senate Bill S1815

Relates to the establishment of rent adjustments

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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 the establishment of rent adjustments in NYC and Westchester and Nassau counties; suspends operations of the maximum base rent program.

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Bill Details

See Assembly Version of this Bill:
A848
Versions:
S1815
Legislative Cycle:
2013-2014
Current Committee:
Senate Housing, Construction And Community Development
Law Section:
New York City Administrative Code
Laws Affected:
Amd §26-405, NYC Ad Cd; amd §4, Emerg Hous Rent Cont L
Versions Introduced in Previous Legislative Cycles:
2011-2012: S5699A, A1892B
2009-2010: A7150, A7150

Sponsor Memo

BILL NUMBER:S1815

TITLE OF BILL:
An act
to amend the administrative code of the city of New York and the
emergency housing rent control law, in relation to the establishment of
rent adjustments

PURPOSE:
This bill would bring the formula for calculating rents in
rent-controlled apartments in line with that used to calculate rents
in rent-stabilized apartments. It would require the Department of
Housing and Community Renewal to use the same formula in determining
rent increases for rent-controlled apartments that the Rent
Guidelines Board uses to determine rent increases for rent-stabilized
apartments.

SUMMARY OF PROVISIONS:

Section 1 amends subdivision a of section 26-405 of the administrative
code of the city of New York by adding a paragraph that establishes
annual rates of rent adjustment for New York City housing
accommodations subject to rent control.

The new paragraph establishes the maximum rent collectible from the
tenant as the maximum rent collectible on December 31st, 2009. It
also establishes that maximum rates of rent adjustment shall not be
established more than once annually for any housing accommodation
subject to rent control.

It establishes that not later than October 1st, 2009, and not later
than October 1st annually thereafter, the rent board shall file with
the city clerk and the division of housing and community renewal its
findings established in consideration of the economic factors listed
in subdivision b of section 26-510 of this title, and shall accompany
such findings with a statement of the maximum rate or rates of rent
adjustment authorized for the adjustment of the maximum rent of the
housing accommodation for the twelve-month period beginning on
January 1st, 2010, and for each succeeding twelve-month period
thereafter.

Section 2 amends section 4 of chapter 274 of the laws of 1946 by
adding a new subdivision that adjusts rent increases for the housing
accommodations of Westchester and Nassau counties subject to rent
control.

Section 3 provides that this act shall take effect immediately.

JUSTIFICATION:
Rent-controlled tenants are currently subject to steep rent increases
calculated using an abstruse formula with little relevance in today's
housing market. Rent increases in rent-stabilized apartments are set
by the Rent Guidelines Boards (one in New York City and one each in
Nassau, Westchester, and Rockland counties) using a formula that
takes into account a wide range of economic factors. Rent-controlled
apartments, on the other hand, are subject to the Maximum Base Rent


Program, which establishes maximum base rents for rent-controlled
apartments according to an arcane formula that does not take the same
factors into account. Owners of rent-controlled apartments are
entitled to automatically raise rents up to 7.5 percent each year;
this bill would do away with these unfair and arbitrary automatic
increases by making rent-controlled apartments subject to the same
formula for calculating rent increases to which rent-stabilized
apartments are subject and requiring greater scrutiny of proposed
increases for rent-controlled apartments.

LEGISLATIVE HISTORY: A.7150 of 2009-2010

FISCAL IMPLICATIONS: To be determined.

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
________________________________________________________________________

                                  1815

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by  Sens.  ESPAILLAT,  AVELLA,  KRUEGER,  PERKINS, SQUADRON,
  STAVISKY -- 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  housing  rent control law, in relation to the establishment
  of rent adjustments

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

  Section 1.  Subdivision a of section 26-405 of the administrative code
of  the city of New York is amended by adding a new paragraph 10 to read
as follows:
  (10) (A) NOTWITHSTANDING ANY CONTRARY PROVISIONS OF THIS  SUBDIVISION,
EFFECTIVE  JANUARY FIRST, TWO THOUSAND FOURTEEN, MAXIMUM RENTS FOR HOUS-
ING ACCOMMODATIONS SUBJECT TO THIS CHAPTER SHALL  NO  LONGER  BE  ESTAB-
LISHED  PURSUANT  TO  PARAGRAPHS  THREE AND FOUR OF THIS SUBDIVISION, OR
LIMITED BY PARAGRAPH FIVE OF THIS SUBDIVISION, OR ADJUSTED  BY  SUBPARA-
GRAPH (L) OR (N) OF PARAGRAPH ONE OF SUBDIVISION G OF THIS SECTION.
  (B)  EXCEPT  AS  OTHERWISE PROVIDED IN THIS PARAGRAPH, THE RENT GUIDE-
LINES BOARD ESTABLISHED PURSUANT TO SECTION 26-510 OF THIS  TITLE  SHALL
ESTABLISH  ANNUAL  RATES  OF  RENT  ADJUSTMENT  FOR THE CLASS OF HOUSING
ACCOMMODATIONS SUBJECT TO THIS CHAPTER, IN THE MANNER PROVIDED  BY  SUCH
SECTION.  THE  FACT  THAT  THE  HOUSING ACCOMMODATION IS SUBJECT TO THIS
CHAPTER MAY NOT BE CONSIDERED AS A FACTOR IN  DETERMINING  THE  RATE  OF
RENT  ADJUSTMENT.  NOT  LATER THAN OCTOBER FIRST, TWO THOUSAND THIRTEEN,
AND NOT LATER THAN OCTOBER FIRST ANNUALLY THEREAFTER,  THE  RENT  GUIDE-
LINES  BOARD  SHALL FILE WITH THE CITY CLERK AND THE DIVISION OF HOUSING
AND COMMUNITY RENEWAL ITS FINDINGS ESTABLISHED IN CONSIDERATION  OF  THE
ECONOMIC  FACTORS  LISTED  IN  SUBDIVISION  B  OF SECTION 26-510 OF THIS
TITLE, AND SHALL ACCOMPANY SUCH FINDINGS WITH A STATEMENT OF THE MAXIMUM

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04418-01-3

S. 1815                             2

RATE OR RATES OF RENT ADJUSTMENT, IF ANY, FOR ONE  OR  MORE  CLASSES  OF
ACCOMMODATIONS  SUBJECT TO THIS CHAPTER AUTHORIZED FOR THE ADJUSTMENT OF
THE MAXIMUM RENT OF THE HOUSING ACCOMMODATION FOR THE TWELVE MONTH PERI-
OD COMMENCING JANUARY FIRST, TWO THOUSAND THIRTEEN AND FOR EACH SUCCEED-
ING TWELVE MONTH PERIOD.
  (C)  EFFECTIVE  JANUARY FIRST, TWO THOUSAND FOURTEEN, THE MAXIMUM RENT
COLLECTIBLE FROM THE TENANT SHALL BE THE  MAXIMUM  RENT  COLLECTIBLE  ON
DECEMBER  THIRTY-FIRST,  TWO  THOUSAND  THIRTEEN,  AS  SUCH  RENT MAY BE
ADJUSTED PURSUANT TO SUBPARAGRAPH (B) OF THIS PARAGRAPH ANNUALLY,  WITH-
OUT  AN  ORDER  OF  THE CITY RENT AGENCY, OR AS ADJUSTED PURSUANT TO ANY
OTHER PROVISION OF THIS CHAPTER, PROVIDED  THAT  A  LANDLORD  SHALL  NOT
COLLECT  ANY  RENT  INCREASE  OR  ADJUSTMENT OTHERWISE COLLECTIBLE UNDER
SUBPARAGRAPH (B) OF THIS PARAGRAPH  UNLESS  AND  UNTIL  THE  FIRST  RENT
PAYMENT  DATE  AFTER THE LANDLORD CERTIFIES TO THE CITY RENT AGENCY THAT
ALL RENT IMPAIRING VIOLATIONS, AS DEFINED BY SECTION THREE HUNDRED TWO-A
OF THE MULTIPLE DWELLING LAW, AND AT LEAST  EIGHTY  PER  CENTUM  OF  ALL
OTHER VIOLATIONS OF THE HOUSING MAINTENANCE CODE OR OTHER STATE OR LOCAL
LAWS  THAT  IMPOSE  REQUIREMENTS  ON  PROPERTY  AND  WHICH WERE RECORDED
AGAINST THE PROPERTY ON JULY FIRST, TWO THOUSAND TWELVE, OR  JULY  FIRST
OF  THE  YEAR  PRECEDING  THE  ADJUSTMENT, WHICHEVER IS LATER, HAVE BEEN
CLEARED, CORRECTED OR ABATED AND THE LANDLORD HAS RECEIVED AN  ORDER  OF
ELIGIBILITY  FROM  THE  CITY  RENT  AGENCY  THAT  THE VIOLATION CLEARING
REQUIREMENTS SET FORTH ABOVE HAVE BEEN MET AND FURTHER  AUTHORIZING  THE
LANDLORD  TO COLLECT ANY RENT INCREASE OR ADJUSTMENT AUTHORIZED PURSUANT
TO SUBPARAGRAPH (B) OF THIS PARAGRAPH, AND THE LANDLORD HAS SERVED  SUCH
ORDER UPON THE TENANT RESIDING IN THE HOUSING ACCOMMODATION AND THAT THE
LANDLORD  HAS MAINTAINED ALL ESSENTIAL AND REQUIRED SERVICES PURSUANT TO
SECTIONS 2202.16 AND 2102.4 OF THE NEW YORK CITY RENT AND EVICTION REGU-
LATIONS.  ANY HOUSING ACCOMMODATION FOR WHICH A RENT  INCREASE  PURSUANT
TO  PARAGRAPHS THREE AND FOUR OF THIS SUBDIVISION HAS TAKEN EFFECT ON OR
AFTER JULY FIRST, TWO THOUSAND THIRTEEN  SHALL  NOT  BE  SUBJECT  TO  AN
INITIAL  RENT  ADJUSTMENT  PURSUANT  TO  THIS SUBPARAGRAPH UNTIL JANUARY
FIRST, TWO THOUSAND FIFTEEN.
  (D) MAXIMUM RATES OF RENT ADJUSTMENT SHALL  NOT  BE  ESTABLISHED  MORE
THAN ONCE ANNUALLY FOR ANY HOUSING ACCOMMODATION SUBJECT TO THIS CHAPTER
WITHIN  THE  RENT  GUIDELINES BOARD'S JURISDICTION. ONCE ESTABLISHED, NO
SUCH RATE SHALL BE ADJUSTED BY ANY SURCHARGE, SUPPLEMENTARY  ADJUSTMENT,
REOPENER OR OTHER MODIFICATION.
  (E)  NOTHING  CONTAINED  IN  THIS  PARAGRAPH  SHALL ALTER, RESTRICT OR
IMPAIR AN OWNER'S RIGHT TO ESTABLISH  THE  INITIAL  REGULATED  RENT  FOR
ACCOMMODATIONS SUBJECT TO THIS CHAPTER WHICH BECOME VACANT.
  S  2.  Section  4 of chapter 274 of the laws of 1946, constituting the
emergency housing rent control law, is amended by adding a new  subdivi-
sion 9 to read as follows:
  9.  NOTWITHSTANDING  ANY  CONTRARY  PROVISIONS  OF THIS LAW, EFFECTIVE
JANUARY FIRST, TWO THOUSAND FOURTEEN, EXCEPT AS  OTHERWISE  PROVIDED  IN
THIS  SUBDIVISION,  THE  RENT FOR HOUSING ACCOMMODATIONS SUBJECT TO THIS
CHAPTER LOCATED IN THE COUNTIES  OF  WESTCHESTER  AND  NASSAU  SHALL  BE
ADJUSTED AS FOLLOWS:
  (A)  THE  COUNTY  RENT BOARDS ESTABLISHED PURSUANT TO SECTION 4 OF THE
EMERGENCY TENANT PROTECTION ACT OF NINETEEN SEVENTY-FOUR,  SHALL  ESTAB-
LISH  ANNUAL  RENT  ADJUSTMENTS  FOR THE CLASS OF HOUSING ACCOMMODATIONS
SUBJECT TO THIS CHAPTER LOCATED  IN  THE  COUNTIES  OF  WESTCHESTER  AND
NASSAU,  IN THE MANNER PROVIDED BY SUCH SECTION. THE FACT THAT THE HOUS-
ING ACCOMMODATION IS SUBJECT TO THIS LAW MAY  NOT  BE  CONSIDERED  AS  A
FACTOR  IN DETERMINING THE RATE OF RENT ADJUSTMENT. NOT LATER THAN OCTO-

S. 1815                             3

BER FIRST, TWO THOUSAND THIRTEEN, AND NOT LATER THAN OCTOBER FIRST ANNU-
ALLY THEREAFTER, THE COUNTY RENT BOARDS SHALL FILE WITH  THE  COMMISSION
THEIR  FINDINGS  ESTABLISHED  IN  CONSIDERATION  OF THE ECONOMIC FACTORS
LISTED  IN SUBDIVISION B OF SECTION 4 OF THE EMERGENCY TENANT PROTECTION
ACT OF NINETEEN SEVENTY-FOUR, AND SHALL ACCOMPANY SUCH FINDINGS  WITH  A
STATEMENT  OF  THE MAXIMUM RATE OR RATES OF RENT ADJUSTMENT, IF ANY, FOR
ONE OR MORE CLASSES OF ACCOMMODATIONS SUBJECT TO THIS  LAW  WITHIN  SUCH
COUNTIES  AUTHORIZED FOR THE ADJUSTMENT OF THE MAXIMUM RENT OF THE HOUS-
ING ACCOMMODATION FOR THE TWELVE MONTH PERIOD COMMENCING JANUARY  FIRST,
TWO THOUSAND FOURTEEN, AND FOR EACH SUCCEEDING TWELVE MONTH PERIOD.
  (B)  EFFECTIVE  JANUARY FIRST, TWO THOUSAND FOURTEEN, THE MAXIMUM RENT
COLLECTIBLE FROM THE TENANT SHALL BE THE  MAXIMUM  RENT  COLLECTIBLE  ON
DECEMBER  THIRTY-FIRST,  TWO  THOUSAND  THIRTEEN,  AS  SUCH  RENT MAY BE
ADJUSTED PURSUANT TO PARAGRAPH (A) OF THIS SUBDIVISION ANNUALLY, WITHOUT
AN ORDER OF THE  COMMISSION,  OR  AS  ADJUSTED  PURSUANT  TO  ANY  OTHER
PROVISION  OF  THIS LAW. HOWEVER, NO SUCH INCREASE PURSUANT TO PARAGRAPH
(A) OF THIS SUBDIVISION SHALL BE  AUTHORIZED  UNTIL  THE  EXPIRATION  OF
TWELVE  MONTHS FROM THE EFFECTIVE DATE OF ANY RENT ADJUSTMENT AUTHORIZED
PURSUANT TO REGULATIONS ADOPTED FOR RENT ADJUSTMENTS TO  COMPENSATE  FOR
UNAVOIDABLE  INCREASED  COSTS  OF  OPERATIONS AS PROVIDED FOR UNDER THIS
LAW.
  (C) MAXIMUM RATES OF RENT ADJUSTMENT SHALL  NOT  BE  ESTABLISHED  MORE
THAN  ONCE  ANNUALLY  FOR  ANY HOUSING ACCOMMODATION SUBJECT TO THIS LAW
WITHIN A BOARD'S JURISDICTION. ONCE ESTABLISHED, NO SUCH RATE  SHALL  BE
ADJUSTED  BY  ANY SURCHARGE, SUPPLEMENTARY ADJUSTMENT, REOPENER OR OTHER
MODIFICATION.
  (D) NOTHING CONTAINED IN  THIS  PARAGRAPH  SHALL  ALTER,  RESTRICT  OR
IMPAIR  AN  OWNER'S  RIGHT  TO  ESTABLISH THE INITIAL REGULATED RENT FOR
ACCOMMODATIONS SUBJECT TO THIS LAW WHICH BECOME VACANT.
  S 3. This act shall take effect immediately; provided that the  amend-
ments  to section 26-405 of the city rent and rehabilitation law made by
section one 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
provided that the amendments to section 4 of the emergency housing  rent
control  law  made  by  section two 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.

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