Bill Text: NY A03097 | 2015-2016 | General Assembly | Introduced

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Bill Title: Provides for an alternative hardship allowance for landlords in New York city rent controlled apartments which allows a hardship rent increase where a building's annual net income is less than 8.5 percent of the equalized assessed value.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2016-05-17 - held for consideration in housing [A03097 Detail]

Download: New_York-2015-A03097-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         3097
                              2015-2016 Regular Sessions
                                 I N  A S S E M B L Y
                                   January 22, 2015
                                      ___________
       Introduced  by  M.  of  A.  FITZPATRICK -- 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 providing an alternative hardship allowance
         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. The opening paragraph of subparagraph (a) of paragraph 1 of
    2  subdivision  g  of section 26-405 of the administrative code of the city
    3  of New York is amended to read as follows:
    4    The rental income from a property yields a net annual return  of  less
    5  than [six] EIGHT AND ONE-HALF per centum of the valuation of the proper-
    6  ty.
    7    S 2. Subdivision c of section 26-511 of the administrative code of the
    8  city  of  New  York  is amended by adding a new paragraph 6-b to read as
    9  follows:
   10    (6-B) PROVIDES CRITERIA WHEREBY AS  AN  ALTERNATIVE  TO  THE  HARDSHIP
   11  APPLICATION  PROVIDED  UNDER  PARAGRAPH  SIX  OR PARAGRAPH SIX-A OF THIS
   12  SUBDIVISION OWNERS OF BUILDINGS ACQUIRED BY THE SAME OWNER OR A  RELATED
   13  ENTITY  OWNED  BY  THE  SAME PRINCIPALS THREE YEARS PRIOR TO THE DATE OF
   14  APPLICATION MAY APPLY TO THE STATE DIVISION  OF  HOUSING  AND  COMMUNITY
   15  RENEWAL  FOR  INCREASES  IN  EXCESS OF THE LEVEL OF APPLICABLE GUIDELINE
   16  INCREASES ESTABLISHED UNDER THIS LAW BASED ON A FINDING BY  THE  COMMIS-
   17  SIONER  OF  HOUSING  AND COMMUNITY RENEWAL THAT SUCH GUIDELINE INCREASES
   18  ARE NOT SUFFICIENT TO ENABLE THE OWNER TO MAINTAIN A NET  ANNUAL  RETURN
   19  OF EIGHT AND ONE-HALF PER CENTUM OF THE VALUATION OF THE PROPERTY.  SUCH
   20  VALUATION SHALL BE THE CURRENT ASSESSED VALUATION, WHICH IS IN EFFECT AT
   21  THE  TIME  OF THE FILING OF THE APPLICATION FOR AN ADJUSTMENT UNDER THIS
   22  PARAGRAPH PROPERLY ADJUSTED BY APPLYING THERETO  THE  RATIO  WHICH  SUCH
   23  ASSESSED  VALUATION  BEARS  TO  THE  FULL VALUATION AS DETERMINED BY THE
   24  COMMISSIONER OF TAXATION AND FINANCE.  NET ANNUAL RETURN  SHALL  BE  THE
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD05748-01-5
       A. 3097                             2
    1  AMOUNT  BY WHICH THE EARNED INCOME EXCEEDS THE OPERATING EXPENSES OF THE
    2  PROPERTY, EXCLUDING MORTGAGE INTEREST AND  AMORTIZATION,  AND  EXCLUDING
    3  ALLOWANCES FOR OBSOLESCENCE AND RESERVES, BUT INCLUDING AN ALLOWANCE FOR
    4  DEPRECIATION  OF  TWO PER CENTUM OF THE VALUE OF THE BUILDINGS EXCLUSIVE
    5  OF THE LAND, OR THE AMOUNT SHOWN FOR DEPRECIATION OF  THE  BUILDINGS  IN
    6  THE  LATEST  REQUIRED  FEDERAL  INCOME  TAX  RETURN, WHICHEVER IS LOWER;
    7  PROVIDED, HOWEVER, THAT NO ALLOWANCE FOR DEPRECIATION OF  THE  BUILDINGS
    8  SHALL  BE  INCLUDED  WHERE THE BUILDINGS HAVE BEEN FULLY DEPRECIATED FOR
    9  FEDERAL INCOME TAX PURPOSES OR ON THE BOOKS OF THE OWNER.
   10    S 3. Subdivision d of section 6 of section 4 of  chapter  576  of  the
   11  laws  of 1974, constituting the emergency tenant protection act of nine-
   12  teen seventy-four, is amended by adding a new paragraph  6  to  read  as
   13  follows:
   14    (6) AS AN ALTERNATIVE TO THE HARDSHIP APPLICATION PROVIDED UNDER PARA-
   15  GRAPH  FOUR  OR FIVE OF THIS SUBDIVISION OWNERS OF BUILDINGS ACQUIRED BY
   16  THE SAME OWNER OR A RELATED ENTITY OWNED BY THE  SAME  PRINCIPALS  THREE
   17  YEARS  PRIOR  TO THE DATE OF APPLICATION MAY APPLY TO THE STATE DIVISION
   18  OF HOUSING AND COMMUNITY RENEWAL FOR INCREASES IN EXCESS OF THE LEVEL OF
   19  APPLICABLE GUIDELINE INCREASES ESTABLISHED UNDER THIS  ACT  BASED  ON  A
   20  FINDING  BY  THE COMMISSIONER OF HOUSING AND COMMUNITY RENEWAL THAT SUCH
   21  GUIDELINE INCREASES ARE NOT SUFFICIENT TO ENABLE THE OWNER TO MAINTAIN A
   22  NET ANNUAL RETURN OF EIGHT AND ONE-HALF PER CENTUM OF THE  VALUATION  OF
   23  THE  PROPERTY.    SUCH VALUATION SHALL BE THE CURRENT ASSESSED VALUATION
   24  ESTABLISHED BY A CITY, TOWN OR VILLAGE, WHICH IS IN EFFECT AT  THE  TIME
   25  OF  THE FILING OF THE APPLICATION FOR AN ADJUSTMENT UNDER THIS PARAGRAPH
   26  PROPERLY ADJUSTED BY APPLYING THERETO  THE  RATIO  WHICH  SUCH  ASSESSED
   27  VALUATION  BEARS TO THE FULL VALUATION AS DETERMINED BY THE COMMISSIONER
   28  OF TAXATION AND FINANCE. NET ANNUAL RETURN SHALL BE THE AMOUNT BY  WHICH
   29  THE  EARNED  INCOME  EXCEEDS  THE  OPERATING  EXPENSES  OF THE PROPERTY,
   30  EXCLUDING MORTGAGE INTEREST AND AMORTIZATION, AND  EXCLUDING  ALLOWANCES
   31  FOR  OBSOLESCENCE  AND RESERVES, BUT INCLUDING AN ALLOWANCE FOR DEPRECI-
   32  ATION OF TWO PER CENTUM OF THE VALUE OF THE BUILDINGS EXCLUSIVE  OF  THE
   33  LAND,  OR  THE  AMOUNT  SHOWN  FOR  DEPRECIATION OF THE BUILDINGS IN THE
   34  LATEST REQUIRED FEDERAL INCOME TAX RETURN, WHICHEVER IS LOWER; PROVIDED,
   35  HOWEVER, THAT NO ALLOWANCE FOR DEPRECIATION OF THE  BUILDINGS  SHALL  BE
   36  INCLUDED  WHERE  THE  BUILDINGS  HAVE BEEN FULLY DEPRECIATED FOR FEDERAL
   37  INCOME TAX PURPOSES OR ON THE BOOKS OF THE OWNER.
   38    S 4. This act shall  take  effect  on  the  first  of  September  next
   39  succeeding  the  date on which it shall have become a law, provided that
   40  the amendment to section 26-405 of the city rent and rehabilitation law,
   41  made by section one of this act, shall remain in full force  and  effect
   42  only  as  long  as  the  public  emergency  requiring the regulation and
   43  control of residential rents and evictions  continues,  as  provided  in
   44  subdivision  3  of section 1 of the local emergency housing rent control
   45  act; and provided further that the amendment to section  26-511  of  the
   46  rent  stabilization  law of nineteen hundred sixty-nine, made by section
   47  two of this act, shall expire on the same date as such law  expires  and
   48  shall  not  affect  the expiration of such law as provided under section
   49  26-520 of the administrative code of the city of New York; and  provided
   50  further  that  the  amendment  to  section  6  of  the  emergency tenant
   51  protection act of nineteen seventy-four, made by section three  of  this
   52  act,  shall  expire  on  the same date as such act expires and shall not
   53  affect the expiration of such act as provided in section 17  of  chapter
   54  576 of the laws of 1974, as amended.