STATE OF NEW YORK
________________________________________________________________________
547--B
2023-2024 Regular Sessions
IN SENATE
January 5, 2023
___________
Introduced by Sen. HOYLMAN-SIGAL -- read twice and ordered printed, and
when printed to be committed to the Committee on Housing, Construction
and Community Development -- recommitted to the Committee on Housing,
Construction and Community Development in accordance with Senate Rule
6, sec. 8 -- committee discharged, bill amended, ordered reprinted as
amended and recommitted to said committee -- committee discharged,
bill amended, ordered reprinted as amended and recommitted to said
committee
AN ACT to amend the real property tax law, in relation to directing the
comptroller of the city of New York to conduct annual audits of
compliance with the affordable New York housing program
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 421-a of the real property tax law is amended by
2 adding two new subdivisions 18 and 19 to read as follows:
3 18. (a) The comptroller of the city of New York shall conduct an annu-
4 al audit of the affordable New York housing program established pursuant
5 to this section to measure compliance with the requirements of this
6 section. The comptroller of the city of New York shall create a program
7 to audit and review properties which receive benefits pursuant to the
8 affordable New York housing program to confirm that owners of such prop-
9 erties are complying with the rent registration, affordability, rent
10 stabilization and application requirements of such program. The divi-
11 sion of housing and community renewal, the department of housing preser-
12 vation and development, the New York city department of finance, and any
13 owner of a property receiving benefits pursuant to this section shall
14 provide any and all information, data, or documentation to the comp-
15 troller of the city of New York which is deemed necessary by the comp-
16 troller of the city of New York in order to complete the audit process
17 required by this section of law. The initial audit shall be completed
18 on or before December thirty-first of two thousand twenty-five. The
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD00166-10-4
S. 547--B 2
1 comptroller of the city of New York shall publish the results of the
2 audit annually on or before December thirty-first and shall make such
3 results publicly available on the comptroller's website. All properties
4 which are receiving or have received benefits pursuant to the affordable
5 New York housing program or prior programs established pursuant to this
6 section shall be eligible for the initial audit; provided, however, that
7 only properties which received benefits during the prior year shall be
8 eligible for subsequent audits. In the event that the affordable New
9 York housing program is terminated or otherwise discontinued, a final
10 audit of the program shall be submitted one year after the last property
11 subject to rent registration, affordability, rent stabilization and
12 application requirements of the program is no longer subject to such
13 requirements.
14 (b) (i) If an audit by the comptroller of the city of New York finds
15 any units are not in compliance with the rent registration, affordabili-
16 ty, rent stabilization, and application requirements of the affordable
17 New York housing program, the comptroller of the city of New York shall
18 present evidence of such noncompliance to the division of housing and
19 community renewal, the department of housing preservation and develop-
20 ment, and the New York city department of finance for enforcement
21 actions as provided. Such notification of noncompliance shall be made
22 within fifteen days after the results of the audit have been published
23 on the comptroller's website.
24 (ii) The division of housing and community renewal, the department of
25 housing preservation and development, and the New York city department
26 of finance shall enforce and remedy any noncompliance with the rent
27 registration, affordability, rent stabilization, and application
28 requirements as provided or available under any other law, rule, or
29 regulation.
30 19. During and on and after the expiration date of the affordable New
31 York housing program benefit provided pursuant to this section, provided
32 such project is required to comply with any affordability requirements,
33 the department of housing preservation and development shall impose,
34 after notice and an opportunity to be heard, a penalty for any violation
35 of the affordability requirements of this section by such project.
36 (a) The department of housing preservation and development shall
37 establish a schedule and method of calculation of such penalties.
38 (b) A penalty under this subdivision shall be imposed on the owner of
39 the eligible site containing such project at the time the violation
40 occurred.
41 (c) A failure to pay such fine may result in a lien and such other
42 remedies as may be available pursuant to applicable law and regulation.
43 (d) The department of housing preservation and development shall
44 ensure the minimum number of required affordable units are offered in
45 compliance with the appropriate affordability requirements at all times
46 such affordability requirements apply. This includes, but is not limited
47 to, for each unit designated as an affordable unit found not to be in
48 compliance with the affordability requirements, the department of hous-
49 ing preservation and development shall either bring such designated
50 affordable unit into compliance with the affordability requirements or
51 designate another unit of similar size as an affordable unit in substi-
52 tution of the original unit.
53 § 2. Subparagraph (ii) of paragraph (f) of subdivision 2 of section
54 421-a of the real property tax law, as amended by chapter 289 of the
55 laws of 1985, is amended to read as follows:
S. 547--B 3
1 (ii) with respect to units which become subject to the provisions of
2 this section after the effective date of this subparagraph, such tax
3 benefit period as provided in the opening paragraph of this paragraph or
4 applicable law or act shall have expired and either each lease and
5 renewal thereof for such unit for the tenant in residence at the time of
6 such decontrol has included a notice in at least twelve point type
7 informing such tenant that the unit shall become subject to such decon-
8 trol upon the expiration of such tax benefit period as provided in the
9 opening paragraph of this paragraph or applicable law or act and states
10 the approximate date on which such tax benefit period as provided in the
11 opening paragraph of this paragraph is scheduled to expire; or such unit
12 becomes vacant as provided under subparagraph (i) of this paragraph.
13 Neither a landlord nor any person acting on behalf of the landlord shall
14 include incorrect or misleading information in any notice provided
15 pursuant to this subparagraph. A landlord or any person acting on behalf
16 of the landlord who willfully includes information they know or reason-
17 ably know to be misleading or incorrect information in any notice
18 provided pursuant to this subparagraph or fails to provide the standard-
19 ized rider pursuant to paragraph (f-1) of this subdivision is guilty of
20 a violation punishable by a fine of one thousand dollars.
21 § 3. Subdivision 2 of section 421-a of the real property tax law is
22 amended by adding a new paragraph (f-1) to read as follows:
23 (f-1) The commissioner of housing and community renewal shall stand-
24 ardize the notice to be provided by landlords to their tenants pursuant
25 to subparagraph (ii) of paragraph (f) of this subdivision. Such notice
26 shall be printed in at least twelve point type and shall include the
27 following language:
28 "421-a Standard Rider Fact Sheet
29 Any housing unit that receives tax benefits under section 421-a of the
30 New York State Real Property Law may remain affordable for a period of
31 time depending on a variety of factors, including the location of the
32 unit, the commencement of construction and the affordability in the
33 project. Failure to provide the initial standardized rider may result in
34 the unit remaining rent stabilized for the duration of the tenancy.
35 Specific details related to your unit are listed on the next sheet.
36 While your unit receives 421-a tax benefits, it will be subject to rent
37 stabilization. New York State's rent regulation laws provide tenants in
38 rent-stabilized apartments with a variety of legal rights and
39 protections. The owner of your building must provide you with a rent
40 stabilized lease when you first move in and also each time you renew
41 your lease for your choice of either a one or two year term, for as long
42 as your apartment remains rent stabilized.
43 You are entitled to continuous lease renewals while your apartment is
44 rent stabilized. When you renew your lease, your rent may only be
45 increased by an amount determined by New York State's rent regulation
46 laws, which may be found by visiting
47 https://rentguidelinesboard.cityofnewyork.us/resources/rent-
48 regulationlaws/, and permitted by applicable tax benefit laws.
49 Rent increases for rent-stabilized tenants are determined by the New
50 York City Rent Guidelines Board, and may only increase by a specified
51 amount within a one-year or two-year lease term. For more information,
52 please visit https://rentguidelinesboard.cityofnewyork.us/ or call 311.
53 Rent-stabilized tenants are also entitled to petition the New York State
54 Homes and Community Renewal by visiting https://hcr.ny.gov/ or calling
55 (833) 499-0343 or by contacting the appropriate rent administration
56 borough office.
S. 547--B 4
1 421-a Rider - Unit Number
2 As a rent-regulated tenant, your rights are determined by 421-a of the
3 New York State Real Property Law. For more information, you may contact
4 New York State Housing and Community Renewal by calling (833) 499-0343
5 or visiting https://hcr.ny.gov/ or the New York City Department of Hous-
6 ing Preservation by calling 311 or visiting
7 https://www1.nyc.gov/site/hpd/index.page.
8 The first rent as of date of initial lease commencement for unit apart-
9 ment number___ is amount ___.
10 Because unit number ____receives a 421-a tax abatement, it will be rent
11 regulated until at least MM/DD/YYYY.
12 Construction commenced on your building, located at address ____on
13 MM/DD/YYYY.
14 Construction was completed on MM/DD/YYYY.
15 On (MM/DD/YYYY specific to tenant), your landlord can begin to increase
16 the rent for unit number by 2.2% each year.
17 The 421-a benefits for unit number expire on (MM/DD/YYYY). After the
18 expiration of the 421-a tax abatement, your unit will ___ (either remain
19 rent-stabilized for the duration of your tenancy or continue to be
20 protected due to additional programs outlined below).
21 Unit number also receives (list any other city, state, federal afforda-
22 bility program) and (the impact that has on the unit's continuing
23 affordability, the date on which those benefits expire and the impact of
24 the expiration of those benefits on the unit).
25 If you believe that any of the information contained in this rider is
26 incorrect, contact New York State Homes and Community Renewal by calling
27 (833) 499-0343 or visiting https://hcr.ny.gov/ or the New York City
28 Department of Housing Preservation by calling 311 or visiting
29 https://www1.nyc.gov/site/hpd/index.page."
30 § 4. This act shall take effect immediately.
