S00799 Summary:

BILL NOS00799
 
SAME ASNo same as
 
SPONSORSQUADRON
 
COSPNSRAVELLA, HOYLMAN
 
MLTSPNSR
 
Amd SS26-405, 26-511 & 26-504.2, NYC Ad Cd; amd SS5 & 6, Emerg Ten Prot Act of 1974; amd S4, Emerg Hous Rent Cont L
 
Relates to adjustment to the maximum allowable rent.
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S00799 Actions:

BILL NOS00799
 
01/09/2013REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT
01/08/2014REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT
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S00799 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                           799
 
                               2013-2014 Regular Sessions
 
                    IN SENATE
 
                                       (Prefiled)
 
                                     January 9, 2013
                                       ___________
 
        Introduced  by Sen. SQUADRON -- read twice and ordered printed, and when
          printed to be committed to the Committee on Housing, Construction  and
          Community Development
 
        AN  ACT  to  amend  the administrative code of the city of New York, the

          emergency tenant protection act  of  nineteen  seventy-four,  and  the
          emergency housing rent control law, in relation to adjustment of maxi-
          mum allowable rent
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Subparagraph (e) of paragraph 1 of subdivision g of section
     2  26-405 of the administrative code of the city of New York, as amended by
     3  section 15 of part B of chapter 97 of the laws of 2011,  is  amended  to
     4  read as follows:
     5    (e)  The  landlord  and  tenant  by mutual voluntary written agreement
     6  agree to a substantial increase or  decrease  in  dwelling  space  or  a
     7  change  in the services, furniture, furnishings or equipment provided in
     8  the housing accommodations. An adjustment under this subparagraph  shall

     9  be equal to [one-fortieth, in the case of a building with thirty-five or
    10  fewer housing accommodations, or] one-sixtieth[, in the case of a build-
    11  ing with more than thirty-five housing accommodations where such adjust-
    12  ment  takes  effect  on  or  after September twenty-fourth, two thousand
    13  eleven,] of the total cost incurred by the landlord  in  providing  such
    14  modification   or  increase  in  dwelling  space,  services,  furniture,
    15  furnishings or  equipment,  including  the  cost  of  installation,  but
    16  excluding  finance  charges, provided further that an owner who is enti-
    17  tled to a rent increase pursuant to this subparagraph shall not be enti-
    18  tled to a further rent increase based upon the installation  of  similar
    19  equipment,  or  new  furniture  or furnishings within the useful life of

    20  such new equipment, or new furniture or  furnishings.  The  owner  shall
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD00251-02-3

        S. 799                              2
 
     1  give  written  notice  to  the  city  rent agency of any such adjustment
     2  pursuant to this subparagraph; or
     3    §  2.  Paragraph 13 of subdivision c of section 26-511 of the adminis-
     4  trative code of the city of New York, as amended by section 16 of part B
     5  of chapter 97 of the laws of 2011, is amended to read as follows:
     6    (13) provides that an owner is entitled to a rent increase where there
     7  has been a substantial modification or increase of dwelling space or  an

     8  increase  in  the services, or installation of new equipment or improve-
     9  ments or new furniture or furnishings provided in or to a tenant's hous-
    10  ing accommodation, on written tenant consent to the  rent  increase.  In
    11  the  case of a vacant housing accommodation, tenant consent shall not be
    12  required.
    13    (a) The permanent  increase  in  the  legal  regulated  rent  for  the
    14  affected  housing accommodation shall be [one-fortieth, in the case of a
    15  building with thirty-five or fewer housing accommodations, or]  one-six-
    16  tieth[,  in  the  case  of a building with more than thirty-five housing
    17  accommodations where such permanent increase takes effect  on  or  after
    18  September  twenty-fourth,  two  thousand  eleven,]  of  the  total  cost
    19  incurred by the landlord in providing such modification or  increase  in

    20  dwelling space, services, furniture, furnishings or equipment, including
    21  the cost of installation, but excluding finance charges.
    22    (b)  Provided further that an owner who is entitled to a rent increase
    23  pursuant to this paragraph shall not  be  entitled  to  a  further  rent
    24  increase based upon the installation of similar equipment, or new furni-
    25  ture or furnishings within the useful life of such new equipment, or new
    26  furniture or furnishings.
    27    (c)  No  increase  shall be collectible under this paragraph until the
    28  landlord has provided the tenant with a rider pursuant to subdivision  d
    29  of this section, including an explanation of how the rent in the vacancy
    30  lease  has  been  computed, and the specific amounts of all expenditures
    31  supporting a rent increase under this paragraph.

    32    (d) No increase shall be collectible under this   paragraph where  the
    33  division  of housing and community renewal has determined that the owner
    34  is not maintaining all building-wide required services or  all  required
    35  services  with  respect  to the affected housing accommodation, or where
    36  there are current hazardous violations of any municipal,  county,  state
    37  or federal law which relate to the maintenance of such services.
    38    (e)  Within  thirty days of the signing of a vacancy lease including a
    39  rent increase pursuant to this paragraph that exceeds ten percent of the
    40  rent charged to the previous tenant, the owner will file with the  divi-
    41  sion  of housing and community renewal an explanation of how the vacancy

    42  rent was computed, and all documents necessary to support the collection
    43  of such increase,  including  but  not  limited  to,  cancelled  checks,
    44  invoices  and  signed  contracts contemporaneously with the improvements
    45  alleged, and contractor's affidavits indicating  that  the  installation
    46  was  completed and paid in full. Upon receipt of all documents submitted
    47  by the owner, and after giving the tenant named in such vacancy lease an
    48  opportunity to respond, the division of housing  and  community  renewal
    49  shall issue an order approving or disapproving such increase in whole or
    50  in  part.  Based  upon  such  determination, the division of housing and
    51  community renewal shall order a refund to the tenant equal to the amount

    52  collected in excess of the legal regulated rent approved by the division
    53  of housing and community renewal.
    54    (f) If the owner fails to establish by a preponderance of the evidence
    55  that the overcharge was not willful, the division of  housing and commu-

        S. 799                              3
 
     1  nity renewal shall order the owner to pay to the  tenant  an  additional
     2  amount equal to three times the excess charged.
     3    (g)  The  next  annual  registration  statement  filed for any housing
     4  accommodation subject to an increase under this  paragraph,  whether  or
     5  not  subject  to  the  provisions  of subparagraph (e) of this paragraph
     6  shall contain a detailed breakdown of  the  costs  of  all  improvements

     7  underlying such increase.
     8    § 3. Paragraph 2 of subdivision d of section 26-511 of the administra-
     9  tive  code  of  the city of New York is renumbered paragraph 3 and a new
    10  paragraph 2 is added to read as follows:
    11    (2) For vacancy leases, such rider shall also include a notice of  the
    12  prior  legal  rent,  if any, that was in effect immediately prior to the
    13  vacancy, an explanation of how the  rental  amount  has  been  computed,
    14  including  a  detailed  breakdown of the nature and cost of any improve-
    15  ments underlying an increase under paragraph thirteen of  subdivision  c
    16  of  this  section,  and a statement that any increase above the previous
    17  rent is in accordance with adjustments permitted by law.
    18    § 4. Paragraph 1 of subdivision d of section 6 of section 4 of chapter

    19  576 of the laws of 1974, constituting the  emergency  tenant  protection
    20  act  of  nineteen  seventy-four,  as  amended by section 18 of part B of
    21  chapter 97 of the laws of 2011, is amended to read as follows:
    22    (1) there has been a substantial modification or increase of  dwelling
    23  space  or  an increase in the services, or installation of new equipment
    24  or improvements or new furniture or furnishings, provided  in  or  to  a
    25  tenant's  housing  accommodation,  on written tenant consent to the rent
    26  increase. In the case of a vacant housing accommodation, tenant  consent
    27  shall not be required. (a) The permanent increase in the legal regulated
    28  rent  for  the affected housing accommodation shall be [one-fortieth, in
    29  the case of a building with thirty-five or fewer housing accommodations,

    30  or] one-sixtieth[, in the case of a building with more than  thirty-five
    31  housing  accommodations where such permanent increase takes effect on or
    32  after September twenty-fourth, two thousand eleven,] of the  total  cost
    33  incurred  by  the landlord in providing such modification or increase in
    34  dwelling space, services, furniture, furnishings or equipment, including
    35  the cost of  installation,  but  excluding  finance  charges.  [Provided
    36  further  that an] (b) An owner who is entitled to a rent increase pursu-
    37  ant to this paragraph shall not be entitled to a further  rent  increase
    38  based  upon  the  installation of similar equipment, or new furniture or
    39  furnishings within the useful life of such new equipment, or new  furni-

    40  ture  or  furnishings.  (c)  The  owner shall give written notice to the
    41  division of housing and community renewal and  the  tenant  named  in  a
    42  vacancy lease on forms prescribed by the division of any such adjustment
    43  pursuant  to  this  paragraph  and  the  failure to provide such written
    44  notice as provided herein shall preclude  the  collection  of  any  such
    45  adjustment.  Such notice must include a detailed breakdown of the nature
    46  and cost of any improvements underlying an increase in rent  under  this
    47  paragraph  and  a statement that any increase above the previous rent is
    48  in accordance with adjustments permitted by law. (d) No  increase  shall
    49  be  collectible  under  this paragraph where the division of housing and

    50  community renewal has determined that the owner is not  maintaining  all
    51  building-wide required services or all required services with respect to
    52  the affected housing accommodation, or where there are current hazardous
    53  violations  of  any municipal, county, state or federal law which relate
    54  to the maintenance of such services.   (e) Within  thirty  days  of  the
    55  signing  of  a  vacancy lease including a rent increase pursuant to this
    56  paragraph that exceeds ten percent of the rent charged to  the  previous

        S. 799                              4
 
     1  tenant,  the owner will file with the division an explanation of how the
     2  vacancy rent was computed, and all documents necessary  to  support  the

     3  collection  of  such  increase,  including but not limited to, cancelled
     4  checks,   invoices  and  signed  contracts  contemporaneously  with  the
     5  improvements alleged, and contractor's affidavits  indicating  that  the
     6  installation  was  completed and paid in full. Upon receipt of all docu-
     7  ments submitted by the owner and after giving the tenant  named  in  the
     8  vacancy  lease  an  opportunity  to respond, the division shall issue an
     9  order approving or disapproving such increase in whole or in part. Based
    10  upon such determination, the division shall order a refund to the tenant
    11  equal to the amount collected in excess  of  the  legal  regulated  rent
    12  approved  by  the  division.    (f) If the owner fails to establish by a

    13  preponderance of the evidence that the overcharge was not  willful,  the
    14  division shall order the owner to pay to the tenant an additional amount
    15  equal  to three times the excess charged.  (g) The next annual registra-
    16  tion statement  filed  for  any  housing  accommodation  subject  to  an
    17  increase  under this paragraph, whether or not subject to the provisions
    18  of subparagraph (e) of this paragraph shall contain a detailed breakdown
    19  of the costs of all improvements underlying such increase.
    20    § 5. Clause 5 of the second undesignated paragraph of paragraph (a) of
    21  subdivision 4 of section 4 of chapter 274 of the laws of  1946,  consti-
    22  tuting  the emergency housing rent control law, as amended by section 25
    23  of part B of chapter 97 of the laws of  2011,  is  amended  to  read  as
    24  follows:

    25    (5)  the  landlord  and  tenant  by mutual voluntary written agreement
    26  agree to a substantial increase or  decrease  in  dwelling  space  or  a
    27  change  in the services, furniture, furnishings or equipment provided in
    28  the housing accommodations; provided that an owner shall be entitled  to
    29  a  rent  increase  where  there  has  been a substantial modification or
    30  increase of dwelling space or an increase in the services, or  installa-
    31  tion  of  new  equipment or improvements or new furniture or furnishings
    32  provided in or  to  a  tenant's  housing  accommodation.  The  permanent
    33  increase  in  the  maximum  rent  for the affected housing accommodation
    34  shall be [one-fortieth, in the case of a building  with  thirty-five  or
    35  fewer housing accommodations, or] one-sixtieth[, in the case of a build-

    36  ing  with more than thirty-five housing accommodations where such perma-
    37  nent increase takes effect on  or  after  September  twenty-fourth,  two
    38  thousand  eleven,] of the total cost incurred by the landlord in provid-
    39  ing such modification or increase in dwelling  space,  services,  furni-
    40  ture,  furnishings or equipment, including the cost of installation, but
    41  excluding finance charges provided further that an owner who is entitled
    42  to a rent increase pursuant to this clause shall not be  entitled  to  a
    43  further  rent increase based upon the installation of similar equipment,
    44  or new furniture or furnishings within  the  useful  life  of  such  new
    45  equipment, or new furniture or furnishings. The owner shall give written
    46  notice to the commission of any such adjustment pursuant to this clause;
    47  or

    48    §  6.  Section  26-504.2 of the administrative code of the city of New
    49  York is amended by adding a new subdivision c to read as follows:
    50    c. Notwithstanding anything  in  subdivision  a  of  this  section  or
    51  subparagraph  (k) of paragraph two of subdivision e of section 26-403 of
    52  this title to the contrary, the failure of the owner to comply with  the
    53  requirements  of subdivision b of this section shall result in the hous-
    54  ing accommodation remaining subject to the provisions of this law or the
    55  city rent and rehabilitation law at the last regulated  rent  until  the
    56  owner complies with the requirements of subdivision b of this section.

        S. 799                              5
 
     1    § 7. The opening paragraph of paragraph 13 of subdivision a of section

     2  5  of  section  4  of  chapter 576 of the laws of 1974, constituting the
     3  emergency tenant protection act of nineteen seventy-four  is  designated
     4  subparagraph  (i)  and two new subparagraphs (ii) and (iii) are added to
     5  read as follows:
     6    (ii)  The  owner  of  any housing accommodation that is not subject to
     7  this act pursuant to the provisions of subparagraph (i)  of  this  para-
     8  graph or paragraph (n) of subdivision two of section two of the emergen-
     9  cy  housing rent control law shall give written notice certified by such
    10  owner to the first tenant of that housing accommodation after such hous-
    11  ing accommodation becomes exempt from the provisions of this act or  the
    12  emergency  housing  rent control law. Such notice shall contain the last

    13  regulated rent, the  reason  that  such  housing  accommodation  is  not
    14  subject  to this act or the emergency housing rent control law, a calcu-
    15  lation of how either the rental amount charged when there is no lease or
    16  the rental amount provided for in the lease has been derived  so  as  to
    17  reach  two thousand dollars or more per month, a statement that the last
    18  legal regulated rent or the maximum rent may be verified by  the  tenant
    19  by  contacting  the  state division of housing and community renewal, or
    20  any successor thereto, and the address  and  telephone  number  of  such
    21  agency, or any successor thereto. Such notice shall be sent by certified
    22  mail within thirty days after the tenancy commences or after the signing

    23  of  the lease by both parties, whichever occurs first or shall be deliv-
    24  ered to the tenant at the signing of the lease. In addition,  the  owner
    25  shall  send  and certify to the tenant a copy of the registration state-
    26  ment for such housing accommodation filed with  the  state  division  of
    27  housing and community renewal indicating that such housing accommodation
    28  became  exempt  from the provisions of this act or the emergency housing
    29  rent control law, which form shall include the last regulated rent,  and
    30  shall  be  sent  to  the  tenant  within  thirty  days after the tenancy
    31  commences or the filing of such registration, whichever occurs later.
    32    (iii) Notwithstanding anything in subparagraph (i) of  this  paragraph

    33  or  paragraph  (n)  of  subdivision  two of section two of the emergency
    34  housing rent control law to the contrary, the failure of  the  owner  to
    35  comply  with  the  requirements  of  subparagraph (ii) of this paragraph
    36  shall result in the  housing  accommodation  remaining  subject  to  the
    37  provisions  of this act or the emergency housing rent control law at the
    38  last regulated rent until the owner complies with  the  requirements  of
    39  subparagraph (ii) of this paragraph.
    40    §  8.  This  act shall take effect on the ninetieth day after it shall
    41  have become a law; provided that:
    42    (a) sections six and seven of this act shall take effect on the  thir-
    43  tieth day after this act shall have become a law;
    44    (b)  the  amendments  to section 26-405 of the city rent and rehabili-

    45  tation law made by section one of this act shall remain  in  full  force
    46  and effect only as long as the public emergency requiring the regulation
    47  and control of residential rents and evictions continues, as provided in
    48  subdivision  3  of section 1 of the local emergency housing rent control
    49  act;
    50    (c) the amendments to chapter 4 of title 26 of the administrative code
    51  of the city of New York made by sections two, three and six of this  act
    52  shall  expire  on the same date as such law expires and shall not affect
    53  the expiration of such law as provided under section 26-520 of such law;
    54    (d) the amendments to the emergency tenant protection act of  nineteen
    55  seventy-four made by sections four and seven of this act shall expire on

        S. 799                              6
 
     1  the same date as such act expires and shall not affect the expiration of

     2  such act as provided in section 17 of chapter 576 of the laws of 1974;
     3    (e)  the amendments to section 4 of the emergency housing rent control
     4  law made by section five of this act shall expire on the  same  date  as
     5  such  law  expires  and  shall  not affect the expiration of such law as
     6  provided in subdivision 2 of section 1 of chapter 274  of  the  laws  of
     7  1946; and
     8    (f)  effective  immediately,  the  division  of  housing and community
     9  renewal is authorized to and shall promulgate all rules, regulations and
    10  standards necessary to implement the provisions of this act.
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