Rpld §2 sub 2 ¶(n), Emerg Hous Rent Cont L; rpld §5 sub a ¶13, amd §10, Emerg Ten Prot Act of 1974; rpld
§26-403 sub e ¶2 sub¶ (k), §26-504.2, amd §26-511, NYC Ad Cd
 
Makes conforming technical changes to the New York City administrative code and the emergency tenant protection act relating to vacancy decontrol.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A1865B
SPONSOR: Rosenthal (MS)
 
TITLE OF BILL: 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 making conforming technical changes; and to repeal
paragraph 13 of subdivision a of section 5 of section 4 of chapter 576
of the laws of 1974 constituting the emergency tenant protection act of
nineteen seventy-four, paragraph (n) of subdivision 2 of section 2 of
chapter 274 of the laws of 1946, constituting the emergency housing rent
control law, and section 26-504.2 and subparagraph (k) of paragraph 2 of
subdivision e of section 26-403 of the administrative code of the city
of New York, relating to vacancy decontrol
 
PURPOSE OR GENERAL IDEA OF BILL:
This bill repeals Provisions of New York State and New York City stat-
utes that remove apartments from rent stabilization or rent control when
such apartments are vacated and could be rented under such statutes for
monthly rents of $2,700 or more.
 
SUMMARY OF SPECIFIC PROVISIONS:
Section one of this bill sets forth legislative findings and declaration
of emergency.
Section two would repeal paragraph (n) of subdivision 2 of section 2 of
chapter 274 of the laws of 1946, constituting the emergency rent control
law.
Section three of this bill would repeal paragraph 13 of subdivision a of
section 5 of section 4 of chapter 576 of the laws of 1974, constituting
the emergency tenant protection act of 1974.
Section four would repeal subparagraph (k) of paragraph 2 of subdivision
e of section 25-403 of the administrative code of the city of New York.
Section five would repeal section 26-504.2 of the administrative code of
the city of New York.
Section six and Section seven also subject accommodations to regulation
under such laws which were deregulated upon vacancy on or after January
1, 2013 or which were deregulated upon vacancy prior to January 1, 2007
and which rented for less than $5,000 per month in New York City or less
than $3,500 per month in the counties of Westchester, Nassau, and Rock-
land on or after January 1, 2013.
Section eight and Section nine repeal vacancy decontrol provisions of
the New York City Administrative Code and the Emergency Tenant
Protection Act that relate to preferential rents, respectively.
Section ten sets forth the effective date.
 
JUSTIFICATION:
The shortage of affordable housing in New York City, in the suburban
counties of Westchester, Nassau, and Rockland and in many other areas of
the state is an acute crisis. The systems of rent regulation presently
existing are the single most effective program of state and local
governments to preserve the supply of affordable housing. These programs
have been seriously eroded by the vacancy decontrol laws.
Available data and several studies suggest that over 300,000 rent stabi-
lized apartments have been removed from regulation in New York City and
the counties of Westchester, Nassau, and Rockland under vacancy decon-
trol. The pace at which vacancy decontrol removes affordable housing
units from regulation is accelerating with each passing year.
Vacancy decontrol is an incentive for owners of rental housing to with-
hold services and to use forms of harassment to induce regulated tenants
to vacate their rental units. In some instances, costs of renovation
have been inflated or even falsified in order to drive apartment rents
to the $2,000 threshold for vacancy decontrol. In other cases no reno-
vations at all are done to vacant apartments and such apartments are
treated as deregulated regardless of the legal rent. Such abuses are
made possible by the existence of the vacancy decontrol laws. Repeal of
vacancy decontrol is essential to restore the integrity of the rent
regulation systems and to protect the state's precious supply of afford-
able housing.
 
PRIOR LEGISLATIVE HISTORY:
A.1585 of 2013-2014
A.2430-A of 2011-2012
A.2005 of 2009-2010
A.7416A of 2007-2008
 
FISCAL IMPLICATIONS:
Some costs may be incurred by HCR.
 
EFFECTIVE DATE:
This act shall take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
1865--B
2015-2016 Regular Sessions
IN ASSEMBLY
January 13, 2015
___________
Introduced by M. of A. ROSENTHAL, BRENNAN, LENTOL, WRIGHT, SCHIMEL,
KAVANAGH, GOTTFRIED, DINOWITZ, LAVINE, COLTON, TITUS, FARRELL, ORTIZ,
BENEDETTO, HOOPER, ROBINSON, ZEBROWSKI, GLICK, MOSLEY, WEPRIN, DAVILA,
PICHARDO, BICHOTTE, MAYER, ABINANTI, SIMON, JOYNER, LINARES,
SEAWRIGHT, QUART, ROZIC, BLAKE, WALKER, RICHARDSON -- Multi-Sponsored
by -- M. of A. COOK, CYMBROWITZ, JAFFEE, MARKEY, PEOPLES-STOKES,
PERRY, PRETLOW, RIVERA, SEPULVEDA -- read once and referred to the
Committee on Housing -- committee discharged, bill amended, ordered
reprinted as amended and recommitted to said committee -- recommitted
to the Committee on Housing in accordance with Assembly Rule 3, sec. 2
-- committee discharged, bill amended, ordered reprinted as amended
and recommitted to said committee
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 making conforming technical changes; and to repeal paragraph 13 of
subdivision a of section 5 of section 4 of chapter 576 of the laws of
1974 constituting the emergency tenant protection act of nineteen
seventy-four, paragraph (n) of subdivision 2 of section 2 of chapter
274 of the laws of 1946, constituting the emergency housing rent
control law, and section 26-504.2 and subparagraph (k) of paragraph 2
of subdivision e of section 26-403 of the administrative code of the
city of New York, relating to vacancy decontrol
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Legislative findings and declaration of emergency. The
2 legislature hereby finds and declares that the serious public emergency
3 which led to the enactment of the existing laws regulating residential
4 rents and evictions continues to exist; that such laws would better
5 serve the public interest if certain changes were made thereto, includ-
6 ing the continued regulation of certain housing accommodations that
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD02559-06-6
A. 1865--B 2
1 become vacant and the reinstatement of regulation of certain housing
2 accommodations that have been deregulated upon vacancy.
3 The legislature further recognizes that severe disruption of the
4 rental housing market has occurred and threatens to be exacerbated as a
5 result of the present state of the law in relation to the deregulation
6 of housing accommodations upon vacancy. The situation has permitted
7 speculative and profiteering practices and has brought about the loss of
8 vital and irreplaceable affordable housing for working persons and fami-
9 lies.
10 The legislature therefore declares that in order to prevent uncertain-
11 ty, potential hardship and dislocation of tenants living in housing
12 accommodations subject to government regulations as to rentals and
13 continued occupancy as well as those not subject to such regulation, the
14 provisions of this act are necessary to protect the public health, safe-
15 ty and general welfare. The necessity in the public interest for the
16 provisions hereinafter enacted is hereby declared as a matter of legis-
17 lative determination.
18 § 2. Paragraph (n) of subdivision 2 of section 2 of chapter 274 of the
19 laws of 1946, constituting the emergency housing rent control law, is
20 REPEALED.
21 § 3. Paragraph 13 of subdivision a of section 5 of section 4 of chap-
22 ter 576 of the laws of 1974, constituting the emergency tenant
23 protection act of nineteen seventy-four, is REPEALED.
24 § 4. Subparagraph (k) of paragraph 2 of subdivision e of section
25 26-403 of the administrative code of the city of New York is REPEALED.
26 § 5. Section 26-504.2 of the administrative code of the city of New
27 York is REPEALED.
28 § 6. Any housing accommodations that prior to the effective date of
29 this act were excluded from coverage from the emergency tenant
30 protection act of nineteen seventy-four, the emergency housing rent
31 control law or the administrative code of the city of New York pursuant
32 to the provisions of law repealed by sections two, three, four and five
33 of this act, and where such housing accommodations were located outside
34 the city of New York and were rented to a tenant between January 1, 2013
35 and the effective date of this act for less than $3,500.00 per month
36 regardless of any subsequent payment of a higher monthly rent, or were
37 located within the city of New York and were rented to a tenant between
38 January 1, 2013 and the effective date of this act for less than
39 $5,000.00 per month, regardless of any subsequent payment of a higher
40 monthly rent, shall be subject to the provisions of such act, law or
41 administrative code, respectively. Notwithstanding the provisions of
42 any lease or rental agreement, the legal regulated rent or maximum
43 collectible rent of any housing accommodation excluded from regulation
44 prior to the effective date of this act by reason of the provisions
45 repealed by sections two, three, four and five of this act and made
46 subject to regulation shall be the actual rent paid by a tenant on
47 December 31, 2014 or, if no rent was paid for such accommodation on
48 December 31, 2014, the most recent actual rent paid by a tenant for such
49 accommodation prior to December 31, 2014, subject to further adjustment
50 in accordance with applicable provisions of law.
51 § 7. Paragraph 14 of subdivision c of section 26-511 of the adminis-
52 trative code of the city of New York, as amended by section 12 of part A
53 of chapter 20 of the laws of 2015, is amended to read as follows:
54 (14) provides that where the amount of rent charged to and paid by the
55 tenant is less than the legal regulated rent for the housing accommo-
56 dation, the amount of rent for such housing accommodation which may be
A. 1865--B 3
1 charged upon renewal or upon vacancy thereof, may, at the option of the
2 owner, be based upon such previously established legal regulated rent,
3 as adjusted by the most recent applicable guidelines increases and any
4 other increases authorized by law. [Such housing accommodation shall be
5 excluded from the provisions of this code pursuant to section 26-504.2
6 of this chapter when, subsequent to vacancy: (i) such legal regulated
7 rent prior to vacancy is two thousand five hundred dollars per month, or
8 more, for any housing accommodation that is or becomes vacant after the
9 effective date of the rent act of 2011 but prior to the effective date
10 of the rent act of 2015 or (ii) such legal regulated rent is two thou-
11 sand seven hundred dollars per month or more, provided, however that on
12 January 1, 2016, and annually thereafter, the maximum legal regulated
13 rent for this deregulation threshold shall be adjusted by the same
14 percentage as the most recent one year renewal adjustment as adjusted by
15 the relevant rent guidelines board, for any housing accommodation that
16 is or becomes vacant on or after the rent act of 2015.]
17 § 8. Subdivision (a-2) of section 10 of section 4 of chapter 576 of
18 the laws of 1974 constituting the emergency tenant protection act of
19 nineteen seventy-four, as amended by section 11 of part A of chapter 20
20 of the laws of 2015, is amended to read as follows:
21 (a-2) Provides that where the amount of rent charged to and paid by
22 the tenant is less than the legal regulated rent for the housing accom-
23 modation, the amount of rent for such housing accommodation which may be
24 charged upon renewal or upon vacancy thereof, may, at the option of the
25 owner, be based upon such previously established legal regulated rent,
26 as adjusted by the most recent applicable guidelines increases and other
27 increases authorized by law. [Such housing accommodation shall be
28 excluded from the provisions of this act pursuant to paragraph thirteen
29 of subdivision a of section five of this act when subsequent to vacancy:
30 (i) such legal regulated rent is two thousand five hundred dollars per
31 month, or more, for any housing accommodation that is, or becomes,
32 vacant after the effective date of the rent act of 2011 but prior to the
33 effective date of the rent act of 2015 or (ii) such legal regulated rent
34 is two thousand seven hundred dollars per month or more for any housing
35 accommodation that is or becomes vacant on or after the rent act of
36 2015; starting on January 1, 2016, and annually thereafter, the maximum
37 legal regulated rent for this deregulation threshold, shall also be
38 increased by the same percent as the most recent one year renewal
39 adjustment, adopted by the applicable rent guidelines board pursuant to
40 the rent stabilization law.]
41 § 9. This act shall take effect immediately; provided, however, that:
42 (a) the amendments to section 26-511 of chapter 4 of title 26 of the
43 administrative code of the city of New York made by section seven of
44 this act shall expire on the same date as such law expires and shall not
45 affect the expiration of such law as provided under section 26-520 of
46 such law; and
47 (b) the amendments to subdivision (a-2) of section 10 of section 4 of
48 the emergency tenant protection act of nineteen seventy-four made by
49 section eight of this act shall expire on the same date as such act
50 expires and shall not affect the expiration of such act as provided in
51 section 17 of chapter 576 of the laws of 1974.