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A05502 Text:

                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________

                                         5502

                              2015-2016 Regular Sessions

                                 I N  A S S E M B L Y

                                   February 24, 2015
                                      ___________

       Introduced  by  M.  of  A.  ROSENTHAL  --  read once and referred to the
         Committee on Housing

       AN ACT to amend the administrative code of the city of New York and  the
         emergency  tenant protection act of nineteen seventy-four, in relation
         to limiting rent increase after vacancy of  a  housing  accommodation;
         and  to  amend  the  administrative  code of the city of New York, the
         emergency tenant protection act of nineteen seventy-four and the emer-
         gency housing rent control law, in relation to adjustment  of  maximum
         allowable rent

         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:

    1    Section 1. Paragraph 5-a of subdivision c of  section  26-511  of  the
    2  administrative  code of the city of New York, as amended by section 7 of
    3  part B of chapter 97 of the laws of 2011, is amended to read as follows:
    4    (5-a) provides that, notwithstanding any provision  of  this  chapter,
    5  the  legal  regulated  rent for any vacancy lease entered into after the
    6  effective date of this paragraph shall be  as  hereinafter  provided  in
    7  this  paragraph.  [The  previous  legal  regulated rent for such housing
    8  accommodation shall be increased by the following: (i)  if  the  vacancy
    9  lease  is  for a term of two years, twenty percent of the previous legal
   10  regulated rent; or (ii) if the vacancy lease is for a term of  one  year
   11  the  increase  shall  be  twenty percent of the previous legal regulated
   12  rent less an amount equal to the difference between  (a)  the  two  year
   13  renewal  lease guideline promulgated by the guidelines board of the city
   14  of New York applied to the previous legal regulated rent and (b) the one
   15  year renewal lease guideline promulgated by the guidelines board of  the
   16  city  of New York applied to the previous legal regulated rent. In addi-
   17  tion, if] IF the legal regulated rent was not increased with respect  to
   18  such housing accommodation by a permanent vacancy allowance within eight
   19  years  prior  to a vacancy lease executed on or after the effective date
   20  of this paragraph, the legal regulated rent may be  [further]  increased

        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD09027-02-5
       A. 5502                             2

    1  by an amount equal to the product resulting from multiplying such previ-
    2  ous legal regulated rent by six-tenths of one percent and further multi-
    3  plying the amount of rent increase resulting therefrom by the greater of
    4  (A)  the  number  of  years  since  the imposition of the last permanent
    5  vacancy allowance, or (B) if the rent was not increased by  a  permanent
    6  vacancy allowance since the housing accommodation became subject to this
    7  chapter,  the  number  of years that such housing accommodation has been
    8  subject to this chapter. Provided that if the previous  legal  regulated
    9  rent  was less than three hundred dollars the total increase shall be as
   10  calculated above plus one hundred dollars per month. Provided,  further,
   11  that  if  the  previous  legal regulated rent was at least three hundred
   12  dollars and no more than five hundred dollars  in  no  event  shall  the
   13  total  increase  pursuant  to  this  paragraph  be less than one hundred
   14  dollars per month. Such increase shall be  [in  lieu  of  any  allowance
   15  authorized  for the one or two year renewal component thereof, but shall
   16  be] in addition to any other increases authorized pursuant to this chap-
   17  ter including an adjustment based upon a major capital improvement, or a
   18  substantial modification or increase of dwelling space or  services,  or
   19  installation  of  new  equipment  or  improvements  or  new furniture or
   20  furnishings provided in or to the housing accommodation pursuant to this
   21  section. The increase authorized in this paragraph  may  not  be  imple-
   22  mented  more  than  one  time  in any calendar year, notwithstanding the
   23  number of vacancy leases entered into in  such  year,  AND  MAY  NOT  BE
   24  IMPLEMENTED WITHOUT THE LANDLORD PROVIDING TO THE NEW TENANT AN ITEMIZED
   25  COST ACCOUNTING OF ALL IMPROVEMENTS CLAIMED AS PART OF SUCH INCREASE AND
   26  COPIES OF THE CORRESPONDING RECEIPTS WITH THE LEASE AGREEMENT.
   27    S  2.  Subdivision  (a-1) of section 10 of section 4 of chapter 576 of
   28  the laws of 1974, constituting the emergency tenant  protection  act  of
   29  nineteen  seventy-four,  as amended by section 8 of part B of chapter 97
   30  of the laws of 2011, is amended to read as follows:
   31    (a-1) provides that, notwithstanding any provision of  this  act,  the
   32  legal regulated rent for any vacancy lease entered into after the effec-
   33  tive  date  of this subdivision shall be as hereinafter set forth.  [The
   34  previous legal regulated rent for such housing  accommodation  shall  be
   35  increased  by  the  following: (i) if the vacancy lease is for a term of
   36  two years, twenty percent of the previous legal regulated rent; or  (ii)
   37  if  the  vacancy  lease  is for a term of one year the increase shall be
   38  twenty percent of the previous legal regulated rent less an amount equal
   39  to the difference between (a)  the  two  year  renewal  lease  guideline
   40  promulgated  by  the guidelines board of the county in which the housing
   41  accommodation is located applied to the previous  legal  regulated  rent
   42  and  (b)  the one year renewal lease guideline promulgated by the guide-
   43  lines board of the county in which the housing accommodation is  located
   44  applied  to  the  previous legal regulated rent. In addition, if] IF the
   45  legal regulated rent was not increased  with  respect  to  such  housing
   46  accommodation  by a permanent vacancy allowance within eight years prior
   47  to a vacancy lease executed on or  after  the  effective  date  of  this
   48  subdivision,  the  legal regulated rent may be [further] increased by an
   49  amount equal to the product resulting  from  multiplying  such  previous
   50  legal  regulated rent by six-tenths of one percent and further multiply-
   51  ing the amount of rent increase resulting therefrom by  the  greater  of
   52  (A)  the  number  of  years  since  the imposition of the last permanent
   53  vacancy allowance, or (B) if the rent was not increased by  a  permanent
   54  vacancy allowance since the housing accommodation became subject to this
   55  act,  the  number  of  years  that  such  housing accommodation has been
   56  subject to this act. Provided that if the previous legal regulated  rent
       A. 5502                             3

    1  was  less  than  three  hundred  dollars  the total increase shall be as
    2  calculated above plus one hundred dollars per month.  Provided, further,
    3  that if the previous legal regulated rent was  at  least  three  hundred
    4  dollars  and  no  more  than  five hundred dollars in no event shall the
    5  total increase pursuant to this subdivision be  less  than  one  hundred
    6  dollars  per  month.  Such  increase  shall be [in lieu of any allowance
    7  authorized for the one or two year renewal component thereof, but  shall
    8  be]  in  addition to any other increases authorized pursuant to this act
    9  including an adjustment based upon a major  capital  improvement,  or  a
   10  substantial  modification  or increase of dwelling space or services, or
   11  installation of new  equipment  or  improvements  or  new  furniture  or
   12  furnishings  provided  in  or  to  the housing accommodation pursuant to
   13  section six of this act. The increase authorized in this subdivision may
   14  not be implemented more than one time in  any  calendar  year,  notwith-
   15  standing the number of vacancy leases entered into in such year, AND MAY
   16  NOT  BE  IMPLEMENTED WITHOUT THE LANDLORD PROVIDING TO THE NEW TENANT AN
   17  ITEMIZED COST ACCOUNTING OF ALL IMPROVEMENTS CLAIMED  AS  PART  OF  SUCH
   18  INCREASE  AND COPIES OF THE CORRESPONDING RECEIPTS WITH THE LEASE AGREE-
   19  MENT.
   20    S 3. Subparagraph (e) of paragraph  1  of  subdivision  g  of  section
   21  26-405 of the administrative code of the city of New York, as amended by
   22  section  15  of  part B of chapter 97 of the laws of 2011, is amended to
   23  read as follows:
   24    (e) The landlord and tenant  by  mutual  voluntary  written  agreement
   25  agree  to  a  substantial  increase  or  decrease in dwelling space or a
   26  change in the services, furniture, furnishings or equipment provided  in
   27  the  housing accommodations. An adjustment under this subparagraph shall
   28  be equal to one-fortieth, in the case of a building with thirty-five  or
   29  fewer housing accommodations, or one-sixtieth, in the case of a building
   30  with  more than thirty-five housing accommodations where such adjustment
   31  takes effect on or after September twenty-fourth, two  thousand  eleven,
   32  of  the  total cost incurred by the landlord in providing such modifica-
   33  tion or increase in dwelling space, services, furniture, furnishings  or
   34  equipment,  including  the  cost  of installation, but excluding finance
   35  charges, WITH AN ADJUSTMENT, IN BOTH CASES, BEING NO  MORE  THAN  TWENTY
   36  PERCENT OF THE CURRENT RENT, provided further that an owner who is enti-
   37  tled to a rent increase pursuant to this subparagraph shall not be enti-
   38  tled  to  a further rent increase based upon the installation of similar
   39  equipment, or new furniture or furnishings within  the  useful  life  of
   40  such  new  equipment,  or  new furniture or furnishings. The owner shall
   41  give written notice to the city  rent  agency  of  any  such  adjustment
   42  pursuant to this subparagraph; or
   43    S  4.  Paragraph 13 of subdivision c of section 26-511 of the adminis-
   44  trative code of the city of New York, as amended by section 16 of part B
   45  of chapter 97 of the laws of 2011, is amended to read as follows:
   46    (13) provides that an owner is entitled to a rent increase where there
   47  has been a substantial modification or increase of dwelling space or  an
   48  increase  in  the services, or installation of new equipment or improve-
   49  ments or new furniture or furnishings provided in or to a tenant's hous-
   50  ing accommodation, on written tenant consent to the  rent  increase.  In
   51  the  case of a vacant housing accommodation, tenant consent shall not be
   52  required. The permanent increase in the legal  regulated  rent  for  the
   53  affected  housing  accommodation shall be one-fortieth, in the case of a
   54  building with thirty-five or fewer housing accommodations, or one-sixti-
   55  eth, in the case of a building with more than thirty-five housing accom-
   56  modations where such permanent increase takes effect on or after Septem-
       A. 5502                             4

    1  ber twenty-fourth, two thousand eleven, of the total  cost  incurred  by
    2  the  landlord  in  providing  such  modification or increase in dwelling
    3  space, services, furniture, furnishings or equipment, including the cost
    4  of  installation, but excluding finance charges, PROVIDED, HOWEVER, THAT
    5  IN BOTH CASES, THE PERMANENT INCREASE IS NO MORE THAN TWENTY PERCENT  OF
    6  THE  CURRENT LEGAL REGULATED RENT. Provided further that an owner who is
    7  entitled to a rent increase pursuant to  this  paragraph  shall  not  be
    8  entitled to a further rent increase based upon the installation of simi-
    9  lar equipment, or new furniture or furnishings within the useful life of
   10  such new equipment, or new furniture or furnishings.
   11    S 5. Paragraph 1 of subdivision d of section 6 of section 4 of chapter
   12  576  of  the  laws of 1974, constituting the emergency tenant protection
   13  act of nineteen seventy-four, as amended by section  18  of  part  B  of
   14  chapter 97 of the laws of 2011, is amended to read as follows:
   15    (1)  there has been a substantial modification or increase of dwelling
   16  space or an increase in the services, or installation of  new  equipment
   17  or  improvements  or  new  furniture or furnishings, provided in or to a
   18  tenant's housing accommodation, on written tenant consent  to  the  rent
   19  increase.  In the case of a vacant housing accommodation, tenant consent
   20  shall not be required. The permanent increase  in  the  legal  regulated
   21  rent  for  the  affected housing accommodation shall be one-fortieth, in
   22  the case of a building with thirty-five or fewer housing accommodations,
   23  or one-sixtieth, in the case of a building with  more  than  thirty-five
   24  housing  accommodations where such permanent increase takes effect on or
   25  after September twenty-fourth, two thousand eleven, of  the  total  cost
   26  incurred  by  the landlord in providing such modification or increase in
   27  dwelling space, services, furniture, furnishings or equipment, including
   28  the cost of  installation,  but  excluding  finance  charges,  PROVIDED,
   29  HOWEVER,  THAT  IN  BOTH  CASES,  THE PERMANENT INCREASE IS NO MORE THAN
   30  TWENTY PERCENT OF THE CURRENT LEGAL REGULATED RENT.    Provided  further
   31  that  an owner who is entitled to a rent increase pursuant to this para-
   32  graph shall not be entitled to a further rent increase  based  upon  the
   33  installation of similar equipment, or new furniture or furnishings with-
   34  in  the  useful  life  of  such  new  equipment,  or  new  furniture  or
   35  furnishings.
   36    S 6. Clause 5 of the second undesignated paragraph of paragraph (a) of
   37  subdivision 4 of section 4 of chapter 274 of the laws of  1946,  consti-
   38  tuting  the emergency housing rent control law, as amended by section 25
   39  of part B of chapter 97 of the laws of  2011,  is  amended  to  read  as
   40  follows:
   41    (5)  the  landlord  and  tenant  by mutual voluntary written agreement
   42  agree to a substantial increase or  decrease  in  dwelling  space  or  a
   43  change  in the services, furniture, furnishings or equipment provided in
   44  the housing accommodations; provided that an owner shall be entitled  to
   45  a  rent  increase  where  there  has  been a substantial modification or
   46  increase of dwelling space or an increase in the services, or  installa-
   47  tion  of  new  equipment or improvements or new furniture or furnishings
   48  provided in or  to  a  tenant's  housing  accommodation.  The  permanent
   49  increase  in  the  maximum  rent  for the affected housing accommodation
   50  shall be one-fortieth, in the case of a  building  with  thirty-five  or
   51  fewer housing accommodations, or one-sixtieth, in the case of a building
   52  with  more  than thirty-five housing accommodations where such permanent
   53  increase takes effect on or after September twenty-fourth, two  thousand
   54  eleven,  of  the  total  cost incurred by the landlord in providing such
   55  modification  or  increase  in  dwelling  space,  services,   furniture,
   56  furnishings  or  equipment,  including  the  cost  of  installation, but
       A. 5502                             5

    1  excluding finance charges, PROVIDED, HOWEVER, THAT IN  BOTH  CASES,  THE
    2  PERMANENT  INCREASE  IS NO MORE THAN TWENTY PERCENT OF THE CURRENT RENT,
    3  AND provided further that an owner who is entitled to  a  rent  increase
    4  pursuant to this clause shall not be entitled to a further rent increase
    5  based  upon  the  installation of similar equipment, or new furniture or
    6  furnishings within the useful life of such new equipment, or new  furni-
    7  ture  or furnishings. The owner shall give written notice to the commis-
    8  sion of any such adjustment pursuant to this clause; or
    9    S 7. This act shall take effect immediately; provided that:
   10    a. the amendments to section 26-511 of chapter 4 of title  26  of  the
   11  administrative  code  of  the  city of New York made by sections one and
   12  four of this act shall expire on the same date as such law  expires  and
   13  shall  not  affect  the expiration of such law as provided under section
   14  26-520 of such law;
   15    b. the amendments to  sections  10  and  6  of  the  emergency  tenant
   16  protection act of nineteen seventy-four made by sections two and five of
   17  this act shall expire on the same date as such act expires and shall not
   18  affect  the  expiration of such act as provided in section 17 of chapter
   19  576 of the laws of 1974;
   20    c. the amendments to section 26-405 of the  city  rent  and  rehabili-
   21  tation  law made by section three of this act shall remain in full force
   22  and effect only as long as the public emergency requiring the regulation
   23  and control of residential rents and evictions continues, as provided in
   24  subdivision 3 of section 1 of the local emergency housing  rent  control
   25  act; and
   26    d.  the  amendments to section 4 of the emergency housing rent control
   27  law made by section six of this act shall expire on  the  same  date  as
   28  such  law  expires  and  shall  not affect the expiration of such law as
   29  provided in subdivision 2 of section 1 of chapter 274  of  the  laws  of
   30  1946.
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