Amd §10, Emerg Ten Prot Act of 1974; amd §26-511, NYC Ad Cd
Prohibits an owner from adjusting the amount of preferential rent, rent charged and paid by the tenant which is less than the legal regulated rent for the housing accommodation, upon the renewal of a lease; only allows the owner to make such adjustments upon a vacancy which is not the result of the failure of the owner to maintain a habitable residence.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A3809A
SPONSOR: Wright (MS) TITLE OF BILL: An act to amend the emergency tenant protection act of
nineteen seventy-four and the administrative code of the city of New
York, in relation to the regulation of rents
PURPOSE OR GENERAL IDEA OF BILL:
This bill would prohibit an owner from adjusting the amount of preferen-
tial rent upon the renewal of a lease.
SUMMARY OF SPECIFIC PROVISIONS:
The bill would prohibit owners from increasing a less than legal regu-
lated rent to the legal regulated rent upon a lease renewal; only upon a
tenant's vacancy could an owner increase the less than legal regulated
rent. In addition, such a vacancy may not be caused by an owner or an
agent of the owner's the failure to maintain the housing accommodation
in a habitable condition.
JUSTIFICATION:
As housing costs increase across the City of New York, the displacement
of working families and middle class residents from rent regulated
apartments has resulted in a housing crisis. The displacement of rent
regulated tenants has been aggravated by a landlord's ability to abandon
a preferential rent upon the renewal of a lease.
Prior to a change in law, a preferential rent was permanent for the
duration of a tenancy and could only be increased upon vacancy. Howev-
er, as a result of amendments to the law in 2003, landlords are now
permitted to abandon a discounted, preferential rent and impose the
statutory rent upon vacancy or renewal of a lease. Pursuant to this
provision, tenants throughout New York City have faced sudden and unan-
ticipated rent increases upon lease renewal. As a result, many tenants
cannot pay new rental payments and have been forced out of their rent-
regulated apartments.
Equally problematic is that there is no "clean hands" requirement that a
landlord conduct him/herself responsibly when abandoning a preferential
rent and imposing the maximum rent upon vacancy. If a tenant leaves an
apartment that is uninhabitable due unsanitary conditions, lack of heat,
hot water, electricity, repairs, etc., a landlord can precipitously
increase rent upon the vacancy of an apartment. As such, the law encour-
ages bad actors to deprive tenants of a habitable apartment in order to
benefit from the ability to abandon a preferential rent.
In order to stem the displacement crisis in New York City and preserve
the affordable housing stock available to working families and moder-
ate-income residents, the rent regulation laws are in need of reform.
This proposed amendment of the preferential rent provisions is an impor-
tant step in that direction.
LEGISLATIVE HISTORY:
2014: A.5473 Passed Assembly
2013: A.5473 Passed Assembly
2012: A1364-A - Advanced to Third Reading
2011: A1364 - Referred to Housing
2010: A465-A - Passed Assembly
2009: A465 - Passed Assembly
2008: A10055A - Passed Assembly
FISCAL IMPLICATIONS:
None to State.
EFFECTIVE DATE:
This act shall take effect immediately.
