Bill Text: NY S07030 | 2017-2018 | General Assembly | Introduced
Bill Title: Relates to adjustment of maximum allowable rent.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2018-01-03 - REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT [S07030 Detail]
Download: New_York-2017-S07030-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 7030 IN SENATE (Prefiled) January 3, 2018 ___________ Introduced by Sen. KAVANAGH -- 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 22 furniture or furnishings. The owner shall give written notice to the 23 city rent agency of any such adjustment pursuant to this subparagraph; 24 or EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD01124-01-7S. 7030 2 1 § 2. Subdivision g of section 26-405 of the administrative code of the 2 city of New York is amended by adding a new paragraph 8 to read as 3 follows: 4 (8) (a) Within one hundred twenty days of the effective date of this 5 paragraph, the division of housing and community renewal shall issue a 6 schedule of reasonable costs for upgrades and improvements that may be 7 claimed as a basis for an adjustment of rent pursuant to subparagraph 8 (e) of paragraph one of this subdivision. The schedule of reasonable 9 costs shall exclude cosmetic improvements. The schedule of reasonable 10 costs shall be based on the average costs for similar upgrades or 11 improvements made to comparable properties located in each county, 12 subject to the provisions of this chapter, and shall be updated at least 13 once every two years. No increase in rent shall be collectible under 14 subparagraph (e) of paragraph one of this subdivision based upon costs 15 that exceed the reasonable costs set forth in the schedule, unless 16 approved by the division pursuant to subparagraph (b) of this paragraph. 17 (b) Within thirty days of the signing of a mutual voluntary written 18 agreement including a rent increase pursuant to subparagraph (e) of 19 paragraph one of this subdivision that includes improvements that exceed 20 the schedule of reasonable costs pursuant to subparagraph (a) of this 21 paragraph, the landlord will file with the division of housing and 22 community renewal an explanation of how the rent was computed, and all 23 documents necessary to support the collection of such increase, includ- 24 ing but not limited to, cancelled checks, invoices and signed contracts 25 contemporaneously with the improvements alleged and a statement that any 26 increase above the previous rent is in accordance with adjustments 27 permitted by law. Upon receipt of all documents submitted by the land- 28 lord, and after giving the tenant an opportunity to respond, the divi- 29 sion of housing and community renewal shall issue an order approving or 30 disapproving such increase in whole or in part. 31 (c) Within thirty days of the signing of a mutual voluntary written 32 agreement including a rent increase that exceeds ten percent of the 33 maximum collectible rent, the landlord will file with the division of 34 housing and community renewal an explanation of how the rent was 35 computed, and all documents necessary to support the collection of such 36 increase, including but not limited to, cancelled checks, invoices and 37 signed contracts contemporaneously with the improvements alleged and a 38 statement that any increase above the previous rent is in accordance 39 with adjustments permitted by law. Upon receipt of all documents 40 submitted by the owner, and after giving the tenant an opportunity to 41 respond, the division of housing and community renewal shall issue an 42 order approving or disapproving such increase in whole or in part. Based 43 upon such determination, the division of housing and community renewal 44 shall order a refund to the tenant equal to the amount collected in 45 excess of the rent approved by the division of housing and community 46 renewal. 47 (d) No increase in rent shall be collectible under subparagraph (e) of 48 paragraph one of this subdivision until: 49 (1) the landlord has provided the tenant with a written notice, 50 including an explanation of how the rent in the mutual voluntary written 51 agreement has been computed, and the specific amounts of all expendi- 52 tures supporting a rent increase under subparagraph (e) of paragraph one 53 of this subdivision; and 54 (2) the landlord has filed with the division of housing and community 55 renewal an explanation of how the rent was computed, and all documents 56 necessary to support the collection of such increase, including, but notS. 7030 3 1 limited to, cancelled checks, invoices and signed contracts entered into 2 contemporaneously with the improvements alleged, and a statement that 3 any increase above the previous rent is in accordance with adjustments 4 permitted by law. 5 (e) No increase shall be collectible under subparagraph (e) of para- 6 graph one of this subdivision where the division of housing and communi- 7 ty renewal has determined that the owner is not maintaining all build- 8 ing-wide required services or all required services with respect to the 9 affected housing accommodation, or where there are current or outstand- 10 ing hazardous violations of any municipal, county, state or federal law 11 which relate to the maintenance of such services. 12 § 3. Paragraph 13 of subdivision c of section 26-511 of the adminis- 13 trative code of the city of New York, as amended by section 16 of part B 14 of chapter 97 of the laws of 2011, is amended to read as follows: 15 (13) provides that an owner is entitled to a temporary rent increase 16 where there has been a substantial modification or increase of dwelling 17 space or an increase in the services, or installation of new equipment 18 or improvements or new furniture or furnishings provided in or to a 19 tenant's housing accommodation, until such modification or increase has 20 been paid for, on written tenant consent to the rent increase. In the 21 case of a vacant housing accommodation, tenant consent shall not be 22 required. 23 (a) The [permanent] temporary increase in the legal regulated rent for 24 the affected housing accommodation shall be [one-fortieth, in the case25of a building with thirty-five or fewer housing accommodations, or one-26sixtieth, in the case of a building with more than thirty-five housing27accommodations where such permanent increase takes effect on or after28September twenty-fourth, two thousand eleven,] one eighty-fourth of the 29 total cost incurred by the landlord in providing such modification or 30 increase in dwelling space, services, furniture, furnishings or equip- 31 ment, including the cost of installation, but excluding finance charges 32 and cosmetic improvements. 33 (b) Provided further that an owner who is entitled to a rent increase 34 pursuant to this paragraph shall not be entitled to a further rent 35 increase based upon the installation of similar equipment, or new furni- 36 ture or furnishings within the useful life of such new equipment, or new 37 furniture or furnishings. 38 § 4. Subdivision c of section 26-511 of the administrative code of the 39 city of New York is amended by adding a new paragraph 15 to read as 40 follows: 41 (15) (a) Within one hundred twenty days of the effective date of this 42 paragraph, the division of housing and community renewal shall issue a 43 schedule of reasonable costs for upgrades and improvements that may be 44 claimed as a basis for an adjustment of rent pursuant to paragraph thir- 45 teen of this subdivision. The schedule of reasonable costs shall 46 exclude cosmetic improvements. The schedule of reasonable costs shall 47 be based on the average costs for similar upgrades or improvements made 48 to comparable properties located in each county, subject to the 49 provisions of this chapter, and shall be updated at least once every two 50 years. No increase in rent shall be collectible under paragraph thirteen 51 of this subdivision based upon costs that exceed the reasonable costs 52 set forth in the schedule, unless approved by the division pursuant to 53 subparagraph (b) of this paragraph. 54 (b) Within thirty days of the signing of a vacancy lease including a 55 rent increase pursuant to paragraph thirteen of this subdivision that 56 includes improvements that exceed the schedule of reasonable costsS. 7030 4 1 pursuant to subparagraph (a) of this paragraph, the landlord will file 2 with the division of housing and community renewal an explanation of how 3 the vacancy rent was computed, and all documents necessary to support 4 the collection of such increase, including but not limited to, cancelled 5 checks, invoices and signed contracts contemporaneously with the 6 improvements alleged and a statement that any increase above the previ- 7 ous rent is in accordance with adjustments permitted by law. Upon 8 receipt of all documents submitted by the landlord, and after giving the 9 tenant named in the vacancy lease an opportunity to respond, the divi- 10 sion of housing and community renewal shall issue an order approving or 11 disapproving such increase in whole or in part. 12 (c) Within thirty days of the signing of a vacancy lease including a 13 rent increase that exceeds ten percent of the rent charged to the previ- 14 ous tenant, the landlord will file with the division of housing and 15 community renewal an explanation of how the rent was computed, and all 16 documents necessary to support the collection of such increase, includ- 17 ing but not limited to, cancelled checks, invoices and signed contracts 18 contemporaneously with the improvements alleged and a statement that any 19 increase above the previous rent is in accordance with adjustments 20 permitted by law. Upon receipt of all documents submitted by the owner, 21 and after giving the tenant named in such vacancy lease an opportunity 22 to respond, the division of housing and community renewal shall issue an 23 order approving or disapproving such increase in whole or in part. Based 24 upon such determination, the division of housing and community renewal 25 shall order a refund to the tenant equal to the amount collected in 26 excess of the rent approved by the division of housing and community 27 renewal. 28 (d) No increase in rent shall be collectible under paragraph thirteen 29 of this subdivision until: 30 (i) the landlord has provided the tenant with a written notice, 31 including an explanation of how the rent in the vacancy lease has been 32 computed, and the specific amounts of all expenditures supporting a rent 33 increase under paragraph thirteen of this subdivision; and 34 (ii) the landlord has filed with the division of housing and community 35 renewal an explanation of how the vacancy rent was computed, and all 36 documents necessary to support the collection of such increase, includ- 37 ing, but not limited to, cancelled checks, invoices and signed contracts 38 entered into contemporaneously with the improvements alleged, and a 39 statement that any increase above the previous rent is in accordance 40 with adjustments permitted by law. 41 (e) No increase shall be collectible under paragraph thirteen of this 42 subdivision where the division of housing and community renewal has 43 determined that the owner is not maintaining all building-wide required 44 services or all required services with respect to the affected housing 45 accommodation, or where there are current or outstanding hazardous 46 violations of any municipal, county, state or federal law which relate 47 to the maintenance of such services. 48 § 5. Paragraph 1 of subdivision d of section 6 of section 4 of chapter 49 576 of the laws of 1974, constituting the emergency tenant protection 50 act of nineteen seventy-four, as amended by section 18 of part B of 51 chapter 97 of the laws of 2011, is amended to read as follows: 52 (1) there has been a substantial modification or increase of dwelling 53 space or an increase in the services, or installation of new equipment 54 or improvements or new furniture or furnishings, provided in or to a 55 tenant's housing accommodation, on written tenant consent to the rentS. 7030 5 1 increase. In the case of a vacant housing accommodation, tenant consent 2 shall not be required. 3 (a) The [permanent] temporary increase in the legal regulated rent for 4 the affected housing accommodation shall be [one-fortieth, in the case5of a building with thirty-five or fewer housing accommodations, or one-6sixtieth, in the case of a building with more than thirty-five housing7accommodations where such permanent increase takes effect on or after8September twenty-fourth, two thousand eleven,] one eighty-fourth of the 9 total cost incurred by the landlord in providing such modification or 10 increase in dwelling space, services, furniture, furnishings or equip- 11 ment, including the cost of installation, but excluding finance charges 12 and cosmetic improvements. 13 (b) Provided further that an owner who is entitled to a rent increase 14 pursuant to this paragraph shall not be entitled to a further rent 15 increase based upon the installation of similar equipment, or new furni- 16 ture or furnishings within the useful life of such new equipment, or new 17 furniture or furnishings. 18 (c) The owner shall give written notice to the division of housing and 19 community renewal and the tenant named in a vacancy lease on forms 20 prescribed by the division of any such adjustment pursuant to this para- 21 graph and the failure to provide such written notice as provided herein 22 shall preclude the collection of any such adjustment. Such notice must 23 include a detailed breakdown of the nature and cost of any improvements 24 underlying an increase in rent under this paragraph and a statement that 25 any increase above the previous rent is in accordance with adjustments 26 permitted by law. The owner shall file with the division of housing and 27 community renewal all documents necessary to support the collection of 28 such increase, including, but not limited to, cancelled checks, invoices 29 and signed contracts entered into contemporaneously with the improve- 30 ments alleged. 31 § 6. Subdivision d of section 6 of section 4 of chapter 576 of the 32 laws of 1974, constituting the emergency tenant protection act of nine- 33 teen seventy-four, is amended by adding a new paragraph 6 to read as 34 follows: 35 (6) (a) Within one hundred twenty days of the effective date of this 36 paragraph, the division of housing and community renewal shall issue a 37 schedule of reasonable costs for upgrades and improvements that may be 38 claimed as a basis for an adjustment of rent pursuant to paragraph one 39 of this subdivision. The schedule of reasonable costs shall exclude 40 cosmetic improvements. The schedule of reasonable costs shall be based 41 on the average costs for similar upgrades or improvements made to compa- 42 rable properties located in each county, subject to the provisions of 43 this act, and shall be updated at least once every two years. No 44 increase in rent shall be collectible under paragraph one of this subdi- 45 vision based upon costs that exceed the reasonable costs set forth in 46 the schedule, unless approved by the division pursuant to subparagraph 47 (b) of this paragraph. 48 (b) Within thirty days of the signing of a vacancy lease including a 49 rent increase pursuant to paragraph one of this subdivision that 50 includes improvements that exceed the schedule of reasonable costs 51 pursuant to subparagraph (a) of this paragraph, the landlord will file 52 with the division of housing and community renewal an explanation of how 53 the vacancy rent was computed, and all documents necessary to support 54 the collection of such increase, including but not limited to, cancelled 55 checks, invoices and signed contracts contemporaneously with the 56 improvements alleged and a statement that any increase above the previ-S. 7030 6 1 ous rent is in accordance with adjustments permitted by law. Upon 2 receipt of all documents submitted by the landlord, and after giving the 3 tenant named in the vacancy lease an opportunity to respond, the divi- 4 sion of housing and community renewal shall issue an order approving or 5 disapproving such increase in whole or in part. 6 (c) Within thirty days of the signing of a vacancy lease including a 7 rent increase that exceeds ten percent of the rent charged to the previ- 8 ous tenant, the landlord will file with the division of housing and 9 community renewal an explanation of how the rent was computed, and all 10 documents necessary to support the collection of such increase, includ- 11 ing but not limited to, cancelled checks, invoices and signed contracts 12 contemporaneously with the improvements alleged and a statement that any 13 increase above the previous rent is in accordance with adjustments 14 permitted by law. Upon receipt of all documents submitted by the owner, 15 and after giving the tenant named in such vacancy lease an opportunity 16 to respond, the division of housing and community renewal shall issue an 17 order approving or disapproving such increase in whole or in part. Based 18 upon such determination, the division of housing and community renewal 19 shall order a refund to the tenant equal to the amount collected in 20 excess of the rent approved by the division of housing and community 21 renewal. 22 (d) No increase shall be collectible under paragraph one of this 23 subdivision where the division of housing and community renewal has 24 determined that the owner is not maintaining all building-wide required 25 services or all required services with respect to the affected housing 26 accommodation, or where there are current or outstanding hazardous 27 violations of any municipal, county, state or federal law which relate 28 to the maintenance of such services. 29 § 7. Clause 5 of the second undesignated paragraph of paragraph (a) of 30 subdivision 4 of section 4 of chapter 274 of the laws of 1946, consti- 31 tuting the emergency housing rent control law, as amended by section 25 32 of part B of chapter 97 of the laws of 2011, is amended to read as 33 follows: 34 (5) the landlord and tenant by mutual voluntary written agreement 35 agree to a substantial increase or decrease in dwelling space or a 36 change in the services, furniture, furnishings or equipment provided in 37 the housing accommodations; provided that an owner shall be entitled to 38 a temporary rent increase until such modification or increase has been 39 paid for where there has been a substantial modification or increase of 40 dwelling space or an increase in the services, or installation of new 41 equipment or improvements or new furniture or furnishings provided in or 42 to a tenant's housing accommodation. The [permanent] temporary increase 43 in the maximum rent for the affected housing accommodation shall be 44 [one-fortieth, in the case of a building with thirty-five or fewer hous-45ing accommodations, or one-sixtieth, in the case of a building with more46than thirty-five housing accommodations where such permanent increase47takes effect on or after September twenty-fourth, two thousand eleven,] 48 one eighty-fourth of the total cost incurred by the landlord in provid- 49 ing such modification or increase in dwelling space, services, furni- 50 ture, furnishings or equipment, including the cost of installation, but 51 excluding finance charges and cosmetic improvements provided further 52 that an owner who is entitled to a rent increase pursuant to this clause 53 shall not be entitled to a further rent increase based upon the instal- 54 lation of similar equipment, or new furniture or furnishings within the 55 useful life of such new equipment, or new furniture or furnishings. TheS. 7030 7 1 owner shall give written notice to the commission of any such adjustment 2 pursuant to this clause; or 3 § 8. This act shall take effect on the ninetieth day after it shall 4 have become a law; provided that: 5 (a) the amendments to section 26-405 of the city rent and rehabili- 6 tation law made by sections one and two of this act shall remain in full 7 force and effect only as long as the public emergency requiring the 8 regulation and control of residential rents and evictions continues, as 9 provided in subdivision 3 of section 1 of the local emergency housing 10 rent control act; 11 (b) the amendments to section 26-511 of chapter 4 of title 26 of the 12 administrative code of the city of New York made by sections three and 13 four of this act shall expire on the same date as such law expires and 14 shall not affect the expiration of such law as provided under section 15 26-520 of such law; 16 (c) the amendments to section 6 of the emergency tenant protection act 17 of nineteen seventy-four made by sections five and six of this act shall 18 expire on the same date as such act expires and shall not affect the 19 expiration of such act as provided in section 17 of chapter 576 of the 20 laws of 1974; 21 (d) the amendments to section 4 of the emergency housing rent control 22 law made by section seven of this act shall expire on the same date as 23 such law expires and shall not affect the expiration of such law as 24 provided in subdivision 2 of section 1 of chapter 274 of the laws of 25 1946; and 26 (e) effective immediately, the division of housing and community 27 renewal is authorized to and shall promulgate all rules, regulations and 28 standards necessary to implement the provisions of this act.
