A00398 Summary:

BILL NOA00398
 
SAME ASSAME AS S05040
 
SPONSORRosenthal
 
COSPNSROrtiz, Mosley, Gottfried, Davila, Pichardo, Bichotte, Colton, Joyner, Linares, Walker
 
MLTSPNSRFarrell
 
Amd S26-405, rpld sub g 1 sub (l) & (n), NYC Ad Cd; amd S4, Emerg Hous Rent Cont L
 
Relates to the establishment of rent adjustments.
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A00398 Actions:

BILL NOA00398
 
01/07/2015referred to housing
01/06/2016referred to housing
05/17/2016reported
05/19/2016advanced to third reading cal.633
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A00398 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A398
 
SPONSOR: Rosenthal (MS)
  TITLE OF BILL: An act to amend the administrative code of the city of New York and the emergency housing rent control law, in relation to the establishment of rent adjustments; and repealing certain provisions of the administrative code of the city of New York relating thereto   PURPOSE: This bill would create parity between the maximum rent increases eligible for rent controlled and rent stabilized apartments. It would require the Department of Housing and Community Renewal to Cap the percentage rent increase available to owners of rent controlled apartments at a rate on par with recent Rent Guidelines Board adjust- ments for 1-year renewal leases.   SUMMARY OF PROVISIONS: Section 1 amends subdivision a of paragraph 5 of section 26-405 of the administrative code of the city of New York. Section 2 repeals subparagraphs (1) and (n) of paragraph 1 of subdivi- sion g of section 26-405 of the administrative cede of the city of New York. Section 3 amends section 4 of chapter 274 of the laws of.1946 by adding a new subdivision 9. Section 4 sets forth the effective date.   JUSTIFICATION: Many rent controlled tenants are currently subject to steep rent increases calculated using an abstruse formula. Rent increases in rent stabilized apartments are set by the Rent Guidelines Boards (one in New York City and one each in Nassau, Westchester, and Rockland counties) using a formula that taken into account a wide range of economic factors. Certain owners of rent-controlled apartments are entitled to automatically raise rents up to 7.5 percent each year, rates higher than average increases for rent stabilized apartments. This bill would create parity between the two systems by capping rent controlled rent increases at a level equal to the average of the previous 5 ROB rent increases for 1-year rent stabilized renewal leases. This will prevent rent controlled apartment rents from inflating farther beyond their rent stabilized counterparts, while maintaining the system of rent control increases currently in place and the protections it affords.   PRIOR LEGISLATIVE HISTORY: A.7881A of 2013-2014   EFFECTIVE DATE: This act shall take effect on the one hundred and eightieth day after it shall have become a law; provided that the amend- ments to section 26-405 of the city rent and rehabilitation law made by sections. one and two of this act shall remain in full force and effect only as long as the.public emergency requiring the regulation and control of residential rents and evictions continues, as provided in subdivision 3 of section 1 of the local emergency housing rent control act; and provided that the amendments to section 4 of the emergency housing rent control law made by section four of this act shall expire on the same date as such law expires and shall not affect the expiration of such law as provided in subdivision 2 of section 1 of chapter 274 of the laws of 1946.
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A00398 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                           398
 
                               2015-2016 Regular Sessions
 
                   IN ASSEMBLY
 
                                       (Prefiled)
 
                                     January 7, 2015
                                       ___________
 
        Introduced  by  M.  of  A. ROSENTHAL, ORTIZ, MOSLEY, GOTTFRIED -- Multi-
          Sponsored by -- M. of A.   DAVILA -- read once  and  referred  to  the
          Committee on Housing
 
        AN  ACT to amend the administrative code of the city of New York and the
          emergency housing rent control law, in relation to  the  establishment
          of  rent adjustments; and repealing certain provisions of the adminis-
          trative code of the city of New York relating thereto
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  Paragraph  5  of  subdivision  a of section 26-405 of the
     2  administrative code of the city of  New  York  is  amended  to  read  as
     3  follows:
     4    (5)  Where  a  maximum rent established pursuant to this chapter on or
     5  after January first, nineteen hundred seventy-two, is  higher  than  the
     6  previously  existing  maximum  rent,  the  landlord  may  not collect an
     7  increase from a tenant in occupancy in any one year period of more  than
     8  the  lesser  of  either  seven  and  one-half percentum [increase from a
     9  tenant in occupancy on such date in any one year period, provided howev-
    10  er, that where] or an average of the previous  five  years  of  one-year
    11  rent  increases on rent stabilized apartments as established by the rent
    12  guidelines board, pursuant to subdivision b of section  26-510  of  this
    13  title. If the period for which the rent is established exceeds one year,
    14  regardless  of  how the collection thereof is averaged over such period,
    15  the rent the landlord shall be entitled  to  receive  during  the  first
    16  twelve  months  shall not be increased by more than the lesser of either
    17  seven and one-half percentum or an average of the previous five years of
    18  one-year rent increases on rent stabilized apartments as established  by
    19  the  rent  guidelines board, pursuant to subdivision b of section 26-510
    20  of this title, over the previous rent [and]. Any additional annual rents
    21  shall not exceed the lesser of either seven and one-half percentum or an
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD04218-01-5

        A. 398                              2
 
     1  average of the previous five years of one-year rent  increases  on  rent
     2  stabilized  apartments  as  established  by  the  rent guidelines board,
     3  pursuant to subdivision b of section 26-510 of this title, of  the  rent
     4  paid  during  the  previous  year.  Notwithstanding any of the foregoing
     5  limitations in this paragraph five, maximum rent shall be  increased  if
     6  ordered by the agency pursuant to subparagraphs (d), (e), (f), (g), (h),
     7  (i),  (k),  [(l),]  or (m) [or (n)] of paragraph one of subdivision g of
     8  this section. [Commencing January first, nineteen hundred  eighty,  rent
     9  adjustments pursuant to subparagraph (n) of paragraph one of subdivision
    10  g of this section shall be excluded from the maximum rent when computing
    11  the  seven  and one-half percentum increase authorized by this paragraph
    12  five.] Where a housing accommodation is vacant on January  first,  nine-
    13  teen  hundred  seventy-two,  or  becomes  vacant thereafter by voluntary
    14  surrender of possession by the tenants, the maximum rent established for
    15  such accommodations may be collected.
    16    § 2. Subparagraphs (l) and (n) of paragraph  1  of  subdivision  g  of
    17  section  26-405  of  the administrative code of the city of New York are
    18  REPEALED.
    19    § 3. Section 4 of chapter 274 of the laws of  1946,  constituting  the
    20  emergency  housing rent control law, is amended by adding a new subdivi-
    21  sion 9 to read as follows:
    22    9. No annual rent increase  authorized  pursuant  to  this  act  shall
    23  exceed  the average of the previous five annual rental increases author-
    24  ized by a rent guidelines board for a rent stabilized unit  pursuant  to
    25  section  4  of  the emergency tenant protection act of nineteen seventy-
    26  four.
    27    § 4. This act shall take effect on the one hundred eightieth day after
    28  it shall have become a law; provided  that  the  amendments  to  section
    29  26-405  of  the  city rent and rehabilitation law made by section one of
    30  this act shall remain in full force and  effect  only  as  long  as  the
    31  public  emergency  requiring  the  regulation and control of residential
    32  rents and evictions continues, as provided in subdivision 3 of section 1
    33  of the local emergency housing rent control act; and provided  that  the
    34  amendments  to  section 4 of the emergency housing rent control law made
    35  by section three of this act shall expire on the same date as  such  law
    36  expires  and  shall not affect the expiration of such law as provided in
    37  subdivision 2 of section 1 of chapter 274 of the laws of 1946.
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