Bill Text: NY A10281 | 2021-2022 | General Assembly | Introduced
Bill Title: Relates to the amount of time to submit supporting documentation for major capital improvements; sets such time at one hundred and twenty days.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2022-05-13 - referred to housing [A10281 Detail]
Download: New_York-2021-A10281-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 10281 IN ASSEMBLY May 13, 2022 ___________ Introduced by COMMITTEE ON RULES -- (at request of M. of A. Mitaynes) -- 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 the amount of time to submit supporting documentation for major capital improvements The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Paragraph 1 of subdivision g of section 26-405 of the 2 administrative code of the city of New York is amended by adding a new 3 subparagraph (g-1) to read as follows: 4 (g-1) No increase for major capital improvements shall be granted to 5 any landlord or property owner, unless an application including all 6 necessary documentation are submitted within one hundred twenty days 7 after the completion of the new installation or improvement or improve- 8 ments. 9 § 2. Paragraph 6 of subdivision c of section 26-511 of the administra- 10 tive code of the city of New York, as separately amended by section 12 11 of part K of chapter 36 and section 28 of part Q of chapter 39 of the 12 laws of 2019, is amended to read as follows: 13 (6) provides criteria whereby the commissioner may act upon applica- 14 tions by owners for increases in excess of the level of fair rent 15 increase established under this law provided, however, that such crite- 16 ria shall provide (a) as to hardship applications, for a finding that 17 the level of fair rent increase is not sufficient to enable the owner to 18 maintain approximately the same average annual net income (which shall 19 be computed without regard to debt service, financing costs or manage- 20 ment fees) for the three year period ending on or within six months of 21 the date of an application pursuant to such criteria as compared with 22 annual net income, which prevailed on the average over the period nine- 23 teen hundred sixty-eight through nineteen hundred seventy, or for the 24 first three years of operation if the building was completed since nine- 25 teen hundred sixty-eight or for the first three fiscal years after a 26 transfer of title to a new owner provided the new owner can establish to EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD07648-01-1A. 10281 2 1 the satisfaction of the commissioner that he or she acquired title to 2 the building as a result of a bona fide sale of the entire building and 3 that the new owner is unable to obtain requisite records for the fiscal 4 years nineteen hundred sixty-eight through nineteen hundred seventy 5 despite diligent efforts to obtain same from predecessors in title and 6 further provided that the new owner can provide financial data covering 7 a minimum of six years under his or her continuous and uninterrupted 8 operation of the building to meet the three year to three year compar- 9 ative test periods herein provided; and (b) as to completed building- 10 wide major capital improvements, for a finding that such improvements 11 are deemed depreciable under the Internal Revenue Code and that the cost 12 is to be amortized over a twelve-year period for a building with thir- 13 ty-five or fewer housing accommodations, or a twelve and one-half-year 14 period for a building with more than thirty-five housing accommodations, 15 for any determination issued by the division of housing and community 16 renewal after the effective date of the [the] chapter of the laws of two 17 thousand nineteen that amended this paragraph and shall be removed from 18 the legal regulated rent thirty years from the date the increase became 19 effective inclusive of any increases granted by the applicable rent 20 guidelines board. Temporary major capital improvement increases shall be 21 collectible prospectively on the first day of the first month beginning 22 sixty days from the date of mailing notice of approval to the tenant. 23 Such notice shall disclose the total monthly increase in rent and the 24 first month in which the tenant would be required to pay the temporary 25 increase. An approval for a temporary major capital improvement increase 26 shall not include retroactive payments. The collection of any increase 27 shall not exceed two percent in any year from the effective date of the 28 order granting the increase over the rent set forth in the schedule of 29 gross rents, with collectability of any dollar excess above said sum to 30 be spread forward in similar increments and added to the rent as estab- 31 lished or set in future years. Upon vacancy, the landlord may add any 32 remaining balance of the temporary major capital improvement increase to 33 the legal regulated rent. Notwithstanding any other provision of the 34 law, for any renewal lease commencing on or after June 14, 2019, the 35 collection of any rent increases due to any major capital improvements 36 approved on or after June 16, 2012 and before June 16, 2019 shall not 37 exceed two percent in any year for any tenant in occupancy on the date 38 the major capital improvement was approved or based upon cash purchase 39 price exclusive of interest or service charges. Where an application for 40 a temporary major capital improvement increase has been filed, a tenant 41 shall have sixty days from the date of mailing of a notice of a proceed- 42 ing in which to answer or reply. The state division of housing and 43 community renewal shall provide any responding tenant with the reasons 44 for the division's approval or denial of such application. Notwithstand- 45 ing anything to the contrary contained herein, no hardship increase 46 granted pursuant to this paragraph shall, when added to the annual gross 47 rents, as determined by the commissioner, exceed the sum of, (i) the 48 annual operating expenses, (ii) an allowance for management services as 49 determined by the commissioner, (iii) actual annual mortgage debt 50 service (interest and amortization) on its indebtedness to a lending 51 institution, an insurance company, a retirement fund or welfare fund 52 which is operated under the supervision of the banking or insurance laws 53 of the state of New York or the United States, and (iv) eight and one- 54 half percent of that portion of the fair market value of the property 55 which exceeds the unpaid principal amount of the mortgage indebtedness 56 referred to in subparagraph (iii) of this paragraph. Fair market valueA. 10281 3 1 for the purposes of this paragraph shall be six times the annual gross 2 rent. The collection of any increase in the stabilized rent for any 3 apartment pursuant to this paragraph shall not exceed six percent in any 4 year from the effective date of the order granting the increase over the 5 rent set forth in the schedule of gross rents, with collectability of 6 any dollar excess above said sum to be spread forward in similar incre- 7 ments and added to the stabilized rent as established or set in future 8 years. No increase for major capital improvements shall be granted to 9 any landlord or property owner, unless an application including all 10 necessary documentation is submitted within one hundred twenty days 11 after the completion of the new installation or improvement or improve- 12 ments; 13 § 3. Subdivision b of section 4 of chapter 576 of the laws of 1974, 14 constituting the emergency tenant protection act of nineteen seventy- 15 four, is amended by adding a new paragraph 3-b to read as follows: 16 (3-b) no increase for major capital improvements shall be granted to 17 any landlord or property owner, unless an application including all 18 necessary documentation is submitted within one hundred twenty days 19 after the completion of the new installation or improvement or improve- 20 ments; 21 § 4. Subparagraph 7 of the second undesignated paragraph of paragraph 22 (a) of subdivision 4 of section 4 of chapter 274 of the laws of 1946, 23 constituting the emergency housing rent control law, as separately 24 amended by section 25 of part Q of chapter 39 and section 14 of part K 25 of chapter 36 of the laws of 2019, is amended to read as follows: 26 (7) there has been since March first, nineteen hundred fifty, a major 27 capital improvement essential for the preservation, energy efficiency, 28 functionality, or infrastructure of the entire building, improvement of 29 the structure including heating, windows, plumbing and roofing, but 30 shall not be for operational costs or unnecessary cosmetic improvements; 31 which for any order of the commissioner issued after the effective date 32 of the chapter of the laws of two thousand nineteen that amended this 33 paragraph the cost of such improvement shall be amortized over a twelve- 34 year period for buildings with thirty-five or fewer units or a twelve 35 and one-half year period for buildings with more than thirty-five units, 36 and shall be removed from the legal regulated rent thirty years from the 37 date the increase became effective inclusive of any increases granted by 38 the applicable rent guidelines board. Temporary major capital improve- 39 ment increases shall be collectible prospectively on the first day of 40 the first month beginning sixty days from the date of mailing notice of 41 approval to the tenant. Such notice shall disclose the total monthly 42 increase in rent and the first month in which the tenant would be 43 required to pay the temporary increase. An approval for a temporary 44 major capital improvement increase shall not include retroactive 45 payments. The collection of any increase shall not exceed two percent in 46 any year from the effective date of the order granting the increase over 47 the rent set forth in the schedule of gross rents, with collectability 48 of any dollar excess above said sum to be spread forward in similar 49 increments and added to the rent as established or set in future years. 50 Upon vacancy, the landlord may add any remaining balance of the tempo- 51 rary major capital improvement increase to the legal regulated rent. 52 Notwithstanding any other provision of the law, for any renewal lease 53 commencing on or after June 14, 2019, the collection of any rent 54 increases due to any major capital improvements approved on or after 55 June 16, 2012 and before June 16, 2019 shall not exceed two percent in 56 any year for any tenant in occupancy on the date the major capitalA. 10281 4 1 improvement was approved; provided, however, where an application for a 2 temporary major capital improvement increase has been filed, a tenant 3 shall have sixty days from the date of mailing of a notice of a proceed- 4 ing in which to answer or reply. The state division of housing and 5 community renewal shall provide any responding tenant with the reasons 6 for the division's approval or denial of such application. No increase 7 for major capital improvements shall be granted to any landlord or prop- 8 erty owner, unless an application including all necessary documentation 9 is submitted within one hundred twenty days after the completion of the 10 new installation or improvement or improvements; or 11 § 5. This act shall take effect immediately; provided that: 12 a. the amendments to section 26-405 of the city rent and rehabili- 13 tation law made by section one of this act shall remain in full force 14 and effect only as long as the public emergency requiring the regulation 15 and control of residential rents and evictions continues, as provided in 16 subdivision 3 of section 1 of the local emergency housing rent control 17 act; and 18 b. the amendments to section 26-511 of the administrative code of the 19 city of New York made by section two of this act shall not affect the 20 expiration of such section and shall be deemed to expire therewith.
