senate Bill S1040

Relates to rent increases after vacancy of a housing accommodation; repealer

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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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  • 09 / Jan / 2013
    • REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT
  • 08 / Jan / 2014
    • REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT

Summary

Repeals provisions permitting rent increases after vacancy of a housing accommodation.

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Bill Details

See Assembly Version of this Bill:
A7343
Versions:
S1040
Legislative Cycle:
2013-2014
Current Committee:
Senate Housing, Construction And Community Development
Law Section:
New York City Administrative Code
Laws Affected:
Rpld §26-511 sub c ¶5-a, amd §§26-512 & 26-403.2, NYC Ad Cd; rpld §10 sub (a-1), amd §6, Emerg Ten Prot Act of 1974; amd §5, Emerg Hous Rent Cont L; amd §1, Chap 21 of 1962
Versions Introduced in Previous Legislative Cycles:
2011-2012: S2699, A1309
2009-2010: S1332, A463
2007-2008: A10054

Sponsor Memo

BILL NUMBER:S1040

TITLE OF BILL:
An act
to amend the administrative code of the city of New York, the emergency
tenant protection act of nineteen seventy-four, the emergency housing
rent control law and the local emergency rent control act, in relation
to rent increases after vacancy of a housing accommodation; and to repeal
certain provisions of the administrative code of the city of New York
and the emergency tenant protection act of nineteen seventy-four
relating thereto

PURPOSE OF THE BILL:
To protect tenants by repealing the ability of a
landlord to obtain a twenty percent increase in rent pursuant to the
statutory vacancy
bonus provision of the Emergency Tenant Protection Act.

SUMMARY OF SPECIFIC PROVISIONS:
This legislation amends the
administrative code of the City of New York, the emergency tenant
protection act of nineteen seventy- four, the emergency housing rent
control law and the local emergency rent control act, in relation to
rent increases after vacancy of a housing accommodation and to repeal
certain provisions of the administration code of the city of New York
and the emergency tenant protection act of nineteen seventy-four,
that permits a landlord to increase the legally permissible rent
by twenty percent (20%) upon vacancy of a rent-regulated apartment.

JUSTIFICATION:
As housing costs increase exponentially across New York
City, the displacement of working families and middle class residents
from rent-regulated apartments has reached crisis proportions.
Undoubtedly, the ability of landlords to increase rent by 20% in the
event of a vacancy, getting closer to the decontrol threshold of two
thousand dollars per month, has been playing a factor.

Under current law, there are no limitations imposed on a landlord's
eligibility for a statutory vacancy bonus. Accordingly, a landlord
can benefit from the vacancy bonus multiple times per year, rapidly
transforming an
affordable apartment into one that is market-rate and decontrolled.

Equally problematic, there is no "clean hands" requirement that the
landlord conduct themselves responsibly in order to benefit from the
bonus.
Consequently, if a tenant leaves an apartment that is uninhabitable
due to lack of heat, hot water, electricity, repairs or sanitary
conditions, the landlord remains eligible for the twenty percent
increase in rent upon vacancy. As a result, current law creates
incentives for bad actors to deprive tenants of a habitable apartment
in order to benefit from the statutory
vacancy bonus.

In order to stem the displacement crisis in New York City, and
preserve the affordable housing stock that remains available to


working families and moderate-income residents, the rent regulation
laws are in need of comprehensive reform. The repeal of the statutory
vacancy bonus provision is
an important step in that direction.

PRIOR LEGISLATIVE HISTORY:
2008: S.8155 Serrano - Referred to Housing, Construction,
and Community Development
2009-10: Senate & Assembly Referred to Housing
2011-12: S.2699

FISCAL IMPLICATIONS FOR STATE & LOCAL GOVERNMENTS:
None.

EFFECTIVE DATE:
This act shall take effect immediately, with provisions.

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

                                  1040

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by Sens. SERRANO, KRUEGER, PERKINS -- 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, the emergen-
  cy  housing rent control law and the local emergency rent control act,
  in relation to rent increases after  vacancy  of  a  housing  accommo-
  dation; and to repeal certain provisions of the administrative code of
  the  city of New York and the emergency tenant protection act of nine-
  teen seventy-four relating thereto

  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 is REPEALED.
  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 is REPEALED.
  S 3. Subdivision f of section 26-512 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:
  f.  Notwithstanding  any  provision of this law to the contrary in the
case where all tenants named in a lease have permanently vacated a hous-
ing accommodation and a family member of such tenant or tenants is enti-
tled to and executes a renewal lease for the  housing  accommodation  if
such accommodation continues to be subject to this law after such family
member  vacates,  on  the occurrence of such vacancy the legal regulated
rent shall be increased by a sum equal to the allowance then  in  effect
for  vacancy leases[, including the amount allowed by paragraph (five-a)
of subdivision c of section 26-511 of this law]. Such increase shall  be
in addition to any other increases provided for in this law 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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00557-01-3

S. 1040                             2

provided in or to the housing accommodation pursuant to  section  26-511
of this law and shall be applicable in like manner to each second subse-
quent succession.
  S  4.  Subdivision  g  of section 6 of section 4 of chapter 576 of the
laws of 1974, constituting the emergency tenant protection act of  nine-
teen  seventy-four,  as  added  by  chapter  116 of the laws of 1997, is
amended to read as follows:
  g. Notwithstanding any provision of this act to the  contrary  in  the
case where all tenants named in a lease have permanently vacated a hous-
ing accommodation and a family member of such tenant or tenants is enti-
tled  to  and  executes a renewal lease for the housing accommodation if
such accommodation continues to be subject to this act after such family
member vacates, on the occurrence of such vacancy  the  legal  regulated
rent  shall  be increased by a sum equal to the allowance then in effect
for vacancy leases[, including the amount allowed by  subdivision  (a-1)
of  section ten of this act].  Such increase shall be in addition to any
other increases provided for in 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 THIS section [six of this act] and
shall be applicable in like manner to each second subsequent succession.
  S 5. Subdivision 9 of section 5 of chapter 274 of the  laws  of  1946,
constituting the emergency housing rent control law, as added by chapter
116 of the laws of 1997, is amended to read as follows:
  9.  Notwithstanding  any  provision of this law to the contrary in the
case where all tenants occupying the housing accommodation on the effec-
tive date of this subdivision have vacated the housing accommodation and
a family member of such vacating tenant or tenants is  entitled  to  and
continues to occupy the housing accommodation subject to the protections
of  this  law, if such accommodation continues to be subject to this law
after such family member vacates, on the occurrence of such vacancy  the
maximum collectable rent shall be increased by a sum equal to the allow-
ance  then  in  effect  for  vacancy  leases  for housing accommodations
covered by the rent stabilization law of nineteen  hundred  sixty-nine[,
including  the  amount  allowed  by paragraph five-a of subdivision c of
section 26-511 of such law]. This increase shall be in addition  to  any
other  increases provided in this law including an adjustment based upon
a major capital improvement, or a substantial increase  or  decrease  in
dwelling  space  or  a change in the services, furniture, furnishings or
equipment provided in the housing  accommodation,  pursuant  to  section
four  of  this law and shall be applicable in like manner to each second
subsequent succession.
  S 6. Section 26-403.2 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:
  S  26-403.2  Increase in maximum collectable rent. Notwithstanding any
provision of this law to the contrary in  the  case  where  all  tenants
occupying  the  housing  accommodation  on  the  effective  date of this
section have vacated the housing accommodation and a  family  member  of
such  vacating  tenant or tenants is entitled to and continues to occupy
the housing accommodation subject to the protections  of  this  law,  if
such accommodation continues to be subject to this law after such family
member  vacates, on the occurrence of such vacancy the maximum collecta-
ble rent shall be increased by a sum equal  to  the  allowance  then  in
effect for vacancy leases for housing accommodations covered by the rent

S. 1040                             3

stabilization  law of nineteen hundred sixty-nine[, including the amount
allowed by paragraph five-a of subdivision c of section 26-511  of  such
law]. This increase shall be in addition to any other increases provided
for  in  this  law  including  an  adjustment based upon a major capital
improvement, or a substantial increase or decrease in dwelling space  or
a  change  in the services, furniture, furnishings or equipment provided
in the housing accommodation, pursuant to section 26-405 of this law and
shall be applicable in like manner to each second subsequent succession.
  S 7. The sixth undesignated paragraph of subdivision 5 of section 1 of
chapter 21 of the laws of 1962, constituting the  local  emergency  rent
control act, as amended by chapter 82 of the laws of 2003, is amended to
read as follows:
  Notwithstanding  any  provision of this act to the contrary, any local
law adopted pursuant to this act shall provide that notwithstanding  any
provision  of such local law in the case where all tenants occupying the
housing accommodation on the  effective  date  of  this  paragraph  have
vacated  the  housing accommodation and a family member of such vacating
tenant or tenants is entitled to and continues  to  occupy  the  housing
accommodation  subject  to the protections of such act, if such accommo-
dation continues to be subject to such  act  after  such  family  member
vacates,  on the occurrence of such vacancy the maximum collectable rent
shall be increased by a sum equal to the allowance then  in  effect  for
vacancy leases for housing accommodations covered by the rent stabiliza-
tion  law  of nineteen hundred sixty-nine[, including the amount allowed
by paragraph (5-a) of subdivision c of section 26-511 of such law]. This
increase shall be in addition to any other  increases  provided  for  in
this  act  and  shall be applicable in like manner to each second subse-
quent succession.
  S 8. This act shall take effect immediately; provided that:
  (a) the amendments to section 26-512 of chapter 4 of title 26  of  the
administrative  code  of  the  city of New York made by section three 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
  (b) the amendments to section 6 of the emergency tenant protection act
of  nineteen  seventy-four made by section four 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; and
  (c)  the amendments to section 5 of the emergency housing rent control
law made by section five of this act shall expire on the  same  date  as
such  law  expires  and  shall  not affect the expiration of such law as
provided in subdivision 2 of section 1 of chapter 274  of  the  laws  of
1946; and
  (d)  the amendments to section 26-403.2 of the city rent and rehabili-
tation law made by section six of this act shall remain  in  full  force
and effect only as long as the public emergency requiring the regulation
and control of residential rents and evictions continues, as provided in
subdivision  3  of section 1 of the local emergency housing rent control
act; and
  (e) the amendments to subdivision 5 of section 1 of the local emergen-
cy housing rent control act, made by section seven of  this  act,  shall
not  affect  the effectiveness of such subdivision and shall cease to be
in full force and effect pursuant to subdivision 3 of section 1 of  such
act.

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