Bill Text: NY A00422 | 2023-2024 | General Assembly | Introduced

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Bill Title: Relates to eliminating the price index of operating costs as a factor in determining rent increases by the rent guidelines board.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-01-03 - referred to housing [A00422 Detail]

Download: New_York-2023-A00422-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                           422

                               2023-2024 Regular Sessions

                   IN ASSEMBLY

                                     January 9, 2023
                                       ___________

        Introduced  by M. of A. EPSTEIN -- read once and referred to the Commit-
          tee 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 eliminating the price index of  operating  costs  as  a  factor  in
          determining rent increases by the rent guidelines board

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. Subdivision b of section 26-510 of the administrative  code
     2  of the city of New York, as amended by section 4 of part C of chapter 36
     3  of the laws of 2019, is amended to read as follows:
     4    b.  The  rent  guidelines  board shall establish annual guidelines for
     5  rent adjustments, and in determining whether rents for housing  accommo-
     6  dations  subject  to  the  emergency  tenant  protection act of nineteen
     7  seventy-four or this law shall be adjusted shall consider,  among  other
     8  things  (1) the economic condition of the residential real estate indus-
     9  try in the affected area including such factors as  the  prevailing  and
    10  projected  (i)  [real estate taxes and sewer and water rates, (ii) gross
    11  operating maintenance costs  (including  insurance  rates,  governmental
    12  fees,  cost  of  fuel and labor costs), (iii)] costs and availability of
    13  financing (including effective rates of interest), [(iv)] (ii)  over-all
    14  supply  of  housing accommodations and over-all vacancy rates, (2) rele-
    15  vant data from the current and projected cost of living indices for  the
    16  affected  area,  (3) such other data as may be made available to it. Not
    17  later than July first of each year, the rent guidelines board shall file
    18  with the city clerk its findings for the preceding  calendar  year,  and
    19  shall  accompany  such  findings with a statement of the maximum rate or
    20  rates of rent adjustment, if any, for one or more  classes  of  accommo-
    21  dations  subject  to  this  law,  authorized  for leases or other rental
    22  agreements commencing on the next succeeding October first or within the
    23  twelve months thereafter. Such findings and statement shall be published

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD00132-01-3
        A. 422                              2

     1  in the City Record. The rent guidelines board shall not establish annual
     2  guidelines for rent adjustments based on the current rental  cost  of  a
     3  unit  or  on  the  amount  of  time  that has elapsed since another rent
     4  increase was authorized pursuant to this title.
     5    §  2.  Subdivision  b  of section 4 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  amended by chapter 486 of the laws of 1976, the
     8  opening paragraph as amended by section 3 of part Q of chapter 39 of the
     9  laws of 2019, and  the  second  and  third  undesignated  paragraphs  as
    10  amended chapter 330 of the laws of 1980, is amended to read as follows:
    11    b.  A  county  rent guidelines board shall establish annual guidelines
    12  for rent adjustments which, at its sole discretion  may  be  varied  and
    13  different  for  and  within  the  several zones and jurisdictions of the
    14  board, and in determining whether rents for housing accommodations as to
    15  which an emergency has been declared  pursuant  to  this  act  shall  be
    16  adjusted,  shall  consider among other things (1) the economic condition
    17  of the residential real estate industry in the affected  area  including
    18  such  factors as the prevailing and projected (i) [real estate taxes and
    19  sewer and water rates, (ii) gross operating maintenance costs (including
    20  insurance rates, governmental fees,  cost  of  fuel  and  labor  costs),
    21  (iii)] costs and availability of financing (including effective rates of
    22  interest),  [(iv)]  (ii)  over-all  supply of housing accommodations and
    23  over-all vacancy rates, (2) relevant data from the current and projected
    24  cost of living indices for the affected area, (3) such other data as may
    25  be made available to it. As soon as practicable after its  creation  and
    26  thereafter  not  later  than  July first of each year, a rent guidelines
    27  board shall file with  the  state  division  of  housing  and  community
    28  renewal its findings for the preceding calendar year, and shall accompa-
    29  ny  such  findings with a statement of the maximum rate or rates of rent
    30  adjustment, if any, for one or more classes of accommodation subject  to
    31  this  act,  authorized  for leases or other rental agreements commencing
    32  during the next succeeding twelve months. The standards for rent adjust-
    33  ments may be applicable for the entire county or may be varied according
    34  to such zones or jurisdictions within such county  as  the  board  finds
    35  necessary to achieve the purposes of this subdivision. A rent guidelines
    36  board  shall  not establish annual guidelines for rent adjustments based
    37  on the current rental cost of a unit or on the amount of time  that  has
    38  elapsed  since  another  rent  increase  was authorized pursuant to this
    39  chapter.
    40    The standards for  rent  adjustments  established  annually  shall  be
    41  effective for leases commencing on October first of each year and during
    42  the next succeeding twelve months whether or not the board has filed its
    43  findings  and  statement of the maximum rate or rates of rent adjustment
    44  by July first of each year. If such lease is entered  into  before  such
    45  filing  by  the board, it may provide for the rent to be adjusted by the
    46  rates then in effect, subject to change by the applicable rates of  rent
    47  adjustment when filed, such change to be effective as of the date of the
    48  commencement  of  the  lease.  Said  lease must provide that, if the new
    49  rates of rent adjustment differ  for  leases  of  different  terms,  the
    50  tenant  has  the option of changing the original lease term to any other
    51  term for which a rate of rent adjustment is set by the board,  with  the
    52  rental to be adjusted accordingly.
    53    Where  a city, town or village shall act to determine the existence of
    54  public emergency pursuant to section three of this act subsequent to the
    55  establishment of annual guidelines for rent adjustments of the  accommo-
    56  dations  subject to this act, the rent guidelines board as soon as prac-
        A. 422                              3

     1  ticable thereafter shall file its findings and rates of rent  adjustment
     2  for  leases or other rental agreements for the housing accommodations in
     3  such a city, town or village, which rates shall be effective for  leases
     4  or  other rental agreements commencing on or after the effective date of
     5  the determination.
     6    § 3. This act shall take effect immediately; provided,  however,  that
     7  the  amendments to section 26-510 of the rent stabilization law of nine-
     8  teen hundred sixty-nine made by section one of this act shall expire  on
     9  the same date as such law expires and shall not affect the expiration of
    10  such law as provided under section 26-520 of such law.