Bill Text: NY S01235 | 2023-2024 | General Assembly | Introduced

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Bill Title: Caps the amount of collectible rent increases due to major capital improvements at six percent of the legal regulated rent.

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Introduced) 2024-01-03 - REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT [S01235 Detail]

Download: New_York-2023-S01235-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          1235

                               2023-2024 Regular Sessions

                    IN SENATE

                                    January 10, 2023
                                       ___________

        Introduced  by  Sens.  BAILEY, MAYER, RAMOS, SEPULVEDA -- 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 emergency tenant protection act of nineteen seven-
          ty-four, in  relation  to  capping  the  amount  of  collectible  rent
          increases  due  to  major  capital  improvements at six percent of the
          legal regulated rent

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1.  Paragraph 3 of subdivision d of section 6 of section 4 of
     2  chapter 576 of the laws  of  1974,  constituting  the  emergency  tenant
     3  protection  act  of  nineteen  seventy-four, as amended by section 26 of
     4  part Q of chapter 39 of the laws of 2019, is amended to read as follows:
     5    (3) (a) there has been since January first, nineteen hundred  seventy-
     6  four  a major capital improvement essential for the preservation, energy
     7  efficiency, functionality, or infrastructure  of  the  entire  building,
     8  improvement  of  the  structure including heating, windows, plumbing and
     9  roofing, but shall not be for operation costs  or  unnecessary  cosmetic
    10  improvements.  An  adjustment under this paragraph shall be in an amount
    11  sufficient to amortize the cost of the  improvements  pursuant  to  this
    12  paragraph  over  a twelve-year period for a building with thirty-five or
    13  fewer housing accommodations, or a twelve  and  one-half  period  for  a
    14  building  with more than thirty-five housing accommodations and shall be
    15  removed from the legal regulated rent thirty years  from  the  date  the
    16  increase  became  effective  inclusive  of  any increases granted by the
    17  applicable rent guidelines board, for any determination  issued  by  the
    18  division  of  housing  and community renewal after the effective date of
    19  [the] chapter thirty-nine of the laws of  two  thousand  nineteen  [that
    20  amended this paragraph]; provided that the collection of any increase in
    21  the  legal regulated rent for any housing accommodation pursuant to this
    22  subparagraph shall not exceed six percent in any year from the effective

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD04411-01-3
        S. 1235                             2

     1  date of the order granting the increase over the  legal  regulated  rent
     2  registered pursuant to section twelve-a of this act, with collectibility
     3  of  any  dollar  excess  above  said sum to be spread forward in similar
     4  increments  and  added to the legal regulated rent as established or set
     5  in future years. In no event shall more than one six percent increase in
     6  the legal regulated rent pursuant to this subparagraph be  collected  in
     7  the same year.
     8    (b) Temporary major capital improvement increases shall be collectable
     9  prospectively  on  the first day of the first month beginning sixty days
    10  from the date of mailing notice of approval to the tenant.  Such  notice
    11  shall disclose the total monthly increase in rent and the first month in
    12  which  the  tenant  would  be required to pay the temporary increase. An
    13  approval for a temporary major capital improvement  increase  shall  not
    14  include  retroactive  payments. The collection of any increase shall not
    15  exceed two percent in any year from the  effective  date  of  the  order
    16  granting  the  increase over the rent set forth in the schedule of gross
    17  rents, with collectability of any dollar excess above  said  sum  to  be
    18  spread  forward  in  similar  increments and added to the rent as estab-
    19  lished or set in future years. Upon vacancy, the landlord  may  add  any
    20  remaining balance of the temporary major capital improvement increase to
    21  the  legal  regulated  rent.  Notwithstanding any other provision of the
    22  law, the collection of any rent increases for any renewal lease commenc-
    23  ing on or after June 14, 2019, due to  any  major  capital  improvements
    24  approved  on  or  after June 16, 2012 and before June 16, 2019 shall not
    25  exceed two percent in any year for any tenant in occupancy on  the  date
    26  the major capital improvement was approved, or
    27    § 2. This act shall take effect immediately.