Bill Text: NY S06352 | 2023-2024 | General Assembly | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Provides that when a housing accommodation has been vacated after continuous tenancy or occupancy of ten years or more prior to vacancy, and the owner can demonstrate restoration of the unit, the new legal regulated rent shall be the rent agreed to by the owner and first tenant after such restoration and reserved in a lease or other rental agreement; makes related provisions.

Spectrum: Partisan Bill (Democrat 10-0)

Status: (Introduced) 2024-02-09 - PRINT NUMBER 6352C [S06352 Detail]

Download: New_York-2023-S06352-Amended.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                         6352--B

                               2023-2024 Regular Sessions

                    IN SENATE

                                     April 17, 2023
                                       ___________

        Introduced  by  Sens.  COMRIE,  FERNANDEZ,  SEPULVEDA, ADDABBO, MANNION,
          MARTINEZ, PARKER, PERSAUD, SCARCELLA-SPANTON, SKOUFIS, THOMAS --  read
          twice  and  ordered  printed,  and when printed to be committed to the
          Committee  on  Housing,  Construction  and  Community  Development  --
          committee  discharged,  bill amended, ordered reprinted as amended and
          recommitted to said committee -- recommitted to the Committee on Hous-
          ing, Construction and Community Development in accordance with  Senate
          Rule  6,  sec.  8  --  committee  discharged,  bill  amended,  ordered
          reprinted as amended and recommitted to said committee

        AN ACT to amend the administrative code of the  city  of  New  York,  in
          relation to certain housing accommodations; and to amend the emergency
          tenant protection act of nineteen seventy-four, in relation to certain
          hardship provisions

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

     1    Section 1. Subdivision c of section 26-511 of the administrative  code
     2  of  the city of New York is amended by adding a new paragraph 16 to read
     3  as follows:
     4    (16) provides that, notwithstanding any other provision of this  chap-
     5  ter  to the contrary, when a housing accommodation subject to this chap-
     6  ter has been vacated after continuous tenancy or occupancy of ten  years
     7  or  more  prior to vacancy, and the owner has submitted documentation to
     8  the division demonstrating restoration of  the  unit  as  set  forth  in
     9  section  26-511.2 of this chapter, the new legal regulated rent shall be
    10  the rent agreed to by the owner and first tenant after such  restoration
    11  and  reserved  in  a lease or other rental agreement; provided that such
    12  new legal regulated rent may be adjusted on audit by the division  under
    13  section  26-511.2  of  this chapter, or on application of a tenant under
    14  section 26-513.1 of this chapter. The legal  regulated  rent  adjustment
    15  set  forth in this paragraph shall be known as the local regulated hous-
    16  ing restoration adjustment.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD10320-13-4

        S. 6352--B                          2

     1    § 2. The administrative code of the city of New  York  is  amended  by
     2  adding a new section 26-511.2 to read as follows:
     3    § 26-511.2 The local regulated housing restoration adjustment.  a. The
     4  division  of  housing and community renewal, the "division" shall estab-
     5  lish a notification procedure and  documentation  submission  guidelines
     6  for  the  local regulated housing restoration adjustment.  Documentation
     7  to qualify for the local regulated housing restoration adjustment  shall
     8  be limited to:
     9    (1)  XRF  test results demonstrating a lead-free housing accommodation
    10  under applicable local definitions;
    11    (2) any required tenant protection  plans  or  similar  submission  in
    12  connection with such restoration;
    13    (3) any required contractor licenses;
    14    (4) list and specifications of new electric appliances installed;
    15    (5) before and after photos;
    16    (6) lease or rental agreement listing new legal regulated rent;
    17    (7)  evidence  of  renting to a housing subsidy voucher holder, or the
    18  legal regulated rent amount or amounts for substantially similar unit or
    19  units as defined by section 26-513.1 of this chapter;
    20    (8) evidence of renting  to  a  housing  subsidy  voucher  holder,  or
    21  documentation confirming that, as of the date of the commencement of the
    22  incoming tenant's lease, any physical condition within the unit that was
    23  the basis for a previously issued violation has been corrected; and
    24    (9) for units vacated after the effective date of this section, a form
    25  to  be  promulgated  by  the  division and signed by the previous tenant
    26  affirming that the vacatur prior to the local regulated housing restora-
    27  tion adjustment was voluntary and  not  the  result  of  unlawful  owner
    28  harassment.  In  considering the sufficiency of alternate documentation,
    29  and notwithstanding other potentially sufficient documentation,  vacatur
    30  shall  be presumed voluntary and not the result of owner harassment when
    31  (i)  the  owner  recovered  possession  of  the  unit  through  judicial
    32  proceedings, (ii) the owner demonstrates abandonment of the unit through
    33  electronic  communications,  recordings,  or other evidence of voluntary
    34  vacatur, or (iii) the owner demonstrates the previous  tenant  died  and
    35  the unit was not occupied by a lawful successor.
    36    b.  The  local  regulated  housing restoration adjustment shall not be
    37  permitted:
    38    (1) for units that are rented within a twenty-four-month period  after
    39  an arm's length transfer of ownership;
    40    (2)  for  units that are rented within a thirty-six-month period after
    41  determination by the division that the owner  has  engaged  in  unlawful
    42  harassment with respect to the unit; or
    43    (3)  for units in buildings subject to housing preservation and devel-
    44  opment's alternate enforcement program.
    45    c. The division shall establish an audit process to review a  percent-
    46  age,  as  established  by  the  division, of housing accommodations that
    47  register adjusted legal regulated rents under the local regulated  hous-
    48  ing  restoration  adjustment.   The division's established audit process
    49  shall be subject to the following requirements:
    50    (1) any audit shall be limited to: (i) confirmation that documentation
    51  set forth in subdivision a of this  section  has  been  submitted;  (ii)
    52  visual  inspection  of  the  subject  unit; and (iii) unless rented to a
    53  housing subsidy voucher holder, review of the unit's registered rent  in
    54  comparison to the legal regulated rents of substantially similar housing
    55  accommodations  in the same geographic area considering the same factors
    56  set forth in section 26-513.1 of this  chapter,  including  the  owner's

        S. 6352--B                          3

     1  right to submit the legal regulated rent of a substantially similar unit
     2  or units. Such audit shall be initiated within one year of the filing of
     3  an  annual  apartment registration indicating an adjustment to the legal
     4  regulated rent under the local regulated housing restoration adjustment;
     5  and
     6    (2)  if  an  audit under this subdivision determines that an owner has
     7  failed to submit documentation  set  forth  in  subdivision  a  of  this
     8  section  and  the  owner  then fails to submit any missing documentation
     9  after sixty days' written notice from the division, or if an audit under
    10  this subdivision determines the  local  housing  restoration  adjustment
    11  exceeds  the  legal  rent for all substantially similar housing accommo-
    12  dations as defined by this section, the  division  shall  then  set  the
    13  subject  unit's  legal  regulated  rent  at an amount equal to the legal
    14  regulated rent for a substantially similar unit in the  same  geographic
    15  area,  provided,  however,  that  the  legal  regulated  rents for units
    16  subject to housing subsidy vouchers shall be established at the contract
    17  rent amount approved by the agency administering the voucher.
    18    (3) Any required refunds shall be  made  in  accordance  with  section
    19  26-513.1 of this chapter.
    20    d. To encourage rental of units subject to a local housing restoration
    21  adjustment  to individuals and families with housing subsidy vouchers or
    22  that are in communities of need, the  division  shall  establish  incen-
    23  tives, in addition to those already contained in this section, for hous-
    24  ing  providers  who  rent  to housing subsidy voucher holders located in
    25  very low- and low-income zip codes.
    26    e. Access to the documentation submitted as part of  the  local  regu-
    27  lated  housing restoration adjustment shall be governed by the same laws
    28  governing access to building and apartment registrations filed with  the
    29  division.
    30    §  3.  The  administrative  code of the city of New York is amended by
    31  adding a new section 26-513.1 to read as follows:
    32    § 26-513.1 Application  for  adjustment  of  local  regulated  housing
    33  restoration  adjustment.  a.  The tenant of a housing accommodation that
    34  was vacant on, or became vacant after,  June  fourteenth,  two  thousand
    35  nineteen,  and  has been subject to the local regulated housing restora-
    36  tion adjustment, may file with the commissioner of housing and community
    37  renewal within one hundred twenty days after notice  has  been  received
    38  under subdivision c of this section an application for the adjustment of
    39  the  rent  for  such  housing  accommodation. Such applications shall be
    40  subject to the following:
    41    (1) in the application, the tenant must allege that  the  local  regu-
    42  lated  housing restoration adjustment rent exceeds the rent for substan-
    43  tially similar units within the same geographic area.
    44    (2) in determining an application filed pursuant to this section,  the
    45  commissioner shall only consider legal regulated rents for substantially
    46  similar  housing  accommodations within a one-mile radius of the subject
    47  unit in the same borough or applicable municipal subdivision.   Substan-
    48  tially  similar  housing  accommodations are those rent-stabilized units
    49  with similar room counts and square  footage,  similar  levels  of  code
    50  compliance, including state laws, local laws and codes for health, safe-
    51  ty, and environmental sustainability, similar regulatory status, similar
    52  apartment  conditions and quality of fixtures and finishes, similar unit
    53  and building amenities, similar quality and condition  of  the  building
    54  and  common  areas,  and  with vacancy or renewal leases starting within
    55  twelve months from the start date of the  complaining  tenant's  vacancy
    56  lease.    For  purposes  of considering legal regulated rents of similar

        S. 6352--B                          4

     1  housing accommodations, the geographic area may be  expanded  by  incre-
     2  ments  of  one-quarter  mile  radii as many times as necessary to find a
     3  substantially similar housing accommodation located in the same  borough
     4  or applicable municipal subdivision.  Notwithstanding the foregoing, any
     5  local  regulated housing restoration adjustment rent amount for units in
     6  buildings with tenancies subject to housing subsidy vouchers  that  does
     7  not exceed the contract rent amounts approved by the local housing agen-
     8  cy administering the voucher shall be determined to be fair.
     9    (3)  the  owner of the housing accommodation subject to an application
    10  under this section shall be given an  opportunity  to  submit  proof  of
    11  legal  regulated  rents  for  up  to three substantially similar housing
    12  accommodations, in addition to any already  submitted  as  part  of  the
    13  notification procedure under section 26-511.2 of this chapter.
    14    (4)  when  the  local  regulated  housing  restoration adjustment rent
    15  amount is determined to exceed the legal regulated rent for  a  substan-
    16  tially  similar  housing  accommodation  as defined by this section, the
    17  commissioner of housing and community renewal shall order that the legal
    18  regulated rent for the subject unit shall be equal to  the  legal  regu-
    19  lated rent for a substantially similar housing accommodation in the same
    20  geographic  area,  provided, however, that the legal regulated rents for
    21  units in buildings with tenancies subject to  housing  subsidy  vouchers
    22  shall be equal to the contract rent amount approved by the local housing
    23  authority that issues the voucher. Any required refunds shall be made by
    24  the  owner  in cash or as a credit against unpaid rent over a period not
    25  to exceed six months.
    26    b. Notwithstanding subdivision a of this section,  provided  that  the
    27  owner  has  submitted  to  the division documentation in accordance with
    28  subdivision a of section 26-511.2 of this chapter,  the  division  shall
    29  only  determine  whether  the  tenancy  is  subject to a housing subsidy
    30  voucher and, if not, whether the rent charged to the first tenant  after
    31  the  local  regulated housing restoration adjustment is supported by the
    32  rent for a substantially similar unit.   Any documentation  deficiencies
    33  shall  be  resolved  through  the  audit  process  set  forth in section
    34  26-511.2 of this chapter.
    35    c. In the lease execution package for the first lease after the  legal
    36  rent  was adjusted under the local regulated housing restoration adjust-
    37  ment, the owner shall give notice, both in the lease and subsequently in
    38  writing by certified mail, or by electronic delivery if the  tenant  has
    39  opted to receive electronic delivery of documents, to the tenant of such
    40  housing  accommodation on a form prescribed by the commissioner of hous-
    41  ing and community renewal that the local regulated  housing  restoration
    42  adjustment  was applied, including notification of the prior legal regu-
    43  lated rent, a description of work completed, the  building  address  and
    44  legal  regulated  rent amounts for at least one and up to three substan-
    45  tially similar units, and such tenant's right  to  file  an  application
    46  challenging the new legal regulated rent of such housing accommodation.
    47    § 4. Paragraph 5 of subdivision d of section 6 of section 4 of chapter
    48  576  of  the  laws of 1974, constituting the emergency tenant protection
    49  act of nineteen seventy-four, as amended by chapter 102 of the  laws  of
    50  1984, is amended and a new paragraph 6 is added to read as follows:
    51    (5) as an alternative to the hardship application provided under para-
    52  graph four of this subdivision, owners of buildings acquired by the same
    53  owner or a related entity owned by the same principals three years prior
    54  to  the  date  of application may apply to the division for increases in
    55  excess of the level of applicable guideline increases established  under
    56  this  law  based  on  a  finding by the commissioner that such guideline

        S. 6352--B                          5

     1  increases are not sufficient to enable the owner to maintain  an  annual
     2  gross  rent  income for such building which exceeds the annual operating
     3  expenses of such building by a sum equal to at  least  five  percent  of
     4  such  gross rent. For the purposes of this paragraph, operating expenses
     5  shall consist of the actual, reasonable, costs of  fuel,  labor,  utili-
     6  ties,  taxes,  other  than  income  or  corporate franchise taxes, fees,
     7  permits, necessary contracted services and non-capital  repairs,  insur-
     8  ance, parts and supplies, management fees and other administrative costs
     9  and  mortgage  interest.  For  the  purposes of this paragraph, mortgage
    10  interest shall be deemed to  mean  interest  on  a  bona  fide  mortgage
    11  including  an allocable portion of charges related thereto.  Criteria to
    12  be considered in determining a bona fide mortgage other than an institu-
    13  tional mortgage shall include; condition of the  property,  location  of
    14  the  property,  the existing mortgage market at the time the mortgage is
    15  placed, the term of the mortgage, the amortization rate,  the  principal
    16  amount  of  the mortgage, security and other terms and conditions of the
    17  mortgage. The commissioner shall set a rental value for any  unit  occu-
    18  pied  by the owner or a person related to the owner or unoccupied at the
    19  owner's choice for more than one month at the last regulated  rent  plus
    20  the minimum number of guidelines increases or, if no such regulated rent
    21  existed  or  is  known,  the commissioner shall impute a rent consistent
    22  with other rents in the building. The amount of hardship increase  shall
    23  be  such  as may be required to maintain the annual gross rent income as
    24  provided by this paragraph. The division  shall  not  grant  a  hardship
    25  application  under  this paragraph or paragraph four of this subdivision
    26  for a period of three years subsequent to granting a  hardship  applica-
    27  tion  under  the  provisions  of  this  paragraph. The collection of any
    28  increase in the rent for any  housing  accommodation  pursuant  to  this
    29  paragraph  shall  not  exceed six percent in any year from the effective
    30  date of the order granting the increase over the rent set forth  in  the
    31  schedule  of gross rents, with collectability of any dollar excess above
    32  said sum to be spread forward in similar increments  and  added  to  the
    33  rent  as  established  or  set  in future years. No application shall be
    34  approved unless the owner's equity in such building exceeds five percent
    35  of: (i) the arms length purchase price of the property; (ii) the cost of
    36  any capital improvements  for  which  the  owner  has  not  collected  a
    37  surcharge; (iii) any repayment of principal of any mortgage or loan used
    38  to  finance the purchase of the property or any capital improvements for
    39  which the owner has not collected a surcharge; and (iv) any increase  in
    40  the  equalized  assessed value of the property which occurred subsequent
    41  to the first valuation of the property after purchase by the owner.  For
    42  the purposes of this paragraph, owner's equity shall mean the sum of (i)
    43  the purchase price of the property less the principal of any mortgage or
    44  loan  used to finance the purchase of the property, (ii) the cost of any
    45  capital improvement for which the owner has not  collected  a  surcharge
    46  less the principal of any mortgage or loan used to finance said improve-
    47  ment,  (iii) any repayment of the principal of any mortgage or loan used
    48  to finance the purchase of the property or any capital  improvement  for
    49  which  the owner has not collected a surcharge, and (iv) any increase in
    50  the equalized assessed value of the property which  occurred  subsequent
    51  to  the  first valuation of the property after purchase by the owner[.];
    52  or
    53    (6) provides that, notwithstanding any other provision of this act  to
    54  the  contrary, when a housing accommodation subject to this act has been
    55  vacated after continuous tenancy or occupancy of ten years or more prior
    56  to vacancy, and the owner has submitted documentation  to  the  division

        S. 6352--B                          6

     1  demonstrating restoration of the unit as set forth in subdivision a-1 of
     2  section  ten of this act, the new legal regulated rent shall be the rent
     3  agreed to by the owner and  first  tenant  after  such  restoration  and
     4  reserved  in  a  lease or other rental agreement; provided that such new
     5  legal regulated rent may be adjusted on  audit  by  the  division  under
     6  subdivision  a-1  of  section  ten  of  this act, or on application of a
     7  tenant under subdivision d-1 of section nine  of  this  act.  The  legal
     8  regulated  rent adjustment set forth in this paragraph shall be known as
     9  the local regulated housing restoration adjustment.
    10    § 5. Section 10 of section 4 of chapter  576  of  the  laws  of  1974,
    11  constituting  the  emergency  tenant protection act of nineteen seventy-
    12  four is amended by adding a new subdivision a-1 to read as follows:
    13    a-1. The division of housing and community renewal shall  establish  a
    14  notification  procedure  and documentation submission guidelines for the
    15  local regulated housing  restoration  adjustment.  a.  Documentation  to
    16  qualify  for the local regulated housing restoration adjustment shall be
    17  limited to:
    18    (1) XRF test results demonstrating a lead-free  housing  accommodation
    19  under applicable local definitions;
    20    (2)  any  required  tenant  protection  plans or similar submission in
    21  connection with such restoration;
    22    (3) any required contractor licenses;
    23    (4) list and specifications of new electric appliances installed;
    24    (5) before and after photos;
    25    (6) lease or rental agreement listing new legal regulated rent;
    26    (7) evidence of renting to a housing subsidy voucher  holder,  or  the
    27  legal regulated rent amount or amounts for substantially similar unit or
    28  units  as  defined by section 26-513.1 of the administrative code of the
    29  city of New York;
    30    (8) evidence of renting  to  a  housing  subsidy  voucher  holder,  or
    31  documentation confirming that, as of the date of the commencement of the
    32  incoming tenant's lease, any physical condition within the unit that was
    33  the basis for a previously issued violation has been corrected; and
    34    (9)  for units vacated after the effective date of this subdivision, a
    35  form to be promulgated by the division and signed by the previous tenant
    36  affirming that the vacatur prior to the local regulated housing restora-
    37  tion adjustment was voluntary and  not  the  result  of  unlawful  owner
    38  harassment.  In  considering the sufficiency of alternate documentation,
    39  and notwithstanding other potentially sufficient documentation,  vacatur
    40  shall  be presumed voluntary and not the result of owner harassment when
    41  (i)  the  owner  recovered  possession  of  the  unit  through  judicial
    42  proceedings, (ii) the owner demonstrates abandonment of the unit through
    43  electronic  communications,  recordings,  or other evidence of voluntary
    44  vacatur, or (iii) the owner demonstrates the previous  tenant  died  and
    45  the unit was not occupied by a lawful successor.
    46    b.  The  local  regulated  housing restoration adjustment shall not be
    47  permitted:
    48    (1) for units that are rented within a twenty-four-month period  after
    49  an arm's length transfer of ownership;
    50    (2)  for  units that are rented within a thirty-six-month period after
    51  determination by the division that the owner  has  engaged  in  unlawful
    52  harassment with respect to the unit; or
    53    (3)  for units in buildings subject to housing preservation and devel-
    54  opment's alternate enforcement program.
    55    c. The division of housing and community renewal  shall  establish  an
    56  audit process to review a percentage, as established by the division, of

        S. 6352--B                          7

     1  housing  accommodations  that  register  adjusted  legal regulated rents
     2  under the local regulated housing restoration  adjustment.    The  divi-
     3  sion's  established  audit  process  shall  be  subject to the following
     4  requirements:
     5    (1)  any  audit shall be limited subdivision to: (i) confirmation that
     6  documentation set forth in paragraph a  of  this  subdivision  has  been
     7  submitted,  (ii) visual inspection of the subject unit, and (iii) unless
     8  rented to a housing subsidy voucher holder, review of the unit's  regis-
     9  tered  rent  in comparison to the legal regulated rents of substantially
    10  similar housing accommodations in the same geographic  area  considering
    11  the  same  factors  set forth in subdivision d-1 of section nine of this
    12  act, including the owner's right to submit the legal regulated rent of a
    13  substantially similar unit or units. Such audit shall be initiated with-
    14  in one year of the filing of an annual apartment registration indicating
    15  an adjustment to the legal regulated  rent  under  the  local  regulated
    16  housing restoration adjustment; and
    17    (2)  if  an  audit under this subdivision determines that an owner has
    18  failed to submit documentation set forth in paragraph a of this subdivi-
    19  sion and the owner then fails to submit any missing documentation  after
    20  sixty  days' written notice from the division, or if an audit under this
    21  subdivision determines the local housing restoration adjustment  exceeds
    22  the  legal  rent for all substantially similar housing accommodations as
    23  defined by this section, the division shall then set the subject  unit's
    24  legal  regulated rent at an amount equal to the legal regulated rent for
    25  a substantially similar unit in  the  same  geographic  area,  provided,
    26  however,  that  the  legal  regulated rents for units subject to housing
    27  subsidy vouchers shall  be  established  at  the  contract  rent  amount
    28  approved by the agency administering the voucher.
    29    (3)  Any  required  refunds  shall  be made in accordance with section
    30  26-513.1 of the administrative code of the city of New York.
    31    d. To encourage rental of units subject to a local housing restoration
    32  adjustment to individuals and families with housing subsidy vouchers  or
    33  that  are  in  communities  of need, the division shall establish incen-
    34  tives, in addition to those already contained in this section, for hous-
    35  ing providers who rent to housing subsidy  voucher  holders  located  in
    36  very low- and low-income zip codes.
    37    e.  Access  to  the documentation submitted as part of the local regu-
    38  lated housing restoration adjustment shall be governed by the same  laws
    39  governing  access to building and apartment registrations filed with the
    40  division.
    41    § 6. Section 9 of section 4 of  chapter  576  of  the  laws  of  1974,
    42  constituting  the  emergency  tenant protection act of nineteen seventy-
    43  four is amended by adding a new subdivision d-1 to read as follows:
    44    d-1. (1) The tenant of a housing accommodation that was vacant on,  or
    45  became  vacant  after,  June 14, 2019, and has been subject to the local
    46  regulated housing restoration adjustment, may file with the commissioner
    47  within 120 days after notice has been received under paragraph 3 of this
    48  subdivision an application for the adjustment of the rent for such hous-
    49  ing accommodation.  Such applications shall be subject to the following:
    50    (i) in the application, the tenant must allege that  the  local  regu-
    51  lated  housing  restoration  adjustment  rent  exceeds  the  rent  for a
    52  substantially similar unit within the same geographic area;
    53    (ii) in determining an application filed pursuant to this section, the
    54  commissioner of housing and community renewal shall only consider  legal
    55  regulated  rents  for  substantially  similar regulated housing accommo-
    56  dations within a one-mile radius of the subject unit in the same borough

        S. 6352--B                          8

     1  or applicable municipal  subdivision.    Substantially  similar  housing
     2  accommodations  are those rent-stabilized units with similar room counts
     3  and square footage, similar levels of code compliance,  including  state
     4  laws,  local  laws  and  codes  for  health,  safety,  and environmental
     5  sustainability, similar regulatory status, similar apartment  conditions
     6  and  quality  of  fixtures and finishes, similar unit and building amen-
     7  ities, similar quality and condition of the building and  common  areas,
     8  and  with  vacancy  or renewal leases starting within twelve months from
     9  the start date of the complaining tenant's vacancy lease.  For  purposes
    10  of  considering legal regulated rents of similar housing accommodations,
    11  the geographic area may be expanded by increments  of  one-quarter  mile
    12  radii as many times as necessary to find a substantially similar housing
    13  accommodation located in the same borough or applicable municipal subdi-
    14  vision.    Notwithstanding  the  foregoing,  any local regulated housing
    15  restoration adjustment rent amount for units in buildings with tenancies
    16  subject to housing subsidy vouchers that does not  exceed  the  contract
    17  rent  amounts  approved  by  the  local housing agency administering the
    18  voucher shall be determined to be fair;
    19    (iii) the owner of the housing accommodation subject to an application
    20  under this section shall be given an  opportunity  to  submit  proof  of
    21  legal  regulated  rents  for  up  to three substantially similar housing
    22  accommodations, in addition to any already  submitted  as  part  of  the
    23  notification procedure under paragraph 3 of this subdivision; and
    24    (iv)  when  the  local  regulated  housing restoration adjustment rent
    25  amount is determined to exceed the legal regulated rent for  a  substan-
    26  tially similar housing accommodation as defined by this subdivision, the
    27  commissioner of housing and community renewal shall order that the legal
    28  regulated  rent  for  the subject unit shall be equal to the legal regu-
    29  lated rent for a substantially similar housing accommodation in the same
    30  geographic area, provided, however, that the legal regulated  rents  for
    31  units  in  buildings  with tenancies subject to housing subsidy vouchers
    32  shall be equal to the contract rent amounts approved by the local  hous-
    33  ing  agency  administering  the voucher.   Any required refunds shall be
    34  made by the owner in cash or as a credit  against  unpaid  rent  over  a
    35  period not to exceed six months.
    36    (2) Notwithstanding paragraph 1 of this subdivision, provided that the
    37  owner  has  submitted  to  the division documentation in accordance with
    38  subdivision a-1 of section ten of this  act,  the  division  shall  only
    39  determine  whether  the  tenancy is subject to a housing subsidy voucher
    40  and, if not, whether the rent charged to  the  first  tenant  after  the
    41  local  regulated housing restoration adjustment is supported by a compa-
    42  rable legal regulated rent for a substantially similar  regulated  unit.
    43  Any documentation deficiencies shall be resolved through the audit proc-
    44  ess set forth in subdivision a-1 of section ten of this act.
    45    (3) In the lease execution package for the first lease after the legal
    46  rent  was adjusted under the local regulated housing restoration adjust-
    47  ment, the owner shall give notice, both in the lease and subsequently in
    48  writing by certified mail, or by electronic delivery if the  tenant  has
    49  opted to receive electronic delivery of documents, to the tenant of such
    50  housing  accommodation on a form prescribed by the commissioner of hous-
    51  ing and community renewal that the local regulated  housing  restoration
    52  adjustment  was applied, including notification of the prior legal regu-
    53  lated rent, a description of work completed, the  building  address  and
    54  legal  regulated  rent amounts for at least one and up to three substan-
    55  tially similar units, and such tenant's right to file an application for

        S. 6352--B                          9

     1  adjustment of the new legal regulated  rent  of  such  housing  accommo-
     2  dation.
     3    §  7. This act shall take effect immediately; provided that the amend-
     4  ments to chapter 4 of title 26 of the administrative code of the city of
     5  New York made by sections one, two and three of this act shall expire on
     6  the same date as such law expires and shall not affect the expiration of
     7  such law as provided under section 26-520 of such law.
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