Rpld §26-511 sub c ¶5-a, amd §§26-512 & 26-403.2, NYC Ad Cd; rpld §10 sub (a-1), amd §6, Emerg Ten Prot Act
of 1974; amd §5, Emerg Hous Rent Cont L; amd §1, Chap 21 of 1962
 
Repeals provisions permitting rent increases after vacancy of a housing accommodation.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A2351
SPONSOR: Pichardo
 
TITLE OF BILL: An act to amend the administrative code of the city of
New York, the emergency tenant protection act of nineteen seventy-four,
the emergency housing rent control law and the local emergency rent
control act, in relation to rent increases after vacancy of a housing
accommodation; and to repeal certain provisions of the administrative
code of the city of New York and the emergency tenant protection act of
nineteen seventy-four relating thereto
 
PURPOSE:
To protect tenants by repealing the ability of a landlord to obtain a
twenty percent increase in rent pursuant to the statutory vacancy bonus
provision of the Emergency Tenant Protection Act.
 
SUMMARY OF PROVISIONS:
This legislation amends the administrative code of the City of New York,
the emergency tenant protection act of nineteen seventy-four, the emer-
gency housing rent control law and the local emergency rent control act,
in relation to rent increases after vacancy of a housing accommodation
and to repeal certain provisions of the administration code of the city
of New York and the emergency tenant protection act of nineteen seven-
ty-four, that permits a landlord to increase the legally permissible
rent by twenty percent (20%) upon vacancy of a rent-regulated apartment.
 
JUSTIFICATION:
As housing costs increase rapidly across New York City, the loss of
hundreds of thousands of rent-regulated apartments to deregulation has
magnified the crisis facing working families and middle class residents
struggling to find affordable housing. When the rent for a stabilized
apartment rises above $2,700 a month, and that apartment then becomes
vacant, it can be deregulated, leaving the landlord free to raise the
rent without restrictions. The ability of landlords to increase a unit's
rent by 20% in the event that the current tenant of that unit leaves has
been a significant factor in pushing rents above this threshold,
contributing to the loss of many rent stabilized units.
Under current law, a landlord is eligible for a statutory vacancy bonus
once every year. Accordingly, a landlord can rapidly transform an
affordable apartment into one with a high enough rent that it can be
deregulated, especially if they are able to force out multiple tenants
in quick succession.
For this reason it is especially problematic that there is no require-
ment that landlords conduct themselves responsibly in order to benefit
from the bonus. There is a significant financial incentive for landlords
to drive tenants out of their rent stabilized apartments in order to
benefit from the 20% increase in the rent and the potential to deregu-
late the apartments entirely. This creates a huge potential for tenant
harassment. Even if a tenant leaves an apartment that is uninhabitable
due to lack of heat, hot water, electricity, or unsafe or unsanitary
conditions, the landlord remains eligible for the 20% increase in rent
upon vacancy. As a result, current law creates incentives for bad actors
to deprive tenants of a habitable apartment. In some cases it also
encourages landlords to file frivolous lawsuits, and even threaten
tenants, in order to intimidate them into leaving. In many instances the
vacancy bonus is really an eviction bonus.
In order to deter landlords, who under current law are rewarded for
driving individuals and families from their homes, from harassing
tenants, and preserve the affordable housing stock that remains avail-
able to working families and moderate-income residents in New York City,
the rent regulation laws are in need of comprehensive reform. The repeal
of the statutory vacancy bonus provision is an important step in that
direction.
 
FISCAL IMPACT ON THE STATE:
None.
 
FISCAL IMPACT ON LOCALITIES:
No direct impact.
 
IMPACT ON REGULATION OF BUSINESSES AND INDIVIDUALS:
No new regulatory obligations other than foregoing statutory vacancy
bonus.
 
IMPACT ON FINES, TERMS OF IMPRISONMENT, FORFEITURE OF RIGHTS OR OTHER
PENAL SANCTIONS:
None.
 
LEGISLATIVE HISTORY:
2017: A00954(Kavanagh)- Passed Assembly
2016: A05567(Kavanagh)- Passed Assembly
2015: A05567(Kavanagh)- Housing
2014: A07343(Kavanagh)- Housing
2013: A07343(Kavanagh)- Housing
2012: A01309(Jeffries)- Housing
2011: A01309(Jeffries)- Housing
2010: A00463(Jeffries)- Housing
2009: A00463(Jeffries)- Housing
2008: A10054(Jeffries)- Housing
 
EFFECTIVE DATE:
This act shall take effect immediately; provided that:
(a) the amendments to section 6 of the emergency tenant protection act
of nineteen seventy-four made by section four of this act shall expire
on the same date as such act expires and shall not affect the expiration
of such act as provided in section 17 of chapter 576 of the laws of
1974; and
(b) the amendments to section 5 of the emergency housing rent control
law made by section five of this act shall expire on the same date as
such law expires and shall not affect the expiration of such law as
provided in subdivision 2 of section 1 of chapter 274 of the laws of
1946; and
(c) the amendments to section 26-512 of chapter 4 of title 26 of the
administrative code of the city of New York made by section three of
this act shall expire on the same date as such law expires and shall not
affect the expiration of such law as provided under section 26-520 of
such law; and
(d) the amendments to section 26-403.2 of the city rent and rehabili-
tation law made by section six of this act shall remain in full force
and effect only as long as the public emergency requiring the regulation
and control of residential rents and evictions continues, as provided in
subdivision 3 of section 1 of the local emergency housing rent control
act; and
(e) the amendments to subdivision 5 of section 1 of the local emergency
housing rent control act, made by section seven of this act, shall not
affect the effectiveness of such subdivision and shall cease to be in
full force and effect pursuant to subdivision 3 of section 1 of such
act.
STATE OF NEW YORK
________________________________________________________________________
2351
2019-2020 Regular Sessions
IN ASSEMBLY
January 22, 2019
___________
Introduced by M. of A. PICHARDO -- read once and referred to the Commit-
tee on Housing
AN ACT to amend the administrative code of the city of New York, the
emergency tenant protection act of nineteen seventy-four, the emergen-
cy housing rent control law and the local emergency rent control act,
in relation to rent increases after vacancy of a housing accommo-
dation; and to repeal certain provisions of the administrative code of
the city of New York and the emergency tenant protection act of nine-
teen seventy-four relating thereto
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 is REPEALED.
3 § 2. Subdivision (a-1) of section 10 of section 4 of chapter 576 of
4 the laws of 1974, constituting the emergency tenant protection act of
5 nineteen seventy-four is REPEALED.
6 § 3. Subdivision f of section 26-512 of the administrative code of the
7 city of New York, as added by chapter 116 of the laws of 1997, is
8 amended to read as follows:
9 f. Notwithstanding any provision of this law to the contrary in the
10 case where all tenants named in a lease have permanently vacated a hous-
11 ing accommodation and a family member of such tenant or tenants is enti-
12 tled to and executes a renewal lease for the housing accommodation if
13 such accommodation continues to be subject to this law after such family
14 member vacates, on the occurrence of such vacancy the legal regulated
15 rent shall be increased by a sum equal to the allowance then in effect
16 for vacancy leases[, including the amount allowed by paragraph (five-a)
17 of subdivision c of section 26-511 of this law]. Such increase shall be
18 in addition to any other increases provided for in this law including an
19 adjustment based upon a major capital improvement, or a substantial
20 modification or increase of dwelling space or services, or installation
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD02626-01-9
A. 2351 2
1 of new equipment or improvements or new furniture or furnishings
2 provided in or to the housing accommodation pursuant to section 26-511
3 of this law and shall be applicable in like manner to each second subse-
4 quent succession.
5 § 4. Subdivision g of section 6 of section 4 of chapter 576 of the
6 laws of 1974, constituting the emergency tenant protection act of nine-
7 teen seventy-four, as added by chapter 116 of the laws of 1997, is
8 amended to read as follows:
9 g. Notwithstanding any provision of this act to the contrary in the
10 case where all tenants named in a lease have permanently vacated a hous-
11 ing accommodation and a family member of such tenant or tenants is enti-
12 tled to and executes a renewal lease for the housing accommodation if
13 such accommodation continues to be subject to this act after such family
14 member vacates, on the occurrence of such vacancy the legal regulated
15 rent shall be increased by a sum equal to the allowance then in effect
16 for vacancy leases[, including the amount allowed by subdivision (a-1)
17 of section ten of this act]. Such increase shall be in addition to any
18 other increases provided for in this act including an adjustment based
19 upon a major capital improvement, or a substantial modification or
20 increase of dwelling space or services, or installation of new equipment
21 or improvements or new furniture or furnishings provided in or to the
22 housing accommodation, pursuant to this section [six of this act] and
23 shall be applicable in like manner to each second subsequent succession.
24 § 5. Subdivision 9 of section 5 of chapter 274 of the laws of 1946,
25 constituting the emergency housing rent control law, as added by chapter
26 116 of the laws of 1997, is amended to read as follows:
27 9. Notwithstanding any provision of this law to the contrary in the
28 case where all tenants occupying the housing accommodation on the effec-
29 tive date of this subdivision have vacated the housing accommodation and
30 a family member of such vacating tenant or tenants is entitled to and
31 continues to occupy the housing accommodation subject to the protections
32 of this law, if such accommodation continues to be subject to this law
33 after such family member vacates, on the occurrence of such vacancy the
34 maximum collectable rent shall be increased by a sum equal to the allow-
35 ance then in effect for vacancy leases for housing accommodations
36 covered by the rent stabilization law of nineteen hundred sixty-nine[,
37 including the amount allowed by paragraph five-a of subdivision c of
38 section 26-511 of such law]. This increase shall be in addition to any
39 other increases provided in this law including an adjustment based upon
40 a major capital improvement, or a substantial increase or decrease in
41 dwelling space or a change in the services, furniture, furnishings or
42 equipment provided in the housing accommodation, pursuant to section
43 four of this law and shall be applicable in like manner to each second
44 subsequent succession.
45 § 6. Section 26-403.2 of the administrative code of the city of New
46 York, as added by chapter 116 of the laws of 1997, is amended to read as
47 follows:
48 § 26-403.2 Increase in maximum collectable rent. Notwithstanding any
49 provision of this law to the contrary in the case where all tenants
50 occupying the housing accommodation on the effective date of this
51 section have vacated the housing accommodation and a family member of
52 such vacating tenant or tenants is entitled to and continues to occupy
53 the housing accommodation subject to the protections of this law, if
54 such accommodation continues to be subject to this law after such family
55 member vacates, on the occurrence of such vacancy the maximum collecta-
56 ble rent shall be increased by a sum equal to the allowance then in
A. 2351 3
1 effect for vacancy leases for housing accommodations covered by the rent
2 stabilization law of nineteen hundred sixty-nine[, including the amount
3 allowed by paragraph five-a of subdivision c of section 26-511 of such
4 law]. This increase shall be in addition to any other increases provided
5 for in this law including an adjustment based upon a major capital
6 improvement, or a substantial increase or decrease in dwelling space or
7 a change in the services, furniture, furnishings or equipment provided
8 in the housing accommodation, pursuant to section 26-405 of this law and
9 shall be applicable in like manner to each second subsequent succession.
10 § 7. The sixth undesignated paragraph of subdivision 5 of section 1 of
11 chapter 21 of the laws of 1962, constituting the local emergency rent
12 control act, as amended by chapter 82 of the laws of 2003, is amended to
13 read as follows:
14 Notwithstanding any provision of this act to the contrary, any local
15 law adopted pursuant to this act shall provide that notwithstanding any
16 provision of such local law in the case where all tenants occupying the
17 housing accommodation on the effective date of this paragraph have
18 vacated the housing accommodation and a family member of such vacating
19 tenant or tenants is entitled to and continues to occupy the housing
20 accommodation subject to the protections of such act, if such accommo-
21 dation continues to be subject to such act after such family member
22 vacates, on the occurrence of such vacancy the maximum collectable rent
23 shall be increased by a sum equal to the allowance then in effect for
24 vacancy leases for housing accommodations covered by the rent stabiliza-
25 tion law of nineteen hundred sixty-nine[, including the amount allowed
26 by paragraph (5-a) of subdivision c of section 26-511 of such law]. This
27 increase shall be in addition to any other increases provided for in
28 this act and shall be applicable in like manner to each second subse-
29 quent succession.
30 § 8. This act shall take effect immediately; provided that:
31 (a) the amendments to section 26-512 of chapter 4 of title 26 of the
32 administrative code of the city of New York made by section three of
33 this act shall expire on the same date as such law expires and shall not
34 affect the expiration of such law as provided under section 26-520 of
35 such law; and
36 (b) the amendments to section 6 of the emergency tenant protection act
37 of nineteen seventy-four made by section four of this act shall expire
38 on the same date as such act expires and shall not affect the expiration
39 of such act as provided in section 17 of chapter 576 of the laws of
40 1974; and
41 (c) the amendments to section 5 of the emergency housing rent control
42 law made by section five of this act shall expire on the same date as
43 such law expires and shall not affect the expiration of such law as
44 provided in subdivision 2 of section 1 of chapter 274 of the laws of
45 1946; and
46 (d) the amendments to section 26-403.2 of the city rent and rehabili-
47 tation law made by section six of this act shall remain in full force
48 and effect only as long as the public emergency requiring the regulation
49 and control of residential rents and evictions continues, as provided in
50 subdivision 3 of section 1 of the local emergency housing rent control
51 act; and
52 (e) the amendments to subdivision 5 of section 1 of the local emergen-
53 cy housing rent control act, made by section seven of this act, shall
54 not affect the effectiveness of such subdivision and shall cease to be
55 in full force and effect pursuant to subdivision 3 of section 1 of such
56 act.