Bill Text: NY A01470 | 2019-2020 | General Assembly | Introduced

Bill Title: Relates to limited profit housing companies.

Spectrum: Partisan Bill (Democrat 7-0)

Status: (Introduced) 2019-01-15 - referred to housing [A01470 Detail]

Download: New_York-2019-A01470-Introduced.html

                STATE OF NEW YORK
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                    January 15, 2019
        Introduced  by  M.  of  A.  L. ROSENTHAL,  GOTTFRIED,  MOSLEY, PICHARDO,
          BICHOTTE, JOYNER, WALKER -- read once and referred to the Committee on
        AN ACT to amend the emergency tenant protection act of  nineteen  seven-
          ty-four,  in  relation  to  limited-profit housing companies and other
          buildings or structures which received project-based rental assistance
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section  1.    Legislative  findings and declaration of emergency. The
     2  legislature hereby finds and declares that the serious public  emergency
     3  which  led  to the enactment of the existing laws regulating residential
     4  rents and evictions continues to exist;  that  such  laws  would  better
     5  serve  the public interest if certain changes were made thereto, includ-
     6  ing extending to certain cities, towns and  villages  the  authority  to
     7  provide for the regulation of rents and evictions with regard to housing
     8  accommodations  that  cease  or  have ceased to be regulated pursuant to
     9  article 2 of the private housing finance law, known as the Mitchell-Lama
    10  law, or pursuant to project-based section eight contracts  entered  into
    11  with the federal government.
    12    The  legislature  further  recognizes  that  severe  disruption of the
    13  rental housing market has occurred and threatens to be exacerbated as  a
    14  result  of  the  abrupt termination of rent and eviction regulation when
    15  buildings completed or substantially renovated as  family  units  on  or
    16  after  January  first,  nineteen hundred seventy-four exit the Mitchell-
    17  Lama program or when buildings cease  to  be  subject  to  project-based
    18  section  eight  contracts.  The  situation had permitted speculative and
    19  profiteering practices and has brought about the loss of vital and irre-
    20  placeable affordable housing for working persons and families.
    21    The legislature therefore declares that in order to prevent uncertain-
    22  ty, potential hardship and dislocation  of  tenants  living  in  housing
    23  accommodations  subject  to  government  regulations  as  to rentals and
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.

        A. 1470                             2
     1  continued occupancy as well as those not subject  to  such  regulations,
     2  the  provisions  of this act are necessary to protect the public health,
     3  safety and general welfare. The necessity in the public interest for the
     4  provisions  hereinafter enacted is hereby declared as a matter of legis-
     5  lative determination.
     6    § 2. Section 5 of section 4 of chapter 576 of the laws of 1974 consti-
     7  tuting the emergency tenant protection act of nineteen  seventy-four  is
     8  amended by adding a new subdivision c to read as follows:
     9    c.  Notwithstanding any other provision of this section, nothing shall
    10  prevent the declaration of an emergency pursuant  to  section  three  of
    11  this  act  for  rental  housing  accommodations  located in buildings or
    12  structures which were owned by a company established under  article  two
    13  of  the  private housing finance law, other than a mutual company, which
    14  are no longer owned by such company by reason of a voluntary dissolution
    15  pursuant to section thirty-five of such law or for rental housing accom-
    16  modations located in buildings or structures defined as covered projects
    17  pursuant to section 8 of the United States housing act of nineteen thir-
    18  ty-seven, as amended, or any  successor  statute,  and  any  regulations
    19  promulgated  thereunder  in which rental housing accommodations received
    20  project-based rental assistance from the  United  States  department  of
    21  housing  and  urban development pursuant to contracts with the owners of
    22  such buildings or structures which expired  or  were  terminated.    The
    23  initial  legal  regulated  rent  for  housing  accommodations located in
    24  buildings or structures that were owned by  housing  companies  or  that
    25  were  covered  projects  previously  regulated under the private housing
    26  finance law or under federal law, shall be the rent charged to and  paid
    27  by  the  tenant in occupancy one hundred eighty days prior to the effec-
    28  tive date of a chapter of the laws of two thousand nineteen which  added
    29  this  subdivision  or,  for accommodations vacant on such date, the most
    30  recent rent charged to and paid by a tenant prior to such date,  includ-
    31  ing  any income-related surcharges, as adjusted by all applicable guide-
    32  lines increases and other increases authorized by law. The provisions of
    33  subdivision a of section nine of this act or of subdivision a of section
    34  26-513 of the administrative code of the city  of  New  York  shall  not
    35  apply  to  any  housing  accommodation  which became subject to this act
    36  pursuant to the provisions of this subdivision.
    37    § 3. Notwithstanding any provision of law to the contrary, in  a  city
    38  having  a  population  of  one  million  or more, the New York city rent
    39  stabilization law of nineteen hundred sixty-nine may be amended by local
    40  law or ordinance to provide for the regulation of  rents  and  evictions
    41  and  the enforcement of such rent stabilization law with regard to hous-
    42  ing accommodations made subject to such law by a declaration of emergen-
    43  cy made pursuant to this act.
    44    § 4. This act shall take effect immediately and shall apply to housing
    45  accommodations located in  buildings  or  structures  owned  by  housing
    46  companies  that  dissolved  on, before or after such date and to housing
    47  accommodations in buildings or structures that were covered projects and
    48  had contracts for rental assistance that expired or were terminated  on,
    49  before  or after such date; provided that the amendments to section 5 of
    50  the emergency tenant protection act of  nineteen  seventy-four  made  by
    51  section  two  of  this  act  shall  expire  on the same date as such act
    52  expires and shall not affect the expiration of such act as  provided  in
    53  section 17 of chapter 576 of the laws of 1974.