Bill Text: NY A00275 | 2019-2020 | General Assembly | Introduced
Bill Title: Relates to applications for major capital improvement rent increases; requires owners to submit copies of all permits with their applications for major capital improvement rent increases; denies applications if permits are fraudulent or not included.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2020-01-08 - referred to housing [A00275 Detail]
Download: New_York-2019-A00275-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 275 2019-2020 Regular Sessions IN ASSEMBLY (Prefiled) January 9, 2019 ___________ Introduced by M. of A. L. ROSENTHAL -- read once and referred to the Committee on Housing AN ACT 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 applications for major capital improvement rent increases The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Subparagraph (g) of paragraph 1 of subdivision g of section 2 26-405 of the administrative code of the city of New York, as amended by 3 section 31 of part A of chapter 20 of the laws of 2015, is amended to 4 read as follows: 5 (g) There has been since July first, nineteen hundred seventy, a major 6 capital improvement required for the operation, preservation or mainte- 7 nance of the structure. An adjustment under this subparagraph (g) for 8 any order of the commissioner issued after the effective date of the 9 rent act of 2015 shall be in an amount sufficient to amortize the cost 10 of the improvements pursuant to this subparagraph (g) over an eight-year 11 period for buildings with thirty-five or fewer units or a nine year 12 period for buildings with more than [thiry-five] thirty-five units[,]; 13 provided, however, no application for a major capital improvement rent 14 increase shall be approved by the division of housing and community 15 renewal unless the owner of the property has filed all copies of permits 16 pertaining to the major capital improvement work with such application. 17 Any application submitted with fraudulent permits or without required 18 permits shall be denied; or 19 § 2. Paragraph 6 of subdivision c of section 26-511 of the administra- 20 tive code of the city of New York, as amended by section 29 of part A of 21 chapter 20 of the laws of 2015, is amended to read as follows: EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD01572-01-9A. 275 2 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 an eight-year period for a building with thir- 27 ty-five or fewer housing accommodations, or a nine-year period for a 28 building with more than thirty-five housing accommodations, for any 29 determination issued by the division of housing and community renewal 30 after the effective date of the rent act of 2015, based upon cash 31 purchase price exclusive of interest or service charges. The division of 32 housing and community renewal shall require the submission of copies of 33 all permits pertaining to major capital improvement work with any appli- 34 cation for a major capital improvement rent increase. Any application 35 submitted with fraudulent permits or without required permits shall be 36 denied. Notwithstanding anything to the contrary contained herein, no 37 hardship increase granted pursuant to this paragraph shall, when added 38 to the annual gross rents, as determined by the commissioner, exceed the 39 sum of, (i) the annual operating expenses, (ii) an allowance for manage- 40 ment services as determined by the commissioner, (iii) actual annual 41 mortgage debt service (interest and amortization) on its indebtedness to 42 a lending institution, an insurance company, a retirement fund or 43 welfare fund which is operated under the supervision of the banking or 44 insurance laws of the state of New York or the United States, and (iv) 45 eight and one-half percent of that portion of the fair market value of 46 the property which exceeds the unpaid principal amount of the mortgage 47 indebtedness referred to in subparagraph (iii) of this paragraph. Fair 48 market value for the purposes of this paragraph shall be six times the 49 annual gross rent. The collection of any increase in the stabilized rent 50 for any apartment pursuant to this paragraph shall not exceed six 51 percent in any year from the effective date of the order granting the 52 increase over the rent set forth in the schedule of gross rents, with 53 collectability of any dollar excess above said sum to be spread forward 54 in similar increments and added to the stabilized rent as established or 55 set in future years;A. 275 3 1 § 3. Paragraph 3 of subdivision d of section 6 of section 4 of chapter 2 576 of the laws of 1974, constituting the emergency tenant protection 3 act of nineteen seventy-four, as amended by section 30 of part A of 4 chapter 20 of the laws of 2015, is amended to read as follows: 5 (3) there has been since January first, nineteen hundred seventy-four 6 a major capital improvement required for the operation, preservation or 7 maintenance of the structure. An adjustment under this paragraph shall 8 be in an amount sufficient to amortize the cost of the improvements 9 pursuant to this paragraph over an eight-year period for a building with 10 thirty-five or fewer housing accommodations, or a nine-year period for a 11 building with more than thirty-five housing accommodations, for any 12 determination issued by the division of housing and community renewal 13 after the effective date of the rent act of 2015[,]; provided, however, 14 no application for a major capital improvement rent increase shall be 15 approved by the division of housing and community renewal unless the 16 owner of the property has filed all copies of permits pertaining to the 17 major capital improvement work with such application. Any application 18 submitted with fraudulent permits or without required permits shall be 19 denied; or 20 § 4. Subparagraph 7 of the second undesignated paragraph of paragraph 21 (a) of subdivision 4 of section 4 of chapter 274 of the laws of 1946, 22 constituting the emergency housing rent control law, as amended by 23 section 32 of part A of chapter 20 of the laws of 2015, is amended to 24 read as follows: 25 (7) there has been since March first, nineteen hundred fifty, a major 26 capital improvement required for the operation, preservation or mainte- 27 nance of the structure; which for any order of the commissioner issued 28 after the effective date of the rent act of 2015 the cost of such 29 improvement shall be amortized over an eight-year period for buildings 30 with thirty-five or fewer units or a nine year period for buildings with 31 more than [thiry-five] thirty-five units[,]; provided, however, no 32 application for a major capital improvement rent increase shall be 33 approved by the division of housing and community renewal unless the 34 owner of the property has filed all copies of permits pertaining to the 35 major capital improvement work with such application. Any application 36 submitted with fraudulent permits or without required permits shall be 37 denied; or 38 § 5. This act shall take effect immediately; provided that: 39 (a) the amendments to section 26-405 of the city rent and rehabili- 40 tation law made by section one of this act shall remain in full force 41 and effect only as long as the public emergency requiring the regulation 42 and control of residential rents and evictions continues, as provided in 43 subdivision 3 of section 1 of the local emergency housing rent control 44 act; 45 (b) the amendments to section 26-511 of the rent stabilization law of 46 nineteen hundred sixty-nine made by section two of this act shall expire 47 on the same date as such law expires and shall not affect the expiration 48 of such law as provided under section 26-520 of such law, as from time 49 to time amended; 50 (c) the amendments to section 6 of the emergency tenant protection act 51 of nineteen seventy-four made by section three of this act shall expire 52 on the same date as such act expires and shall not affect the expiration 53 of such act as provided in section 17 of chapter 576 of the laws of 54 1974, as from time to time amended; and 55 (d) the amendments to section 4 of the emergency housing rent control 56 law made by section four of this act shall expire on the same date asA. 275 4 1 such law expires and shall not affect the expiration of such law as 2 provided in subdivision 2 of section 1 of chapter 274 of the laws of 3 1946.
