Amd SS26-511 & 26-405, NYC Ad Cd; amd SS10 & 6, Emerg Ten Prot Act of 1974; amd S4, 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
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5502
2015-2016 Regular Sessions
IN ASSEMBLY
February 24, 2015
___________
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 7 of
3 part B of chapter 97 of the laws of 2011, is amended to read as follows:
4 (5-a) provides that, notwithstanding any provision of this chapter,
5 the legal regulated rent for any vacancy lease entered into after the
6 effective date of this paragraph shall be as hereinafter provided in
7 this paragraph. [The previous legal regulated rent for such housing
8 accommodation shall be increased by the following: (i) if the vacancy
9 lease is for a term of two years, twenty percent of the previous legal
10 regulated rent; or (ii) if the vacancy lease is for a term of one year
11 the increase shall be twenty percent of the previous legal regulated
12 rent less an amount equal to the difference between (a) the two year
13 renewal lease guideline promulgated by the guidelines board of the city
14 of New York applied to the previous legal regulated rent and (b) the one
15 year renewal lease guideline promulgated by the guidelines board of the
16 city of New York applied to the previous legal regulated rent. In addi-
17 tion, if] If the legal regulated rent was not increased with respect to
18 such housing accommodation by a permanent vacancy allowance within eight
19 years prior to a vacancy lease executed on or after the effective date
20 of this paragraph, the legal regulated rent may be [further] increased
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD09027-02-5
A. 5502 2
1 by an amount equal to the product resulting from multiplying such previ-
2 ous legal regulated rent by six-tenths of one percent and further multi-
3 plying the amount of rent increase resulting therefrom by the greater of
4 (A) the number of years since the imposition of the last permanent
5 vacancy allowance, or (B) if the rent was not increased by a permanent
6 vacancy allowance since the housing accommodation became subject to this
7 chapter, the number of years that such housing accommodation has been
8 subject to this chapter. Provided that if the previous legal regulated
9 rent was less than three hundred dollars the total increase shall be as
10 calculated above plus one hundred dollars per month. Provided, further,
11 that if the previous legal regulated rent was at least three hundred
12 dollars and no more than five hundred dollars in no event shall the
13 total increase pursuant to this paragraph be less than one hundred
14 dollars per month. Such increase shall be [in lieu of any allowance
15 authorized for the one or two year renewal component thereof, but shall
16 be] in addition to any other increases authorized pursuant to this chap-
17 ter including an adjustment based upon a major capital improvement, or a
18 substantial modification or increase of dwelling space or services, or
19 installation of new equipment or improvements or new furniture or
20 furnishings provided in or to the housing accommodation pursuant to this
21 section. The increase authorized in this paragraph may not be imple-
22 mented more than one time in any calendar year, notwithstanding the
23 number of vacancy leases entered into in such year, and may not be
24 implemented without the landlord providing to the new tenant an itemized
25 cost accounting of all improvements claimed as part of such increase and
26 copies of the corresponding receipts with the lease agreement.
27 § 2. Subdivision (a-1) of section 10 of section 4 of chapter 576 of
28 the laws of 1974, constituting the emergency tenant protection act of
29 nineteen seventy-four, as amended by section 8 of part B of chapter 97
30 of the laws of 2011, is amended to read as follows:
31 (a-1) provides that, notwithstanding any provision of this act, the
32 legal regulated rent for any vacancy lease entered into after the effec-
33 tive date of this subdivision shall be as hereinafter set forth. [The
34 previous legal regulated rent for such housing accommodation shall be
35 increased by the following: (i) if the vacancy lease is for a term of
36 two years, twenty percent of the previous legal regulated rent; or (ii)
37 if the vacancy lease is for a term of one year the increase shall be
38 twenty percent of the previous legal regulated rent less an amount equal
39 to the difference between (a) the two year renewal lease guideline
40 promulgated by the guidelines board of the county in which the housing
41 accommodation is located applied to the previous legal regulated rent
42 and (b) the one year renewal lease guideline promulgated by the guide-
43 lines board of the county in which the housing accommodation is located
44 applied to the previous legal regulated rent. In addition, if] If the
45 legal regulated rent was not increased with respect to such housing
46 accommodation by a permanent vacancy allowance within eight years prior
47 to a vacancy lease executed on or after the effective date of this
48 subdivision, the legal regulated rent may be [further] increased by an
49 amount equal to the product resulting from multiplying such previous
50 legal regulated rent by six-tenths of one percent and further multiply-
51 ing the amount of rent increase resulting therefrom by the greater of
52 (A) the number of years since the imposition of the last permanent
53 vacancy allowance, or (B) if the rent was not increased by a permanent
54 vacancy allowance since the housing accommodation became subject to this
55 act, the number of years that such housing accommodation has been
56 subject to this act. Provided that if the previous legal regulated rent
A. 5502 3
1 was less than three hundred dollars the total increase shall be as
2 calculated above plus one hundred dollars per month. Provided, further,
3 that if the previous legal regulated rent was at least three hundred
4 dollars and no more than five hundred dollars in no event shall the
5 total increase pursuant to this subdivision be less than one hundred
6 dollars per month. Such increase shall be [in lieu of any allowance
7 authorized for the one or two year renewal component thereof, but shall
8 be] in addition to any other increases authorized pursuant to this act
9 including an adjustment based upon a major capital improvement, or a
10 substantial modification or increase of dwelling space or services, or
11 installation of new equipment or improvements or new furniture or
12 furnishings provided in or to the housing accommodation pursuant to
13 section six of this act. The increase authorized in this subdivision may
14 not be implemented more than one time in any calendar year, notwith-
15 standing the number of vacancy leases entered into in such year, and may
16 not be implemented without the landlord providing to the new tenant an
17 itemized cost accounting of all improvements claimed as part of such
18 increase and copies of the corresponding receipts with the lease agree-
19 ment.
20 § 3. Subparagraph (e) of paragraph 1 of subdivision g of section
21 26-405 of the administrative code of the city of New York, as amended by
22 section 15 of part B of chapter 97 of the laws of 2011, is amended to
23 read as follows:
24 (e) The landlord and tenant by mutual voluntary written agreement
25 agree to a substantial increase or decrease in dwelling space or a
26 change in the services, furniture, furnishings or equipment provided in
27 the housing accommodations. An adjustment under this subparagraph shall
28 be equal to one-fortieth, in the case of a building with thirty-five or
29 fewer housing accommodations, or one-sixtieth, in the case of a building
30 with more than thirty-five housing accommodations where such adjustment
31 takes effect on or after September twenty-fourth, two thousand eleven,
32 of the total cost incurred by the landlord in providing such modifica-
33 tion or increase in dwelling space, services, furniture, furnishings or
34 equipment, including the cost of installation, but excluding finance
35 charges, with an adjustment, in both cases, being no more than twenty
36 percent of the current rent, provided further that an owner who is enti-
37 tled to a rent increase pursuant to this subparagraph shall not be enti-
38 tled to a further rent increase based upon the installation of similar
39 equipment, or new furniture or furnishings within the useful life of
40 such new equipment, or new furniture or furnishings. The owner shall
41 give written notice to the city rent agency of any such adjustment
42 pursuant to this subparagraph; or
43 § 4. Paragraph 13 of subdivision c of section 26-511 of the adminis-
44 trative code of the city of New York, as amended by section 16 of part B
45 of chapter 97 of the laws of 2011, is amended to read as follows:
46 (13) provides that an owner is entitled to a rent increase where there
47 has been a substantial modification or increase of dwelling space or an
48 increase in the services, or installation of new equipment or improve-
49 ments or new furniture or furnishings provided in or to a tenant's hous-
50 ing accommodation, on written tenant consent to the rent increase. In
51 the case of a vacant housing accommodation, tenant consent shall not be
52 required. The permanent increase in the legal regulated rent for the
53 affected housing accommodation shall be one-fortieth, in the case of a
54 building with thirty-five or fewer housing accommodations, or one-sixti-
55 eth, in the case of a building with more than thirty-five housing accom-
56 modations where such permanent increase takes effect on or after Septem-
A. 5502 4
1 ber twenty-fourth, two thousand eleven, of the total cost incurred by
2 the landlord in providing such modification or increase in dwelling
3 space, services, furniture, furnishings or equipment, including the cost
4 of installation, but excluding finance charges, provided, however, that
5 in both cases, the permanent increase is no more than twenty percent of
6 the current legal regulated rent. Provided further that an owner who is
7 entitled to a rent increase pursuant to this paragraph shall not be
8 entitled to a further rent increase based upon the installation of simi-
9 lar equipment, or new furniture or furnishings within the useful life of
10 such new equipment, or new furniture or furnishings.
11 § 5. Paragraph 1 of subdivision d of section 6 of section 4 of chapter
12 576 of the laws of 1974, constituting the emergency tenant protection
13 act of nineteen seventy-four, as amended by section 18 of part B of
14 chapter 97 of the laws of 2011, is amended to read as follows:
15 (1) there has been a substantial modification or increase of dwelling
16 space or an increase in the services, or installation of new equipment
17 or improvements or new furniture or furnishings, provided in or to a
18 tenant's housing accommodation, on written tenant consent to the rent
19 increase. In the case of a vacant housing accommodation, tenant consent
20 shall not be required. The permanent increase in the legal regulated
21 rent for the affected housing accommodation shall be one-fortieth, in
22 the case of a building with thirty-five or fewer housing accommodations,
23 or one-sixtieth, in the case of a building with more than thirty-five
24 housing accommodations where such permanent increase takes effect on or
25 after September twenty-fourth, two thousand eleven, of the total cost
26 incurred by the landlord in providing such modification or increase in
27 dwelling space, services, furniture, furnishings or equipment, including
28 the cost of installation, but excluding finance charges, provided,
29 however, that in both cases, the permanent increase is no more than
30 twenty percent of the current legal regulated rent. Provided further
31 that an owner who is entitled to a rent increase pursuant to this para-
32 graph shall not be entitled to a further rent increase based upon the
33 installation of similar equipment, or new furniture or furnishings with-
34 in the useful life of such new equipment, or new furniture or
35 furnishings.
36 § 6. Clause 5 of the second undesignated paragraph of paragraph (a) of
37 subdivision 4 of section 4 of chapter 274 of the laws of 1946, consti-
38 tuting the emergency housing rent control law, as amended by section 25
39 of part B of chapter 97 of the laws of 2011, is amended to read as
40 follows:
41 (5) the landlord and tenant by mutual voluntary written agreement
42 agree to a substantial increase or decrease in dwelling space or a
43 change in the services, furniture, furnishings or equipment provided in
44 the housing accommodations; provided that an owner shall be entitled to
45 a rent increase where there has been a substantial modification or
46 increase of dwelling space or an increase in the services, or installa-
47 tion of new equipment or improvements or new furniture or furnishings
48 provided in or to a tenant's housing accommodation. The permanent
49 increase in the maximum rent for the affected housing accommodation
50 shall be one-fortieth, in the case of a building with thirty-five or
51 fewer housing accommodations, or one-sixtieth, in the case of a building
52 with more than thirty-five housing accommodations where such permanent
53 increase takes effect on or after September twenty-fourth, two thousand
54 eleven, of the total cost incurred by the landlord in providing such
55 modification or increase in dwelling space, services, furniture,
56 furnishings or equipment, including the cost of installation, but
A. 5502 5
1 excluding finance charges, provided, however, that in both cases, the
2 permanent increase is no more than twenty percent of the current rent,
3 and provided further that an owner who is entitled to a rent increase
4 pursuant to this clause shall not be entitled to a further rent increase
5 based upon the installation of similar equipment, or new furniture or
6 furnishings within the useful life of such new equipment, or new furni-
7 ture or furnishings. The owner shall give written notice to the commis-
8 sion of any such adjustment pursuant to this clause; or
9 § 7. This act shall take effect immediately; provided that:
10 a. the amendments to section 26-511 of chapter 4 of title 26 of the
11 administrative code of the city of New York made by sections one and
12 four of this act shall expire on the same date as such law expires and
13 shall not affect the expiration of such law as provided under section
14 26-520 of such law;
15 b. the amendments to sections 10 and 6 of the emergency tenant
16 protection act of nineteen seventy-four made by sections two and five of
17 this act shall expire on the same date as such act expires and shall not
18 affect the expiration of such act as provided in section 17 of chapter
19 576 of the laws of 1974;
20 c. the amendments to section 26-405 of the city rent and rehabili-
21 tation law made by section three 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; and
26 d. the amendments to section 4 of the emergency housing rent control
27 law made by section six of this act shall expire on the same date as
28 such law expires and shall not affect the expiration of such law as
29 provided in subdivision 2 of section 1 of chapter 274 of the laws of
30 1946.