What this law covers and its purpose

(a) This chapter: (1) Applies to all leases that contain provisions for renegotiation of lease rents for the residential apartment of an apartment owner-occupant. This chapter shall apply whether the leases were executed before December 16, 1991 or are executed from December 16, 1991. This chapter also shall apply to lease rent renegotiations that are concluded after December 16, 1991; (2) Sets a maximum annual renegotiated lease rent for the apartment of an owner-occupant; (3) Allows biennial adjustment of renegotiated lease rent during the renegotiated rent period; (4) Allows the administrative adjustment of renegotiated lease rent for a residential apartment to an amount higher than the applicable maximum. Administrative adjustment is allowed when the lessor pays operating expenses for the apartment; and (5) Establishes a process for certification that a renegotiated lease rent for the residential apartment of an apartment owner-occupant is within the maximum. (b) This chapter does not and shall not be construed as setting a maximum lease rent or adjustment or certification process for lease rent payable during a fixed rent period or for a residential apartment that is not owned by an owner-occupant. Editor’s note: * “December 16, 1991” is substituted for “the effective date of this chapter.”