Bill Text: NY A01970 | 2015-2016 | General Assembly | Amended


Bill Title: Prohibits the collection of rent arrearages accruing prior to the date of approval of an application for an adjustment in the legal regulated rent based upon a major capital improvement.

Spectrum: Partisan Bill (Democrat 20-0)

Status: (Introduced - Dead) 2016-05-26 - advanced to third reading cal.744 [A01970 Detail]

Download: New_York-2015-A01970-Amended.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                         1970--A
                               2015-2016 Regular Sessions
                   IN ASSEMBLY
                                    January 13, 2015
                                       ___________
        Introduced by M. of A. MAYER, WRIGHT, ABINANTI, COLTON, GOTTFRIED, HOOP-
          ER,  JAFFEE,  KAVANAGH,  O'DONNELL,  PRETLOW,  RIVERA, ROZIC, SOLAGES,
          ARROYO, MOSLEY, PICHARDO -- Multi-Sponsored by -- M. of  A.  BUCHWALD,
          HEVESI,  MARKEY,  SIMON  -- read once and referred to the Committee on
          Housing -- recommitted to the Committee on Housing in accordance  with
          Assembly Rule 3, sec. 2 -- committee discharged, bill amended, ordered
          reprinted as amended and recommitted to said committee
        AN  ACT  to amend chapter 576 of the laws of 1974 constituting the emer-
          gency tenant protection act of nineteen seventy-four, the  administra-
          tive  code  of  the  city  of  New York and the emergency housing rent
          control law, in relation to prohibiting the collection of rent arrear-
          ages accruing prior to the date of approval of an application  for  an
          adjustment  in  the  legal  regulated  rent based upon a major capital
          improvement
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section  1.  Section 6 of section 4 of chapter 576 of the laws of 1974
     2  constituting the emergency tenant protection act  of  nineteen  seventy-
     3  four is amended by adding a new subdivision h to read as follows:
     4    h.  Notwithstanding  any provision of law or rule or regulation to the
     5  contrary, any adjustment in the legal regulated rent based upon a  major
     6  capital  improvement shall be effective upon approval of the application
     7  therefor. No increase may be collected for the period of time  prior  to
     8  the date of approval of the application.
     9    § 2. Section 26-512 of the administrative code of the city of New York
    10  is amended by adding a new subdivision g to read as follows:
    11    g.  Notwithstanding  any provision of law or rule or regulation to the
    12  contrary, any adjustment in the legal regulated rent based upon a  major
    13  capital  improvement shall be effective upon approval of the application
    14  therefor. No increase may be collected for the period of time  prior  to
    15  the date of approval of the application.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD00298-09-6

        A. 1970--A                          2
     1    §  3.   The second undesignated paragraph of paragraph (a) of subdivi-
     2  sion 4 of section 4 of chapter 274 of the laws of 1946, constituting the
     3  emergency housing rent control law, as amended by section 25 of  part  B
     4  of chapter 97 of the laws of 2011, is amended to read as follows:
     5    No application for adjustment of maximum rent based upon a sales price
     6  valuation  shall  be filed by the landlord under this subparagraph prior
     7  to six months from the date of such sale of the property.  In  addition,
     8  no  adjustment  ordered  by  the  commission based upon such sales price
     9  valuation shall be effective prior to one year from  the  date  of  such
    10  sale.    Where, however, the assessed valuation of the land exceeds four
    11  times the assessed valuation of the buildings  thereon,  the  commission
    12  may determine a valuation of the property equal to five times the equal-
    13  ized  assessed  valuation  of  the  buildings,  for the purposes of this
    14  subparagraph.  The commission may make a determination  that  the  valu-
    15  ation  of  the  property  is  an  amount  different  from such equalized
    16  assessed valuation where there is a request  for  a  reduction  in  such
    17  assessed  valuation  currently  pending;  or  where  there  has  been  a
    18  reduction in the assessed valuation for  the  year  next  preceding  the
    19  effective  date  of the current assessed valuation in effect at the time
    20  of the filing of the application.  Net annual return shall be the amount
    21  by which the earned income exceeds the operating expenses of the proper-
    22  ty, excluding mortgage interest and amortization, and  excluding  allow-
    23  ances  for  obsolescence  and  reserves,  but including an allowance for
    24  depreciation of two per centum of the value of the  buildings  exclusive
    25  of  the  land,  or the amount shown for depreciation of the buildings in
    26  the latest required federal  income  tax  return,  whichever  is  lower;
    27  provided,  however, that (1) no allowance for depreciation of the build-
    28  ings shall be included where the buildings have been  fully  depreciated
    29  for federal income tax purposes or on the books of the owner; or (2) the
    30  landlord  who  owns  no more than four rental units within the state has
    31  not been fully compensated by increases in rental income  sufficient  to
    32  offset  unavoidable increases in property taxes, fuel, utilities, insur-
    33  ance and repairs and maintenance, excluding mortgage interest and  amor-
    34  tization,  and  excluding  allowances for depreciation, obsolescence and
    35  reserves, which have occurred since the  federal  date  determining  the
    36  maximum rent or the date the property was acquired by the present owner,
    37  whichever  is  later;  or (3)   the landlord operates a hotel or rooming
    38  house or owns a cooperative apartment and has not been fully compensated
    39  by increases in rental income from the controlled housing accommodations
    40  sufficient to offset unavoidable increases in property taxes  and  other
    41  costs  as  are  allocable  to  such  controlled  housing accommodations,
    42  including costs of operation of such hotel or rooming house, but exclud-
    43  ing mortgage interest and amortization,  and  excluding  allowances  for
    44  depreciation,  obsolescence  and reserves, which have occurred since the
    45  federal date determining the maximum  rent  or  the  date  the  landlord
    46  commenced the operation of the property, whichever is later; or (4)  the
    47  landlord and tenant voluntarily enter into a valid written lease in good
    48  faith  with  respect  to any housing accommodation, which lease provides
    49  for an increase in the maximum rent not in excess of fifteen per  centum
    50  and  for a term of not less than two years, except that where such lease
    51  provides for an increase in excess of fifteen per centum,  the  increase
    52  shall  be  automatically reduced to fifteen per centum; or (5) the land-
    53  lord and tenant  by  mutual  voluntary  written  agreement  agree  to  a
    54  substantial  increase  or  decrease in dwelling space or a change in the
    55  services, furniture, furnishings or equipment provided  in  the  housing
    56  accommodations;  provided  that  an  owner  shall  be entitled to a rent

        A. 1970--A                          3
     1  increase where there has been a substantial modification or increase  of
     2  dwelling  space  or  an increase in the services, or installation of new
     3  equipment or improvements or new furniture or furnishings provided in or
     4  to a tenant's housing accommodation. The permanent increase in the maxi-
     5  mum  rent  for the affected housing accommodation shall be one-fortieth,
     6  in the case of a building with thirty-five  or  fewer  housing  accommo-
     7  dations, or one-sixtieth, in the case of a building with more than thir-
     8  ty-five  housing  accommodations  where  such  permanent  increase takes
     9  effect on or after September twenty-fourth, two thousand eleven, of  the
    10  total  cost  incurred  by the landlord in providing such modification or
    11  increase in dwelling space, services, furniture, furnishings  or  equip-
    12  ment,  including the cost of installation, but excluding finance charges
    13  provided further that an owner who is entitled to a rent increase pursu-
    14  ant to this clause shall not be entitled  to  a  further  rent  increase
    15  based  upon  the  installation of similar equipment, or new furniture or
    16  furnishings within the useful life of such new equipment, or new  furni-
    17  ture  or furnishings. The owner shall give written notice to the commis-
    18  sion of any such adjustment pursuant to this clause; or  (6)  there  has
    19  been,  since  March  first,  nineteen  hundred fifty, an increase in the
    20  rental value of the housing accommodations as a result of a  substantial
    21  rehabilitation  of  the  building or housing accommodation therein which
    22  materially adds to the value of the property or appreciably prolongs its
    23  life, excluding ordinary repairs, maintenance and replacements;  or  (7)
    24  there  has been since March first, nineteen hundred fifty, a major capi-
    25  tal improvement required for the operation, preservation or  maintenance
    26  of  the  structure;  or  (8)  there has been since March first, nineteen
    27  hundred fifty, in structures containing more than four housing  accommo-
    28  dations, other improvements made with the express consent of the tenants
    29  in  occupancy of at least seventy-five per  centum of the housing accom-
    30  modations, provided, however, that no adjustment granted hereunder shall
    31  exceed fifteen per centum unless the tenants have  agreed  to  a  higher
    32  percentage  of  increase,  as  herein provided; or (9)   there has been,
    33  since March first, nineteen hundred fifty, a subletting without  written
    34  consent  from  the  landlord or an increase in the number of adult occu-
    35  pants who are not members of the immediate family of the tenant, and the
    36  landlord has not been compensated therefor by adjustment of the  maximum
    37  rent by lease or order of the commission or pursuant to the federal act;
    38  or  (10)    the  presence of unique or peculiar circumstances materially
    39  affecting the maximum rent has resulted  in  a  maximum  rent  which  is
    40  substantially lower than the rents generally prevailing in the same area
    41  for  substantially similar housing accommodations; or (11) notwithstand-
    42  ing any provision of law or rule or  regulation  to  the  contrary,  any
    43  adjustment  in  the  legal  regulated  rent  based  upon a major capital
    44  improvement shall be effective upon approval of the  application  there-
    45  for.  No  increase  may be collected for the period of time prior to the
    46  date of approval of the application.
    47    § 4. Paragraph 1 of subdivision g of section 26-405 of the administra-
    48  tive code of the city of New York is amended by adding  a  new  subpara-
    49  graph (p) to read as follows:
    50    (p)  Notwithstanding any provision of law or rule or regulation to the
    51  contrary, any adjustment in the legal regulated rent based upon a  major
    52  capital  improvement shall be effective upon approval of the application
    53  therefor. No increase may be collected for the period of time  prior  to
    54  the date of approval of the application.
    55    § 5. This act shall take effect immediately; provided that:

        A. 1970--A                          4
     1    a.  the amendments to section 4 of the emergency tenant protection act
     2  of nineteen seventy-four made by section one of this act shall expire on
     3  the same date as such act expires and shall not affect the expiration of
     4  such act as provided in section 17 of chapter 576 of the laws of 1974;
     5    b.  the  amendments  to section 26-512 of chapter 4 of title 26 of the
     6  administrative code of the city of New York made by section two of  this
     7  act  shall  expire  on  the  same date as such law expires and shall not
     8  affect the expiration of such law as provided under  section  26-520  of
     9  such law;
    10    c.  the  amendments to section 4 of the emergency housing rent control
    11  law made by section three of this act shall expire on the same  date  as
    12  such  law  expires  and  shall  not affect the expiration of such law as
    13  provided in subdivision 2 of section 1 of chapter 274  of  the  laws  of
    14  1946; and
    15    d.  the  amendments  to  section 26-405 of the city rent and rehabili-
    16  tation law made by section four of this act shall remain in  full  force
    17  and effect only as long as the public emergency requiring the regulation
    18  and control of residential rents and evictions continues, as provided in
    19  subdivision  3  of section 1 of the local emergency housing rent control
    20  act.
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