A01865 Summary:

BILL NOA01865B
 
SAME ASNo Same As
 
SPONSORRosenthal
 
COSPNSRBrennan, 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
 
MLTSPNSRCook, Cymbrowitz, Jaffee, Markey, Peoples-Stokes, Perry, Pretlow, Rivera, Sepulveda
 
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.
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A01865 Actions:

BILL NOA01865B
 
01/13/2015referred to housing
03/12/2015amend and recommit to housing
03/12/2015print number 1865a
01/06/2016referred to housing
05/11/2016amend and recommit to housing
05/11/2016print number 1865b
05/17/2016reported referred to codes
05/24/2016reported
05/26/2016advanced to third reading cal.741
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A01865 Memo:

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.
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A01865 Text:



 
                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.
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