NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A344
SPONSOR: Rosenthal (MS) TITLE OF BILL: An act to amend the emergency tenant protection act of
nineteen seventy-four, in relation to limited-profit housing companies
and other buildings or structures which received project-based rental
assistance
PURPOSE OR GENERAL IDEA OF BILL:
This legislation protects those tenants who reside in Mitchell-Lama and
project-based Section 8 buildings who owners have bought out of the
Mitchell-Lama program or who no longer have Section 6 contracts with the
United States Department of Housing and Urban Development (HUD).
SUMMARY OF SPECIFIC PROVISIONS:
This bill authorizes New York City or any city, town or village in the
counties of Westchester, Nassau and Rockland to extend the Emergency
Tenant Protection Act (ETPA) to cover rental buildings which: (1) were
owned by limited-profit housing companies which voluntarily dissolved or
which will dissolve in the future, or (2) were covered by rental assist-
ance contracts between their owners and BUD and such contracts expired
or terminated previously or will terminate at some future date.
Section 1 of this bill sets forth Legislative findings and declaration
of emergency.
Section 2 of the bill amends Section 5 of section 4 of Chapter 576 of
the laws of 1974 constituting the emergency tenant protection act of
1974 by adding a new subdivision c to set rents for buildings completed
after January 1, 1974 as the rents charged on January 1, 2007, as subse-
quently adjusted by rent regulation laws, Furthermore, this section
clarifies that the rent setting language with a base date of January 1,
2007, will supersede any agreement made between a tenant and landlord
whether in a lease or another agreement.
Section 3 of the legislation makes it clear that "Unique" or "Peculiar"
circumstances rent increases authorized by the New York City rent
stabilization law and the Emergency Tenant Protection Act are not appli-
cable to Mitchell-Lama or project-based Section 8 buildings whether the
buildings were completed before or after January 1, 1974.
Section 4 of the bill provides that in a city having a population of one
million or more, that the New York City rent law may be amended by local
law or ordinance to provide for the regulation of rents and evictions
and the enforcement of such rent stabilization law with regard to hous-
ing accommodations made subject to such law by a declaration of emergen-
cy made pursuant to this act.
Section 5 sets forth an effective date of immediate and provides that
the law applies to housing accommodations located in buildings or struc-
tures owned by housing companies that dissolved on, before, or after
such date and to housing accommodations in buildings or structures that
were covered projects and had contracts for rental assistance that
expired or were terminated on, before, or after such date; provided that
the amendments to section 5 of the emergency tenant protection act of
nineteen seventy-four made by section two of this act shall expire on
the same date as such act expires and shall not affect the expiration of
such act as provided in Section 17 of chapter 576 of the laws of 1974.
JUSTIFICATION:
Many limited profit housing companies are exercising their option to
buy-out of the Mitchell-Lama Program. Likewise, HUD contracts with the
owners of rental buildings for Section 8 assistance are expiring, being
terminated or not being renewed.
Existing middle income tenants in Mitchell-Lama and Section 8 housing
are faced with eviction if they cannot afford new market rents. Extend-
ing the ETPA to these buildings will ensure that existing tenants can
continue to afford to live in their current apartments. ETPA coverage
will also enable building owners to more readily be eligible for rent
increases under annual ETPA guidelines.
LEGISLATIVE HISTORY:
A.698 of 2013-2014
A.2499 of 2011-2012
A.9230 of 2009-2010
FISCAL IMPLICATIONS:
Most costs of administration of ETPA and rent stabilization are covered
by per unit fees charged to property owners.
EFFECTIVE DATE:
This act shall take effect immediately and shall apply to housing accom-
modations located in buildings or structures owned by housing companies
that dissolved on, before, or after such date and to housing accommo-
dations in buildings or structures that were covered projects and had
contracts for rental assistance that expired or were terminated on,
before, or after such date; provided that the amendments to section 5 of
the emergency tenant protection act of nineteen seventy-four made by
section two of this act shall expire on the same date as such act
expires and shall not affect the expiration of such act as provided in
Section 17 of chapter 576 of the laws of 1974.
STATE OF NEW YORK
________________________________________________________________________
344
2015-2016 Regular Sessions
IN ASSEMBLY(Prefiled)
January 7, 2015
___________
Introduced by M. of A. ROSENTHAL, GOTTFRIED, KAVANAGH, MOSLEY -- read
once and referred to the Committee on Housing
AN ACT to amend the emergency tenant protection act of nineteen seven-
ty-four, in relation to limited-profit housing companies and other
buildings or structures which received project-based rental assistance
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Legislative findings and declaration of emergency. The
2 legislature hereby finds and declares that the serious public emergency
3 which led to the enactment of the existing laws regulating residential
4 rents and evictions continues to exist; that such laws would better
5 serve the public interest if certain changes were made thereto, includ-
6 ing extending to certain cities, towns and villages the authority to
7 provide for the regulation of rents and evictions with regard to housing
8 accommodations that cease or have ceased to be regulated pursuant to
9 article 2 of the private housing finance law, known as the Mitchell-Lama
10 law, or pursuant to project-based section eight contracts entered into
11 with the federal government.
12 The legislature further recognizes that severe disruption of the
13 rental housing market has occurred and threatens to be exacerbated as a
14 result of the abrupt termination of rent and eviction regulation when
15 buildings completed or substantially renovated as family units on or
16 after January first, nineteen hundred seventy-four exit the Mitchell-
17 Lama program or when buildings cease to be subject to project-based
18 section eight contracts. The situation had permitted speculative and
19 profiteering practices and has brought about the loss of vital and irre-
20 placeable affordable housing for working persons and families.
21 The legislature therefore declares that in order to prevent uncertain-
22 ty, potential hardship and dislocation of tenants living in housing
23 accommodations subject to government regulations as to rentals and
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD04008-01-5
A. 344 2
1 continued occupancy as well as those not subject to such regulations,
2 the provisions of this act are necessary to protect the public health,
3 safety and general welfare. The necessity in the public interest for the
4 provisions hereinafter enacted is hereby declared as a matter of legis-
5 lative determination.
6 § 2. Section 5 of section 4 of chapter 576 of the laws of 1974 consti-
7 tuting the emergency tenant protection act of nineteen seventy-four is
8 amended by adding a new subdivision c to read as follows:
9 c. Notwithstanding any other provision of this section, nothing shall
10 prevent the declaration of an emergency pursuant to section three of
11 this act for rental housing accommodations located in buildings or
12 structures which were owned by a company established under article two
13 of the private housing finance law, other than a mutual company, which
14 are no longer owned by such company by reason of a voluntary dissolution
15 pursuant to section thirty-five of such law or for rental housing accom-
16 modations located in buildings or structures defined as covered projects
17 pursuant to section 8 of the United States housing act of nineteen thir-
18 ty-seven, as amended, or any successor statute, and any regulations
19 promulgated thereunder in which rental housing accommodations received
20 project-based rental assistance from the United States department of
21 housing and urban development pursuant to contracts with the owners of
22 such buildings or structures which expired or were terminated. The
23 initial legal regulated rent for housing accommodations located in
24 buildings or structures that were owned by housing companies or that
25 were covered projects previously regulated under the private housing
26 finance law or under federal law, shall be the rent charged to and paid
27 by the tenant in occupancy one hundred eighty days prior to the effec-
28 tive date of a chapter of the laws of two thousand fifteen which added
29 this subdivision or, for accommodations vacant on such date, the most
30 recent rent charged to and paid by a tenant prior to such date, includ-
31 ing any income-related surcharges, as adjusted by all applicable guide-
32 lines increases and other increases authorized by law. The provisions of
33 subdivision a of section nine of this act or of subdivision a of section
34 26-513 of the administrative code of the city of New York shall not
35 apply to any housing accommodation which became subject to this act
36 pursuant to the provisions of this subdivision.
37 § 3. Notwithstanding any provision of law to the contrary, in a city
38 having a population of one million or more, the New York city rent
39 stabilization law of nineteen hundred sixty-nine may be amended by local
40 law or ordinance to provide for the regulation of rents and evictions
41 and the enforcement of such rent stabilization law with regard to hous-
42 ing accommodations made subject to such law by a declaration of emergen-
43 cy made pursuant to this act.
44 § 4. This act shall take effect immediately and shall apply to housing
45 accommodations located in buildings or structures owned by housing
46 companies that dissolved on, before or after such date and to housing
47 accommodations in buildings or structures that were covered projects and
48 had contracts for rental assistance that expired or were terminated on,
49 before or after such date; provided that the amendments to section 5 of
50 the emergency tenant protection act of nineteen seventy-four made by
51 section two of this act shall expire on the same date as such act
52 expires and shall not affect the expiration of such act as provided in
53 section 17 of chapter 576 of the laws of 1974.
