Bill Text: NY S00498 | 2017-2018 | General Assembly | Introduced


Bill Title: Relates to adjustment of maximum allowable rent.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced - Dead) 2017-01-04 - REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT [S00498 Detail]

Download: New_York-2017-S00498-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                           498
                               2017-2018 Regular Sessions
                    IN SENATE
                                       (Prefiled)
                                     January 4, 2017
                                       ___________
        Introduced by Sens. SQUADRON, HOYLMAN -- 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,  the
          emergency tenant protection act of nineteen seventy-four and the emer-
          gency  housing  rent control law, in relation to adjustment of maximum
          allowable rent
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section 1. Subparagraph (e) 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  15  of  part B of chapter 97 of the laws of 2011, is amended to
     4  read as follows:
     5    (e) The landlord and tenant  by  mutual  voluntary  written  agreement
     6  agree  to  a  substantial  increase  or  decrease in dwelling space or a
     7  change in the services, furniture, furnishings or equipment provided  in
     8  the  housing accommodations. An adjustment under this subparagraph shall
     9  be temporary until such increase or modification has been paid  for  and
    10  shall  be equal to [one-fortieth, in the case of a building with thirty-
    11  five or fewer housing accommodations, or one-sixtieth, in the case of  a
    12  building  with  more  than thirty-five housing accommodations where such
    13  adjustment takes effect on or after September twenty-fourth,  two  thou-
    14  sand  eleven,] one eighty-fourth of the total cost incurred by the land-
    15  lord in providing such  modification  or  increase  in  dwelling  space,
    16  services,  furniture,  furnishings  or  equipment, including the cost of
    17  installation, but excluding finance charges and  cosmetic  improvements,
    18  provided further that an owner who is entitled to a rent increase pursu-
    19  ant  to  this  subparagraph  shall  not  be  entitled  to a further rent
    20  increase based upon the installation of similar equipment, or new furni-
    21  ture or furnishings within the useful life of such new equipment, or new
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD01124-01-7

        S. 498                              2
     1  furniture or furnishings. The owner shall give  written  notice  to  the
     2  city  rent  agency of any such adjustment pursuant to this subparagraph;
     3  or
     4    § 2. Subdivision g of section 26-405 of the administrative code of the
     5  city  of  New  York  is  amended  by adding a new paragraph 8 to read as
     6  follows:
     7    (8) (a) Within one hundred twenty days of the effective date  of  this
     8  paragraph,  the  division of housing and community renewal shall issue a
     9  schedule of reasonable costs for upgrades and improvements that  may  be
    10  claimed  as  a  basis for an adjustment of rent pursuant to subparagraph
    11  (e) of paragraph one of this subdivision.   The schedule  of  reasonable
    12  costs  shall  exclude cosmetic improvements.  The schedule of reasonable
    13  costs shall be based on  the  average  costs  for  similar  upgrades  or
    14  improvements  made  to  comparable  properties  located  in each county,
    15  subject to the provisions of this chapter, and shall be updated at least
    16  once every two years. No increase in rent  shall  be  collectible  under
    17  subparagraph  (e)  of paragraph one of this subdivision based upon costs
    18  that exceed the reasonable costs  set  forth  in  the  schedule,  unless
    19  approved by the division pursuant to subparagraph (b) of this paragraph.
    20    (b)  Within  thirty  days of the signing of a mutual voluntary written
    21  agreement including a rent increase  pursuant  to  subparagraph  (e)  of
    22  paragraph one of this subdivision that includes improvements that exceed
    23  the  schedule  of  reasonable costs pursuant to subparagraph (a) of this
    24  paragraph, the landlord will file  with  the  division  of  housing  and
    25  community  renewal  an explanation of how the rent was computed, and all
    26  documents necessary to support the collection of such increase,  includ-
    27  ing  but not limited to, cancelled checks, invoices and signed contracts
    28  contemporaneously with the improvements alleged and a statement that any
    29  increase above the previous  rent  is  in  accordance  with  adjustments
    30  permitted  by law.  Upon receipt of all documents submitted by the land-
    31  lord, and after giving the tenant an opportunity to respond,  the  divi-
    32  sion  of housing and community renewal shall issue an order approving or
    33  disapproving such increase in whole or in part.
    34    (c) Within thirty days of the signing of a  mutual  voluntary  written
    35  agreement  including  a  rent  increase  that exceeds ten percent of the
    36  maximum collectible rent, the landlord will file with  the  division  of
    37  housing  and  community  renewal  an  explanation  of  how  the rent was
    38  computed, and all documents necessary to support the collection of  such
    39  increase,  including  but not limited to, cancelled checks, invoices and
    40  signed contracts contemporaneously with the improvements alleged  and  a
    41  statement  that  any  increase  above the previous rent is in accordance
    42  with adjustments permitted by  law.    Upon  receipt  of  all  documents
    43  submitted  by  the  owner, and after giving the tenant an opportunity to
    44  respond, the division of housing and community renewal  shall  issue  an
    45  order approving or disapproving such increase in whole or in part. Based
    46  upon  such  determination, the division of housing and community renewal
    47  shall order a refund to the tenant equal  to  the  amount  collected  in
    48  excess  of  the  rent  approved by the division of housing and community
    49  renewal.
    50    (d) No increase in rent shall be collectible under subparagraph (e) of
    51  paragraph one of this subdivision until:
    52    (1) the landlord has  provided  the  tenant  with  a  written  notice,
    53  including an explanation of how the rent in the mutual voluntary written
    54  agreement  has  been  computed, and the specific amounts of all expendi-
    55  tures supporting a rent increase under subparagraph (e) of paragraph one
    56  of this subdivision; and

        S. 498                              3
     1    (2) the landlord has filed with the division of housing and  community
     2  renewal  an  explanation of how the rent was computed, and all documents
     3  necessary to support the collection of such increase, including, but not
     4  limited to, cancelled checks, invoices and signed contracts entered into
     5  contemporaneously  with  the  improvements alleged, and a statement that
     6  any increase above the previous rent is in accordance  with  adjustments
     7  permitted by law.
     8    (e)  No  increase shall be collectible under subparagraph (e) of para-
     9  graph one of this subdivision where the division of housing and communi-
    10  ty renewal has determined that the owner is not maintaining  all  build-
    11  ing-wide  required services or all required services with respect to the
    12  affected housing accommodation, or where there are current or  outstand-
    13  ing  hazardous violations of any municipal, county, state or federal law
    14  which relate to the maintenance of such services.
    15    § 3. Paragraph 13 of subdivision c of section 26-511 of  the  adminis-
    16  trative code of the city of New York, as amended by section 16 of part B
    17  of chapter 97 of the laws of 2011, is amended to read as follows:
    18    (13)  provides  that an owner is entitled to a temporary rent increase
    19  where there has been a substantial modification or increase of  dwelling
    20  space  or  an increase in the services, or installation of new equipment
    21  or improvements or new furniture or furnishings  provided  in  or  to  a
    22  tenant's  housing accommodation, until such modification or increase has
    23  been paid for, on written tenant consent to the rent  increase.  In  the
    24  case  of  a  vacant  housing  accommodation, tenant consent shall not be
    25  required.
    26    (a) The [permanent] temporary increase in the legal regulated rent for
    27  the affected housing accommodation shall be [one-fortieth, in  the  case
    28  of  a building with thirty-five or fewer housing accommodations, or one-
    29  sixtieth, in the case of a building with more than  thirty-five  housing
    30  accommodations  where  such  permanent increase takes effect on or after
    31  September twenty-fourth, two thousand eleven,] one eighty-fourth of  the
    32  total  cost  incurred  by the landlord in providing such modification or
    33  increase in dwelling space, services, furniture, furnishings  or  equip-
    34  ment,  including the cost of installation, but excluding finance charges
    35  and cosmetic improvements.
    36    (b) Provided further that an owner who is entitled to a rent  increase
    37  pursuant  to  this  paragraph  shall  not  be entitled to a further rent
    38  increase based upon the installation of similar equipment, or new furni-
    39  ture or furnishings within the useful life of such new equipment, or new
    40  furniture or furnishings.
    41    § 4. Subdivision c of section 26-511 of the administrative code of the
    42  city of New York is amended by adding a new  paragraph  15  to  read  as
    43  follows:
    44    (15)  (a) Within one hundred twenty days of the effective date of this
    45  paragraph, the division of housing and community renewal shall  issue  a
    46  schedule  of  reasonable costs for upgrades and improvements that may be
    47  claimed as a basis for an adjustment of rent pursuant to paragraph thir-
    48  teen of this subdivision.    The  schedule  of  reasonable  costs  shall
    49  exclude  cosmetic improvements.   The schedule of reasonable costs shall
    50  be based on the average costs for similar upgrades or improvements  made
    51  to  comparable  properties  located  in  each  county,  subject  to  the
    52  provisions of this chapter, and shall be updated at least once every two
    53  years. No increase in rent shall be collectible under paragraph thirteen
    54  of this subdivision based upon costs that exceed  the  reasonable  costs
    55  set  forth  in the schedule, unless approved by the division pursuant to
    56  subparagraph (b) of this paragraph.

        S. 498                              4
     1    (b) Within thirty days of the signing of a vacancy lease  including  a
     2  rent  increase  pursuant  to paragraph thirteen of this subdivision that
     3  includes improvements that  exceed  the  schedule  of  reasonable  costs
     4  pursuant  to  subparagraph (a) of this paragraph, the landlord will file
     5  with the division of housing and community renewal an explanation of how
     6  the  vacancy  rent  was computed, and all documents necessary to support
     7  the collection of such increase, including but not limited to, cancelled
     8  checks,  invoices  and  signed  contracts  contemporaneously  with   the
     9  improvements  alleged and a statement that any increase above the previ-
    10  ous rent is in accordance with  adjustments  permitted  by  law.    Upon
    11  receipt of all documents submitted by the landlord, and after giving the
    12  tenant  named  in the vacancy lease an opportunity to respond, the divi-
    13  sion of housing and community renewal shall issue an order approving  or
    14  disapproving such increase in whole or in part.
    15    (c)  Within  thirty days of the signing of a vacancy lease including a
    16  rent increase that exceeds ten percent of the rent charged to the previ-
    17  ous tenant, the landlord will file with  the  division  of  housing  and
    18  community  renewal  an explanation of how the rent was computed, and all
    19  documents necessary to support the collection of such increase,  includ-
    20  ing  but not limited to, cancelled checks, invoices and signed contracts
    21  contemporaneously with the improvements alleged and a statement that any
    22  increase above the previous  rent  is  in  accordance  with  adjustments
    23  permitted  by law. Upon receipt of all documents submitted by the owner,
    24  and after giving the tenant named in such vacancy lease  an  opportunity
    25  to respond, the division of housing and community renewal shall issue an
    26  order approving or disapproving such increase in whole or in part. Based
    27  upon  such  determination, the division of housing and community renewal
    28  shall order a refund to the tenant equal  to  the  amount  collected  in
    29  excess  of  the  rent  approved by the division of housing and community
    30  renewal.
    31    (d) No increase in rent shall be collectible under paragraph  thirteen
    32  of this subdivision until:
    33    (i)  the  landlord  has  provided  the  tenant  with a written notice,
    34  including an explanation of how the rent in the vacancy lease  has  been
    35  computed, and the specific amounts of all expenditures supporting a rent
    36  increase under paragraph thirteen of this subdivision; and
    37    (ii) the landlord has filed with the division of housing and community
    38  renewal  an  explanation  of  how the vacancy rent was computed, and all
    39  documents necessary to support the collection of such increase,  includ-
    40  ing, but not limited to, cancelled checks, invoices and signed contracts
    41  entered  into  contemporaneously  with  the  improvements alleged, and a
    42  statement that any increase above the previous  rent  is  in  accordance
    43  with adjustments permitted by law.
    44    (e)  No increase shall be collectible under paragraph thirteen of this
    45  subdivision where the division of  housing  and  community  renewal  has
    46  determined  that the owner is not maintaining all building-wide required
    47  services or all required services with respect to the  affected  housing
    48  accommodation,  or  where  there  are  current  or outstanding hazardous
    49  violations of any municipal, county, state or federal law  which  relate
    50  to the maintenance of such services.
    51    § 5. Paragraph 1 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  18  of  part  B  of
    54  chapter 97 of the laws of 2011, is amended to read as follows:
    55    (1)  there has been a substantial modification or increase of dwelling
    56  space or an increase in the services, or installation of  new  equipment

        S. 498                              5
     1  or  improvements  or  new  furniture or furnishings, provided in or to a
     2  tenant's housing accommodation, on written tenant consent  to  the  rent
     3  increase.  In the case of a vacant housing accommodation, tenant consent
     4  shall not be required.
     5    (a) The [permanent] temporary increase in the legal regulated rent for
     6  the  affected  housing accommodation shall be [one-fortieth, in the case
     7  of a building with thirty-five or fewer housing accommodations, or  one-
     8  sixtieth,  in  the case of a building with more than thirty-five housing
     9  accommodations where such permanent increase takes effect  on  or  after
    10  September  twenty-fourth, two thousand eleven,] one eighty-fourth of the
    11  total cost incurred by the landlord in providing  such  modification  or
    12  increase  in  dwelling space, services, furniture, furnishings or equip-
    13  ment, including the cost of installation, but excluding finance  charges
    14  and cosmetic improvements.
    15    (b)  Provided further that an owner who is entitled to a rent increase
    16  pursuant to this paragraph shall not  be  entitled  to  a  further  rent
    17  increase based upon the installation of similar equipment, or new furni-
    18  ture or furnishings within the useful life of such new equipment, or new
    19  furniture or furnishings.
    20    (c) The owner shall give written notice to the division of housing and
    21  community  renewal  and  the  tenant  named  in a vacancy lease on forms
    22  prescribed by the division of any such adjustment pursuant to this para-
    23  graph and the failure to provide such written notice as provided  herein
    24  shall  preclude  the collection of any such adjustment. Such notice must
    25  include a detailed breakdown of the nature and cost of any  improvements
    26  underlying an increase in rent under this paragraph and a statement that
    27  any  increase  above the previous rent is in accordance with adjustments
    28  permitted by law. The owner shall file with the division of housing  and
    29  community  renewal  all documents necessary to support the collection of
    30  such increase, including, but not limited to, cancelled checks, invoices
    31  and signed contracts entered into contemporaneously  with  the  improve-
    32  ments alleged.
    33    §  6.  Subdivision  d  of section 6 of section 4 of chapter 576 of the
    34  laws of 1974, constituting the emergency tenant protection act of  nine-
    35  teen  seventy-four,  is  amended  by adding a new paragraph 6 to read as
    36  follows:
    37    (6) (a) Within one hundred twenty days of the effective date  of  this
    38  paragraph,  the  division of housing and community renewal shall issue a
    39  schedule of reasonable costs for upgrades and improvements that  may  be
    40  claimed  as  a basis for an adjustment of rent pursuant to paragraph one
    41  of this subdivision. The schedule  of  reasonable  costs  shall  exclude
    42  cosmetic  improvements.  The schedule of reasonable costs shall be based
    43  on the average costs for similar upgrades or improvements made to compa-
    44  rable properties located in each county, subject to  the  provisions  of
    45  this  act,  and  shall  be  updated  at  least  once every two years. No
    46  increase in rent shall be collectible under paragraph one of this subdi-
    47  vision based upon costs that exceed the reasonable costs  set  forth  in
    48  the  schedule,  unless approved by the division pursuant to subparagraph
    49  (b) of this paragraph.
    50    (b) Within thirty days of the signing of a vacancy lease  including  a
    51  rent  increase  pursuant  to  paragraph  one  of  this  subdivision that
    52  includes improvements that  exceed  the  schedule  of  reasonable  costs
    53  pursuant  to  subparagraph (a) of this paragraph, the landlord will file
    54  with the division of housing and community renewal an explanation of how
    55  the vacancy rent was computed, and all documents  necessary  to  support
    56  the collection of such increase, including but not limited to, cancelled

        S. 498                              6
     1  checks,   invoices  and  signed  contracts  contemporaneously  with  the
     2  improvements alleged and a statement that any increase above the  previ-
     3  ous  rent  is  in  accordance  with  adjustments  permitted by law. Upon
     4  receipt of all documents submitted by the landlord, and after giving the
     5  tenant  named  in the vacancy lease an opportunity to respond, the divi-
     6  sion of housing and community renewal shall issue an order approving  or
     7  disapproving such increase in whole or in part.
     8    (c)  Within  thirty days of the signing of a vacancy lease including a
     9  rent increase that exceeds ten percent of the rent charged to the previ-
    10  ous tenant, the landlord will file with  the  division  of  housing  and
    11  community  renewal  an explanation of how the rent was computed, and all
    12  documents necessary to support the collection of such increase,  includ-
    13  ing  but not limited to, cancelled checks, invoices and signed contracts
    14  contemporaneously with the improvements alleged and a statement that any
    15  increase above the previous  rent  is  in  accordance  with  adjustments
    16  permitted  by law. Upon receipt of all documents submitted by the owner,
    17  and after giving the tenant named in such vacancy lease  an  opportunity
    18  to respond, the division of housing and community renewal shall issue an
    19  order approving or disapproving such increase in whole or in part. Based
    20  upon  such  determination, the division of housing and community renewal
    21  shall order a refund to the tenant equal  to  the  amount  collected  in
    22  excess  of  the  rent  approved by the division of housing and community
    23  renewal.
    24    (d) No increase shall be  collectible  under  paragraph  one  of  this
    25  subdivision  where  the  division  of  housing and community renewal has
    26  determined that the owner is not maintaining all building-wide  required
    27  services  or  all required services with respect to the affected housing
    28  accommodation, or where  there  are  current  or  outstanding  hazardous
    29  violations  of  any municipal, county, state or federal law which relate
    30  to the maintenance of such services.
    31    § 7. Clause 5 of the second undesignated paragraph of paragraph (a) of
    32  subdivision 4 of section 4 of chapter 274 of the laws of  1946,  consti-
    33  tuting  the emergency housing rent control law, as amended by section 25
    34  of part B of chapter 97 of the laws of  2011,  is  amended  to  read  as
    35  follows:
    36    (5)  the  landlord  and  tenant  by mutual voluntary written agreement
    37  agree to a substantial increase or  decrease  in  dwelling  space  or  a
    38  change  in the services, furniture, furnishings or equipment provided in
    39  the housing accommodations; provided that an owner shall be entitled  to
    40  a  temporary  rent increase until such modification or increase has been
    41  paid for where there has been a substantial modification or increase  of
    42  dwelling  space  or  an increase in the services, or installation of new
    43  equipment or improvements or new furniture or furnishings provided in or
    44  to a tenant's housing accommodation. The [permanent] temporary  increase
    45  in  the  maximum  rent  for  the affected housing accommodation shall be
    46  [one-fortieth, in the case of a building with thirty-five or fewer hous-
    47  ing accommodations, or one-sixtieth, in the case of a building with more
    48  than thirty-five housing accommodations where  such  permanent  increase
    49  takes  effect on or after September twenty-fourth, two thousand eleven,]
    50  one eighty-fourth of the total cost incurred by the landlord in  provid-
    51  ing  such  modification  or increase in dwelling space, services, furni-
    52  ture, furnishings or equipment, including the cost of installation,  but
    53  excluding  finance  charges  and  cosmetic improvements provided further
    54  that an owner who is entitled to a rent increase pursuant to this clause
    55  shall not be entitled to a further rent increase based upon the  instal-
    56  lation  of similar equipment, or new furniture or furnishings within the

        S. 498                              7
     1  useful life of such new equipment, or new furniture or furnishings.  The
     2  owner shall give written notice to the commission of any such adjustment
     3  pursuant to this clause; or
     4    §  8.  This  act shall take effect on the ninetieth day after it shall
     5  have become a law; provided that:
     6    (a) the amendments to section 26-405 of the city  rent  and  rehabili-
     7  tation law made by sections one and two of this act shall remain in full
     8  force  and  effect  only  as  long as the public emergency requiring the
     9  regulation and control of residential rents and evictions continues,  as
    10  provided  in  subdivision  3 of section 1 of the local emergency housing
    11  rent control act;
    12    (b) the amendments to section 26-511 of chapter 4 of title 26  of  the
    13  administrative  code  of the city of New York made by sections three and
    14  four of this act shall expire on the same date as such law  expires  and
    15  shall  not  affect  the expiration of such law as provided under section
    16  26-520 of such law;
    17    (c) the amendments to section 6 of the emergency tenant protection act
    18  of nineteen seventy-four made by sections five and six of this act shall
    19  expire on the same date as such act expires and  shall  not  affect  the
    20  expiration  of  such act as provided in section 17 of chapter 576 of the
    21  laws of 1974;
    22    (d) the amendments to section 4 of the emergency housing rent  control
    23  law  made  by section seven of this act shall expire on the same date as
    24  such law expires and shall not affect the  expiration  of  such  law  as
    25  provided  in  subdivision  2  of section 1 of chapter 274 of the laws of
    26  1946; and
    27    (e) effective immediately,  the  division  of  housing  and  community
    28  renewal is authorized to and shall promulgate all rules, regulations and
    29  standards necessary to implement the provisions of this act.
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