senate Bill S2341

Limits the amount of rent increase after the vacancy of a housing accommodation

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 19 / Jan / 2011
    • REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT
  • 04 / Jan / 2012
    • REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT

Summary

Limits the amount of rent increase after the vacancy of a housing accommodation.

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Bill Details

Versions:
S2341
Legislative Cycle:
2011-2012
Current Committee:
Senate Housing, Construction And Community Development
Law Section:
New York City Administrative Code
Laws Affected:
Amd §26-511, NYC Ad Cd; amd §10, Emerg Ten Prot Act of 1974
Versions Introduced in Previous Legislative Cycles:
2009-2010: S6084
2007-2008: A2894

Sponsor Memo

BILL NUMBER:S2341

TITLE OF BILL:
An act
to amend the administrative code of the city of New York and the
emergency tenant protection act of nineteen seventy-four, in relation to
limiting rent increase after vacancy of a housing accommodation

PURPOSE OR GENERAL IDEA OF BILL:
The purpose of this bill is to expand tenant protections by reducing
the percentage by which rent may be increased upon vacancy.

SUMMARY OF SPECIFIC PROVISIONS:
This bill would decrease from twenty percent to ten percent the amount
a landlord could increase rent upon vacancy and also prohibit a
landlord from taking more than one increase in anyone calendar year.

EFFECTS OF PRESENT LAW WHICH THIS BILL WOULD ALTER:
This bill would amend paragraph 5-a of subdivision c of section
26-511 of
the administrative code of the city of New York, and subdivision
(a-1) of section 10 of section 4 of chapter 576 of the laws of 1974,
constituting the emergency tenant protection act of nineteen seventy
four.

JUSTIFICATION:
There continues to be an ongoing housing emergency in many areas of
New York State, and especially in New York city. According to the
Rent Guidelines Board report "Housing NYC: Rents, Markets and Trends
2000", while New York city experienced a net gain of total units from
1996-1999, the number of rental units declined. In fact, the report
states that vacant available rentals fell by almost 17,000 units, or
20.7%, over the last three years, lowering the vacancy rate from
4.01% in 1996 to 3.19% in 1999. Limiting the amount by which rent may
be increased upon vacancy will help keep units in the rent regulation
system and thus preserve these units in the affordable housing stock.

PRIOR LEGISLATIVE HISTORY:
A.4213 - 2005-06 Session
A.10846 - 2003-04 Session
A.2894 - 2007-08 Session
2009/10 - Senate & Assembly Referred to Housing

FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None to the State.

EFFECTIVE DATE:
Immediately, with provisions.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  2341

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                            January 19, 2011
                               ___________

Introduced  by Sens. SERRANO, PERALTA -- 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 and the
  emergency tenant protection act of nineteen seventy-four, in  relation
  to limiting rent increase after vacancy of a housing accommodation

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Paragraph 5-a of subdivision c of  section  26-511  of  the
administrative  code of the city of New York, as added by chapter 116 of
the laws of 1997, is amended to read as follows:
  (5-a) provides that, notwithstanding any provision  of  this  chapter,
the  legal  regulated  rent for any vacancy lease entered into after the
effective date of this paragraph shall be  as  hereinafter  provided  in
this  paragraph.  The  previous  legal  regulated  rent for such housing
accommodation shall be increased by the following: (i)  if  the  vacancy
lease  is  for a term of two years, [twenty] TEN percent of the previous
legal regulated rent; or (ii) if the vacancy lease is for a term of  one
year  the  increase  shall be [twenty] TEN percent of the previous legal
regulated rent less an amount equal to the difference  between  (a)  the
two  year renewal lease guideline promulgated by the guidelines board of
the city of New York applied to the previous legal  regulated  rent  and
(b)  the  one year renewal lease guideline promulgated by the guidelines
board of the city of New York applied to the  previous  legal  regulated
rent.  In  addition,  if the legal regulated rent was not increased with
respect to such housing accommodation by a permanent  vacancy  allowance
within  eight  years  prior  to a vacancy lease executed on or after the
effective date of this  paragraph,  the  legal  regulated  rent  may  be
further  increased  by  an  amount  equal  to the product resulting from
multiplying such previous legal regulated  rent  by  six-tenths  of  one
percent  and  further  multiplying the amount of rent increase resulting

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00241-01-1

S. 2341                             2

therefrom by the greater of (A) the number of years since the imposition
of the last permanent vacancy allowance, or (B)  if  the  rent  was  not
increased  by  a  permanent vacancy allowance since the housing accommo-
dation  became  subject  to  this chapter, the number of years that such
housing accommodation has been subject to this chapter. Provided that if
the previous legal regulated rent was less than  three  hundred  dollars
the total increase shall be as calculated above plus one hundred dollars
per  month. Provided, further, that if the previous legal regulated rent
was at least three hundred dollars and no more than five hundred dollars
in no event shall the total increase pursuant to this paragraph be  less
than  one  hundred  dollars per month. Such increase shall be in lieu of
any allowance authorized for the one or two year renewal component ther-
eof, but shall be in addition to any other increases authorized pursuant
to this chapter including an  adjustment  based  upon  a  major  capital
improvement, or a substantial modification or increase of dwelling space
or  services,  or  installation  of new equipment or improvements or new
furniture or furnishings provided in or  to  the  housing  accommodation
pursuant to this section.  THE INCREASE AUTHORIZED IN THIS PARAGRAPH MAY
NOT BE IMPLEMENTED MORE THAN ONE TIME IN ANY CALENDAR YEAR NOTWITHSTAND-
ING THE NUMBER OF VACANCY LEASES ENTERED INTO IN SUCH YEAR.
  S  2.  Subdivision  (a-1) of section 10 of section 4 of chapter 576 of
the laws of 1974, constituting the emergency tenant  protection  act  of
nineteen  seventy-four,  as added by chapter 116 of the laws of 1997, is
amended to read as follows:
  (a-1) provides that, notwithstanding any provision of  this  act,  the
legal regulated rent for any vacancy lease entered into after the effec-
tive  date  of  this subdivision shall be as hereinafter set forth.  The
previous legal regulated rent for such housing  accommodation  shall  be
increased  by  the  following: (i) if the vacancy lease is for a term of
two years, [twenty] TEN percent of the previous legal regulated rent; or
(ii) if the vacancy lease is for a term of one year the  increase  shall
be  [twenty]  TEN  percent  of the previous legal regulated rent less an
amount equal to the difference between (a) the two  year  renewal  lease
guideline promulgated by the guidelines board of the county in which the
housing accommodation is located applied to the previous legal regulated
rent  and  (b)  the  one year renewal lease guideline promulgated by the
guidelines board of the county in which  the  housing  accommodation  is
located  applied  to  the previous legal regulated rent. In addition, if
the legal regulated rent was not increased with respect to such  housing
accommodation  by a permanent vacancy allowance within eight years prior
to a vacancy lease executed on or  after  the  effective  date  of  this
subdivision,  the  legal  regulated  rent may be further increased by an
amount equal to the product resulting  from  multiplying  such  previous
legal  regulated rent by six-tenths of one percent and further multiply-
ing the amount of rent increase resulting therefrom by  the  greater  of
(A)  the  number  of  years  since  the imposition of the last permanent
vacancy allowance, or (B) if the rent was not increased by  a  permanent
vacancy allowance since the housing accommodation became subject to this
act,  the  number  of  years  that  such  housing accommodation has been
subject to this act. Provided that if the previous legal regulated  rent
was  less  than  three  hundred  dollars  the total increase shall be as
calculated above plus one hundred dollars per month. Provided,  further,
that  if  the  previous  legal regulated rent was at least three hundred
dollars and no more than five hundred dollars  in  no  event  shall  the
total  increase  pursuant  to  this subdivision be less than one hundred
dollars per month. Such increase shall  be  in  lieu  of  any  allowance

S. 2341                             3

authorized  for the one or two year renewal component thereof, but shall
be in addition to any other increases authorized pursuant  to  this  act
including  an  adjustment  based  upon a major capital improvement, or a
substantial  modification  or increase of dwelling space or services, or
installation of new  equipment  or  improvements  or  new  furniture  or
furnishings  provided  in  or  to  the housing accommodation pursuant to
section six of this act.  THE INCREASE AUTHORIZED  IN  THIS  SUBDIVISION
MAY  NOT BE IMPLEMENTED MORE THAN ONE TIME IN ANY CALENDAR YEAR NOTWITH-
STANDING THE NUMBER OF VACANCY LEASES ENTERED INTO IN SUCH YEAR.
  S 3. This act shall take effect immediately; provided that the  amend-
ments  to  section  26-511  of  the  rent  stabilization law of nineteen
hundred sixty-nine made by section one of this act shall expire  on  the
same  date  as  such  law expires and shall not affect the expiration of
such law as provided under section 26-520 of  such  law;  and  provided,
further,  that  the  amendments  to  section  4  of the emergency tenant
protection act of nineteen seventy-four made by section two of this  act
shall  expire  on the same date as such act expires and shall not affect
the expiration of such act as provided in section 17 of chapter  576  of
the laws of 1974.

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