Bill Text: NY S05680 | 2019-2020 | 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) 2020-01-08 - REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT [S05680 Detail]
Download: New_York-2019-S05680-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 5680 2019-2020 Regular Sessions IN SENATE May 10, 2019 ___________ Introduced by Sen. RIVERA -- 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 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 amended by section 29 of part A of 11 chapter 20 of the laws of 2015, is amended to read as follows: 12 (6) provides criteria whereby the commissioner may act upon applica- 13 tions by owners for increases in excess of the level of fair rent 14 increase established under this law provided, however, that such crite- 15 ria shall provide (a) as to hardship applications, for a finding that 16 the level of fair rent increase is not sufficient to enable the owner to 17 maintain approximately the same average annual net income (which shall 18 be computed without regard to debt service, financing costs or manage- 19 ment fees) for the three year period ending on or within six months of 20 the date of an application pursuant to such criteria as compared with 21 annual net income, which prevailed on the average over the period nine- 22 teen hundred sixty-eight through nineteen hundred seventy, or for the EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD11347-03-9S. 5680 2 1 first three years of operation if the building was completed since nine- 2 teen hundred sixty-eight or for the first three fiscal years after a 3 transfer of title to a new owner provided the new owner can establish to 4 the satisfaction of the commissioner that he or she acquired title to 5 the building as a result of a bona fide sale of the entire building and 6 that the new owner is unable to obtain requisite records for the fiscal 7 years nineteen hundred sixty-eight through nineteen hundred seventy 8 despite diligent efforts to obtain same from predecessors in title and 9 further provided that the new owner can provide financial data covering 10 a minimum of six years under his or her continuous and uninterrupted 11 operation of the building to meet the three year to three year compar- 12 ative test periods herein provided; and (b) as to completed building- 13 wide major capital improvements, for a finding that such improvements 14 are deemed depreciable under the Internal Revenue Code and that the cost 15 is to be amortized over an eight-year period for a building with thir- 16 ty-five or fewer housing accommodations, or a nine-year period for a 17 building with more than thirty-five housing accommodations, for any 18 determination issued by the division of housing and community renewal 19 after the effective date of the rent act of 2015, based upon cash 20 purchase price exclusive of interest or service charges. Notwithstand- 21 ing anything to the contrary contained herein, no hardship increase 22 granted pursuant to this paragraph shall, when added to the annual gross 23 rents, as determined by the commissioner, exceed the sum of, (i) the 24 annual operating expenses, (ii) an allowance for management services as 25 determined by the commissioner, (iii) actual annual mortgage debt 26 service (interest and amortization) on its indebtedness to a lending 27 institution, an insurance company, a retirement fund or welfare fund 28 which is operated under the supervision of the banking or insurance laws 29 of the state of New York or the United States, and (iv) eight and one- 30 half percent of that portion of the fair market value of the property 31 which exceeds the unpaid principal amount of the mortgage indebtedness 32 referred to in subparagraph (iii) of this paragraph. Fair market value 33 for the purposes of this paragraph shall be six times the annual gross 34 rent. The collection of any increase in the stabilized rent for any 35 apartment pursuant to this paragraph shall not exceed six percent in any 36 year from the effective date of the order granting the increase over the 37 rent set forth in the schedule of gross rents, with collectability of 38 any dollar excess above said sum to be spread forward in similar incre- 39 ments and added to the stabilized rent as established or set in future 40 years. No increase for major capital improvements shall be granted to 41 any landlord or property owner, unless an application including all 42 necessary documentation is submitted within one hundred twenty days 43 after the completion of the new installation or improvement or improve- 44 ments; 45 § 3. Subdivision b of section 4 of chapter 576 of the laws of 1974, 46 constituting the emergency tenant protection act of nineteen seventy- 47 four, is amended by adding a new paragraph 3-a to read as follows: 48 (3-a) no increase for major capital improvements shall be granted to 49 any landlord or property owner, unless an application including all 50 necessary documentation is submitted within one hundred twenty days 51 after the completion of the new installation or improvement or improve- 52 ments; 53 § 4. Subparagraph 7 of the second undesignated paragraph of paragraph 54 (a) of subdivision 4 of section 4 of chapter 274 of the laws of 1946, 55 constituting the emergency housing rent control law, as amended byS. 5680 3 1 section 32 of part A of chapter 20 of the laws of 2015, is amended to 2 read as follows: 3 (7) there has been since March first, nineteen hundred fifty, a major 4 capital improvement required for the operation, preservation or mainte- 5 nance of the structure; which for any order of the commissioner issued 6 after the effective date of the rent act of 2015 the cost of such 7 improvement shall be amortized over an eight-year period for buildings 8 with thirty-five or fewer units or a nine year period for buildings with 9 more than [thiry-five] thirty-five units. No increase for major capital 10 improvements shall be granted to any landlord or property owner, unless 11 an application including all necessary documentation is submitted within 12 one hundred twenty days after the completion of the new installation or 13 improvement or improvements, or 14 § 5. This act shall take effect immediately; provided that: 15 a. the amendments to section 26-405 of the city rent and rehabili- 16 tation law made by section one of this act shall remain in full force 17 and effect only as long as the public emergency requiring the regulation 18 and control of residential rents and evictions continues, as provided in 19 subdivision 3 of section 1 of the local emergency housing rent control 20 act; 21 b. the amendments to section 26-511 of the administrative code of the 22 city of New York made by section two of this act shall not affect the 23 expiration of such section and shall be deemed to expire therewith; 24 c. the amendments to section 4 of the emergency tenant protection act 25 of nineteen seventy-four made by section three of this act shall expire 26 on the same date as such act expires and shall not affect the expiration 27 of such act as provided in section 17 of chapter 576 of the laws of 28 1974; and 29 d. the amendments to section 4 of the emergency housing rent control 30 law made by section four of this act shall expire on the same date as 31 such law expires and shall not affect the expiration of such law as 32 provided in subdivision 2 of section 1 of chapter 274 of the laws of 33 1946.