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;
amd S5, Emerg Hous Rent Cont L; amd S1, Chap 21 of 1962
Relates to the repeal of 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: A7343
SPONSOR: Kavanagh 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: OF THE BILL: 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 adminis-
trative 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 administration code of the city of New York and the
emergency tenant protection act of nineteen seventy-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 exponentially across New York
City, the displacement of working families and middle class residents
from rent-regulated apartments has reached crisis proportions. Undoubt-
edly, the ability of landlords to increase rent by 20% in the event of a
vacancy, getting closer to the decontrol threshold of two thousand
dollars per month, has been a factor.
Under current law, there are no limitations imposed on a landlord's
eligibility for a statutory vacancy bonus. Accordingly, a landlord can
benefit from the vacancy bonus multiple times per year, rapidly trans-
forming an affordable apartment into one that is market-rate and decon-
trolled.
Equally problematic, there is no "clean hands" requirement that the
landlord conduct themselves responsibly in order to benefit from the
bonus. Consequently, if a tenant leaves an apartment that is uninhabita-
ble due to lack of heat, hot water, electricity, repairs or sanitary
conditions, the landlord remains eligible for the twenty percent
increase in rent upon vacancy. As a result, current law creates incen-
tives for bad actors to deprive tenants of a habitable apartment in
order to benefit from the statutory vacancy bonus.
In order to stem the displacement crisis in New York City, and preserve
the affordable housing stock that remains available to working families
and moderate-income residents, 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.
PRIOR LEGISLATIVE HISTORY: 2012: A01309 (Jeffries)- Housing 2011:
A01309 (Defies)- Housing 2010: A00463 (Jeffries)- Housing 2009: A00463
(Jeffries)- Housing 2008: A10054 (Jeffries)- Housing
FISCAL IMPLICATIONS FOR STATE & LOCAL GOVERNMENTS: None.
EFFECTIVE DATE: This act shall take effect immediately, with
provisions.
