Rpld S26-511 sub c 5-a, amd SS26-512 & 26-403.2, NYC Ad Cd; rpld S10 sub (a-1), amd S6, Emerg Ten Prot Act of
1974; amd S5, Emerg Hous Rent Cont L; amd S1, Chap 21 of 1962
Repeals provisions permitting rent increases after vacancy of a housing accommodation.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A5567 Revised 05/26/16
SPONSOR: Kavanagh (MS) TITLE OF BILL:
An act to amend the administrative code of the city of New York, the
emergency tenant protection act of nineteen seventy-four, the emergency
housing rent control law and the local emergency rent control act, in
relation to rent increases after vacancy of a housing accommodation; and
to repeal certain provisions of the administrative code of the city of
New York and the emergency tenant protection act of nineteen seventy-
four relating thereto
PURPOSE:
To protect tenants by repealing the ability of a landlord to obtain a
twenty percent increase in rent pursuant to the statutory vacancy bonus
provision of the Emergency Tenant Protection Act.
SUMMARY OF SPECIFIC PROVISIONS:
This legislation amends the administrative code of the City of New York,
the emergency tenant protection act of nineteen seventy-four, the emer-
gency housing rent control law and the local emergency rent control act,
in relation to rent increases after vacancy of a housing accommodation
and to repeal certain provisions of the administration code of the city
of New York and the emergency tenant protection act of nineteen seven-
ty-four, that permits a landlord to increase the legally permissible
rent by twenty percent (20%) upon vacancy of a rent-regulated apartment.
JUSTIFICATION:
As housing costs increase rapidly across New York City, the loss of
hundreds of thousands of rent-regulated apartments to deregulation has
magnified the crisis facing working families and middle class residents
struggling to find affordable housing. When the rent for a stabilized
apartment rises above $2,700 a month, and that apartment then becomes
vacant, it can be deregulated, leaving the landlord is free to raise the
rent without restrictions. The ability of landlords to increase a unit's
rent by 20% in the event that the current tenant of that unit leaves has
been a significant factor in pushing rents above this threshold,
contributing to the loss of many rent stabilized units.
Under current law, a landlord is eligible for a statutory vacancy bonus
once every year. Accordingly, a landlord can rapidly transform an
affordable apartment into one with a high enough rent that it can be
deregulated, especially if they are able to force out multiple tenants
in quick succession.
For this reason it is especially problematic that there is no require-
ment that landlords conduct themselves responsibly in order to benefit
from the bonus. Consequently, there is a significant financial incentive
for landlords who drive tenants out of their rent stabilized apartments
in order to benefit from the 20% increase in the rent. This incentive is
even larger if the rent is above $2,700 for the unit and the apartment
can be deregulated entirely when the current tenant leaves. This creates
a huge potential for tenant harassment. Even if a tenant leaves an
apartment that is uninhabitable due to lack of heat, hot water, elec-
tricity, or unsafe or unsanitary conditions, the landlord remains eligi-
ble for the 20% increase in rent upon vacancy. As a result, current law
creates incentives for bad actors to deprive tenants of a habitable
apartment. In some cases it also encourages landlords to file frivolous
lawsuits, and even threaten tenants, in order to intimidate them into
leaving. In many instances the vacancy bonus is really an eviction
bonus.
In order to deter landlords who under current law are rewarded for driv-
ing individuals and families from their homes, and preserve the afforda-
ble housing stock that remains available to working families and moder-
ate-income residents in New York City, the rent regulation laws are in
need of comprehensive reform. The repeal of the statutory vacancy bonus
provision is an important step in that direction.
LEGISLATIVE HISTORY:
2015: A05567 (Kavanagh) - Housing
2014: A07343 (Kavanagh) - Housing
2013: A07343 (Kavanagh) - Housing
2012: A01309 (Jeffries) - Housing 2011: A01309 (Jeffries) - Housing
2010: A00463 (Jeffries) - Housing 2009: A00463 (Jeffries) - Housing
2008: A10054 (Jeffries) - Housing
FISCAL IMPACT ON THE STATE:
None.
EFFECTIVE DATE:
This act shall take effect immediately; provided that:
(a) the amendments to section 6 of the emergency tenant protection act
of nineteen seventy-four made by section four 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; and
(b) the amendments to section 5 of the emergency housing rent control
law made by section five of this act shall expire on the same date as
such law expires and shall not affect the expiration of such law as
provided in subdivision 2 of section 1 of chapter 274 of the laws of
1946; and
(c) the amendments to section 26-512 of chapter 4 of title 26 of the
administrative code of the city of New York made by section three of
this act shall expire on the same date as such law expires and shall not
affect the expiration of such law as provided under section 26-520 of
such law; and
(d) the amendments to section 26-403.2 of the city rent and rehabili-
tation law made by section six of this act shall remain in full force
and effect only as long as the public emergency requiring the regulation
and control of residential rents and evictions continues, as provided in
subdivision 3 of section 1 of the local emergency housing rent control
act; and
(e) the amendments to subdivision 5 of section 1 of the local emergency
housing rent control act, made by section seven of this act, shall not
affect the effectiveness of such subdivision and shall cease to be in
full force and effect pursuant to subdivision 3 of section 1 of such
act.
