senate Bill S736

Requires limited profit housing company to show maintenance of essential services before approval of rent increases

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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

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

Summary

Defines, for purposes of the Mitchell-Lama housing projects, "essential services" which landlord in limited-profit housing companies are obligated to provide and requires that any authorized maximum average monthly rental increase shall be conditioned on the continued maintenance of such defined services.

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Bill Details

See Assembly Version of this Bill:
A193
Versions:
S736
Legislative Cycle:
2011-2012
Current Committee:
Senate Housing, Construction And Community Development
Law Section:
Private Housing Finance Law
Laws Affected:
Amd ยงยง12 & 31, Priv Hous Fin L
Versions Introduced in Previous Legislative Cycles:
2009-2010: S1658, A540
2007-2008: A531

Sponsor Memo

BILL NUMBER:S736

TITLE OF BILL:
An act
to amend the private housing finance law, in relation to defining
"essential services" and
conditioning approval of increase of
maximum rentals upon maintenance of all essential services

PURPOSE:
The purpose of this bill is to insure that rent increases in
Mitchell-Lama buildings are only granted when the housing company or
landlord is maintaining essential services or when the increases are
conditioned upon their being restored, The bill provides that before
any rent increase is approved in respect to a Mitchell-Lama building,
the housing company applying for the increase must be found to be
maintaining all essential services, and that no increase shall be
approved where there is a certification that the dwelling
accommodation is a fire hazard or is in a dangerous condition, or is
detrimental to life or health or is occupied in violation of law. If
essential services are not being maintained or if fire hazards or
dangerous conditions exist, a rent increase may be approved
contingent upon the restoration of essential services of removal of
unsafe conditions in a reasonably short and fixed time period. This
bill also contains a definition of essential services which indicates
that such services include, but are not limited to, repairs,
maintenance, and furnishing of light, heat, hot and cold. water,
telephone and elevator services, kitchen, bath and laundry facilities
and privileges, as well as resident manager, superintendent
and janitorial services, removal of refuse, park and recreation
facilities, security safeguards, and community meeting facilities and
nursery school rooms.
The provisions of the bill would not apply with respect to services
reduced or discontinued pursuant to the express consent of the
division of housing and community renewal.

JUSTIFICATION:
Mitchell-Lama buildings are operated on what is, in essence, a cost
plus formula. Therefore, rentals are paid to a level necessary to
maintain essential services. If rentals are inadequate, the housing
company may apply for an increase in such rentals. There is,
therefore, no excuse for a housing company or landlord not to provide
essential services to tenants. It is particularly unfair for tenants
to face a rent increase in a Mitchell-Lama building when essential
services are not being maintained. The bill will help ensure that
landlords provide essential services if an increase is to be granted.

LEGISLATIVE HISTORY:

2010: S.1658/A.540

FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
This act shall take effect immediately.


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

                                   736

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 5, 2011
                               ___________

Introduced  by Sen. SQUADRON -- 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 private housing finance law, in relation to defining
  "essential  services" and conditioning approval of increase of maximum
  rentals upon maintenance of all essential services

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

  Section 1. Section 12 of the private housing finance law is amended by
adding a new subdivision 17 to read as follows:
  17.  "ESSENTIAL  SERVICES". THOSE ESSENTIAL SERVICES WHICH THE COMPANY
FURNISHED OR WHICH IT WAS OBLIGATED TO FURNISH ON THE DATE OF  OCCUPANCY
AND  WHICH  WERE  INCLUDED IN THE MAXIMUM RENT FOR THE DWELLING ACCOMMO-
DATIONS ON THAT DATE. THESE MAY INCLUDE, BUT  ARE  NOT  LIMITED  TO  THE
FOLLOWING:   REPAIRS AND MAINTENANCE, THE FURNISHING OF LIGHT, HEAT, HOT
AND COLD WATER, AND ELEVATOR SERVICE.  THIS SUBDIVISION SHALL NOT  APPLY
WITH  RESPECT  TO SERVICES WHICH SHALL HAVE BEEN REDUCED OR DISCONTINUED
PURSUANT TO THE EXPRESS CONSENT OF THE DIVISION.
  S 2. Section 31 of the private  housing  finance  law  is  amended  by
adding a new subdivision 1-a to read as follows:
  1-A. NOTWITHSTANDING ANY OTHER PROVISION OF THIS CHAPTER AND EXCEPT AS
OTHERWISE  PROVIDED IN THIS SUBDIVISION, THE COMMISSIONER OR SUPERVISING
AGENCY SHALL NOT APPROVE AN INCREASE  IN  THE  PRESENT  MAXIMUM  AVERAGE
MONTHLY  RENTAL  UNLESS  THE  COMPANY  OR OTHER APPLICANT IS FOUND TO BE
MAINTAINING ALL ESSENTIAL SERVICES FURNISHED OR REQUIRED TO BE FURNISHED
AS OF THE DATE OF THE ISSUANCE OF THE ORDER AUTHORIZING A RENT  INCREASE
AND  SUCH  INCREASE  SHALL  BE  CONDITIONED  ON  THE MAINTENANCE OF SUCH
SERVICES THEREAFTER. EXCEPT AS OTHERWISE PROVIDED IN  THIS  SUBDIVISION,
NO  RENT  INCREASE SHALL BE APPROVED WHERE THE APPROPRIATE DEPARTMENT OR
AGENCY HAVING JURISDICTION CERTIFIES THE  DWELLING  ACCOMMODATION  IS  A

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01808-01-1

S. 736                              2

FIRE HAZARD OR IN A CONTINUED DANGEROUS CONDITION OR DETRIMENTAL TO LIFE
OR  HEALTH  OR  IS  OCCUPIED  IN VIOLATION OF LAW. UPON A SHOWING BY THE
COMPANY OR OTHER APPLICANT THAT AN INCREASE IN MAXIMUM  AVERAGE  MONTHLY
RENTALS  IS  REQUIRED IN ORDER TO MAINTAIN ESSENTIAL SERVICES OR TO CURE
ANY HAZARDOUS OR DANGEROUS CONDITION THEN, IN SUCH  EVENT,  THE  COMMIS-
SIONER  OR  SUPERVISING  AGENCY  MAY APPROVE AN INCREASE IN SUCH MAXIMUM
AVERAGE MONTHLY RENTALS PROVIDED THAT SUCH INCREASE SHALL BE  CONTINGENT
UPON  THE  RESTORATION  AND  CONTINUANCE  OF  ESSENTIAL SERVICES AND THE
REMOVAL OF HAZARDOUS OR DANGEROUS CONDITIONS WITHIN A  FIXED  PERIOD  OF
TIME WHICH SHALL BE AS SHORT AS REASONABLY PRACTICABLE UNDER THE CIRCUM-
STANCES.
  S 3. This act shall take effect immediately.

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