unclear, although the letter insinuates that the TPU may refer the matter to the Office of Rent Administration for the commencement of an overcharge proceeding if satisfactory documentation is not provided within thirty days. The TPU s efforts serve as a clear indication that Governor Cuomo s Administration is continuing its efforts to aggressively target property owners. RSA is working with the TPU to obtain clarification regarding TPU s requirements for compliance, particularly where the only records available to the owner are not as specific as the TPU seems to require. As further information on this issue becomes available we will provide further information in the RSA Reporter and via e-mail blasts. A copy of the letter can be viewed at http://bit.ly/zf7qrk. 10 April 2013

CITY AND STATE ROUNDUP SCRIE and DRIE: Don t Lose Your Abatement! Many RSA members have tenants who take advantage of the Disability Rent Increase Exemption (DRIE) program and the Senior Citizen Rent Increase Exemption (SCRIE) program, City-run programs offered to income eligible tenants for exemptions on future rent increases by freezing their rents. Once rent is frozen for the tenant, the City gives owners a property tax abatement credit (TAC) for the amount of the difference between their frozen rent and current legal rent. In recent months, RSA members have run into issues with SCRIE and DRIE because their tenants did not re-certify their annual benefits and, as a result, the Department of Finance (DOF) has terminated the benefits. Owners are encouraged to put internal mechanisms in place to track the benefit expiration date and encourage tenants to re-apply for benefits in a timely manner to prevent expiration of benefits. When eligible tenants initially apply for SCRIE/DRIE benefits, they will receive an approval letter notifying them of the frozen rent amount; at the same time, property owners should receive a similar letter from DOF. Upon approval, the tenant s benefit begins on the first day of the month after SCRIE received the application (Example: SCRIE receives an application on January 15, 2013 and the tenant is approved, benefits start on February 1, 2013). Once accepted to the program, SCRIE tenants are given a docket number and a DRIE tenant is given a DRIE ID number. It is important to keep track of these numbers as it is the best way to identify SCRIE/DRIE tenants if problems arise with the DOF. The expiration dates of SCRIE/DRIE benefits depend on the type of housing a tenant lives in: Rent regulated tenants: benefit expiration date is the same as the date their current lease expires. For example, if they apply on May 15, 2012 and their current lease expires May 31, 2013, their DRIE/SCRIE benefit will also expire May 31, 2013. SRO: benefit expiration date is the same as the expiration date on their demand/ increase notice or lease. For example, if they apply on May 15, 2012 and their current rent demand increase notice or lease expires on May 31, 2013, their DRIE/SCRIE benefit will also expire on May 31, 2013. Rent control tenants: benefits expire on December 31 of the next odd-numbered year. For example, if they apply on May 15, 2012 their DRIE/SCRIE benefit will expire on December 31, 2013. DRIE tenants residing in Mitchell-Lama, Limited Dividend, Redevelopment, Section 213 cooperative, or HDFC cooperative apartments: benefit expiration date is one year after their DRIE effective date. For instance, if their DRIE effective date is May 1, 2012, the expiration date will be April 30, 2013. The burden of renewing SCRIE/DRIE benefits rests entirely on the tenant, however; there are ways that owners can help tenants renew in a timely manner. As the expiration date approaches, DOF will mail a renewal application to the tenants approximately 60 days before the DRIE/SCRIE benefit expiration date. According to the DOF, owners can help their tenants renew their SCRIE/DRIE benefits by completing the following required processes in a timely manner and encouraging tenants to file these documents (which demonstrate an increase in the legal collectable rent) with DOF: such as renewal leases for rent stabilized tenants and DHCR-issued orders for rent controlled tenants. in April and filing appropriate building and rental information. Owners of rent controlled apartments can apply for Maximum Base Rent adjustments every two years. are served to tenants timely. MCI worksheets should not be substituted for the actual MCI order. Owners can check the status of a tenant s renewal application for both programs. For SCRIE tenants, DOF publishes a tenant status report on its website at http://on.nyc.gov/fk5kq6 that is updated approximately every 1-2 weeks. There is a report for each borough and it is sorted by Borough, Block and Lot (BBL). Tenants are identified by docket numbers, rather than names, for privacy considerations. For DRIE, owners may email DRIE@finance.nyc.gov or contact 311. Owners are legally required to continue a tenant s DRIE/SCRIE benefits for 6 months after the DRIE/SCRIE benefit expires, even if a tenant has not yet been renewed. If owners have questions about SCRIE/DRIE benefits, they can call 311 or e-mail the appropriate program at DRIE@ finance.nyc.gov or SCRIE@finance.nyc.gov. In addition, there is also a SCRIE/DRIE Walk-In Center located at 66 John Street, 3 rd Floor open Monday through Friday from 8:30AM-4:30PM. April 2013 11

IN THE COURTS New Resources from OCA on the Web The New York State Office of Court Administration (OCA) has launched a new website with additional resources available to owners to help them navigate the Housing Court system. Social media components have also been added to the OCA website such as Facebook, Twitter and YouTube. While there is much content on the website for tenants who are not represented by counsel, information is available on the new website and through social media that is relevant to owners. Much of the website is in Spanish as well as English and includes links to other websites that provide useful information for owners. The resources for owners and their location on the Court website are briefly summarized below. The Welcome Page is the portal for information on the Housing Court. A column on the left contains links to the various resources. The publication How to Prepare for a Landlord Tenant Trial. A guide for both owners and tenants, and a second publication, titled A Landlord s Guide to Housing Court, is designed for owners and can be downloaded from the Videos, Publications and Community Seminars page. Owners should read both guides before commencing eviction proceedings. The Legal and Procedural Information page contains links to the individual web pages of Information on Nonpayment Proceedings; Information on Holdovers Proceedings; Housing Court Forms; Directives & Advisory Notices; Locations & Phone Listings and; Definitions. The Legal Information page provides owners with information on how to bring eviction proceedings, relevant court procedures as well as the locations/hours of courthouses in each of the boroughs. The Court hours are subject to change due to the State budget cuts. The Representing Yourself page includes links to webpages which provide additional information on resources available to owners such as, free court forms, legal research resources, and information on how owners can look up their cases on the Court computer system. While the information on the Court website is not a substitute for an attorney, it is a useful resource. Owners who would like additional information on Housing Court proceedings can sign up for one of RSA s free nonpayment workshops run by the Administrator of RSA s Legal Plan, Howard Stern, Esq. The next workshop is scheduled for April 17 th at the RSA office in Manhattan. To register for the workshop, RSA members should call at 212-214-9243 to reserve a spot. RSA always recommends that owners retain counsel to represent them in Housing Court before commencing any legal proceedings. However, if owners are familiar with the Housing Court process, and have the information required to commence a summary proceeding, owners can help to streamline the process and save on legal fees. Owners who do not have internet access may use the computers available in the Housing Court Help Centers in the courthouses. Housing Court help Centers are available in every borough and can be located on the web at http://bit.ly/9xskdo or by calling 311. VALUABLE RESOURCES FOR OWNERS FROM THE HOUSING COURT WEBSITE: http://bit.ly/9xskdo http://bit.ly/xepqbf http://bit.ly/skq9we http://bit.ly/ztayzx http://bit.ly/tpcat6 http://bit.ly/xafqo4 http://bit.ly/ydyia2 http://bit.ly/wuda4v http://bit.ly/zp1lfi http://bit.ly/16fywdp http://bit.ly/izdnf1 http://bit.ly/10m44of http://bit.ly/xet4vf 12 April 2013

IN THE COURTS April 2013 13

CITY & STATE ROUNDUP Benchmarking and Energy Audit Updates The Greener, Greater Buildings Plan (GGBP), a program established to target energy efficiency in Updates and Announcements LL 84 Benchmarking: annual requirement to benchmark energy and water consumption. Con Ed Aggregated Data Request: If someone is requesting information on behalf of a building owner, the request must be accompanied by a letter of authorization (LOA) to Con Ed. In the LOA, the property owner must clearly indicate the location (service address) and account number that is being permitted. Previous years LOAs may be used as long as all identifying information was included. Verify the account number is written correctly or the aggregate data request may not be processed. The account number should be for a common area associated with the service address, and written as 14 digits, no dashes. Do not send multiple requests for the same service address. Please make sure requests are in by April 15 to allow time for processing. More information about the proper procedure for requesting aggregated utility data from Con Ed, including the request form, where to send payments and FAQs, and may be found at http://bit.ly/vtjh6y. National Grid Aggregated Data Request: If someone is requesting on behalf of a building owner, the request must be accompanied by a letter of authorization (LOA) to National Grid. In the LOA, the property owner must clearly indicate the location (service address) and account number that is being permitted. National Grid will NOT accept previous years LOAs. Portfolio Manager Upgrade Webinars: Register for a free webinar from the US EPA called What to Expect from the New Portfolio Manager at one of the following times: th @ 12:00pm: http://bit.ly/13ak3vc th @ 3:00pm: http://bit.ly/16kbspx th @ 12:00pm: http://bit.ly/xjzyxn th @ 3:00: http://bit.ly/ygumht April at www.energystar.gov/pmupgrade. conduct an energy audit and perform retro-commissioning once every 10 years. Outreach by Urban Green Council: Register for the next public presentations about Local Law 87, hosted by the Urban Green Council: Tuesday April 23 rd @ 6:00pm : http://bit.ly/10up2fo Thursday May 9, 6:00 7:30pm: http://bit.ly/wyvx6z Request a private LL 87 presentation for your organization by emailing programs@ urbangreencouncil.org. View the latest LL 87 Audits & Retro-commissioning Compliance Checklist and presentation at www. urbangreencouncil.org/ggbpeducation. 14 April 2013

INSIDE RSA April 2013 15

Periodical Postage Paid NY NY APRIL MAY CALENDAR April 1 Rent Registration Begins Between April 1 and July 31 you must file Annual Apartment Registration (form RR-2A) and Annual Registration Summary (form RR-2S) with HCR for all rent stabilized apartments, with copies of registrations served on tenants. Use RSA Rent Registration Service, See Page 3. Pay N.Y.C. Property Tax For properties assessed at $80,000 or less, your last 2012 2013 is due to N.Y.C. Dept. of Finance Flushing of Sidewalks Permitted Between April 1 and November 1 and between the hours of 7 PM to 11AM (unless superseded by drought regulations). April 17 Non-Payment Workshop Lisa Richmond at (212) 214-9243 to register. April 30 RSA Seminar: Purchasing and Managing Rent Regulated Property (Update 2013) 9AM 12PM at the New York County Lawyers Association, 14 Vesey Street 2 nd Floor, Manhattan. See Page 7 for details. April 30 RGB Preliminary Vote 5:30PM at Alexander Hamilton U.S. Customs House, 1 Bowling Green, Manhattan. May 1 RSA Monthly Membership Meeting 3PM egister by calling 212-214-9243 or via email at mduran@rsanyc.org. Final J-51 Applications For tax abatements and exemptions with HPD. The May 1 to June 17. May 24 Final Determination of the Tax Commission If no other action is taken on an application for correction, the assessment is deemed confirmed. A Commission must begin on or before October 26. Final Assessment Roll Available on City website:. May 27 Memorial Day Building Service Employees Union and Sanitation Workers holiday. No garbage pick-up. No street cleaning. CITY, STATE AND RSA OFFICES CLOSED.