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-11five or fewer housing accommodations, or one-sixtieth, in the case of a12building with more than thirty-five housing accommodations where such13adjustment takes effect on or after September twenty-fourth, two thou-14sand 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. LBD01124-01-7S. 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; andS. 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 case28of a building with thirty-five or fewer housing accommodations, or one-29sixtieth, in the case of a building with more than thirty-five housing30accommodations where such permanent increase takes effect on or after31September 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 equipmentS. 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 case7of a building with thirty-five or fewer housing accommodations, or one-8sixtieth, in the case of a building with more than thirty-five housing9accommodations where such permanent increase takes effect on or after10September 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, cancelledS. 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-47ing accommodations, or one-sixtieth, in the case of a building with more48than thirty-five housing accommodations where such permanent increase49takes 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 theS. 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.
