Bill Text: NY A04888 | 2017-2018 | General Assembly | Introduced
Bill Title: Relates to applications for major capital improvement rent increases; requires owners to submit copies of all permits with their applications for major capital improvement rent increases; denies applications if permits are fraudulent or not included.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2018-01-03 - referred to housing [A04888 Detail]
Download: New_York-2017-A04888-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 4888 2017-2018 Regular Sessions IN ASSEMBLY February 6, 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, the emergency tenant protection act of nineteen seventy-four and the emer- gency housing rent control law, in relation to applications for major capital improvement rent increases The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Subparagraph (g) of paragraph 1 of subdivision g of section 2 26-405 of the administrative code of the city of New York, as amended by 3 section 31 of part A of chapter 20 of the laws of 2015, is amended to 4 read as follows: 5 (g) There has been since July first, nineteen hundred seventy, a major 6 capital improvement required for the operation, preservation or mainte- 7 nance of the structure. An adjustment under this subparagraph (g) for 8 any order of the commissioner issued after the effective date of the 9 rent act of 2015 shall be in an amount sufficient to amortize the cost 10 of the improvements pursuant to this subparagraph (g) over an eight-year 11 period for buildings with thirty-five or fewer units or a nine year 12 period for buildings with more than [thiry-five] thirty-five units[,]; 13 provided, however, no application for a major capital improvement rent 14 increase shall be approved by the division of housing and community 15 renewal unless the owner of the property has filed all copies of permits 16 pertaining to the major capital improvement work with such application. 17 Any application submitted with fraudulent permits or without required 18 permits shall be denied; or 19 § 2. Paragraph 6 of subdivision c of section 26-511 of the administra- 20 tive code of the city of New York, as amended by section 29 of part A of 21 chapter 20 of the laws of 2015, is amended to read as follows: 22 (6) provides criteria whereby the commissioner may act upon applica- 23 tions by owners for increases in excess of the level of fair rent 24 increase established under this law provided, however, that such crite- 25 ria shall provide (a) as to hardship applications, for a finding that 26 the level of fair rent increase is not sufficient to enable the owner to EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD05141-01-7A. 4888 2 1 maintain approximately the same average annual net income (which shall 2 be computed without regard to debt service, financing costs or manage- 3 ment fees) for the three year period ending on or within six months of 4 the date of an application pursuant to such criteria as compared with 5 annual net income, which prevailed on the average over the period nine- 6 teen hundred sixty-eight through nineteen hundred seventy, or for the 7 first three years of operation if the building was completed since nine- 8 teen hundred sixty-eight or for the first three fiscal years after a 9 transfer of title to a new owner provided the new owner can establish to 10 the satisfaction of the commissioner that he or she acquired title to 11 the building as a result of a bona fide sale of the entire building and 12 that the new owner is unable to obtain requisite records for the fiscal 13 years nineteen hundred sixty-eight through nineteen hundred seventy 14 despite diligent efforts to obtain same from predecessors in title and 15 further provided that the new owner can provide financial data covering 16 a minimum of six years under his or her continuous and uninterrupted 17 operation of the building to meet the three year to three year compar- 18 ative test periods herein provided; and (b) as to completed building- 19 wide major capital improvements, for a finding that such improvements 20 are deemed depreciable under the Internal Revenue Code and that the cost 21 is to be amortized over an eight-year period for a building with thir- 22 ty-five or fewer housing accommodations, or a nine-year period for a 23 building with more than thirty-five housing accommodations, for any 24 determination issued by the division of housing and community renewal 25 after the effective date of the rent act of 2015, based upon cash 26 purchase price exclusive of interest or service charges. The division of 27 housing and community renewal shall require the submission of copies of 28 all permits pertaining to major capital improvement work with any appli- 29 cation for a major capital improvement rent increase. Any application 30 submitted with fraudulent permits or without required permits shall be 31 denied. Notwithstanding anything to the contrary contained herein, no 32 hardship increase granted pursuant to this paragraph shall, when added 33 to the annual gross rents, as determined by the commissioner, exceed the 34 sum of, (i) the annual operating expenses, (ii) an allowance for manage- 35 ment services as determined by the commissioner, (iii) actual annual 36 mortgage debt service (interest and amortization) on its indebtedness to 37 a lending institution, an insurance company, a retirement fund or 38 welfare fund which is operated under the supervision of the banking or 39 insurance laws of the state of New York or the United States, and (iv) 40 eight and one-half percent of that portion of the fair market value of 41 the property which exceeds the unpaid principal amount of the mortgage 42 indebtedness referred to in subparagraph (iii) of this paragraph. Fair 43 market value for the purposes of this paragraph shall be six times the 44 annual gross rent. The collection of any increase in the stabilized rent 45 for any apartment pursuant to this paragraph shall not exceed six 46 percent in any year from the effective date of the order granting the 47 increase over the rent set forth in the schedule of gross rents, with 48 collectability of any dollar excess above said sum to be spread forward 49 in similar increments and added to the stabilized rent as established or 50 set in future years; 51 § 3. Paragraph 3 of subdivision d of section 6 of section 4 of chapter 52 576 of the laws of 1974, constituting the emergency tenant protection 53 act of nineteen seventy-four, as amended by section 30 of part A of 54 chapter 20 of the laws of 2015, is amended to read as follows: 55 (3) there has been since January first, nineteen hundred seventy-four 56 a major capital improvement required for the operation, preservation orA. 4888 3 1 maintenance of the structure. An adjustment under this paragraph shall 2 be in an amount sufficient to amortize the cost of the improvements 3 pursuant to this paragraph over an eight-year period for a building with 4 thirty-five or fewer housing accommodations, or a nine-year period for a 5 building with more than thirty-five housing accommodations, for any 6 determination issued by the division of housing and community renewal 7 after the effective date of the rent act of 2015[,]; provided, however, 8 no application for a major capital improvement rent increase shall be 9 approved by the division of housing and community renewal unless the 10 owner of the property has filed all copies of permits pertaining to the 11 major capital improvement work with such application. Any application 12 submitted with fraudulent permits or without required permits shall be 13 denied; or 14 § 4. Subparagraph 7 of the second undesignated paragraph of paragraph 15 (a) of subdivision 4 of section 4 of chapter 274 of the laws of 1946, 16 constituting the emergency housing rent control law, as amended by 17 section 32 of part A of chapter 20 of the laws of 2015, is amended to 18 read as follows: 19 (7) there has been since March first, nineteen hundred fifty, a major 20 capital improvement required for the operation, preservation or mainte- 21 nance of the structure; which for any order of the commissioner issued 22 after the effective date of the rent act of 2015 the cost of such 23 improvement shall be amortized over an eight-year period for buildings 24 with thirty-five or fewer units or a nine year period for buildings with 25 more than [thiry-five] thirty-five units[,]; provided, however, no 26 application for a major capital improvement rent increase shall be 27 approved by the division of housing and community renewal unless the 28 owner of the property has filed all copies of permits pertaining to the 29 major capital improvement work with such application. Any application 30 submitted with fraudulent permits or without required permits shall be 31 denied; or 32 § 5. This act shall take effect immediately; provided that: 33 (a) the amendments to section 26-405 of the city rent and rehabili- 34 tation law made by section one of this act shall remain in full force 35 and effect only as long as the public emergency requiring the regulation 36 and control of residential rents and evictions continues, as provided in 37 subdivision 3 of section 1 of the local emergency housing rent control 38 act; 39 (b) the amendments to section 26-511 of the rent stabilization law of 40 nineteen hundred sixty-nine made by section two of this act shall expire 41 on the same date as such law expires and shall not affect the expiration 42 of such law as provided under section 26-520 of such law, as from time 43 to time amended; 44 (c) the amendments to section 6 of the emergency tenant protection act 45 of nineteen seventy-four made by section three of this act shall expire 46 on the same date as such act expires and shall not affect the expiration 47 of such act as provided in section 17 of chapter 576 of the laws of 48 1974, as from time to time amended; and 49 (d) the amendments to section 4 of the emergency housing rent control 50 law made by section four of this act shall expire on the same date as 51 such law expires and shall not affect the expiration of such law as 52 provided in subdivision 2 of section 1 of chapter 274 of the laws of 53 1946.
