Bill Text: NY A05634 | 2021-2022 | General Assembly | Introduced
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 3-0)
Status: (Introduced - Dead) 2022-01-05 - referred to housing [A05634 Detail]
Download: New_York-2021-A05634-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 5634 2021-2022 Regular Sessions IN ASSEMBLY February 22, 2021 ___________ Introduced by M. of A. FITZPATRICK, TAGUE -- Multi-Sponsored by -- M. of A. MANKTELOW -- 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 § 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. LBD08143-01-1A. 5634 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 § 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 § 4. This act shall take effect immediately, provided that the amend- 39 ment to section 26-405 of the city rent and rehabilitation law, made by 40 section one of this act, shall remain in full force and effect only as 41 long as the public emergency requiring the regulation and control of 42 residential rents and evictions continues, as provided in subdivision 3 43 of section 1 of the local emergency housing rent control act; and 44 provided further that the amendment to section 26-511 of the rent 45 stabilization law of nineteen hundred sixty-nine, made by section two of 46 this act, shall expire on the same date as such law expires and shall 47 not affect the expiration of such law as provided under section 26-520 48 of the administrative code of the city of New York.
