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A.+1506 Summary:

BILL NOA01506
 
SAME ASSAME AS S00119
 
SPONSORRosenthal
 
COSPNSRBurdick, Epstein, Seawright, Lee, Reyes, Levenberg
 
MLTSPNSR
 
Amd §12-a, Emerg Ten Prot Act of 1974; amd §26-517, NYC Ad Cd
 
Requires that any limited liability company who files a rent registration statement shall include a list of all members of such limited liability company and each member's ownership interest.
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A.+1506 Actions:

BILL NOA01506
 
01/10/2025referred to housing
02/25/2025reported referred to codes
03/04/2025reported
03/06/2025advanced to third reading cal.48
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A.+1506 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A1506
 
SPONSOR: Rosenthal
  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 rent registration statements filed by a limited liability company   PURPOSE:: To create greater transparency in rent registration statements filed with the New York State Division of Homes and Community Renewal (NYS DHCR).   SUMMARY OF SPECIFIC PROVISIONS:: Section one amends section 12-a of section 4 of chapter 576 of the laws of 1974; constituting the emergency tenant protection act of nineteen seventy-four, by adding a new subdivision b-1. Section two establishes the effective date.   JUSTIFICATION:: To meet the affordable housing demand, the preservation of rent-stabi- lized apartments becomes even more critical. Since the passage of 2019's Housing Security and Tenant Protection Act, data obtained from rent registration statements has shown thousands of apartments being kept vacant. A May 2022 memo compiled by NYS DHCR showed 61,593 rent-stabi- lized apartments were registered as vacant in 2021. During the prior year, 33,667 of these units were registered as vacant. Data from the 2021 New York City Housing and Vacancy Survey found 42,860 vacant units. Complicating efforts to determine the true number of vacant units and determine which buildings' units are not registered is the fact that many owners are listed as limited liability companies without naming the principals of the company. When registrations are entered as an LLC, it provides anonymity to landlords that intentionally withhold many units from the market, ensuring that the registrations do not show the true number of units they have kept vacant. By requiring the disclosure of members of an LLC on the registration statement filed with NYS DHCR, this bill will create more transparency and help identify buildings engaged in systematic warehousing.   LEGISLATIVE HISTORY:: 2023-24: A.5693 - Advanced to Third Reading; S.6691 - Advanced to Third Reading   FISCAL IMPLICATIONS:: Undetermined.   EFFECTIVE DATE:: Immediately.
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A.+1506 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          1506
 
                               2025-2026 Regular Sessions
 
                   IN ASSEMBLY
 
                                    January 10, 2025
                                       ___________
 
        Introduced  by  M.  of A. ROSENTHAL, BURDICK, EPSTEIN, SEAWRIGHT -- read
          once and referred to the Committee 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 rent registration statements filed by a limited  liability
          company

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Section 12-a of section 4 of chapter 576  of  the  laws  of
     2  1974,  constituting  the  emergency  tenant  protection  act of nineteen
     3  seventy-four, is amended by adding a new  subdivision  b-1  to  read  as
     4  follows:
     5    b-1.  Notwithstanding any other law to the contrary, when the owner of
     6  a housing accommodation is a limited liability company and is  register-
     7  ing  such  housing  accommodation pursuant to this section, such limited
     8  liability company shall be required to include in its submission to  the
     9  state division of housing and community renewal a list of all beneficial
    10  owners  of  such  limited  liability  company and the proportion of each
    11  owner's interest in such limited liability company. The requirement  set
    12  forth by this section shall be in addition to the data required pursuant
    13  to subdivision a of this section.  For the purposes of this subdivision,
    14  "beneficial owner" shall mean an individual who, directly or indirectly,
    15  through any contract, arrangement, understanding, relationship or other-
    16  wise,  owns  any  equity  interest  of  an entity, and/or has a level of
    17  control over the funds or assets of the  entity  that,  as  a  practical
    18  matter,  enables  the  individual,  directly  or indirectly, to control,
    19  manage or direct the entity and the use of its funds and assets  or  any
    20  part thereof.
    21    § 2. Section 26-517 of the administrative code of the city of New York
    22  is amended by adding a new subdivision b-1 to read as follows:
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD00251-01-5

        A. 1506                             2
 
     1    b-1.  Notwithstanding any other law to the contrary, when the owner of
     2  a housing accommodation is a limited liability company and is  register-
     3  ing  such  housing  accommodation pursuant to this section, such limited
     4  liability company shall be required to include in its submission to  the
     5  state division of housing and community renewal a list of all beneficial
     6  owners of the membership interests of such limited liability company and
     7  the proportion of each direct or indirect member's ownership interest in
     8  such  limited  liability  company.  The  requirement  set  forth by this
     9  section shall be in addition to the data required pursuant  to  subdivi-
    10  sion  a of this section.  For the purposes of this subdivision, "benefi-
    11  cial owner" shall  mean  an  individual  who,  directly  or  indirectly,
    12  through any contract, arrangement, understanding, relationship or other-
    13  wise,  owns  any  equity  interest  of  an entity, and/or has a level of
    14  control over the funds or assets of the  entity  that,  as  a  practical
    15  matter,  enables  the  individual,  directly  or indirectly, to control,
    16  manage or direct the entity and the use of its funds and assets  or  any
    17  part thereof.
    18    §  3.  This act shall take effect immediately; provided, however, that
    19  the amendments to section 26-517 of chapter 4 of title 26 of the  admin-
    20  istrative  code  of the city of New York made by section two of this act
    21  shall expire on the same date as such law expires and shall  not  affect
    22  the expiration of such law as provided under section 26-520 of such law.
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