Bill Text: NY A00298 | 2019-2020 | General Assembly | Introduced

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Bill Title: 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.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2020-01-08 - referred to housing [A00298 Detail]

Download: New_York-2019-A00298-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                           298
                               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 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 16-a
     3  of part A of chapter 20 of the laws of  2015,  is  amended  to  read  as
     4  follows:
     5    (5-a)  provides  that,  notwithstanding any provision of this chapter,
     6  the legal regulated rent for any vacancy lease entered  into  after  the
     7  effective  date  of  this  paragraph shall be as hereinafter provided in
     8  this paragraph. [The previous legal  regulated  rent  for  such  housing
     9  accommodation  shall  be  increased by the following: (i) if the vacancy
    10  lease is for a term of two years, twenty percent of the  previous  legal
    11  regulated  rent;  or (ii) if the vacancy lease is for a term of one year
    12  the increase shall be twenty percent of  the  previous  legal  regulated
    13  rent  less  an  amount  equal to the difference between (a) the two year
    14  renewal lease guideline promulgated by the guidelines board of the  city
    15  of New York applied to the previous legal regulated rent and (b) the one
    16  year  renewal lease guideline promulgated by the guidelines board of the
    17  city of New York applied to the previous legal regulated rent.] However,
    18  where the amount charged and paid by the prior tenant pursuant to  para-
    19  graph  fourteen  of  this subdivision, was less than the legal regulated
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD01385-01-9
        A. 298                              2
     1  rent, such increase to the legal regulated rent shall not  exceed:  five
     2  percent  of  the previous legal regulated rent if the last vacancy lease
     3  commenced less than two years ago; ten percent  of  the  previous  legal
     4  regulated rent if the last vacancy lease commenced less than three years
     5  ago;  fifteen  percent  of the previous legal regulated rent if the last
     6  vacancy lease commenced less than four years ago; twenty percent of  the
     7  previous  legal  regulated rent if the last vacancy lease commenced four
     8  or more years ago. [In addition,] If the legal regulated  rent  was  not
     9  increased  with  respect  to  such  housing accommodation by a permanent
    10  vacancy allowance within eight years prior to a vacancy  lease  executed
    11  on  or  after  the effective date of this paragraph, the legal regulated
    12  rent may be [further] increased  by  an  amount  equal  to  the  product
    13  resulting  from  multiplying  such previous legal regulated rent by six-
    14  tenths of one  percent  and  further  multiplying  the  amount  of  rent
    15  increase  resulting  therefrom by the greater of (A) the number of years
    16  since the imposition of the last permanent vacancy allowance, or (B)  if
    17  the  rent  was  not increased by a permanent vacancy allowance since the
    18  housing accommodation became subject to  this  chapter,  the  number  of
    19  years  that such housing accommodation has been subject to this chapter.
    20  Provided that if the previous legal regulated rent was less  than  three
    21  hundred dollars the total increase shall be as calculated above plus one
    22  hundred dollars per month. Provided, further, that if the previous legal
    23  regulated  rent was at least three hundred dollars and no more than five
    24  hundred dollars in no event shall the total increase  pursuant  to  this
    25  paragraph  be  less  than  one  hundred dollars per month. Such increase
    26  shall be [in lieu of any allowance authorized for the one  or  two  year
    27  renewal  component  thereof,  but  shall  be]  in  addition to any other
    28  increases authorized pursuant to this chapter  including  an  adjustment
    29  based upon a major capital improvement, or a substantial modification or
    30  increase of dwelling space or services, or installation of new equipment
    31  or  improvements  or  new furniture or furnishings provided in or to the
    32  housing accommodation pursuant to this section. The increase  authorized
    33  in  this  paragraph  may  not  be  implemented more than one time in any
    34  calendar year, notwithstanding the number of vacancy leases entered into
    35  in such year, and may not be implemented without the landlord  providing
    36  to  the  new  tenant  an  itemized  cost  accounting of all improvements
    37  claimed as part  of  such  increase  and  copies  of  the  corresponding
    38  receipts with the lease agreement.
    39    §  2.  Subdivision  (a-1) of section 10 of section 4 of chapter 576 of
    40  the laws of 1974, constituting the emergency tenant  protection  act  of
    41  nineteen  seventy-four,  as amended by section 16-b of part A of chapter
    42  20 of the laws of 2015, is amended to read as follows:
    43    (a-1) provides that, notwithstanding any provision of  this  act,  the
    44  legal regulated rent for any vacancy lease entered into after the effec-
    45  tive  date  of this subdivision shall be as hereinafter set forth.  [The
    46  previous legal regulated rent for such housing  accommodation  shall  be
    47  increased  by  the  following: (i) if the vacancy lease is for a term of
    48  two years, twenty percent of the previous legal regulated rent; or  (ii)
    49  if  the  vacancy  lease  is for a term of one year the increase shall be
    50  twenty percent of the previous legal regulated rent less an amount equal
    51  to the difference between (a)  the  two  year  renewal  lease  guideline
    52  promulgated  by  the guidelines board of the county in which the housing
    53  accommodation is located applied to the previous  legal  regulated  rent
    54  and  (b)  the one year renewal lease guideline promulgated by the guide-
    55  lines board of the county in which the housing accommodation is  located
    56  applied to the previous legal regulated rent.] However, where the amount
        A. 298                              3
     1  charged  and  paid by the prior tenant pursuant to paragraph fourteen of
     2  this subdivision, was less than the legal regulated rent, such  increase
     3  to the legal regulated rent shall not exceed: five percent of the previ-
     4  ous  legal  regulated rent if the last vacancy lease commenced less than
     5  two years ago; ten percent of the previous legal regulated rent  if  the
     6  last vacancy commenced less than three years ago; fifteen percent of the
     7  previous  legal  regulated rent if the last vacancy lease commenced less
     8  than four years ago; twenty percent of the previous legal regulated rent
     9  if the last vacancy lease commenced four or more years  ago.  [In  addi-
    10  tion,  if] If the legal regulated rent was not increased with respect to
    11  such housing accommodation by a permanent vacancy allowance within eight
    12  years prior to a vacancy lease executed on or after the  effective  date
    13  of this subdivision, the legal regulated rent may be [further] increased
    14  by an amount equal to the product resulting from multiplying such previ-
    15  ous legal regulated rent by six-tenths of one percent and further multi-
    16  plying the amount of rent increase resulting therefrom by the greater of
    17  (A)  the  number  of  years  since  the imposition of the last permanent
    18  vacancy allowance, or (B) if the rent was not increased by  a  permanent
    19  vacancy allowance since the housing accommodation became subject to this
    20  act,  the  number  of  years  that  such  housing accommodation has been
    21  subject to this act. Provided that if the previous legal regulated  rent
    22  was  less  than  three  hundred  dollars  the total increase shall be as
    23  calculated above plus one hundred dollars per month. Provided,  further,
    24  that  if  the  previous  legal regulated rent was at least three hundred
    25  dollars and no more than five hundred dollars  in  no  event  shall  the
    26  total  increase  pursuant  to  this subdivision be less than one hundred
    27  dollars per month. Such increase shall be  [in  lieu  of  any  allowance
    28  authorized  for the one or two year renewal component thereof, but shall
    29  be] in addition to any other increases authorized pursuant to  this  act
    30  including  an  adjustment  based  upon a major capital improvement, or a
    31  substantial modification or increase of dwelling space or  services,  or
    32  installation  of  new  equipment  or  improvements  or  new furniture or
    33  furnishings provided in or to  the  housing  accommodation  pursuant  to
    34  section six of this act. The increase authorized in this subdivision may
    35  not  be  implemented  more  than one time in any calendar year, notwith-
    36  standing the number of vacancy leases entered into in such year, and may
    37  not be implemented without the landlord providing to the new  tenant  an
    38  itemized  cost  accounting  of  all improvements claimed as part of such
    39  increase and copies of the corresponding receipts with the lease  agree-
    40  ment.
    41    §  3.  Subparagraph  (e)  of  paragraph  1 of subdivision g of section
    42  26-405 of the administrative code of the city of New York, as amended by
    43  section 15 of part B of chapter 97 of the laws of 2011,  is  amended  to
    44  read as follows:
    45    (e)  The  landlord  and  tenant  by mutual voluntary written agreement
    46  agree to a substantial increase or  decrease  in  dwelling  space  or  a
    47  change  in the services, furniture, furnishings or equipment provided in
    48  the housing accommodations. An adjustment under this subparagraph  shall
    49  be  equal to one-fortieth, in the case of a building with thirty-five or
    50  fewer housing accommodations, or one-sixtieth, in the case of a building
    51  with more than thirty-five housing accommodations where such  adjustment
    52  takes  effect  on or after September twenty-fourth, two thousand eleven,
    53  of the total cost incurred by the landlord in providing  such  modifica-
    54  tion  or increase in dwelling space, services, furniture, furnishings or
    55  equipment, including the cost of  installation,  but  excluding  finance
    56  charges,  with  an  adjustment, in both cases, being no more than twenty
        A. 298                              4
     1  percent of the current rent, provided further that an owner who is enti-
     2  tled to a rent increase pursuant to this subparagraph shall not be enti-
     3  tled to a further rent increase based upon the installation  of  similar
     4  equipment,  or  new  furniture  or furnishings within the useful life of
     5  such new equipment, or new furniture or  furnishings.  The  owner  shall
     6  give  written  notice  to  the  city  rent agency of any such adjustment
     7  pursuant to this subparagraph; or
     8    § 4. Paragraph 13 of subdivision c of section 26-511 of  the  adminis-
     9  trative code of the city of New York, as amended by section 16 of part B
    10  of chapter 97 of the laws of 2011, is amended to read as follows:
    11    (13) provides that an owner is entitled to a rent increase where there
    12  has  been a substantial modification or increase of dwelling space or an
    13  increase in the services, or installation of new equipment  or  improve-
    14  ments or new furniture or furnishings provided in or to a tenant's hous-
    15  ing  accommodation,  on  written tenant consent to the rent increase. In
    16  the case of a vacant housing accommodation, tenant consent shall not  be
    17  required.  The  permanent  increase  in the legal regulated rent for the
    18  affected housing accommodation shall be one-fortieth, in the case  of  a
    19  building with thirty-five or fewer housing accommodations, or one-sixti-
    20  eth, in the case of a building with more than thirty-five housing accom-
    21  modations where such permanent increase takes effect on or after Septem-
    22  ber  twenty-fourth,  two  thousand eleven, of the total cost incurred by
    23  the landlord in providing such  modification  or  increase  in  dwelling
    24  space, services, furniture, furnishings or equipment, including the cost
    25  of  installation, but excluding finance charges, provided, however, that
    26  in both cases, the permanent increase is no more than twenty percent  of
    27  the  current legal regulated rent. Provided further that an owner who is
    28  entitled to a rent increase pursuant to  this  paragraph  shall  not  be
    29  entitled to a further rent increase based upon the installation of simi-
    30  lar equipment, or new furniture or furnishings within the useful life of
    31  such new equipment, or new furniture or furnishings.
    32    § 5. Paragraph 1 of subdivision d of section 6 of section 4 of chapter
    33  576  of  the  laws of 1974, constituting the emergency tenant protection
    34  act of nineteen seventy-four, as amended by section  18  of  part  B  of
    35  chapter 97 of the laws of 2011, is amended to read as follows:
    36    (1)  there has been a substantial modification or increase of dwelling
    37  space or an increase in the services, or installation of  new  equipment
    38  or  improvements  or  new  furniture or furnishings, provided in or to a
    39  tenant's housing accommodation, on written tenant consent  to  the  rent
    40  increase.  In the case of a vacant housing accommodation, tenant consent
    41  shall not be required. The permanent increase  in  the  legal  regulated
    42  rent  for  the  affected housing accommodation shall be one-fortieth, in
    43  the case of a building with thirty-five or fewer housing accommodations,
    44  or one-sixtieth, in the case of a building with  more  than  thirty-five
    45  housing  accommodations where such permanent increase takes effect on or
    46  after September twenty-fourth, two thousand eleven, of  the  total  cost
    47  incurred  by  the landlord in providing such modification or increase in
    48  dwelling space, services, furniture, furnishings or equipment, including
    49  the cost of  installation,  but  excluding  finance  charges,  provided,
    50  however,  that  in  both  cases,  the permanent increase is no more than
    51  twenty percent of the current legal regulated rent.    Provided  further
    52  that  an owner who is entitled to a rent increase pursuant to this para-
    53  graph shall not be entitled to a further rent increase  based  upon  the
    54  installation of similar equipment, or new furniture or furnishings with-
    55  in  the  useful  life  of  such  new  equipment,  or  new  furniture  or
    56  furnishings.
        A. 298                              5
     1    § 6. Clause 5 of the second undesignated paragraph of paragraph (a) of
     2  subdivision 4 of section 4 of chapter 274 of the laws of  1946,  consti-
     3  tuting  the emergency housing rent control law, as amended by section 25
     4  of part B of chapter 97 of the laws of  2011,  is  amended  to  read  as
     5  follows:
     6    (5)  the  landlord  and  tenant  by mutual voluntary written agreement
     7  agree to a substantial increase or  decrease  in  dwelling  space  or  a
     8  change  in the services, furniture, furnishings or equipment provided in
     9  the housing accommodations; provided that an owner shall be entitled  to
    10  a  rent  increase  where  there  has  been a substantial modification or
    11  increase of dwelling space or an increase in the services, or  installa-
    12  tion  of  new  equipment or improvements or new furniture or furnishings
    13  provided in or  to  a  tenant's  housing  accommodation.  The  permanent
    14  increase  in  the  maximum  rent  for the affected housing accommodation
    15  shall be one-fortieth, in the case of a  building  with  thirty-five  or
    16  fewer housing accommodations, or one-sixtieth, in the case of a building
    17  with  more  than thirty-five housing accommodations where such permanent
    18  increase takes effect on or after September twenty-fourth, two  thousand
    19  eleven,  of  the  total  cost incurred by the landlord in providing such
    20  modification  or  increase  in  dwelling  space,  services,   furniture,
    21  furnishings  or  equipment,  including  the  cost  of  installation, but
    22  excluding finance charges, provided, however, that in  both  cases,  the
    23  permanent  increase  is no more than twenty percent of the current rent,
    24  and provided further that an owner who is entitled to  a  rent  increase
    25  pursuant to this clause shall not be entitled to a further rent increase
    26  based  upon  the  installation of similar equipment, or new furniture or
    27  furnishings within the useful life of such new equipment, or new  furni-
    28  ture  or furnishings. The owner shall give written notice to the commis-
    29  sion of any such adjustment pursuant to this clause; or
    30    § 7. This act shall take effect immediately; provided that:
    31    a. the amendments to section 26-511 of chapter 4 of title  26  of  the
    32  administrative  code  of  the  city of New York made by sections one and
    33  four of this act shall expire on the same date as such law  expires  and
    34  shall  not  affect  the expiration of such law as provided under section
    35  26-520 of such law;
    36    b. the amendments to  sections  10  and  6  of  the  emergency  tenant
    37  protection act of nineteen seventy-four made by sections two and five of
    38  this act shall expire on the same date as such act expires and shall not
    39  affect  the  expiration of such act as provided in section 17 of chapter
    40  576 of the laws of 1974;
    41    c. the amendments to section 26-405 of the  city  rent  and  rehabili-
    42  tation  law made by section three of this act shall remain in full force
    43  and effect only as long as the public emergency requiring the regulation
    44  and control of residential rents and evictions continues, as provided in
    45  subdivision 3 of section 1 of the local emergency housing  rent  control
    46  act; and
    47    d.  the  amendments to section 4 of the emergency housing rent control
    48  law made by section six of this act shall expire on  the  same  date  as
    49  such  law  expires  and  shall  not affect the expiration of such law as
    50  provided in subdivision 2 of section 1 of chapter 274  of  the  laws  of
    51  1946.