N.Y.C. Admin. Code tit. 27, ch. 2 § 27-2109.51
Definitions (New York City Housing Maintenance Code)
Operative Text
For the purposes of this article: Capitalization rate. The term "capitalization rate" means, with respect to a multiple dwelling, the quotient obtained when the net operating income of such multiple dwelling, as calculated by the department of finance, is divided by the sale price of such multiple dwelling's most recent arms-length sale. Qualified transaction. The term "qualified transaction" means a multiple dwelling sale transaction as defined by department rule pursuant to subdivision b of section 27-2019.52.* (L.L. 2018/007, 12/31/2017, eff. 12/31/2017) * Editor's note: so in original; citation should likely be to subdivision b of section 27-2109.52 .
Section 27-2109.51 of the N.Y.C. Administrative Code establishes two key definitions used throughout the article governing multiple dwellings. The 'capitalization rate' is a financial ratio calculated by the Department of Finance, dividing a building's net operating income by its most recent arms-length sale price. A 'qualified transaction' refers to a multiple dwelling sale that meets criteria set by departmental rule under the companion provision, Section 27-2109.52(b), with an editorial note acknowledging a likely typographical error in the original enacted text.
Plain English — not legal advice.
Property owners and managers of multiple dwellings in New York City should be aware that the financial metrics defined in §27-2109.51 — particularly the capitalization rate — are calculated by the Department of Finance using official sale and income data, not self-reported figures. Operators who have recently sold or acquired a multiple dwelling may find that the capitalization rate derived from that transaction plays a role in subsequent regulatory determinations under this article. Staying current on Department of Finance assessments and understanding what constitutes a 'qualified transaction' under the rules promulgated pursuant to §27-2109.52(b) is part of informed property management practice.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Section 27-2109.51 sets out foundational definitions — including 'capitalization rate' and 'qualified transaction' — that underpin how the city evaluates the financial condition of multiple dwellings under this article. These definitions can be relevant to tenants when regulatory proceedings involve a building's recent sale or its income-to-value ratio, as those figures may affect housing oversight decisions. Tenants seeking to understand how these definitions apply to their building's situation may find it useful to consult a tenant-rights organization or review materials published by the relevant city agency.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated October 14, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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