Relates to certain adjusted rents under the participation loan program; provides that rehabilitated rent control and rent stabilized units shall have adjusted rents determined in accordance with such programs.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A1746
SPONSOR: Dinowitz
 
TITLE OF BILL:
An act to amend the private housing finance law, in relation to adjusted
rents under the participation loan program
 
PURPOSE OR GENERAL IDEA OF BILL:
To amend the private housing finance law that exempts previously rent
stabilized multi-dwelling residences from rental rate increases after
rehabilitations are completed under the participation loan program with-
in the private housing finance law.
 
SUMMARY OF SPECIFIC PROVISIONS:
Section one of the bill amends § 804 of the private housing finance law
by removing language that notwithstands the provisions of, or any regu-
lation promulgated pursuant to, the emergency housing rent control law,
the local emergency housing rent control act, or local law enacted
pursuant thereto, relating to the New York city housing development
corporation establishing the initial rent for dwelling units that were
rehabilitated, newly constructed, or multiple dwelling converted from a
non-residential property and aided by a participation loan and requires
that adjusted rent for existing multiple dwellings rehabilitated subject
to the provisions of, or any regulation promulgated pursuant to, the
emergency housing rent control law, the local emergency housing rent
control act, the rent stabilization law of nineteen hundred sixty-nine
or any local law enacted pursuant thereto, be established pursuant to
those provisions.
Section two sets the effective date.
 
JUSTIFICATION:
This bill proposed would protect rent stabilized New York tenants who do
not qualify for rental subsidy programs from significant rental
increases in buildings that recently undergone rehabilitation under the
participation loan program in the private housing finance law. Some
residents face rental rate increases of over 100% of their previous
rates prior to their building being rehabilitated. These increases in
rental rates disproportionately harm tenants who have lived in these
residences for numerous years, who tend to be older and are on a fixed
income. This seems incongruous with the stated intent of the partic-
ipation loan program in providing quality and affordable housing at a
time when more New York residents need said housing than ever before.
 
PRIOR LEGISLATIVE HISTORY:
2021-22: A.2068 - Housing
2019-20: A.3716 - Housing
2017-18: A.6963 - Housing
 
FISCAL IMPLICATIONS:
None to the state.
 
EFFECTIVE DATE:
This act shall take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
1746
2023-2024 Regular Sessions
IN ASSEMBLY
January 20, 2023
___________
Introduced by M. of A. DINOWITZ -- read once and referred to the Commit-
tee on Housing
AN ACT to amend the private housing finance law, in relation to adjusted
rents under the participation loan program
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 804 of the private housing finance law, as amended
2 by chapter 456 of the laws of 2003, is amended to read as follows:
3 § 804. Rentals. [Notwithstanding the provisions of, or any regulation
4 promulgated pursuant to, the emergency housing rent control law, the
5 local emergency housing rent control act or local law enacted pursuant
6 thereto, upon] Upon completion of the rehabilitation of an existing
7 multiple dwelling, the construction of a new multiple dwelling or the
8 conversion of non-residential property into a multiple dwelling aided by
9 a participation loan made pursuant to this article, the agency shall
10 establish the initial rent for each dwelling unit within the rehabili-
11 tated, newly constructed or converted multiple dwelling; provided that
12 upon the rehabilitation of an existing multiple dwelling which was
13 subject to the provisions of, or any regulation promulgated pursuant to,
14 the emergency housing rent control law, the local emergency housing rent
15 control act, the rent stabilization law of nineteen hundred sixty-nine
16 or any local law enacted pursuant thereto, the adjusted rent shall be
17 established pursuant to such provisions. Where the city of New York or
18 the New York city housing development corporation has participated or
19 invested in a loan pursuant to this article, all dwelling units within
20 the multiple dwelling subsequent to the establishment of initial rents
21 by the agency shall be subject to the rent stabilization law of nineteen
22 hundred sixty-nine provided, that the occupant in possession of a dwell-
23 ing unit when the multiple dwelling is made subject to the rent stabili-
24 zation law of nineteen hundred sixty-nine shall be offered a two year
25 lease notwithstanding any contrary provisions of, or regulations adopted
26 pursuant to, the rent stabilization law of nineteen hundred sixty-nine
27 at such initial rent set for such dwelling unit by the agency.
28 § 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD00812-01-3