A02159 Summary:

BILL NOA02159
 
SAME ASSAME AS S05317
 
SPONSORJoyner
 
COSPNSROrtiz, Mosley, Seawright, Barron, Gottfried, Pichardo, Taylor, Niou, Arroyo, Simon, Cook, Blake, Epstein, Hevesi, Rivera, De La Rosa, Reyes, Crespo, Williams, Cruz, Glick, Fall
 
MLTSPNSRNolan
 
Amd §§26-405 & 26-511, NYC Ad Cd; amd §6, Emerg Ten Prot Act of 1974; amd §4, Emerg Hous Rent Cont L
 
Relates to tenant responses to applications for a major capital improvement rent increase; allows tenants to respond within one hundred twenty days from the date of mailing of a notice of a proceeding; requires the state division of housing and community renewal to provide any responding tenant with the reasons for the division's approval or denial of such application.
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A02159 Actions:

BILL NOA02159
 
01/22/2019referred to housing
01/08/2020referred to housing
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A02159 Committee Votes:

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A02159 Floor Votes:

There are no votes for this bill in this legislative session.
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A02159 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          2159
 
                               2019-2020 Regular Sessions
 
                   IN ASSEMBLY
 
                                    January 22, 2019
                                       ___________
 
        Introduced  by  M. of A. JOYNER, ORTIZ, MOSLEY, SEAWRIGHT, BARRON, GOTT-
          FRIED, PICHARDO, TAYLOR, NIOU, ARROYO, SIMON,  COOK,  BLAKE,  EPSTEIN,
          HEVESI -- read once and referred to the Committee on Housing
 
        AN  ACT  to  amend  the administrative code of the city of New York, the
          emergency tenant protection act of nineteen seventy-four and the emer-
          gency housing rent control law, in relation  to  tenant  responses  to
          applications for a major capital improvement rent increase
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Paragraph 1 of subdivision  g  of  section  26-405  of  the
     2  administrative  code  of the city of New York is amended by adding a new
     3  subparagraph (g-1) to read as follows:
     4    (g-1) Where an  application  for  a  major  capital  improvement  rent
     5  increase  has  been  filed,  a tenant shall have one hundred twenty days
     6  from the date of mailing of a notice of a proceeding in which to  answer
     7  or  reply. The city rent agency shall provide any responding tenant with
     8  the reasons for the city rent agency's approval or denial of such appli-
     9  cation; or
    10    § 2. Paragraph 6 of subdivision c of section 26-511 of the administra-
    11  tive code of the city of New York, as amended by section 29 of part A of
    12  chapter 20 of the laws of 2015, is amended to read as follows:
    13    (6) provides criteria whereby the commissioner may act  upon  applica-
    14  tions  by  owners  for  increases  in  excess  of the level of fair rent
    15  increase established under this law provided, however, that such  crite-
    16  ria  shall  provide  (a) as to hardship applications, for a finding that
    17  the level of fair rent increase is not sufficient to enable the owner to
    18  maintain approximately the same average annual net income  (which  shall
    19  be  computed  without regard to debt service, financing costs or manage-
    20  ment fees) for the three year period ending on or within six  months  of
    21  the  date  of  an application pursuant to such criteria as compared with
    22  annual net income, which prevailed on the average over the period  nine-
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD00496-01-9

        A. 2159                             2
 
     1  teen  hundred  sixty-eight  through nineteen hundred seventy, or for the
     2  first three years of operation if the building was completed since nine-
     3  teen hundred sixty-eight or for the first three  fiscal  years  after  a
     4  transfer of title to a new owner provided the new owner can establish to
     5  the  satisfaction  of  the commissioner that he or she acquired title to
     6  the building as a result of a bona fide sale of the entire building  and
     7  that  the new owner is unable to obtain requisite records for the fiscal
     8  years nineteen hundred  sixty-eight  through  nineteen  hundred  seventy
     9  despite  diligent  efforts to obtain same from predecessors in title and
    10  further provided that the new owner can provide financial data  covering
    11  a  minimum  of  six  years under his or her continuous and uninterrupted
    12  operation of the building to meet the three year to three  year  compar-
    13  ative  test  periods  herein provided; and (b) as to completed building-
    14  wide major capital improvements, for a finding  that  such  improvements
    15  are deemed depreciable under the Internal Revenue Code and that the cost
    16  is  to  be amortized over an eight-year period for a building with thir-
    17  ty-five or fewer housing accommodations, or a  nine-year  period  for  a
    18  building  with  more  than  thirty-five  housing accommodations, for any
    19  determination issued by the division of housing  and  community  renewal
    20  after  the  effective  date  of  the  rent  act of 2015, based upon cash
    21  purchase price exclusive of interest  or  service  charges.    Where  an
    22  application  for  a  major  capital  improvement  rent increase has been
    23  filed, a tenant shall have one hundred twenty  days  from  the  date  of
    24  mailing  of  a  notice  of a proceeding in which to answer or reply. The
    25  state division of  housing  and  community  renewal  shall  provide  any
    26  responding tenant with the reasons for the division's approval or denial
    27  of  such application. Notwithstanding anything to the contrary contained
    28  herein, no hardship increase granted pursuant to this  paragraph  shall,
    29  when added to the annual gross rents, as determined by the commissioner,
    30  exceed  the sum of, (i) the annual operating expenses, (ii) an allowance
    31  for management services as determined by the commissioner, (iii)  actual
    32  annual  mortgage debt service (interest and amortization) on its indebt-
    33  edness to a lending institution, an insurance company, a retirement fund
    34  or welfare fund which is operated under the supervision of  the  banking
    35  or  insurance  laws  of  the state of New York or the United States, and
    36  (iv) eight and one-half percent of that portion of the fair market value
    37  of the property which exceeds the unpaid principal amount of  the  mort-
    38  gage  indebtedness  referred to in subparagraph (iii) of this paragraph.
    39  Fair market value for the purposes of this paragraph shall be six  times
    40  the  annual gross rent. The collection of any increase in the stabilized
    41  rent for any apartment pursuant to this paragraph shall not  exceed  six
    42  percent  in  any  year from the effective date of the order granting the
    43  increase over the rent set forth in the schedule of  gross  rents,  with
    44  collectability  of any dollar excess above said sum to be spread forward
    45  in similar increments and added to the stabilized rent as established or
    46  set in future years;
    47    § 3. Subdivision d of section 6 of section 4 of  chapter  576  of  the
    48  laws  of 1974, constituting the emergency tenant protection act of nine-
    49  teen seventy-four, is amended by adding a new paragraph (3-a) to read as
    50  follows:
    51    (3-a) an application for a major capital improvement rent increase has
    52  been filed, a tenant shall have one hundred twenty days from the date of
    53  mailing of a notice of a proceeding in which to  answer  or  reply.  The
    54  state  division  of  housing  and  community  renewal  shall provide any
    55  responding tenant with the reasons for the division's approval or denial
    56  of such application; or

        A. 2159                             3
 
     1    § 4. Subparagraph 7 of the second undesignated paragraph of  paragraph
     2  (a)  of  subdivision  4 of section 4 of chapter 274 of the laws of 1946,
     3  constituting the emergency housing  rent  control  law,  as  amended  by
     4  section  32  of  part A of chapter 20 of the laws of 2015, is amended to
     5  read as follows:
     6    (7)  there has been since March first, nineteen hundred fifty, a major
     7  capital improvement required for the operation, preservation or  mainte-
     8  nance  of  the structure; which for any order of the commissioner issued
     9  after the effective date of the rent  act  of  2015  the  cost  of  such
    10  improvement  shall  be amortized over an eight-year period for buildings
    11  with thirty-five or fewer units or a nine year period for buildings with
    12  more than thirty-five units, provided, however, where an application for
    13  a major capital improvement rent increase has been filed, a tenant shall
    14  have one hundred twenty days from the date of mailing of a notice  of  a
    15  proceeding  in  which  to answer or reply. The state division of housing
    16  and community renewal shall  provide  any  responding  tenant  with  the
    17  reasons for the division's approval or denial of such application; or
    18    §  5.  This  act shall take effect on the ninetieth day after it shall
    19  have become a law; provided that:
    20    (a) the amendments to section 26-405 of the city  rent  and  rehabili-
    21  tation  law  made  by section one of this act shall remain in full force
    22  and effect only as long as the public emergency requiring the regulation
    23  and control of residential rents and evictions continues, as provided in
    24  subdivision 3 of section 1 of the local emergency housing  rent  control
    25  act;
    26    (b)  the  amendments to section 26-511 of chapter 4 of title 26 of the
    27  administrative code of the city of New York made by section two of  this
    28  act  shall  expire  on  the  same date as such law expires and shall not
    29  affect the expiration of such law as provided under  section  26-520  of
    30  such law;
    31    (c) the amendments to section 6 of the emergency tenant protection act
    32  of  nineteen seventy-four made by section three of this act shall expire
    33  on the same date as such act expires and shall not affect the expiration
    34  of such act as provided in section 17 of chapter  576  of  the  laws  of
    35  1974; and
    36    (d)  the amendments to section 4 of the emergency housing rent control
    37  law made by section four of this act shall expire on the  same  date  as
    38  such  law  expires  and  shall  not affect the expiration of such law as
    39  provided in subdivision 2 of section 1 of chapter 274  of  the  laws  of
    40  1946.
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