senate Bill S3176

Relates to renewal of a lease under the stabilization code promulgated by the real estate industry stabilization association

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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

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

Summary

Relates to renewal of a lease under the stabilization code promulgated by the real estate industry stabilization association; defines demolish.

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Bill Details

See Assembly Version of this Bill:
A3904
Versions:
S3176
Legislative Cycle:
2013-2014
Current Committee:
Senate Housing, Construction And Community Development
Law Section:
New York City Administrative Code
Laws Affected:
Amd ยง26-511, NYC Ad Cd
Versions Introduced in Previous Legislative Cycles:
2011-2012: S906, A3596
2009-2010: S3854B, A2558B
2007-2008: S7233, A5742

Sponsor Memo

BILL NUMBER:S3176

TITLE OF BILL: An act to amend the administrative code of the city of
New York, in relation to renewal of a lease under the stabilization code

PURPOSE OR GENERAL IDEA OF BILL: The purpose of this bill is to clarify
the original intent of the Rent Stabilization Law and to prohibit land-
lords from circumventing the demolition provision included in the Rent
Stabilization Law. Landlords are attempting to circumvent rent stabili-
zation by applying for a demolition permit in order to move tenants out;
when their real purpose is to do a gut rehab so they can lease the
apartments for higher rents.

SUMMARY OF SPECIFIC PROVISIONS:

Section 1 of this bill constitutes a provision where the owner has
established to the satisfaction of the division of housing and community
renewal after a hearing that he or she intends in good faith to demolish
the building and has obtained a permit thereof from the department of
buildings.

Section 2 provides for an immediate effective date with qualifications.

EFFECTS OF PRESENT LAW WHICH THIS BILL WOULD ALTER: This bill would
amend Subparagraph (a) of paragraph 9 of subdivision c of section 26-511
of the administrative code of the city of New York, constituting a
provision of the rent stabilization law of nineteen hundred sixty-nine.

JUSTIFICATION: It is in the State's economic and social interest that
an adequate supply of affordable housing be available. But as develop-
ment pressures continue to drive the competitive real estate market in
New York City and surrounding counties, there has been an increasing
loss of affordable housing units. Eager to increase profits on rent
stabilized housing units in particular, building owners have utilized a
variety of means to turn these units into more profitable luxury housing
or commercial units. The result has been that each year, thousands of
rent-stabilized units are permanently removed from the housing stock.
This trend continues as owners seek new ways to manipulate the letter
and spirit of the law in order to more expeditiously eliminate the rent
stabilized units in a building. This bill addresses one method by which
owners axe increasingly attempting to get rid of rent-stabilized hous-
ing. While the Legislature intended that the demolition provision of the
Rent Stabilization law allow room for owners to demolish old, dilapidat-
ed and dangerous housing in order to replace it with new, safe housing,
some owners are attempting to redefine demolition as simple renovations
where entire floors are left intact, outer walls are untouched, or major
structural elements remain in place. Such uses of the term "demolition"
are inconsistent with both its common meaning and the meaning that was
intended by the Legislature. This bill will clarify the definition of
"demolition", making it consistent with its common and intended defi-
nitions. Accordingly, it will be clear that owners shall not be permit-

ted to eliminate rent-stabilized housing units by manipulating the demo-
lition provision in this manner.

FISCAL IMPLICATIONS: To be determined.

EFFECTIVE DATE: This act shall take effect immediately and shall apply
to any action or proceeding pending in any court and to any application,
complaint, or proceeding pending before an administrative agency on such
effective date, as well as to any action or proceeding commenced there-
after; provided, however that the amendments to subparagraph (a) of
paragraph 9 of subdivision c of section 26-511 of the rent stabilization
law of nineteen hundred sixty-nine made by section one of this act shall
expire of such law as provided under section 26-520 of the administra-
tive code of the city of New York.

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

                                  3176

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            January 31, 2013
                               ___________

Introduced  by  Sens. KRUEGER, AVELLA -- 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, in
  relation to renewal of a lease under the stabilization code

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

  Section 1. Subparagraph (a) of paragraph 9 of subdivision c of section
26-511  of the administrative code of the city of New York is amended to
read as follows:
  (a) (1) where [he or she] THE OWNER HAS ESTABLISHED TO  THE  SATISFAC-
TION  OF  THE DIVISION OF HOUSING AND COMMUNITY RENEWAL, AFTER A HEARING
AT WHICH ALL PARTIES MAY PRESENT EVIDENCE THAT THE SUBJECT  BUILDING  IS
IN A SUBSTANDARD OR SERIOUSLY DETERIORATED CONDITION, AND THAT THE OWNER
intends  in  good  faith  to  demolish  the building and [has obtained a
permit therefor from the department of buildings] SUBMITS PROOF PRIOR TO
FILING THE APPLICATION  WITH  THE  DIVISION  OF  HOUSING  AND  COMMUNITY
RENEWAL  THAT  PLANS  AND  IF  POSSIBLE,  THE NECESSARY PERMITS, FOR THE
UNDERTAKING HAVE BEEN APPROVED BY AND OBTAINED FROM  THE  DEPARTMENT  OF
BUILDINGS.    SUCH APPLICATION SHALL BE FILED AT LEAST NINETY DAYS PRIOR
TO THE EXPIRATION OF THE LEASE TERM; FOR THE PURPOSE  OF  THIS  SUBPARA-
GRAPH,  "DEMOLISH"  MEANS  THE  COMPLETE  RAZING OF THE ENTIRE BUILDING,
INCLUDING ALL EXTERIOR WALLS, IN ORDER TO CONSTRUCT A NEW BUILDING  WITH
THE SAME OR GREATER NUMBER OF RENTAL HOUSING UNITS;
  (2)  THE  ORDER  GRANTING  THE  OWNER'S  DEMOLITION  APPLICATION SHALL
PROVIDE THAT THE OWNER MUST, AT THE TENANT'S OPTION, EITHER:  (I)  RELO-
CATE  THE  TENANT  TO  AN EQUIVALENT OR SUPERIOR RENT STABILIZED HOUSING
ACCOMMODATION IN A CLOSELY PROXIMATE  AREA,  OR  IF  A  NEW  RESIDENTIAL
BUILDING  IS BEING CONSTRUCTED ON THE SITE PROVIDE THE TENANT WITH SUIT-
ABLE INTERIM HOUSING AT NO ADDITIONAL COST UNTIL A UNIT IS AVAILABLE  IN
THE  NEW  BUILDING; PROVIDE THAT THE AMOUNT OF RENT CHARGED FOR THE UNIT

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00870-01-3

S. 3176                             2

SHALL BE AT THE SAME OR LOWER LEGAL  REGULATED  RENT;  AND  PROVIDE  THE
TENANT,  IN  ADDITION  TO  REASONABLE MOVING EXPENSES, PAYMENT OF A FIVE
THOUSAND DOLLAR STIPEND, PROVIDED THE TENANT VACATES ON  OR  BEFORE  THE
VACATE  DATE  REQUIRED BY THE FINAL ORDER; OR (II) PROVIDE RELOCATION OF
THE TENANT TO A SUITABLE HOUSING ACCOMMODATION AT A RENT  IN  EXCESS  OF
THAT FOR THE SUBJECT HOUSING ACCOMMODATION; PROVIDE THE TENANT, IN ADDI-
TION TO REASONABLE MOVING EXPENSES, A STIPEND EQUAL TO THE DIFFERENCE OF
THE RENT CHARGED AT THE HOUSING ACCOMMODATION BEING VACATED AND THE RENT
CHARGED FOR THE HOUSING ACCOMMODATION TO WHICH THE TENANT IS RELOCATING,
MULTIPLIED  BY  SEVENTY-TWO  MONTHS,  PROVIDED  THE TENANT VACATES ON OR
BEFORE THE VACATE DATE REQUIRED BY THE FINAL ORDER;  OR  (III)  PAY  THE
TENANT  A  STIPEND  WHICH  SHALL  BE THE DIFFERENCE BETWEEN THE TENANT'S
CURRENT RENT AND AN AMOUNT TO BE CALCULATED USING THE DEMOLITION STIPEND
CHART, CREATED BY THE DIVISION OF HOUSING AND COMMUNITY RENEWAL,  MULTI-
PLIED BY SEVENTY-TWO MONTHS; or
  S  2.  This  act  shall take effect immediately and shall apply to any
tenant in possession on or after such effective date and to  any  action
or proceeding pending in any court and to any application, complaint, or
proceeding  pending  before  an  administrative agency on such effective
date, as well as to  any  action  or  proceeding  commenced  thereafter;
provided, however that the amendments to subparagraph (a) of paragraph 9
of  subdivision  c  of  section  26-511  of chapter 4 of title 26 of the
administrative code of the city of New York made by section one 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.

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