senate Bill S1169

Relates to limited profit housing companies

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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

Relates to limited profit housing companies.

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Bill Details

Versions:
S1169
Legislative Cycle:
2013-2014
Current Committee:
Senate Housing, Construction And Community Development
Law Section:
Emergency Tenant Protection Act of 1974
Laws Affected:
Amd §5, Emerg Ten Prot Act of 1974
Versions Introduced in Previous Legislative Cycles:
2011-2012: S1010
2009-2010: S3326D
2007-2008: S5284

Sponsor Memo

BILL NUMBER:S1169

TITLE OF BILL:
An act to amend the emergency tenant protection act of nineteen
seventy-four, in relation to limited-profit housing companies and
other buildings or structures which received project-based rental
assistance

PURPOSE OR GENERAL IDEA OF BILL:
This bill protects those tenants who live in Mitchell-Lama and
project-based Section 8 buildings whose owners have bought out of the
Mitchell-Lama program or who no longer have Section 8 contracts with
the United States Department of Housing and Urban Development (RUD).

SUMMARY OF SPECIFIC PROVISIONS:
This bill authorizes New York City or any city, town or village in the
counties of Westchester, Nassau and Rockland to extend the Emergency
Tenant Protection Act (the ETPA) to cover rental buildings which: (1)
were owned by limited-profit housing companies which voluntarily
dissolved or which dissolve in the future, or (2) were covered by
rental assistance contracts between their owners and HUD and such
contracts expired or terminated previously or do so in the future. The
bill also prevents owners of such buildings from applying for higher
initial rents under the ETPA or the New York City Rent Stabilization
Law than were previously charged to their tenants.

Section 1 of this bill sets forth Legislative findings and declaration
of emergency.

Section 2 of the bill amends Section 5 of section 4 of Chapter 576 of
the laws of 1974 constituting the emergency tenant protection act of
1974 by adding a new subdivision c to set rents for buildings
completed after January 1, 1974 as the rents charged on January
1,2007, as subsequently adjusted by rent regulation laws.
Furthermore, this section clarifies that the rent setting language
with a base date of January 1, 2007, will supersede any agreement made
between a tenant and landlord whether in a lease or another agreement.

It makes it clear that "Unique" or "peculiar" circumstances rent
increases authorized by the New York City rent stabilization law and
the Emergency Tenant Protection Act are not applicable to
Mitchell-Lama or project based. Section 8. buildings whether the
building were completed before or after January 1, 1974.

Section 2 sets forth an effective date of immediate and provides that
the law applies to housing accommodations located in buildings or
structures-owned by housing companies that dissolved on, before, or
after such date and to housing accommodations in buildings or
structures that were covered projects and had contracts for rental
assistance that expired or were terminated on, before, or after such
date; provided that the amendments to section 5 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.


JUSTIFICATION:
Many limited-profit housing companies are exercising their option to
buy-out of the Mitchell-Lama program. Likewise, HUD contracts with the
owners of rental buildings for Section 8 assistance are expiring,
being terminated or not being renewed Existing middle income tenants
in Mitchell-Lama and Section 8 housing are faced with eviction if they
cannot afford new market rents. Extending the ETPA to these buildings
will ensure that existing tenants can continue to afford to live in
their current apartments. ETPA coverage will also enable building
owners to more readily be eligible for rent increases under annual
ETPA guidelines.

LEGISLATIVE HISTORY:
2011/12 - S.1010 - Died - Housing
2009/10 - S.3326D - Died - Housing
2008 - S.5284 - Died - Housing

FISCAL IMPLICATIONS:
Most costs of administration of ETPA and rent stabilization are
covered by per unit fees charged to property owners.

EFFECTIVE DATE:
This act shall take effect immediately and shall apply to housing
accommodations located in buildings or structures owned by housing
companies that dissolved on, before or after such date and to housing
accommodations in buildings or structures that were covered projects and
had contracts for rental assistance that expired or were terminated on,
before or after such date; provided that the amendments to section 5 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.

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

                                  1169

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by  Sens.  STEWART-COUSINS,  ADAMS,  ADDABBO,  AVELLA, DIAZ,
  DILAN, HASSELL-THOMPSON, KRUEGER, PARKER, PERALTA,  PERKINS,  SERRANO,
  SQUADRON, STAVISKY -- read twice and ordered printed, and when printed
  to be committed to the Committee on Housing, Construction and Communi-
  ty Development

AN  ACT  to amend the emergency tenant protection act of nineteen seven-
  ty-four, in relation to limited-profit  housing  companies  and  other
  buildings or structures which received project-based rental assistance

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

  Section 1.   Legislative findings and declaration  of  emergency.  The
legislature  hereby finds and declares that the serious public emergency
which led to the enactment of the existing laws  regulating  residential
rents  and  evictions  continues  to  exist; that such laws would better
serve the public interest if certain changes were made thereto,  includ-
ing  extending  to  certain  cities, towns and villages the authority to
provide for the regulation of rents and evictions with regard to housing
accommodations that cease or have ceased to  be  regulated  pursuant  to
article 2 of the private housing finance law, known as the Mitchell-Lama
law,  or  pursuant to project-based section eight contracts entered into
with the federal government.
  The legislature further  recognizes  that  severe  disruption  of  the
rental  housing market has occurred and threatens to be exacerbated as a
result of the abrupt termination of rent and  eviction  regulation  when
buildings  exit  the Mitchell-Lama program or when buildings cease to be
subject to project-based section  eight  contracts.  The  situation  had
permitted  speculative  and profiteering practices and has brought about
the loss of vital  and  irreplaceable  affordable  housing  for  working
persons and families.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02594-01-3

S. 1169                             2

  The legislature therefore declares that in order to prevent uncertain-
ty,  potential  hardship  and  dislocation  of tenants living in housing
accommodations subject to  government  regulations  as  to  rentals  and
continued  occupancy  as  well as those not subject to such regulations,
the  provisions  of this act are necessary to protect the public health,
safety and general welfare. The necessity in the public interest for the
provisions hereinafter enacted is hereby declared as a matter of  legis-
lative determination.
  S 2. Section 5 of section 4 of chapter 576 of the laws of 1974 consti-
tuting  the  emergency tenant protection act of nineteen seventy-four is
amended by adding a new subdivision c to read as follows:
  C. NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION, NOTHING  SHALL
PREVENT  THE  DECLARATION  OF  AN EMERGENCY PURSUANT TO SECTION THREE OF
THIS ACT FOR RENTAL  HOUSING  ACCOMMODATIONS  LOCATED  IN  BUILDINGS  OR
STRUCTURES  COMPLETED  OR  SUBSTANTIALLY RENOVATED AS FAMILY UNITS ON OR
AFTER JANUARY FIRST, NINETEEN HUNDRED SEVENTY-FOUR: (I)  WHICH  HAVE  OR
HAD BEEN OWNED, LEASED OR OPERATED BY A COMPANY ESTABLISHED OR OPERATING
UNDER ARTICLE TWO OF THE PRIVATE HOUSING FINANCE LAW, OTHER THAN A MUTU-
AL  COMPANY,  AND  WHICH ARE NO LONGER OWNED, LEASED OR OPERATED BY SUCH
COMPANY BY REASON OF A VOLUNTARY DISSOLUTION PURSUANT TO  SECTION  THIR-
TY-FIVE  OF  SUCH  LAW  OR  (II)  WHICH WERE DEFINED AS COVERED PROJECTS
PURSUANT TO SECTION 8 OF THE UNITED STATES HOUSING ACT OF NINETEEN THIR-
TY-SEVEN, AS AMENDED, OR ANY  SUCCESSOR  STATUTE,  AND  ANY  REGULATIONS
PROMULGATED  THEREUNDER  IN WHICH RENTAL HOUSING ACCOMMODATIONS RECEIVED
PROJECT-BASED RENTAL ASSISTANCE FROM THE  UNITED  STATES  DEPARTMENT  OF
HOUSING  AND  URBAN DEVELOPMENT PURSUANT TO CONTRACTS WITH THE OWNERS OF
SUCH BUILDINGS OR STRUCTURES WHICH EXPIRED  OR  WERE  TERMINATED.    THE
INITIAL  LEGAL  REGULATED  RENT  FOR  HOUSING  ACCOMMODATIONS LOCATED IN
BUILDINGS OR STRUCTURES THAT HAVE OR HAD BEEN OWNED, LEASED OR  OPERATED
BY  HOUSING COMPANIES OR THAT WERE COVERED PROJECTS PREVIOUSLY REGULATED
UNDER THE PRIVATE HOUSING FINANCE LAW OR UNDER FEDERAL LAW, SHALL BE THE
RENT CHARGED TO AND PAID BY THE TENANT IN OCCUPANCY  ON  JANUARY  FIRST,
TWO  THOUSAND SEVEN OR, FOR ACCOMMODATIONS VACANT ON SUCH DATE, THE MOST
RECENT RENT CHARGED TO AND PAID BY A TENANT PRIOR TO SUCH DATE,  INCLUD-
ING  ANY INCOME-RELATED SURCHARGES, AS ADJUSTED BY ALL APPLICABLE GUIDE-
LINES INCREASES AND OTHER INCREASES AUTHORIZED BY  LAW,  NOTWITHSTANDING
ANY  WRITTEN  LEASE  OR  AGREEMENT  BETWEEN  THE TENANT AND THE LANDLORD
ESTABLISHING OR AGREEING TO ANY INCREASES IN RENT ON  OR  AFTER  JANUARY
FIRST,  TWO  THOUSAND  SEVEN,  PROVIDED NO LANDLORD SHALL BE REQUIRED TO
REFUND ANY RENT PAID BY A TENANT IN EXCESS OF SUCH ADJUSTED RENT.
  S 3. The provisions of subdivision a of section  9  of  the  emergency
tenant  protection  act  of nineteen seventy-four or of subdivision a of
section 26-513 of the administrative code of the city of New York  shall
not apply to any housing accommodation which became subject to the emer-
gency  tenant  protection  act  of nineteen seventy-four pursuant to the
provisions of subdivision c of section 5 of section 4 of chapter 576  of
the  laws  of  1974, as added by section two of this act, or to any such
housing  accommodation  otherwise  subject  to  the   emergency   tenant
protection  act  of nineteen seventy-four by reason of its location in a
building completed or substantially renovated as family units  prior  to
January first, nineteen hundred seventy-four.
  S 4. This act shall take effect immediately and shall apply to housing
accommodations  located  in  buildings  or  structures  owned by housing
companies that dissolved on, before or after such date  and  to  housing
accommodations in buildings or structures that were covered projects and
had  contracts for rental assistance that expired or were terminated on,

S. 1169                             3

before or after such date; provided that the amendments to section 5  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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