A06194 Summary:

BILL NOA06194
 
SAME ASNo Same As
 
SPONSORFitzpatrick
 
COSPNSRBarclay, Schmitt
 
MLTSPNSRBrown K, Byrnes, Jensen, Lawler, Reilly, Smith
 
Amd §§6 & 8, rpld §10-b, §6 sub d ¶3-a, Emerg Ten Prot Act of 1974; rpld §8-a, amd §4, Emerg Hous Rent Cont L; amd §§26-511, 26-405 & 26-517.1, rpld §§26-511.1 & 26-405.1, NYC Ad Cd; rpld Part K §17, Chap 36 of 2019
 
Relates to permitting certain rent increases for capital improvements to rent regulated buildings and apartments.
Go to top    

A06194 Actions:

BILL NOA06194
 
03/10/2021referred to housing
01/05/2022referred to housing
Go to top

A06194 Committee Votes:

Go to top

A06194 Floor Votes:

There are no votes for this bill in this legislative session.
Go to top

A06194 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          6194
 
                               2021-2022 Regular Sessions
 
                   IN ASSEMBLY
 
                                     March 10, 2021
                                       ___________
 
        Introduced  by M. of A. FITZPATRICK, BARCLAY, SCHMITT -- Multi-Sponsored
          by -- M. of A.  BROWN, BYRNES, JENSEN, LAWLER, REILLY, SMITH  --  read
          once and referred to the Committee on Housing
 
        AN  ACT  to amend the emergency tenant protection act of nineteen seven-
          ty-four, the emergency housing rent control law, and  the  administra-
          tive  code  of  the city of New York, in relation to rent increases in
          certain cases; to repeal certain provisions of the administrative code
          of the city of New York, the emergency tenant protection act of  nine-
          teen seventy-four, and the emergency housing rent control law relating
          to  improvements  in rent regulated buildings and units; and to repeal
          section 17 of part K of chapter 36 of the laws of  2019  enacting  the
          Housing  Stability  and  Tenant Protection act of 2019 relating to the
          use of certain revenues
 
          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 d of section 6 of section 4 of
     2  chapter 576 of the laws  of  1974,  constituting  the  emergency  tenant
     3  protection  act  of  nineteen  seventy-four, as amended by section 18 of
     4  part Q of chapter 39 of the laws of 2019, is amended to read as follows:
     5    (1) there has been a substantial modification or increase of  dwelling
     6  space  or  an increase in the services, or installation of new equipment
     7  or improvements or new furniture or furnishings, provided  in  or  to  a
     8  tenant's  housing accommodation, on written [informed] tenant consent to
     9  the rent increase. In the case of a vacant housing accommodation, tenant
    10  consent shall not be required. The [temporary] permanent increase in the
    11  legal regulated rent for the affected  housing  accommodation  shall  be
    12  [one-one  hundred  sixty-eighth] one-fortieth, in the case of a building
    13  with thirty-five or fewer housing  accommodations  or  [one-one  hundred
    14  eightieth]  one-sixtieth  in the case of a building with more than thir-
    15  ty-five housing  accommodations  where  such  permanent  increase  takes
    16  effect on or after [the effective date of the chapter of the laws of two

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD08349-01-1

        A. 6194                             2

     1  thousand  nineteen that amended this paragraph, of the total actual cost
     2  incurred by the landlord up to fifteen  thousand  dollars  in  providing
     3  such  reasonable  and  verifiable  modification  or increase in dwelling
     4  space,  furniture,  furnishings,  or  equipment,  including  the cost of
     5  installation but excluding finance charges and  any  costs  that  exceed
     6  reasonable costs established by rules and regulations promulgated by the
     7  division  of  housing  and community renewal. Such rules and regulations
     8  shall include:   (i) requirements  for  work  to  be  done  by  licensed
     9  contractors  and  a prohibition on common ownership between the landlord
    10  and the contractor or vendor; and (ii)  a  requirement  that  the  owner
    11  resolve  within  the  dwelling  space all outstanding hazardous or imme-
    12  diately hazardous violations of the Uniform Fire Prevention and Building
    13  Code (Uniform Code), New York City Fire Code, or New York City  Building
    14  and  Housing  Maintenance Codes, if applicable] September twenty-fourth,
    15  two thousand eleven, of the total  cost  incurred  by  the  landlord  in
    16  providing  such  modification  or  increase in dwelling space, services,
    17  furniture, furnishings or equipment, including the cost of installation,
    18  but excluding finance charges.  Provided further that an  owner  who  is
    19  entitled  to  a  rent  increase  pursuant to this paragraph shall not be
    20  entitled to a further rent increase based upon the installation of simi-
    21  lar equipment, or new furniture or furnishings within the useful life of
    22  such new equipment, or new furniture or furnishings.  [Provided  further
    23  that  the  recoverable  costs incurred by the landlord, pursuant to this
    24  paragraph, shall be limited to an aggregate  cost  of  fifteen  thousand
    25  dollars  that  may be expended on no more than three separate individual
    26  apartment improvements in a fifteen year period beginning with the first
    27  individual apartment improvement on or after June fourteenth, two  thou-
    28  sand  nineteen.  Provided  further that increases to the legal regulated
    29  rent pursuant to this paragraph shall be removed from  the  legal  regu-
    30  lated  rent  thirty  years  from  the date the increase became effective
    31  inclusive of any increases granted by  the  applicable  rent  guidelines
    32  board.]
    33    §  2.  Paragraph 13 of subdivision c of section 26-511 of the adminis-
    34  trative code of the city of New York, as amended by section 19 of part Q
    35  of chapter 39 of the laws of 2019, is amended to read as follows:
    36    (13) provides that an owner is entitled to a rent increase where there
    37  has been a substantial modification or increase of dwelling space or  an
    38  increase  in  the services, or installation of new equipment or improve-
    39  ments or new furniture or furnishings provided in or to a tenant's hous-
    40  ing accommodation, on written [informed]  tenant  consent  to  the  rent
    41  increase.  In the case of a vacant housing accommodation, tenant consent
    42  shall not be required. The [temporary] permanent increase in  the  legal
    43  regulated  rent for the affected housing accommodation shall be [one-one
    44  hundred sixty-eighth] one-fortieth, in the case of a building with thir-
    45  ty-five or fewer housing accommodations [or one-one hundred  eightieth],
    46  or  one-sixtieth  in  the  case of a building with more than thirty-five
    47  housing accommodations where such permanent increase takes effect on  or
    48  after  [the  effective  date  of the chapter of the laws of two thousand
    49  nineteen that amended this paragraph, of the total actual cost  incurred
    50  by the landlord in providing such reasonable and verifiable modification
    51  or  increase  in  dwelling  space, furniture, furnishings, or equipment,
    52  including the cost of installation but excluding finance charges and any
    53  costs that exceed reasonable costs established by rules and  regulations
    54  promulgated by the division of housing and community renewal. Such rules
    55  and  regulations  shall include: (i) requirements for work to be done by
    56  licensed contractors and prohibit common ownership between the  landlord

        A. 6194                             3

     1  and  the  contractor  or  vendor;  and (ii) a requirement that the owner
     2  resolve within the dwelling space all  outstanding  hazardous  or  imme-
     3  diately hazardous violations of the Uniform Fire Prevention and Building
     4  Code  (Uniform Code), New York City Fire Code, or New York City Building
     5  and Housing Maintenance Codes, if applicable]  September  twenty-fourth,
     6  two  thousand  eleven,  of  the  total  cost incurred by the landlord in
     7  providing such modification or increase  in  dwelling  space,  services,
     8  furniture, furnishings or equipment, including the cost of installation,
     9  by  excluding  finance  charges.  Provided  further that an owner who is
    10  entitled to a rent increase pursuant to  this  paragraph  shall  not  be
    11  entitled to a further rent increase based upon the installation of simi-
    12  lar equipment, or new furniture or furnishings within the useful life of
    13  such  new  equipment, or new furniture or furnishings. [Provided further
    14  that the recoverable costs incurred by the landlord,  pursuant  to  this
    15  paragraph,  shall  be  limited  to an aggregate cost of fifteen thousand
    16  dollars that may be expended on no more than three  separate  individual
    17  apartment improvements in a fifteen year period beginning with the first
    18  individual  apartment improvement on or after June fourteenth, two thou-
    19  sand nineteen. Provided further that increases to  the  legal  regulated
    20  rent  pursuant  to  this paragraph shall be removed from the legal regu-
    21  lated rent thirty years from the  date  the  increase  became  effective
    22  inclusive  of  any  increases  granted by the applicable rent guidelines
    23  board.]
    24    § 3. Subparagraph (e) of paragraph  1  of  subdivision  g  of  section
    25  26-405 of the administrative code of the city of New York, as amended by
    26  section  20  of  part Q of chapter 39 of the laws of 2019, is amended to
    27  read as follows:
    28    (e) The landlord and tenant  by  mutual  voluntary  written  agreement
    29  [demonstrating  informed  consent]  agree  to  a substantial increase or
    30  decrease in dwelling space or  a  change  in  the  services,  furniture,
    31  furnishings  or  equipment  provided  in  the housing accommodations. An
    32  adjustment under this subparagraph shall be equal  to  [one-one  hundred
    33  sixty-eighth]  one-fortieth,  in the case of a building with thirty-five
    34  or fewer housing accommodations [or one-one hundred eightieth], or  one-
    35  sixtieth,  in  the case of a building with more than thirty-five housing
    36  accommodations where such [temporary]  adjustment  takes  effect  on  or
    37  after  [the  effective  date  of the chapter of the laws of two thousand
    38  nineteen that amended  this  subparagraph,  of  the  total  actual  cost
    39  incurred  by  the  landlord  in providing such reasonable and verifiable
    40  modification or increase in dwelling space, furniture,  furnishings,  or
    41  equipment,  including  the  cost  of  installation but excluding finance
    42  charges and any costs that exceed reasonable costs established by  rules
    43  and  regulations  promulgated  by  the division of housing and community
    44  renewal. Such rules and regulations shall include:  (i) requirements for
    45  work to be done by licensed contractors and  prohibit  common  ownership
    46  between  the  landlord and the contractor or vendor; and (ii) a require-
    47  ment that the owner resolve within the dwelling  space  all  outstanding
    48  hazardous  or  immediately  hazardous  violations  of  the  Uniform Fire
    49  Prevention and Building Code (Uniform Code), New York City Fire Code, or
    50  New York City Building and Housing  Maintenance  Codes,  if  applicable.
    51  Provided]  September  twenty-fourth,  two  thousand eleven, of the total
    52  cost incurred by the landlord in providing such modification or increase
    53  in  dwelling  space,  services,  furniture,  furnishings  or  equipment,
    54  including  the  cost  of  installation,  but  excluding finance charges,
    55  provided further that an owner who is entitled to a rent increase pursu-
    56  ant to this subparagraph  shall  not  be  entitled  to  a  further  rent

        A. 6194                             4
 
     1  increase based upon the installation of similar equipment, or new furni-
     2  ture or furnishings within the useful life of such new equipment, or new
     3  furniture  or  furnishings. [Provided further that the recoverable costs
     4  incurred by the landlord, pursuant to this subparagraph shall be limited
     5  to an aggregate cost of fifteen thousand dollars that may be expended on
     6  no  more  than  three  separate  individual  apartment improvements in a
     7  fifteen year  period  beginning  with  the  first  individual  apartment
     8  improvement on or after June fourteenth, two thousand nineteen. Provided
     9  further  that  increases  to  the  legal regulated rent pursuant to this
    10  subparagraph shall be removed from the legal regulated rent thirty years
    11  from the date the increase became effective inclusive of  any  increases
    12  granted  by  the applicable rent guidelines board.] The owner shall give
    13  written notice to the city rent agency of any such  [temporary]  adjust-
    14  ment pursuant to this subparagraph; or
    15    §  4.  Section  26-511.1 of the administrative code of the city of New
    16  York is REPEALED.
    17    § 5. Section 26-405.1 of the administrative code of the  city  of  New
    18  York is REPEALED.
    19    §  6.  Section  10-b  of section 4 of chapter 576 of the laws of 1974,
    20  constituting the emergency tenant protection act  of  nineteen  seventy-
    21  four, is REPEALED.
    22    §  7. Section 8-a of chapter 274 of the laws of 1946, constituting the
    23  emergency housing rent control law, is REPEALED.
    24    § 8. Paragraph 2 of subdivision 3-a and subparagraphs 7 and 8  of  the
    25  second  undesignated  paragraph  of  paragraph  (a)  of subdivision 4 of
    26  section 4 of chapter 274 of the laws of 1946, constituting the emergency
    27  housing rent control law, paragraph 2 of subdivision  3-a  and  subpara-
    28  graph  8 of the second undesignated paragraph of paragraph (a) of subdi-
    29  vision 4 as amended by section 8 of part K of chapter 36 of the laws  of
    30  2019,  subparagraph  7 of the second undesignated paragraph of paragraph
    31  (a) of subdivision 4 as separately amended by section 14 of  part  K  of
    32  chapter  36  and section 25 of part Q of chapter 39 of the laws of 2019,
    33  are amended to read as follows:
    34    (2) the amount of  increases  in  maximum  rent  authorized  by  order
    35  because of increases in dwelling space, services, furniture, furnishings
    36  or  equipment  [and  the  amount of the temporary increase authorized by
    37  order because of a major capital improvement], or major capital improve-
    38  ments.
    39    (7) there has been since March first, nineteen hundred fifty, a  major
    40  capital  improvement  [essential]  required for the operation, preserva-
    41  tion[, energy efficiency, functionality, or infrastructure of the entire
    42  building, improvement  of  the  structure  including  heating,  windows,
    43  plumbing and roofing, but shall not be for operational costs or unneces-
    44  sary  cosmetic  improvements] or maintenance of the structure; which for
    45  any order of the commissioner issued after the  effective  date  of  the
    46  [chapter  of  the  laws of two thousand nineteen that amended this para-
    47  graph] rent act of 2015 the cost of such improvement shall be  amortized
    48  over [a twelve-year] an eight-year period for buildings with thirty-five
    49  or  fewer  units  or  a  [twelve and one-half year] nine-year period for
    50  buildings with more than thirty-five units[, and shall be  removed  from
    51  the  legal regulated rent thirty years from the date the increase became
    52  effective inclusive of any increases  granted  by  the  applicable  rent
    53  guidelines board. Temporary major capital improvement increases shall be
    54  collectible  prospectively on the first day of the first month beginning
    55  sixty days from the date of mailing notice of approval  to  the  tenant.
    56  Such  notice  shall  disclose the total monthly increase in rent and the

        A. 6194                             5

     1  first month in which the tenant would be required to pay  the  temporary
     2  increase. An approval for a temporary major capital improvement increase
     3  shall  not  include retroactive payments. The collection of any increase
     4  shall  not exceed two percent in any year from the effective date of the
     5  order granting the increase over the rent set forth in the  schedule  of
     6  gross  rents, with collectability of any dollar excess above said sum to
     7  be spread forward in similar increments and added to the rent as  estab-
     8  lished  or  set in future years.  Upon vacancy, the landlord may add any
     9  remaining balance of the temporary major capital improvement increase to
    10  the legal regulated rent. Notwithstanding any  other  provision  of  the
    11  law,  for  any  renewal  lease commencing on or after June 14, 2019, the
    12  collection of any rent increases due to any major  capital  improvements
    13  approved  on  or  after June 16, 2012 and before June 16, 2019 shall not
    14  exceed two percent in any year for any tenant in occupancy on  the  date
    15  the  major capital improvement was approved; provided, however, where an
    16  application for a temporary major capital improvement increase has  been
    17  filed,  a  tenant  shall  have  sixty days from the date of mailing of a
    18  notice of a proceeding in which to answer or reply. The  state  division
    19  of  housing  and  community  renewal shall provide any responding tenant
    20  with the reasons for the division's approval or denial of such  applica-
    21  tion]; or
    22    (8)  there  has  been  since  March  first, nineteen hundred fifty, in
    23  structures containing  more  than  four  housing  accommodations,  other
    24  improvements  made with the express [informed] consent of the tenants in
    25  occupancy of at least seventy-five per centum of  the  housing  accommo-
    26  dations,  provided,  however, that no adjustment granted hereunder shall
    27  exceed [two] fifteen per centum unless the  tenants  have  agreed  to  a
    28  higher percentage of increase, as herein provided;
    29    § 9. Paragraph 3 of subdivision d of section 6 of section 4 of chapter
    30  576  of  the  laws of 1974, constituting the emergency tenant protection
    31  act of nineteen seventy-four, as amended by section  26  of  part  Q  of
    32  chapter 39 of the laws of 2019, is amended to read as follows:
    33    (3)  there has been since January first, nineteen hundred seventy-four
    34  a major capital improvement  [essential  for  the  preservation,  energy
    35  efficiency,  functionality,  or  infrastructure  of the entire building,
    36  improvement of the structure including heating,  windows,  plumbing  and
    37  roofing,  but  shall  not be for operation costs or unnecessary cosmetic
    38  improvements] required for the operation, preservation or maintenance of
    39  the structure.  An adjustment under this paragraph shall be in an amount
    40  sufficient to amortize the cost of the  improvements  pursuant  to  this
    41  paragraph  over [a twelve-year] an eight-year period for a building with
    42  thirty-five or fewer housing accommodations, or a [twelve and  one-half]
    43  nine-year  period  for  a  building  with  more than thirty-five housing
    44  accommodations [and shall be removed from the legal regulated rent thir-
    45  ty years from the date the increase became effective  inclusive  of  any
    46  increases  granted  by  the  applicable  rent guidelines board], for any
    47  determination issued by the division of housing  and  community  renewal
    48  after  the  effective  date  of the [chapter of the laws of two thousand
    49  nineteen that amended this paragraph. Temporary major  capital  improve-
    50  ment  increases  shall  be collectable prospectively on the first day of
    51  the first month beginning sixty days from the date of mailing notice  of
    52  approval  to  the tenant.   Such notice shall disclose the total monthly
    53  increase in rent and the first  month  in  which  the  tenant  would  be
    54  required  to  pay  the  temporary  increase. An approval for a temporary
    55  major  capital  improvement  increase  shall  not  include   retroactive
    56  payments. The collection of any increase shall not exceed two percent in

        A. 6194                             6

     1  any year from the effective date of the order granting the increase over
     2  the  rent  set forth in the schedule of gross rents, with collectability
     3  of any dollar excess above said sum to  be  spread  forward  in  similar
     4  increments  and added to the rent as established or set in future years.
     5  Upon vacancy, the landlord may add any remaining balance of  the  tempo-
     6  rary  major  capital  improvement  increase to the legal regulated rent.
     7  Notwithstanding any other provision of the law, the  collection  of  any
     8  rent  increases  for  any  renewal lease commencing on or after June 14,
     9  2019, due to any major capital improvements approved on  or  after  June
    10  16,  2012  and  before June 16, 2019 shall not exceed two percent in any
    11  year for any tenant in occupancy on the date the major capital  improve-
    12  ment was approved] rent act of 2015, or
    13    §  10.  Subparagraph  (g)  of  paragraph 1 of subdivision g of section
    14  26-405 of the administrative code of the city of New York, as amended by
    15  section 27 of part Q of chapter 39 of the laws of 2019,  is  amended  to
    16  read as follows:
    17    (g) There has been since July first, nineteen hundred seventy, a major
    18  capital improvement [essential] required for the operation, preservation
    19  [energy  efficiency,  functionality,  or  infrastructure  of  the entire
    20  building, improvement  of  the  structure  including  heating,  windows,
    21  plumbing  and roofing but shall not be for operational costs or unneces-
    22  sary cosmetic improvements] or maintenance of the structure. [The tempo-
    23  rary increase based upon a  major  capital  improvement]  An  adjustment
    24  under  this  subparagraph for any order of the commissioner issued after
    25  the effective date of the [chapter of the laws of two thousand  nineteen
    26  that  amended  this subparagraph] rent act of two thousand fifteen shall
    27  be in an amount sufficient to amortize  the  cost  of  the  improvements
    28  pursuant  to  this  subparagraph  (g) over [a twelve-year] an eight-year
    29  period for buildings with thirty-five or fewer units or  a  [twelve  and
    30  one-half year] nine-year period for buildings with more than thirty-five
    31  units[,  and shall be removed from the legal regulated rent thirty years
    32  from the date the increase became effective inclusive of  any  increases
    33  granted by the applicable rent guidelines board. Temporary major capital
    34  improvement  increases  shall  be collectible prospectively on the first
    35  day of the first month beginning sixty days from  the  date  of  mailing
    36  notice  of  approval to the tenant. Such notice shall disclose the total
    37  monthly increase in rent and the first month in which the  tenant  would
    38  be  required  to pay the temporary increase. An approval for a temporary
    39  major  capital  improvement  increase  shall  not  include   retroactive
    40  payments. The collection of any increase shall not exceed two percent in
    41  any year from the effective date of the order granting the increase over
    42  the  rent  set forth in the schedule of gross rents, with collectability
    43  of any dollar excess above said sum to  be  spread  forward  in  similar
    44  increments  and added to the rent as established or set in future years.
    45  Upon vacancy, the landlord may add any remaining balance of  the  tempo-
    46  rary  major  capital  improvement  increase to the legal regulated rent.
    47  Notwithstanding any other provision of the law, for  any  renewal  lease
    48  commencing  on  or  after  June  14,  2019,  the  collection of any rent
    49  increases due to any major capital improvements  approved  on  or  after
    50  June  16,  2012 and before June 16, 2019 shall not exceed two percent in
    51  any year for any tenant in occupancy  on  the  date  the  major  capital
    52  improvement was approved], or
    53    §  11.  Paragraph 6 of subdivision c of section 26-511 of the adminis-
    54  trative code of the city of New York, as separately amended  by  section
    55  12  of  part K of chapter 36 and sections 28 and 14 of part Q of chapter
    56  39 of the laws of 2019, is amended to read as follows:

        A. 6194                             7
 
     1    (6) provides criteria whereby the commissioner may act  upon  applica-
     2  tions  by  owners  for  increases  in  excess  of the level of fair rent
     3  increase established under this law provided, however, that such  crite-
     4  ria  shall  provide  (a) as to hardship applications, for a finding that
     5  the level of fair rent increase is not sufficient to enable the owner to
     6  maintain  approximately  the same average annual net income (which shall
     7  be computed without regard to debt service, financing costs  or  manage-
     8  ment  fees)  for the three year period ending on or within six months of
     9  the date of an application pursuant to such criteria  as  compared  with
    10  annual  net income, which prevailed on the average over the period nine-
    11  teen hundred sixty-eight through nineteen hundred seventy,  or  for  the
    12  first three years of operation if the building was completed since nine-
    13  teen  hundred  sixty-eight  or  for the first three fiscal years after a
    14  transfer of title to a new owner provided the new owner can establish to
    15  the satisfaction of the commissioner that he or she  acquired  title  to
    16  the  building as a result of a bona fide sale of the entire building and
    17  that the new owner is unable to obtain requisite records for the  fiscal
    18  years  nineteen  hundred  sixty-eight  through  nineteen hundred seventy
    19  despite diligent efforts to obtain same from predecessors in  title  and
    20  further  provided that the new owner can provide financial data covering
    21  a minimum of six years under his or  her  continuous  and  uninterrupted
    22  operation  of  the building to meet the three year to three year compar-
    23  ative test periods herein provided; and (b) as  to  completed  building-
    24  wide  major  capital  improvements, for a finding that such improvements
    25  are deemed depreciable under the Internal Revenue Code and that the cost
    26  is to be amortized over [a  twelve-year]  an  eight-year  period  for  a
    27  building  with thirty-five or fewer housing accommodations, or a [twelve
    28  and one-half-year] nine-year period for a building with more than  thir-
    29  ty-five  housing  accommodations,  for  any  determination issued by the
    30  division of housing and community renewal after the  effective  date  of
    31  [the  the chapter of the laws of two thousand nineteen that amended this
    32  paragraph and shall be removed from  the  legal  regulated  rent  thirty
    33  years  from  the  date  the  increase  became effective inclusive of any
    34  increases granted by the applicable  rent  guidelines  board.  Temporary
    35  major  capital  improvement increases shall be collectible prospectively
    36  on the first day of the first month beginning sixty days from  the  date
    37  of  mailing notice of approval to the tenant. Such notice shall disclose
    38  the total monthly increase in rent and the  first  month  in  which  the
    39  tenant  would be required to pay the temporary increase. An approval for
    40  a temporary major capital improvement increase shall not include  retro-
    41  active  payments.  The  collection  of any increase shall not exceed two
    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 rent as established or set in
    46  future years.  Upon vacancy, the landlord may add any remaining  balance
    47  of  the  temporary major capital improvement increase to the legal regu-
    48  lated rent. Notwithstanding any other provision  of  the  law,  for  any
    49  renewal  lease  commencing  on or after June 14, 2019, the collection of
    50  any rent increases due to any major capital improvements approved on  or
    51  after  June  16,  2012  and  before  June  16, 2019 shall not exceed two
    52  percent in any year for any tenant in occupancy on the  date  the  major
    53  capital  improvement  was  approved]  the rent act of 2015 or based upon
    54  cash purchase price exclusive of interest or service charges. [Where  an
    55  application  for a temporary major capital improvement increase has been
    56  filed, a tenant shall have sixty days from the  date  of  mailing  of  a

        A. 6194                             8

     1  notice  of  a proceeding in which to answer or reply. The state division
     2  of housing and community renewal shall  provide  any  responding  tenant
     3  with  the reasons for the division's approval or denial of such applica-
     4  tion.]  Notwithstanding  anything  to  the contrary contained herein, no
     5  hardship increase granted pursuant to this paragraph shall,  when  added
     6  to the annual gross rents, as determined by the commissioner, exceed the
     7  sum of, (i) the annual operating expenses, (ii) an allowance for manage-
     8  ment  services  as  determined  by the commissioner, (iii) actual annual
     9  mortgage debt service (interest and amortization) on its indebtedness to
    10  a lending institution,  an  insurance  company,  a  retirement  fund  or
    11  welfare  fund  which is operated under the supervision of the banking or
    12  insurance laws of the state of New York or the United States,  and  (iv)
    13  eight  and  one-half percent of that portion of the fair market value of
    14  the property which exceeds the unpaid principal amount of  the  mortgage
    15  indebtedness  referred  to in subparagraph (iii) of this paragraph. Fair
    16  market value for the purposes of this paragraph shall be six  times  the
    17  annual gross rent. The collection of any increase in the stabilized rent
    18  for  any  apartment  pursuant  to  this  paragraph  shall not exceed six
    19  percent in any year from the effective date of the  order  granting  the
    20  increase  over  the  rent set forth in the schedule of gross rents, with
    21  collectability of any dollar excess above said sum to be spread  forward
    22  in similar increments and added to the stabilized rent as established or
    23  set in future years;
    24    § 12. Intentionally omitted.
    25    §  13.  Paragraph  3-a  of  subdivision d of section 6 of section 4 of
    26  chapter 576 of the laws  of  1974,  constituting  the  emergency  tenant
    27  protection act of nineteen seventy-four, is REPEALED.
    28    § 14. Intentionally omitted.
    29    §  15. Subdivision a of section 26-517.1 of the administrative code of
    30  the city of New York, as amended by section 15 of part K of  chapter  36
    31  of the laws of 2019, is amended to read as follows:
    32    a.  The  department  of  finance  shall collect from the owner of each
    33  housing accommodation registered pursuant  to  section  26-517  of  this
    34  chapter an annual fee in the amount of [twenty] ten dollars per year for
    35  each  unit subject to this law, in order to defray costs incurred by the
    36  city pursuant to subdivision c of section eight of the emergency  tenant
    37  protection act of nineteen hundred seventy-four.
    38    § 16. Subdivisions c and e of section 8 of section 4 of chapter 576 of
    39  the  laws  of  1974  constituting the emergency tenant protection act of
    40  nineteen seventy-four, subdivision c as amended by section 1 and  subdi-
    41  vision  e as amended by section 2 of part I of chapter 56 of the laws of
    42  2020, are amended to read as follows:
    43    c. Whenever a city having a population of  one  million  or  more  has
    44  determined  the  existence  of an emergency pursuant to section three of
    45  this act, the provisions of this act and the New York city rent stabili-
    46  zation law of nineteen hundred sixty-nine shall be administered  by  the
    47  state  division  of housing and community renewal as provided in the New
    48  York city rent stabilization law  of  nineteen  hundred  sixty-nine,  as
    49  amended,  or  as  otherwise  provided  by law. The costs incurred by the
    50  state division of housing and community renewal  in  administering  such
    51  regulation  shall  be  paid by such city. All payments for such adminis-
    52  tration shall be transmitted to the state division of housing and commu-
    53  nity renewal as follows: on or after April first of each year commencing
    54  with April, nineteen hundred eighty-four, the  commissioner  of  housing
    55  and  community renewal, in consultation with the director of the budget,
    56  shall determine an amount necessary to defray the division's anticipated

        A. 6194                             9
 
     1  annual cost, and one-quarter of such amount shall be paid by  such  city
     2  on  or  before July first of such year, one-quarter of such amount on or
     3  before October first of such year, one-quarter  of  such  amount  on  or
     4  before  January  first  of  the  following  year and one-quarter of such
     5  amount on or before March thirty-first of the following year.  After the
     6  close of the fiscal year of the state, the commissioner, in consultation
     7  with the director of the budget, shall determine the amount of all actu-
     8  al costs incurred in such fiscal year and shall certify such  amount  to
     9  such city. If such certified amount shall differ from the amount paid by
    10  the  city for such fiscal year, appropriate adjustments shall be made in
    11  the next quarterly payment to be made by such city. In  the  event  that
    12  the amount thereof is not paid to the commissioner, in consultation with
    13  the  director  of the budget, as herein prescribed, the commissioner, in
    14  consultation with the director of the budget, shall certify  the  unpaid
    15  amount  to the comptroller, and the comptroller shall, to the extent not
    16  otherwise prohibited by law, withhold such amount  from  any  state  aid
    17  payable to such city. In no event shall the amount imposed on the owners
    18  exceed [twenty] ten dollars per unit per year.
    19    e. The failure to pay the prescribed assessment not to exceed [twenty]
    20  ten  dollars  per unit for any housing accommodation subject to this act
    21  or the New York city rent stabilization law of nineteen  hundred  sixty-
    22  nine  shall constitute a charge due and owing such city, town or village
    23  which has imposed an annual charge for each such  housing  accommodation
    24  pursuant  to  subdivision  b  of  this  section.  Any such city, town or
    25  village shall be authorized  to  provide  for  the  enforcement  of  the
    26  collection of such charges by commencing an action or proceeding for the
    27  recovery  of  such fees or by the filing of a lien upon the building and
    28  lot. Such methods for the enforcement of the collection of such  charges
    29  shall be the sole remedy for the enforcement of this section.
    30    §  17. Section 17 of part K of chapter 36 of the laws of 2019 enacting
    31  the Housing Stability and Tenant Protection act of 2019, is REPEALED.
    32    § 18. This act shall take effect immediately; provided, however, that:
    33    (a) the amendments to chapter 4 of title 26 of the administrative code
    34  of the city of New York made by sections two, eleven and fifteen of this
    35  act shall expire on the same date as such chapter expires and shall  not
    36  affect  the  expiration of such chapter as provided under section 26-520
    37  of such law;
    38    (b) provided that the amendments to section 26-405 of  the  city  rent
    39  and  rehabilitation law made by sections three and ten of this act shall
    40  remain in full force and effect only as long  as  the  public  emergency
    41  requiring  the regulation and control of residential rents and evictions
    42  continues, as provided in subdivision 3 of section 1 of the local  emer-
    43  gency housing rent control act; and
    44    (c)  effective  immediately,  the addition, amendment and/or repeal of
    45  any rule or regulation necessary for the implementation of this  act  on
    46  its  effective date are authorized and directed to be made and completed
    47  on or before such effective date.
Go to top