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A01135 Summary:

BILL NOA01135
 
SAME ASNo Same As
 
SPONSORDinowitz
 
COSPNSRRosenthal, Colton
 
MLTSPNSRGlick, Gottfried
 
Amd 4, Emerg Ten Prot Act of 1974; amd 26-510, NYC Ad Cd
 
Relates to establishing a cap on the rate of rent adjustment set by the rent guidelines board.
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A01135 Actions:

BILL NOA01135
 
01/10/2017referred to housing
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A01135 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A1135
 
SPONSOR: Dinowitz (MS)
  TITLE OF BILL: An act to amend the emergency tenant protection act of nineteen seven- ty-four and the administrative code of the city of New York, in relation to the rent guidelines board   PURPOSE OR GENERAL IDEA OF BILL: To cap the maximum rent increases of rent regulated apartments in New York State at 2% or 120% of the rate of inflation, whichever is lower.   SUMMARY OF SPECIFIC PROVISIONS: Section 1 amends Subdivision b of section 4 of section 4 of chapter 576 of the laws of 1974, constituting the emergency tenant protection act of 1974, as amended by chapter -186 or the laws of 1976, the opening para- graph as amended by chapter 403 of the laws of 1983 and the second and third undesignated paragraphs as amended by chapter 330 of the laws of 1980. Section 2 amends Subdivision b of section 26-510 of the administrative code of the city of New York, Section 3 provides the effective date.   JUSTIFICATION: Currently, the New York City Rent Guideline Board (RGB) establishes the maximum rate of rent increase based on the economic condition of the residential real estate industry in the affected area including factors such as the prevailing and projected real estate taxes and sewer and water rates, gross operating maintenance costs (including insurance rates, governmental fees, cost of fuel and labor costs) as well as costs and availability of financing (including effective rated of interest), overall supply of housing accommodations and overall vacancy rates, and finally relevant data from the current and projected cost of living indices for the affected area. Similar to the property tax cap being proposed by the Governor, this bill would cap the maximum rent increase for rent regulated apartments at 2% or 120% of the rate of inflation, whichever is lower. Over the last decade the maximum rent increase established by the ROB has reached as high as 4.75%. This bill would help residents of rent regulated apartments stay in their homes and their savings would allow them to spend their savings in other areas of the economy as well as maintain the effort to keep housing affordable in one of the nation's most expen- sive states,   PRIOR LEGISLATIVE HISTORY: 2015-16 - A.1931 - Referred to Housing 2013-14 - A.359- Referred to Housing 2011-12 - A.4776- Referred to Housing   FISCAL IMPLICATIONS: None.   EFFECTIVE DATE: This act shall take effect immediately; provided, however, that the amendment to section 4 of the emergency. Tenant protection act of 1974 made by section one 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, as amended; and provided further, that the amendments to section 26-510 of the rent stabilization law of 969 made by section two of this act shall expire on the same date as such law expired and shall not affect the expiration of such law as provided under section 26-520 of such law.
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A01135 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          1135
 
                               2017-2018 Regular Sessions
 
                   IN ASSEMBLY
 
                                    January 10, 2017
                                       ___________
 
        Introduced by M. of A. DINOWITZ, ROSENTHAL, COLTON -- Multi-Sponsored by
          -- M. of A.  GLICK, GOTTFRIED -- read once and referred to the Commit-
          tee on Housing
 
        AN  ACT  to amend the emergency tenant protection act of nineteen seven-
          ty-four and the administrative code  of  the  city  of  New  York,  in
          relation to the rent guidelines board

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Subdivision b of section 4 of section 4 of chapter  576  of
     2  the  laws  of  1974, constituting the emergency tenant protection act of
     3  nineteen seventy-four, as amended by chapter 486 of the  laws  of  1976,
     4  the  opening paragraph as amended by chapter 403 of the laws of 1983 and
     5  the second and third undesignated paragraphs as amended by  chapter  330
     6  of the laws of 1980, is amended to read as follows:
     7    b.  A county rent guidelines board shall establish annually guidelines
     8  for rent adjustments which, at its sole discretion  may  be  varied  and
     9  different  for  and  within  the  several zones and jurisdictions of the
    10  board, and in determining whether rents for housing accommodations as to
    11  which an emergency has been declared  pursuant  to  this  act  shall  be
    12  adjusted,  shall  consider among other things (1) the economic condition
    13  of the residential real estate industry in the affected  area  including
    14  such  factors  as the prevailing and projected (i) real estate taxes and
    15  sewer and water rates, (ii) gross operating maintenance costs (including
    16  insurance rates, governmental fees, cost of fuel and labor costs), (iii)
    17  costs and availability of financing (including effective rates of inter-
    18  est), (iv) over-all supply of housing accommodations and over-all vacan-
    19  cy rates, (2) relevant data from  the  current  and  projected  cost  of
    20  living indices for the affected area, (3) such other data as may be made
    21  available to it. As soon as practicable after its creation and thereaft-
    22  er not later than July first of each year, a rent guidelines board shall
    23  file  with the state division of housing and community renewal its find-
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD03549-01-7

        A. 1135                             2
 
     1  ings for the preceding calendar year, and shall accompany such  findings
     2  with  a  statement  of  the maximum rate or rates of rent adjustment, if
     3  any, for one or more classes  of  accommodation  subject  to  this  act,
     4  authorized  for  leases or other rental agreements commencing during the
     5  next succeeding twelve months.  The maximum rate or rates of  adjustment
     6  shall  not exceed two percent, or one hundred twenty percent of the rate
     7  of inflation, whichever is lower. The standards for rent adjustments may
     8  be applicable for the entire county or may be varied according  to  such
     9  zones  or  jurisdictions within such county as the board finds necessary
    10  to achieve the purposes of this subdivision.
    11    The standards for  rent  adjustments  established  annually  shall  be
    12  effective for leases commencing on October first of each year and during
    13  the next succeeding twelve months whether or not the board has filed its
    14  findings  and  statement of the maximum rate or rates of rent adjustment
    15  by July first of each year. If such lease is entered  into  before  such
    16  filing  by  the board, it may provide for the rent to be adjusted by the
    17  rates then in effect, subject to change by the applicable rates of  rent
    18  adjustment when filed, such change to be effective as of the date of the
    19  commencement  of  the  lease.  Said  lease must provide that, if the new
    20  rates of rent adjustment differ  for  leases  of  different  terms,  the
    21  tenant  has  the option of changing the original lease term to any other
    22  term for which a rate of rent adjustment is set by the board,  with  the
    23  rental to be adjusted accordingly.
    24    Where  a city, town or village shall act to determine the existence of
    25  public emergency pursuant to section three of this act subsequent to the
    26  establishment of annual guidelines for rent adjustments of the  accommo-
    27  dations  subject to this act, the rent guidelines board as soon as prac-
    28  ticable thereafter shall file its findings and rates of rent  adjustment
    29  for  leases or other rental agreements for the housing accommodations in
    30  such a city, town or village, which rates shall be effective for  leases
    31  or  other rental agreements commencing on or after the effective date of
    32  the determination.
    33    § 2. Subdivision b of section 26-510 of the administrative code of the
    34  city of New York is amended to read as follows:
    35    b. The rent guidelines board shall establish annually  guidelines  for
    36  rent  adjustments, and in determining whether rents for housing accommo-
    37  dations subject to the  emergency  tenant  protection  act  of  nineteen
    38  seventy-four  or  this law shall be adjusted shall consider, among other
    39  things (1) the economic condition of the residential real estate  indus-
    40  try  in  the  affected area including such factors as the prevailing and
    41  projected (i) real estate taxes and sewer and water  rates,  (ii)  gross
    42  operating  maintenance  costs  (including  insurance rates, governmental
    43  fees, cost of fuel and labor costs), (iii)  costs  and  availability  of
    44  financing  (including effective rates of interest), (iv) over-all supply
    45  of housing accommodations and over-all vacancy rates, (2) relevant  data
    46  from  the  current and projected cost of living indices for the affected
    47  area, (3) such other data as may be made available to  it.  The  maximum
    48  rate or rates of adjustment shall not exceed two percent, or one hundred
    49  twenty  percent  of the rate of inflation, whichever is lower. Not later
    50  than July first of each year, the rent guidelines board shall file  with
    51  the  city  clerk its findings for the preceding calendar year, and shall
    52  accompany such findings with a statement of the maximum rate or rates of
    53  rent adjustment, if any, for  one  or  more  classes  of  accommodations
    54  subject  to  this  law, authorized for leases or other rental agreements
    55  commencing on the next succeeding October first  or  within  the  twelve

        A. 1135                             3
 
     1  months thereafter. Such findings and statement shall be published in the
     2  City Record.
     3    §  3.  This act shall take effect immediately; provided, however, that
     4  the amendment to section 4 of the emergency  tenant  protection  act  of
     5  nineteen  seventy-four  made  by section one of this act shall expire on
     6  the same date as such act expires and shall not affect the expiration of
     7  such act as provided in section 17 of chapter 576 of the laws  of  1974,
     8  as  amended; and provided further, that the amendments to section 26-510
     9  of the rent stabilization law of nineteen  hundred  sixty-nine  made  by
    10  section  two  of  this  act  shall  expire  on the same date as such law
    11  expires and shall not affect the expiration  of  such  law  as  provided
    12  under section 26-520 of such law.
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