Amd §§26-511 & 26-405, NYC Ad Cd; amd §§10 & 6, Emerg Ten Prot Act of 1974; amd §4, Emerg Hous Rent Cont L
 
Limits the rent increase after vacancy of a housing accommodation by eliminating the twenty percent increase for vacant rent stabilized apartments; requires landlords to include an itemized cost accounting of all improvements claimed as part of such increase and copies of the corresponding receipts with the lease agreement to the new tenant; caps the increase in rent allowable to owners for individual apartment improvements to twenty percent of the current rent.
STATE OF NEW YORK
________________________________________________________________________
2593
2017-2018 Regular Sessions
IN ASSEMBLY
January 20, 2017
___________
Introduced by M. of A. ROSENTHAL -- 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 tenant protection act of nineteen seventy-four, in relation
to limiting rent increase after vacancy of a housing accommodation;
and 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 adjustment of maximum
allowable rent
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Paragraph 5-a of subdivision c of section 26-511 of the
2 administrative code of the city of New York, as amended by section 16-a
3 of part A of chapter 20 of the laws of 2015, is amended to read as
4 follows:
5 (5-a) provides that, notwithstanding any provision of this chapter,
6 the legal regulated rent for any vacancy lease entered into after the
7 effective date of this paragraph shall be as hereinafter provided in
8 this paragraph. [The previous legal regulated rent for such housing
9 accommodation shall be increased by the following: (i) if the vacancy
10 lease is for a term of two years, twenty percent of the previous legal
11 regulated rent; or (ii) if the vacancy lease is for a term of one year
12 the increase shall be twenty percent of the previous legal regulated
13 rent less an amount equal to the difference between (a) the two year
14 renewal lease guideline promulgated by the guidelines board of the city
15 of New York applied to the previous legal regulated rent and (b) the one
16 year renewal lease guideline promulgated by the guidelines board of the
17 city of New York applied to the previous legal regulated rent.] However,
18 where the amount charged and paid by the prior tenant pursuant to para-
19 graph fourteen of this subdivision, was less than the legal regulated
20 rent, such increase to the legal regulated rent shall not exceed: five
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD05270-01-7
A. 2593 2
1 percent of the previous legal regulated rent if the last vacancy lease
2 commenced less than two years ago; ten percent of the previous legal
3 regulated rent if the last vacancy lease commenced less than three years
4 ago; fifteen percent of the previous legal regulated rent if the last
5 vacancy lease commenced less than four years ago; twenty percent of the
6 previous legal regulated rent if the last vacancy lease commenced four
7 or more years ago. [In addition,] If the legal regulated rent was not
8 increased with respect to such housing accommodation by a permanent
9 vacancy allowance within eight years prior to a vacancy lease executed
10 on or after the effective date of this paragraph, the legal regulated
11 rent may be [further] increased by an amount equal to the product
12 resulting from multiplying such previous legal regulated rent by six-
13 tenths of one percent and further multiplying the amount of rent
14 increase resulting therefrom by the greater of (A) the number of years
15 since the imposition of the last permanent vacancy allowance, or (B) if
16 the rent was not increased by a permanent vacancy allowance since the
17 housing accommodation became subject to this chapter, the number of
18 years that such housing accommodation has been subject to this chapter.
19 Provided that if the previous legal regulated rent was less than three
20 hundred dollars the total increase shall be as calculated above plus one
21 hundred dollars per month. Provided, further, that if the previous legal
22 regulated rent was at least three hundred dollars and no more than five
23 hundred dollars in no event shall the total increase pursuant to this
24 paragraph be less than one hundred dollars per month. Such increase
25 shall be [in lieu of any allowance authorized for the one or two year
26 renewal component thereof, but shall be] in addition to any other
27 increases authorized pursuant to this chapter including an adjustment
28 based upon a major capital improvement, or a substantial modification or
29 increase of dwelling space or services, or installation of new equipment
30 or improvements or new furniture or furnishings provided in or to the
31 housing accommodation pursuant to this section. The increase authorized
32 in this paragraph may not be implemented more than one time in any
33 calendar year, notwithstanding the number of vacancy leases entered into
34 in such year, and may not be implemented without the landlord providing
35 to the new tenant an itemized cost accounting of all improvements
36 claimed as part of such increase and copies of the corresponding
37 receipts with the lease agreement.
38 § 2. Subdivision (a-1) of section 10 of section 4 of chapter 576 of
39 the laws of 1974, constituting the emergency tenant protection act of
40 nineteen seventy-four, as amended by section 16-b of part A of chapter
41 20 of the laws of 2015, is amended to read as follows:
42 (a-1) provides that, notwithstanding any provision of this act, the
43 legal regulated rent for any vacancy lease entered into after the effec-
44 tive date of this subdivision shall be as hereinafter set forth. [The
45 previous legal regulated rent for such housing accommodation shall be
46 increased by the following: (i) if the vacancy lease is for a term of
47 two years, twenty percent of the previous legal regulated rent; or (ii)
48 if the vacancy lease is for a term of one year the increase shall be
49 twenty percent of the previous legal regulated rent less an amount equal
50 to the difference between (a) the two year renewal lease guideline
51 promulgated by the guidelines board of the county in which the housing
52 accommodation is located applied to the previous legal regulated rent
53 and (b) the one year renewal lease guideline promulgated by the guide-
54 lines board of the county in which the housing accommodation is located
55 applied to the previous legal regulated rent.] However, where the amount
56 charged and paid by the prior tenant pursuant to paragraph fourteen of
A. 2593 3
1 this subdivision, was less than the legal regulated rent, such increase
2 to the legal regulated rent shall not exceed: five percent of the previ-
3 ous legal regulated rent if the last vacancy lease commenced less than
4 two years ago; ten percent of the previous legal regulated rent if the
5 last vacancy commenced less than three years ago; fifteen percent of the
6 previous legal regulated rent if the last vacancy lease commenced less
7 than four years ago; twenty percent of the previous legal regulated rent
8 if the last vacancy lease commenced four or more years ago. [In addi-
9 tion, if] If the legal regulated rent was not increased with respect to
10 such housing accommodation by a permanent vacancy allowance within eight
11 years prior to a vacancy lease executed on or after the effective date
12 of this subdivision, the legal regulated rent may be [further] increased
13 by an amount equal to the product resulting from multiplying such previ-
14 ous legal regulated rent by six-tenths of one percent and further multi-
15 plying the amount of rent increase resulting therefrom by the greater of
16 (A) the number of years since the imposition of the last permanent
17 vacancy allowance, or (B) if the rent was not increased by a permanent
18 vacancy allowance since the housing accommodation became subject to this
19 act, the number of years that such housing accommodation has been
20 subject to this act. Provided that if the previous legal regulated rent
21 was less than three hundred dollars the total increase shall be as
22 calculated above plus one hundred dollars per month. Provided, further,
23 that if the previous legal regulated rent was at least three hundred
24 dollars and no more than five hundred dollars in no event shall the
25 total increase pursuant to this subdivision be less than one hundred
26 dollars per month. Such increase shall be [in lieu of any allowance
27 authorized for the one or two year renewal component thereof, but shall
28 be] in addition to any other increases authorized pursuant to this act
29 including an adjustment based upon a major capital improvement, or a
30 substantial modification or increase of dwelling space or services, or
31 installation of new equipment or improvements or new furniture or
32 furnishings provided in or to the housing accommodation pursuant to
33 section six of this act. The increase authorized in this subdivision may
34 not be implemented more than one time in any calendar year, notwith-
35 standing the number of vacancy leases entered into in such year, and may
36 not be implemented without the landlord providing to the new tenant an
37 itemized cost accounting of all improvements claimed as part of such
38 increase and copies of the corresponding receipts with the lease agree-
39 ment.
40 § 3. Subparagraph (e) of paragraph 1 of subdivision g of section
41 26-405 of the administrative code of the city of New York, as amended by
42 section 15 of part B of chapter 97 of the laws of 2011, is amended to
43 read as follows:
44 (e) The landlord and tenant by mutual voluntary written agreement
45 agree to a substantial increase or decrease in dwelling space or a
46 change in the services, furniture, furnishings or equipment provided in
47 the housing accommodations. An adjustment under this subparagraph shall
48 be equal to one-fortieth, in the case of a building with thirty-five or
49 fewer housing accommodations, or one-sixtieth, in the case of a building
50 with more than thirty-five housing accommodations where such adjustment
51 takes effect on or after September twenty-fourth, two thousand eleven,
52 of the total cost incurred by the landlord in providing such modifica-
53 tion or increase in dwelling space, services, furniture, furnishings or
54 equipment, including the cost of installation, but excluding finance
55 charges, with an adjustment, in both cases, being no more than twenty
56 percent of the current rent, provided further that an owner who is enti-
A. 2593 4
1 tled to a rent increase pursuant to this subparagraph shall not be enti-
2 tled to a further rent increase based upon the installation of similar
3 equipment, or new furniture or furnishings within the useful life of
4 such new equipment, or new furniture or furnishings. The owner shall
5 give written notice to the city rent agency of any such adjustment
6 pursuant to this subparagraph; or
7 § 4. Paragraph 13 of subdivision c of section 26-511 of the adminis-
8 trative code of the city of New York, as amended by section 16 of part B
9 of chapter 97 of the laws of 2011, is amended to read as follows:
10 (13) provides that an owner is entitled to a rent increase where there
11 has been a substantial modification or increase of dwelling space or an
12 increase in the services, or installation of new equipment or improve-
13 ments or new furniture or furnishings provided in or to a tenant's hous-
14 ing accommodation, on written tenant consent to the rent increase. In
15 the case of a vacant housing accommodation, tenant consent shall not be
16 required. The permanent increase in the legal regulated rent for the
17 affected housing accommodation shall be one-fortieth, in the case of a
18 building with thirty-five or fewer housing accommodations, or one-sixti-
19 eth, in the case of a building with more than thirty-five housing accom-
20 modations where such permanent increase takes effect on or after Septem-
21 ber twenty-fourth, two thousand eleven, of the total cost incurred by
22 the landlord in providing such modification or increase in dwelling
23 space, services, furniture, furnishings or equipment, including the cost
24 of installation, but excluding finance charges, provided, however, that
25 in both cases, the permanent increase is no more than twenty percent of
26 the current legal regulated rent. Provided further that an owner who is
27 entitled to a rent increase pursuant to this paragraph shall not be
28 entitled to a further rent increase based upon the installation of simi-
29 lar equipment, or new furniture or furnishings within the useful life of
30 such new equipment, or new furniture or furnishings.
31 § 5. Paragraph 1 of subdivision d of section 6 of section 4 of chapter
32 576 of the laws of 1974, constituting the emergency tenant protection
33 act of nineteen seventy-four, as amended by section 18 of part B of
34 chapter 97 of the laws of 2011, is amended to read as follows:
35 (1) there has been a substantial modification or increase of dwelling
36 space or an increase in the services, or installation of new equipment
37 or improvements or new furniture or furnishings, provided in or to a
38 tenant's housing accommodation, on written tenant consent to the rent
39 increase. In the case of a vacant housing accommodation, tenant consent
40 shall not be required. The permanent increase in the legal regulated
41 rent for the affected housing accommodation shall be one-fortieth, in
42 the case of a building with thirty-five or fewer housing accommodations,
43 or one-sixtieth, in the case of a building with more than thirty-five
44 housing accommodations where such permanent increase takes effect on or
45 after September twenty-fourth, two thousand eleven, of the total cost
46 incurred by the landlord in providing such modification or increase in
47 dwelling space, services, furniture, furnishings or equipment, including
48 the cost of installation, but excluding finance charges, provided,
49 however, that in both cases, the permanent increase is no more than
50 twenty percent of the current legal regulated rent. Provided further
51 that an owner who is entitled to a rent increase pursuant to this para-
52 graph shall not be entitled to a further rent increase based upon the
53 installation of similar equipment, or new furniture or furnishings with-
54 in the useful life of such new equipment, or new furniture or
55 furnishings.
A. 2593 5
1 § 6. Clause 5 of the second undesignated paragraph of paragraph (a) of
2 subdivision 4 of section 4 of chapter 274 of the laws of 1946, consti-
3 tuting the emergency housing rent control law, as amended by section 25
4 of part B of chapter 97 of the laws of 2011, is amended to read as
5 follows:
6 (5) the landlord and tenant by mutual voluntary written agreement
7 agree to a substantial increase or decrease in dwelling space or a
8 change in the services, furniture, furnishings or equipment provided in
9 the housing accommodations; provided that an owner shall be entitled to
10 a rent increase where there has been a substantial modification or
11 increase of dwelling space or an increase in the services, or installa-
12 tion of new equipment or improvements or new furniture or furnishings
13 provided in or to a tenant's housing accommodation. The permanent
14 increase in the maximum rent for the affected housing accommodation
15 shall be one-fortieth, in the case of a building with thirty-five or
16 fewer housing accommodations, or one-sixtieth, in the case of a building
17 with more than thirty-five housing accommodations where such permanent
18 increase takes effect on or after September twenty-fourth, two thousand
19 eleven, of the total cost incurred by the landlord in providing such
20 modification or increase in dwelling space, services, furniture,
21 furnishings or equipment, including the cost of installation, but
22 excluding finance charges, provided, however, that in both cases, the
23 permanent increase is no more than twenty percent of the current rent,
24 and provided further that an owner who is entitled to a rent increase
25 pursuant to this clause shall not be entitled to a further rent increase
26 based upon the installation of similar equipment, or new furniture or
27 furnishings within the useful life of such new equipment, or new furni-
28 ture or furnishings. The owner shall give written notice to the commis-
29 sion of any such adjustment pursuant to this clause; or
30 § 7. This act shall take effect immediately; provided that:
31 a. the amendments to section 26-511 of chapter 4 of title 26 of the
32 administrative code of the city of New York made by sections one and
33 four of this act shall expire on the same date as such law expires and
34 shall not affect the expiration of such law as provided under section
35 26-520 of such law;
36 b. the amendments to sections 10 and 6 of the emergency tenant
37 protection act of nineteen seventy-four made by sections two and five of
38 this act shall expire on the same date as such act expires and shall not
39 affect the expiration of such act as provided in section 17 of chapter
40 576 of the laws of 1974;
41 c. the amendments to section 26-405 of the city rent and rehabili-
42 tation law made by section three of this act shall remain in full force
43 and effect only as long as the public emergency requiring the regulation
44 and control of residential rents and evictions continues, as provided in
45 subdivision 3 of section 1 of the local emergency housing rent control
46 act; and
47 d. the amendments to section 4 of the emergency housing rent control
48 law made by section six of this act shall expire on the same date as
49 such law expires and shall not affect the expiration of such law as
50 provided in subdivision 2 of section 1 of chapter 274 of the laws of
51 1946.