Bill Text: NY A02593 | 2017-2018 | General Assembly | Introduced
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) 2018-01-03 - referred to housing [A02593 Detail]
Download: New_York-2017-A02593-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 2593 2017-2018 Regular Sessions IN ASSEMBLY January 20, 2017 ___________ Introduced by M. of A. 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 housing9accommodation shall be increased by the following: (i) if the vacancy10lease is for a term of two years, twenty percent of the previous legal11regulated rent; or (ii) if the vacancy lease is for a term of one year12the increase shall be twenty percent of the previous legal regulated13rent less an amount equal to the difference between (a) the two year14renewal lease guideline promulgated by the guidelines board of the city15of New York applied to the previous legal regulated rent and (b) the one16year renewal lease guideline promulgated by the guidelines board of the17city 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 20 rent, such increase to the legal regulated rent shall not exceed: five EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD05270-01-7A. 2593 2 1 percent of the previous legal regulated rent if the last vacancy lease 2 commenced less than two years ago; ten percent of the previous legal 3 regulated rent if the last vacancy lease commenced less than three years 4 ago; fifteen percent of the previous legal regulated rent if the last 5 vacancy lease commenced less than four years ago; twenty percent of the 6 previous legal regulated rent if the last vacancy lease commenced four 7 or more years ago. [In addition,] If the legal regulated rent was not 8 increased with respect to such housing accommodation by a permanent 9 vacancy allowance within eight years prior to a vacancy lease executed 10 on or after the effective date of this paragraph, the legal regulated 11 rent may be [further] increased by an amount equal to the product 12 resulting from multiplying such previous legal regulated rent by six- 13 tenths of one percent and further multiplying the amount of rent 14 increase resulting therefrom by the greater of (A) the number of years 15 since the imposition of the last permanent vacancy allowance, or (B) if 16 the rent was not increased by a permanent vacancy allowance since the 17 housing accommodation became subject to this chapter, the number of 18 years that such housing accommodation has been subject to this chapter. 19 Provided that if the previous legal regulated rent was less than three 20 hundred dollars the total increase shall be as calculated above plus one 21 hundred dollars per month. Provided, further, that if the previous legal 22 regulated rent was at least three hundred dollars and no more than five 23 hundred dollars in no event shall the total increase pursuant to this 24 paragraph be less than one hundred dollars per month. Such increase 25 shall be [in lieu of any allowance authorized for the one or two year26renewal component thereof, but shall be] in addition to any other 27 increases authorized pursuant to this chapter including an adjustment 28 based upon a major capital improvement, or a substantial modification or 29 increase of dwelling space or services, or installation of new equipment 30 or improvements or new furniture or furnishings provided in or to the 31 housing accommodation pursuant to this section. The increase authorized 32 in this paragraph may not be implemented more than one time in any 33 calendar year, notwithstanding the number of vacancy leases entered into 34 in such year, and may not be implemented without the landlord providing 35 to the new tenant an itemized cost accounting of all improvements 36 claimed as part of such increase and copies of the corresponding 37 receipts with the lease agreement. 38 § 2. Subdivision (a-1) of section 10 of section 4 of chapter 576 of 39 the laws of 1974, constituting the emergency tenant protection act of 40 nineteen seventy-four, as amended by section 16-b of part A of chapter 41 20 of the laws of 2015, is amended to read as follows: 42 (a-1) provides that, notwithstanding any provision of this act, the 43 legal regulated rent for any vacancy lease entered into after the effec- 44 tive date of this subdivision shall be as hereinafter set forth. [The45previous legal regulated rent for such housing accommodation shall be46increased by the following: (i) if the vacancy lease is for a term of47two years, twenty percent of the previous legal regulated rent; or (ii)48if the vacancy lease is for a term of one year the increase shall be49twenty percent of the previous legal regulated rent less an amount equal50to the difference between (a) the two year renewal lease guideline51promulgated by the guidelines board of the county in which the housing52accommodation is located applied to the previous legal regulated rent53and (b) the one year renewal lease guideline promulgated by the guide-54lines board of the county in which the housing accommodation is located55applied to the previous legal regulated rent.] However, where the amount 56 charged and paid by the prior tenant pursuant to paragraph fourteen ofA. 2593 3 1 this subdivision, was less than the legal regulated rent, such increase 2 to the legal regulated rent shall not exceed: five percent of the previ- 3 ous legal regulated rent if the last vacancy lease commenced less than 4 two years ago; ten percent of the previous legal regulated rent if the 5 last vacancy commenced less than three years ago; fifteen percent of the 6 previous legal regulated rent if the last vacancy lease commenced less 7 than four years ago; twenty percent of the previous legal regulated rent 8 if the last vacancy lease commenced four or more years ago. [In addi-9tion, if] If the legal regulated rent was not increased with respect to 10 such housing accommodation by a permanent vacancy allowance within eight 11 years prior to a vacancy lease executed on or after the effective date 12 of this subdivision, the legal regulated rent may be [further] increased 13 by an amount equal to the product resulting from multiplying such previ- 14 ous legal regulated rent by six-tenths of one percent and further multi- 15 plying the amount of rent increase resulting therefrom by the greater of 16 (A) the number of years since the imposition of the last permanent 17 vacancy allowance, or (B) if the rent was not increased by a permanent 18 vacancy allowance since the housing accommodation became subject to this 19 act, the number of years that such housing accommodation has been 20 subject to this act. Provided that if the previous legal regulated rent 21 was less than three hundred dollars the total increase shall be as 22 calculated above plus one hundred dollars per month. Provided, further, 23 that if the previous legal regulated rent was at least three hundred 24 dollars and no more than five hundred dollars in no event shall the 25 total increase pursuant to this subdivision be less than one hundred 26 dollars per month. Such increase shall be [in lieu of any allowance27authorized for the one or two year renewal component thereof, but shall28be] in addition to any other increases authorized pursuant to this act 29 including an adjustment based upon a major capital improvement, or a 30 substantial modification or increase of dwelling space or services, or 31 installation of new equipment or improvements or new furniture or 32 furnishings provided in or to the housing accommodation pursuant to 33 section six of this act. The increase authorized in this subdivision may 34 not be implemented more than one time in any calendar year, notwith- 35 standing the number of vacancy leases entered into in such year, and may 36 not be implemented without the landlord providing to the new tenant an 37 itemized cost accounting of all improvements claimed as part of such 38 increase and copies of the corresponding receipts with the lease agree- 39 ment. 40 § 3. Subparagraph (e) of paragraph 1 of subdivision g of section 41 26-405 of the administrative code of the city of New York, as amended by 42 section 15 of part B of chapter 97 of the laws of 2011, is amended to 43 read as follows: 44 (e) The landlord and tenant by mutual voluntary written agreement 45 agree to a substantial increase or decrease in dwelling space or a 46 change in the services, furniture, furnishings or equipment provided in 47 the housing accommodations. An adjustment under this subparagraph shall 48 be equal to one-fortieth, in the case of a building with thirty-five or 49 fewer housing accommodations, or one-sixtieth, in the case of a building 50 with more than thirty-five housing accommodations where such adjustment 51 takes effect on or after September twenty-fourth, two thousand eleven, 52 of the total cost incurred by the landlord in providing such modifica- 53 tion or increase in dwelling space, services, furniture, furnishings or 54 equipment, including the cost of installation, but excluding finance 55 charges, with an adjustment, in both cases, being no more than twenty 56 percent of the current rent, provided further that an owner who is enti-A. 2593 4 1 tled to a rent increase pursuant to this subparagraph shall not be enti- 2 tled to a further rent increase based upon the installation of similar 3 equipment, or new furniture or furnishings within the useful life of 4 such new equipment, or new furniture or furnishings. The owner shall 5 give written notice to the city rent agency of any such adjustment 6 pursuant to this subparagraph; or 7 § 4. Paragraph 13 of subdivision c of section 26-511 of the adminis- 8 trative code of the city of New York, as amended by section 16 of part B 9 of chapter 97 of the laws of 2011, is amended to read as follows: 10 (13) provides that an owner is entitled to a rent increase where there 11 has been a substantial modification or increase of dwelling space or an 12 increase in the services, or installation of new equipment or improve- 13 ments or new furniture or furnishings provided in or to a tenant's hous- 14 ing accommodation, on written tenant consent to the rent increase. In 15 the case of a vacant housing accommodation, tenant consent shall not be 16 required. The permanent increase in the legal regulated rent for the 17 affected housing accommodation shall be one-fortieth, in the case of a 18 building with thirty-five or fewer housing accommodations, or one-sixti- 19 eth, in the case of a building with more than thirty-five housing accom- 20 modations where such permanent increase takes effect on or after Septem- 21 ber twenty-fourth, two thousand eleven, of the total cost incurred by 22 the landlord in providing such modification or increase in dwelling 23 space, services, furniture, furnishings or equipment, including the cost 24 of installation, but excluding finance charges, provided, however, that 25 in both cases, the permanent increase is no more than twenty percent of 26 the current legal regulated rent. Provided further that an owner who is 27 entitled to a rent increase pursuant to this paragraph shall not be 28 entitled to a further rent increase based upon the installation of simi- 29 lar equipment, or new furniture or furnishings within the useful life of 30 such new equipment, or new furniture or furnishings. 31 § 5. Paragraph 1 of subdivision d of section 6 of section 4 of chapter 32 576 of the laws of 1974, constituting the emergency tenant protection 33 act of nineteen seventy-four, as amended by section 18 of part B of 34 chapter 97 of the laws of 2011, is amended to read as follows: 35 (1) there has been a substantial modification or increase of dwelling 36 space or an increase in the services, or installation of new equipment 37 or improvements or new furniture or furnishings, provided in or to a 38 tenant's housing accommodation, on written tenant consent to the rent 39 increase. In the case of a vacant housing accommodation, tenant consent 40 shall not be required. The permanent increase in the legal regulated 41 rent for the affected housing accommodation shall be one-fortieth, in 42 the case of a building with thirty-five or fewer housing accommodations, 43 or one-sixtieth, in the case of a building with more than thirty-five 44 housing accommodations where such permanent increase takes effect on or 45 after September twenty-fourth, two thousand eleven, of the total cost 46 incurred by the landlord in providing such modification or increase in 47 dwelling space, services, furniture, furnishings or equipment, including 48 the cost of installation, but excluding finance charges, provided, 49 however, that in both cases, the permanent increase is no more than 50 twenty percent of the current legal regulated rent. Provided further 51 that an owner who is entitled to a rent increase pursuant to this para- 52 graph shall not be entitled to a further rent increase based upon the 53 installation of similar equipment, or new furniture or furnishings with- 54 in the useful life of such new equipment, or new furniture or 55 furnishings.A. 2593 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.
