BILL NUMBER:S797

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 the statute
of limitations
on notices of deregulation

PURPOSE OR GENERAL IDEA OF THE BILL:
The bill will amend the Emergency Tenant Protection Act of 1974 and
the Administrative Code of New York City. This bill will provide
that the statute of limitations for challenges by a tenant to a high
rent decontrol of a rent-regulated apartment is tolled during the
time that the notice required by statute is not given in order to
decrease the number of rent-regulated units improperly deregulated.

SUMMARY OF SPECIFIC PROVISIONS:
This bill will:

* Provide that the limitations period for Challenging deregulation of
a rent-regulated apartment and claim of overcharge is tolled if the
landlord fails to file and serve the appropriate notice; and * Apply
the sections of the bill to housing accommodations that become vacant
on or after the date this bill would become law.
              

EFFECTS OF PRESENT LAW WHICH THIS BILL WOULD ALTER:
The Emergency Tenant Protection Act (EPTA) currently has a four-year
statute of limitations for challenging a legal rent. Also, the New
York City Administrative Code, §26-516, and EPTA, §12, require owners
to keep rent records for four years" This bill adds a new subdivision
(c) of Section 26-504.2 of the New York City Administrative Code to
provide that the periods for the examination of rental history and
claims of overcharge and improper deregulation are extended by the
period during which the owner does not comply with notice and filing
requirements. In addition, it amends the ETPA to set forth
requirements for a landlord who seeks to deregulate a unit on grounds
that the rent has exceeded the high rent threshold to file a
statement with the Division of Housing and Community Renewal (DHCR)
and to notify the tenants, and tolls the statute of limitations
during the time the landlord failed to comply with these requirements

JUSTIFICATION:
The rent laws provide for the deregulation of apartments that become
vacant with a lawful rent of at least $2,000 per month. Since the
right of a tenant to challenge a rent extends only for four years,
a claim of
"high rent vacancy deregulation," which is predicated on the lawful
rent for an apartment reaching the $2,000 per month level becomes
unchallengeable after four years. Therefore, an affected tenant must

be given notice not only of his or her right to challenge the claim
of deregulation, but also of the information necessary to understand
the owner's claim and to file a meaningful challenge.. Where the
owner fails to provide the required notices for high-rent exemption,
the most effective method of ensuring that tenants are given a
meaningful opportunity to challenge claims of deregulation and
related rent overcharges is to provide that the period to examine the
rental history of an accommodation not commence until such notices
are provided.

PRIOR LEGISLATIVE HISTORY:
2012: Referred to Housing, Construction and Community Development
2010: S.5851 (Squadron) - Housing, Construction and Community
      Development, A.7598 (Jefferies) - Passed Assembly
2009: (Squadron) - Rules, A.7598 (Jefferies) - Passed Assembly

FISCAL IMPLICATIONS:
There will be some modest administrative costs associated with
extending the statute of limitations, and with the DHCR maintaining
additional records.

EFFECTIVE DATE:
Bill would take effect immediately; sections 1 and 2 would apply to
housing accommodations that become vacant on or after the date this
bill would become law.