Bill Text: NY S00086 | 2013-2014 | General Assembly | Introduced


Bill Title: Provides that no landlord shall deny access to a licensed professional engineer or licensed registered architect hired by any tenant or tenant association representing tenants of a multiple dwelling of six units or more for the purpose of conducting an inspection of a major capital improvement for which an application for a maximum rent adjustment has been filed by the landlord; provides that such inspection shall be conducted after notice to the landlord and during normal business hours; provides for the filing of such inspection report by such tenants with the New York city rent agency for consideration in such application's determination.

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Introduced - Dead) 2014-01-08 - REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT [S00086 Detail]

Download: New_York-2013-S00086-Introduced.html
                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                          86
                              2013-2014 Regular Sessions
                                   I N  S E N A T E
                                      (PREFILED)
                                    January 9, 2013
                                      ___________
       Introduced  by  Sen.  PARKER -- read twice and ordered printed, and when
         printed to be committed to the Committee on Housing, Construction  and
         Community Development
       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  inspection  of major capital improvements for which rent increases
         are requested and in relation to extending the provisions of the  rent
         stabilization law
         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  chapter 749 of the laws of 1990, is amended to read as follows:
    4    (g) There has been since July first, nineteen hundred seventy, a major
    5  capital improvement required for the operation, preservation or  mainte-
    6  nance  of  the  structure.  An  adjustment under this subparagraph [(g)]
    7  shall be in an amount sufficient to amortize the cost  of  the  improve-
    8  ments  pursuant to this subparagraph [(g)] over a seven-year period.  NO
    9  LANDLORD SHALL DENY ACCESS TO A PROFESSIONAL ENGINEER LICENSED TO  PRAC-
   10  TICE  IN  THE  STATE  OF  NEW YORK OR A REGISTERED ARCHITECT LICENSED TO
   11  PRACTICE IN THE STATE OF NEW YORK HIRED BY ANY TENANT, TENANTS OR TENANT
   12  ASSOCIATION REPRESENTING TENANTS OF A MULTIPLE DWELLING OF SIX UNITS  OR
   13  MORE  FOR  THE  PURPOSE  OF  CONDUCTING AN INSPECTION OF A MAJOR CAPITAL
   14  IMPROVEMENT FOR WHICH AN APPLICATION FOR ADJUSTMENT OF MAXIMUM RENT  HAS
   15  BEEN FILED. SUCH INSPECTION SHALL BE CONDUCTED AFTER NOTICE TO THE LAND-
   16  LORD  AND  DURING NORMAL BUSINESS HOURS. SUCH TENANT MAY FILE THE REPORT
   17  OF THE INSPECTION WITH THE CITY RENT AGENCY  FOR  CONSIDERATION  IN  THE
   18  DETERMINATION OF SUCH APPLICATION; or
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD00602-01-3
       S. 86                               2
    1    S 2. Paragraph 6 of subdivision c of section 26-511 of the administra-
    2  tive code of the city of New York, as amended by chapter 116 of the laws
    3  of 1997, is amended to read as follows:
    4    (6)  provides  criteria whereby the commissioner may act upon applica-
    5  tions by owners for increases in  excess  of  the  level  of  fair  rent
    6  increase  established under this law provided, however, that such crite-
    7  ria shall provide (a) as to hardship applications, for  a  finding  that
    8  the level of fair rent increase is not sufficient to enable the owner to
    9  maintain  approximately  the same average annual net income (which shall
   10  be computed without regard to debt service, financing costs  or  manage-
   11  ment  fees)  for the three year period ending on or within six months of
   12  the date of an application pursuant to such criteria  as  compared  with
   13  annual  net income, which prevailed on the average over the period nine-
   14  teen hundred sixty-eight through nineteen hundred seventy,  or  for  the
   15  first three years of operation if the building was completed since nine-
   16  teen  hundred  sixty-eight  or  for the first three fiscal years after a
   17  transfer of title to a new owner provided the new owner can establish to
   18  the satisfaction of the commissioner that he or she  acquired  title  to
   19  the  building as a result of a bona fide sale of the entire building and
   20  that the new owner is unable to obtain requisite records for the  fiscal
   21  years  nineteen  hundred  sixty-eight  through  nineteen hundred seventy
   22  despite diligent efforts to obtain same from predecessors in  title  and
   23  further  provided that the new owner can provide financial data covering
   24  a minimum of six years under his or  her  continuous  and  uninterrupted
   25  operation  of  the building to meet the three year to three year compar-
   26  ative test periods herein provided; and (b) as  to  completed  building-
   27  wide  major  capital  improvements, for a finding that such improvements
   28  are deemed depreciable under the Internal Revenue Code and that the cost
   29  is to be amortized over a seven-year period, based  upon  cash  purchase
   30  price  exclusive  of interest or service charges. NO LANDLORD SHALL DENY
   31  ACCESS TO A PROFESSIONAL ENGINEER LICENSED TO PRACTICE IN THE  STATE  OF
   32  NEW  YORK OR A REGISTERED ARCHITECT LICENSED TO PRACTICE IN THE STATE OF
   33  NEW YORK HIRED BY ANY TENANT, TENANTS OR TENANT ASSOCIATION REPRESENTING
   34  TENANTS OF A MULTIPLE DWELLING OF SIX UNITS OR MORE FOR THE  PURPOSE  OF
   35  CONDUCTING  AN  INSPECTION  OF  A MAJOR CAPITAL IMPROVEMENT FOR WHICH AN
   36  APPLICATION  FOR  ADJUSTMENT  OF  MAXIMUM  RENT  HAS  BEEN  FILED.  SUCH
   37  INSPECTION  SHALL  BE  CONDUCTED AFTER NOTICE TO THE LANDLORD AND DURING
   38  NORMAL BUSINESS HOURS. SUCH TENANT MAY FILE THE REPORT OF THE INSPECTION
   39  WITH THE CITY RENT AGENCY FOR CONSIDERATION IN THE DETERMINATION OF SUCH
   40  APPLICATION. Notwithstanding anything to the contrary contained  herein,
   41  no  hardship  increase  granted  pursuant  to this paragraph shall, when
   42  added to the annual gross rents,  as  determined  by  the  commissioner,
   43  exceed  the sum of, (i) the annual operating expenses, (ii) an allowance
   44  for management services as determined by the commissioner, (iii)  actual
   45  annual  mortgage debt service (interest and amortization) on its indebt-
   46  edness to a lending institution, an insurance company, a retirement fund
   47  or welfare fund which is operated under the supervision of  the  banking
   48  or  insurance  laws  of  the state of New York or the United States, and
   49  (iv) eight and one-half percent of that portion of the fair market value
   50  of the property which exceeds the unpaid principal amount of  the  mort-
   51  gage  indebtedness  referred to in subparagraph (iii) of this paragraph.
   52  Fair market value for the purposes of this paragraph shall be six  times
   53  the  annual gross rent. The collection of any increase in the stabilized
   54  rent for any apartment pursuant to this paragraph shall not  exceed  six
   55  percent  in  any  year from the effective date of the order granting the
   56  increase over the rent set forth in the schedule of  gross  rents,  with
       S. 86                               3
    1  collectability  of any dollar excess above said sum to be spread forward
    2  in similar increments and added to the stabilized rent as established or
    3  set in future years;
    4    S 3. Paragraph 3 of subdivision d of section 6 of section 4 of chapter
    5  576  of  the  laws of 1974, constituting the emergency tenant protection
    6  act of nineteen seventy-four, as amended by chapter 749 of the  laws  of
    7  1990, is amended to read as follows:
    8     (3) there has been since January first, nineteen hundred seventy-four
    9  a  major capital improvement required for the operation, preservation or
   10  maintenance of the structure. An adjustment under this  paragraph  shall
   11  be  in  an  amount  sufficient  to amortize the cost of the improvements
   12  pursuant to this paragraph over a seven-year period.  NO LANDLORD  SHALL
   13  DENY ACCESS TO A PROFESSIONAL ENGINEER LICENSED TO PRACTICE IN THE STATE
   14  OF  NEW YORK OR A REGISTERED ARCHITECT LICENSED TO PRACTICE IN THE STATE
   15  OF NEW YORK HIRED BY ANY TENANT, TENANTS OR TENANT  ASSOCIATION  REPRES-
   16  ENTING  TENANTS  OF  A  MULTIPLE  DWELLING  OF SIX UNITS OR MORE FOR THE
   17  PURPOSE OF CONDUCTING AN INSPECTION OF A MAJOR CAPITAL  IMPROVEMENT  FOR
   18  WHICH AN APPLICATION FOR ADJUSTMENT OF MAXIMUM RENT HAS BEEN FILED. SUCH
   19  INSPECTION  SHALL  BE  CONDUCTED AFTER NOTICE TO THE LANDLORD AND DURING
   20  NORMAL BUSINESS HOURS. SUCH TENANT MAY FILE THE REPORT OF THE INSPECTION
   21  WITH THE CITY RENT AGENCY FOR CONSIDERATION IN THE DETERMINATION OF SUCH
   22  APPLICATION, or
   23    S 4. This act shall take effect on the one hundred twentieth day after
   24  it shall have become a law, except that any rules and regulations neces-
   25  sary for the timely implementation of this act  on  its  effective  date
   26  shall be promulgated on or before such date; provided that the amendment
   27  to  section  26-405  of  the  city  rent  and rehabilitation law made by
   28  section one of this act shall remain in full force and  effect  only  so
   29  long  as  the  public  emergency requiring the regulation and control of
   30  residential rents and evictions continues, as provided in subdivision  3
   31  of  section  1  of  the  local  emergency  housing  rent control act and
   32  provided further that the  amendment  to  section  26-511  of  the  rent
   33  stabilization  law of nineteen hundred sixty-nine made by section two of
   34  this act shall expire on the same date as such law expires and shall not
   35  affect the expiration of such law as provided under  section  26-520  of
   36  such  law  and  provided  further that the amendment to section 6 of the
   37  emergency tenant protection act of nineteen seventy-four made by section
   38  three of this act shall expire on the same date as such act expires  and
   39  shall not affect the expiration of such act as provided in section 17 of
   40  chapter 576 of the laws of 1974, as amended.
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