S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1628
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 12, 2017
                                ___________
 
 Introduced by M. of A. MOSLEY, DAVILA, WALKER, JOYNER, BICHOTTE, ARROYO,
   O'DONNELL -- read once and referred to the Committee on Housing
 
 AN  ACT  to  amend  the administrative code of the city of New York, the
   emergency tenant protection act of nineteen seventy-four and the emer-
   gency housing rent control law, in relation to adjustment  of  maximum
   allowable rent
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subparagraph (e) of paragraph 1 of subdivision g of section
 26-405 of the administrative code of the city of New York, as amended by
 section 15 of part B of chapter 97 of the laws of 2011,  is  amended  to
 read as follows:
   (e)  The  landlord  and  tenant  by mutual voluntary written agreement
 agree to a substantial increase or  decrease  in  dwelling  space  or  a
 change  in the services, furniture, furnishings or equipment provided in
 the housing accommodations. An adjustment under this subparagraph  shall
 be equal to [one-fortieth, in the case of a building with thirty-five or
 fewer housing accommodations, or one-sixtieth, in the case of a building
 with  more than thirty-five housing accommodations where such adjustment
 takes effect on or after September twenty-fourth, two thousand  eleven,]
 ONE  EIGHTY-FOURTH of the total cost incurred by the landlord in provid-
 ing such modification or increase in dwelling  space,  services,  furni-
 ture,  furnishings or equipment, including the cost of installation, but
 excluding finance charges AND COSMETIC  IMPROVEMENTS,  provided  further
 that  an  owner  who  is  entitled  to  a rent increase pursuant to this
 subparagraph shall not be entitled to a further rent increase based upon
 the installation of similar equipment, or new furniture  or  furnishings
 within  the  useful  life  of  such  new  equipment, or new furniture or
 furnishings. The owner shall give written notice to the city rent agency
 of any such adjustment pursuant to this subparagraph; or
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD01124-02-7
              

 A. 1628                             2
 
   § 2. Subdivision g of section 26-405 of the administrative code of the
 city of New York is amended by adding a  new  paragraph  8  to  read  as
 follows:
   (8)  (A)  WITHIN ONE HUNDRED TWENTY DAYS OF THE EFFECTIVE DATE OF THIS
 PARAGRAPH, THE DIVISION OF HOUSING AND COMMUNITY RENEWAL SHALL  ISSUE  A
 SCHEDULE  OF  REASONABLE COSTS FOR UPGRADES AND IMPROVEMENTS THAT MAY BE
 CLAIMED AS A BASIS FOR AN ADJUSTMENT OF RENT  PURSUANT  TO  SUBPARAGRAPH
 (E)  OF  PARAGRAPH  ONE OF THIS SUBDIVISION.  THE SCHEDULE OF REASONABLE
 COSTS SHALL EXCLUDE COSMETIC IMPROVEMENTS.  THE SCHEDULE  OF  REASONABLE
 COSTS  SHALL  BE  BASED  ON  THE  AVERAGE  COSTS FOR SIMILAR UPGRADES OR
 IMPROVEMENTS MADE TO  COMPARABLE  PROPERTIES  LOCATED  IN  EACH  COUNTY,
 SUBJECT TO THE PROVISIONS OF THIS CHAPTER, AND SHALL BE UPDATED AT LEAST
 ONCE  EVERY  TWO  YEARS.  NO INCREASE IN RENT SHALL BE COLLECTIBLE UNDER
 SUBPARAGRAPH (E) OF PARAGRAPH ONE OF THIS SUBDIVISION BASED  UPON  COSTS
 THAT  EXCEED  THE  REASONABLE  COSTS  SET  FORTH IN THE SCHEDULE, UNLESS
 APPROVED BY THE DIVISION PURSUANT TO SUBPARAGRAPH (B) OF THIS PARAGRAPH.
   (B) WITHIN THIRTY DAYS OF THE SIGNING OF A  MUTUAL  VOLUNTARY  WRITTEN
 AGREEMENT  INCLUDING  A  RENT  INCREASE  PURSUANT TO SUBPARAGRAPH (E) OF
 PARAGRAPH ONE OF THIS SUBDIVISION THAT INCLUDES IMPROVEMENTS THAT EXCEED
 THE SCHEDULE OF REASONABLE COSTS PURSUANT TO SUBPARAGRAPH  (A)  OF  THIS
 PARAGRAPH,  THE  LANDLORD  WILL  FILE  WITH  THE DIVISION OF HOUSING AND
 COMMUNITY RENEWAL AN EXPLANATION OF HOW THE RENT WAS COMPUTED,  AND  ALL
 DOCUMENTS  NECESSARY TO SUPPORT THE COLLECTION OF SUCH INCREASE, INCLUD-
 ING BUT NOT LIMITED TO, CANCELLED CHECKS, INVOICES AND SIGNED  CONTRACTS
 CONTEMPORANEOUSLY WITH THE IMPROVEMENTS ALLEGED AND A STATEMENT THAT ANY
 INCREASE  ABOVE  THE  PREVIOUS  RENT  IS  IN ACCORDANCE WITH ADJUSTMENTS
 PERMITTED BY LAW.  UPON RECEIPT OF ALL DOCUMENTS SUBMITTED BY THE  LAND-
 LORD,  AND  AFTER GIVING THE TENANT AN OPPORTUNITY TO RESPOND, THE DIVI-
 SION OF HOUSING AND COMMUNITY RENEWAL SHALL ISSUE AN ORDER APPROVING  OR
 DISAPPROVING SUCH INCREASE IN WHOLE OR IN PART.
   (C)  WITHIN  THIRTY  DAYS OF THE SIGNING OF A MUTUAL VOLUNTARY WRITTEN
 AGREEMENT INCLUDING A RENT INCREASE THAT  EXCEEDS  TEN  PERCENT  OF  THE
 MAXIMUM  COLLECTIBLE  RENT,  THE LANDLORD WILL FILE WITH THE DIVISION OF
 HOUSING AND COMMUNITY  RENEWAL  AN  EXPLANATION  OF  HOW  THE  RENT  WAS
 COMPUTED,  AND ALL DOCUMENTS NECESSARY TO SUPPORT THE COLLECTION OF SUCH
 INCREASE, INCLUDING BUT NOT LIMITED TO, CANCELLED CHECKS,  INVOICES  AND
 SIGNED  CONTRACTS  CONTEMPORANEOUSLY WITH THE IMPROVEMENTS ALLEGED AND A
 STATEMENT THAT ANY INCREASE ABOVE THE PREVIOUS  RENT  IS  IN  ACCORDANCE
 WITH  ADJUSTMENTS  PERMITTED  BY  LAW.    UPON  RECEIPT OF ALL DOCUMENTS
 SUBMITTED BY THE OWNER, AND AFTER GIVING THE TENANT  AN  OPPORTUNITY  TO
 RESPOND,  THE  DIVISION  OF HOUSING AND COMMUNITY RENEWAL SHALL ISSUE AN
 ORDER APPROVING OR DISAPPROVING SUCH INCREASE IN WHOLE OR IN PART. BASED
 UPON SUCH DETERMINATION, THE DIVISION OF HOUSING AND  COMMUNITY  RENEWAL
 SHALL  ORDER  A  REFUND  TO  THE TENANT EQUAL TO THE AMOUNT COLLECTED IN
 EXCESS OF THE RENT APPROVED BY THE DIVISION  OF  HOUSING  AND  COMMUNITY
 RENEWAL.
   (D) NO INCREASE IN RENT SHALL BE COLLECTIBLE UNDER SUBPARAGRAPH (E) OF
 PARAGRAPH ONE OF THIS SUBDIVISION UNTIL:
   (1)  THE  LANDLORD  HAS  PROVIDED  THE  TENANT  WITH A WRITTEN NOTICE,
 INCLUDING AN EXPLANATION OF HOW THE RENT IN THE MUTUAL VOLUNTARY WRITTEN
 AGREEMENT HAS BEEN COMPUTED, AND THE SPECIFIC AMOUNTS  OF  ALL  EXPENDI-
 TURES SUPPORTING A RENT INCREASE UNDER SUBPARAGRAPH (E) OF PARAGRAPH ONE
 OF THIS SUBDIVISION; AND
   (2)  THE LANDLORD HAS FILED WITH THE DIVISION OF HOUSING AND COMMUNITY
 RENEWAL AN EXPLANATION OF HOW THE RENT WAS COMPUTED, AND  ALL  DOCUMENTS
 NECESSARY TO SUPPORT THE COLLECTION OF SUCH INCREASE, INCLUDING, BUT NOT

 A. 1628                             3
 
 LIMITED TO, CANCELLED CHECKS, INVOICES AND SIGNED CONTRACTS ENTERED INTO
 CONTEMPORANEOUSLY  WITH  THE  IMPROVEMENTS ALLEGED, AND A STATEMENT THAT
 ANY INCREASE ABOVE THE PREVIOUS RENT IS IN ACCORDANCE  WITH  ADJUSTMENTS
 PERMITTED BY LAW.
   (E)  NO  INCREASE SHALL BE COLLECTIBLE UNDER SUBPARAGRAPH (E) OF PARA-
 GRAPH ONE OF THIS SUBDIVISION WHERE THE DIVISION OF HOUSING AND COMMUNI-
 TY RENEWAL HAS DETERMINED THAT THE OWNER IS NOT MAINTAINING  ALL  BUILD-
 ING-WIDE  REQUIRED SERVICES OR ALL REQUIRED SERVICES WITH RESPECT TO THE
 AFFECTED HOUSING ACCOMMODATION, OR WHERE THERE ARE CURRENT OR  OUTSTAND-
 ING  HAZARDOUS VIOLATIONS OF ANY MUNICIPAL, COUNTY, STATE OR FEDERAL LAW
 WHICH RELATE TO THE MAINTENANCE OF SUCH SERVICES.
   § 3. Paragraph 13 of subdivision c of section 26-511 of  the  adminis-
 trative code of the city of New York, as amended by section 16 of part B
 of chapter 97 of the laws of 2011, is amended to read as follows:
   (13) provides that an owner is entitled to a rent increase where there
 has  been a substantial modification or increase of dwelling space or an
 increase in the services, or installation of new equipment  or  improve-
 ments or new furniture or furnishings provided in or to a tenant's hous-
 ing  accommodation,  on  written tenant consent to the rent increase. In
 the case of a vacant housing accommodation, tenant consent shall not  be
 required.
   (A)  The  permanent  increase  in  the  legal  regulated  rent for the
 affected housing accommodation shall be [one-fortieth, in the case of  a
 building with thirty-five or fewer housing accommodations, or one-sixti-
 eth, in the case of a building with more than thirty-five housing accom-
 modations where such permanent increase takes effect on or after Septem-
 ber  twenty-fourth, two thousand eleven,] ONE EIGHTY-FOURTH of the total
 cost incurred by the landlord in providing such modification or increase
 in  dwelling  space,  services,  furniture,  furnishings  or  equipment,
 including  the  cost  of installation, but excluding finance charges AND
 COSMETIC IMPROVEMENTS.
   (B) Provided further that an owner who is entitled to a rent  increase
 pursuant  to  this  paragraph  shall  not  be entitled to a further rent
 increase based upon the installation of similar equipment, or new furni-
 ture or furnishings within the useful life of such new equipment, or new
 furniture or furnishings.
   § 4. Subdivision c of section 26-511 of the administrative code of the
 city of New York is amended by adding a new  paragraph  15  to  read  as
 follows:
   (15)  (A) WITHIN ONE HUNDRED TWENTY DAYS OF THE EFFECTIVE DATE OF THIS
 PARAGRAPH, THE DIVISION OF HOUSING AND COMMUNITY RENEWAL SHALL  ISSUE  A
 SCHEDULE  OF  REASONABLE COSTS FOR UPGRADES AND IMPROVEMENTS THAT MAY BE
 CLAIMED AS A BASIS FOR AN ADJUSTMENT OF RENT PURSUANT TO PARAGRAPH THIR-
 TEEN OF THIS SUBDIVISION.    THE  SCHEDULE  OF  REASONABLE  COSTS  SHALL
 EXCLUDE  COSMETIC IMPROVEMENTS.   THE SCHEDULE OF REASONABLE COSTS SHALL
 BE BASED ON THE AVERAGE COSTS FOR SIMILAR UPGRADES OR IMPROVEMENTS  MADE
 TO  COMPARABLE  PROPERTIES  LOCATED  IN  EACH  COUNTY,  SUBJECT  TO  THE
 PROVISIONS OF THIS CHAPTER, AND SHALL BE UPDATED AT LEAST ONCE EVERY TWO
 YEARS. NO INCREASE IN RENT SHALL BE COLLECTIBLE UNDER PARAGRAPH THIRTEEN
 OF THIS SUBDIVISION BASED UPON COSTS THAT EXCEED  THE  REASONABLE  COSTS
 SET  FORTH  IN THE SCHEDULE, UNLESS APPROVED BY THE DIVISION PURSUANT TO
 SUBPARAGRAPH (B) OF THIS PARAGRAPH.
   (B) WITHIN THIRTY DAYS OF THE SIGNING OF A VACANCY LEASE  INCLUDING  A
 RENT  INCREASE  PURSUANT  TO PARAGRAPH THIRTEEN OF THIS SUBDIVISION THAT
 INCLUDES IMPROVEMENTS THAT  EXCEED  THE  SCHEDULE  OF  REASONABLE  COSTS
 PURSUANT  TO  SUBPARAGRAPH (A) OF THIS PARAGRAPH, THE LANDLORD WILL FILE

 A. 1628                             4
 
 WITH THE DIVISION OF HOUSING AND COMMUNITY RENEWAL AN EXPLANATION OF HOW
 THE VACANCY RENT WAS COMPUTED, AND ALL DOCUMENTS  NECESSARY  TO  SUPPORT
 THE COLLECTION OF SUCH INCREASE, INCLUDING BUT NOT LIMITED TO, CANCELLED
 CHECKS,   INVOICES  AND  SIGNED  CONTRACTS  CONTEMPORANEOUSLY  WITH  THE
 IMPROVEMENTS ALLEGED AND A STATEMENT THAT ANY INCREASE ABOVE THE  PREVI-
 OUS  RENT  IS  IN  ACCORDANCE  WITH ADJUSTMENTS PERMITTED BY LAW.   UPON
 RECEIPT OF ALL DOCUMENTS SUBMITTED BY THE LANDLORD, AND AFTER GIVING THE
 TENANT NAMED IN THE VACANCY LEASE AN OPPORTUNITY TO RESPOND,  THE  DIVI-
 SION  OF HOUSING AND COMMUNITY RENEWAL SHALL ISSUE AN ORDER APPROVING OR
 DISAPPROVING SUCH INCREASE IN WHOLE OR IN PART.
   (C) WITHIN THIRTY DAYS OF THE SIGNING OF A VACANCY LEASE  INCLUDING  A
 RENT INCREASE THAT EXCEEDS TEN PERCENT OF THE RENT CHARGED TO THE PREVI-
 OUS  TENANT,  THE  LANDLORD  WILL  FILE WITH THE DIVISION OF HOUSING AND
 COMMUNITY RENEWAL AN EXPLANATION OF HOW THE RENT WAS COMPUTED,  AND  ALL
 DOCUMENTS  NECESSARY TO SUPPORT THE COLLECTION OF SUCH INCREASE, INCLUD-
 ING BUT NOT LIMITED TO, CANCELLED CHECKS, INVOICES AND SIGNED  CONTRACTS
 CONTEMPORANEOUSLY WITH THE IMPROVEMENTS ALLEGED AND A STATEMENT THAT ANY
 INCREASE  ABOVE  THE  PREVIOUS  RENT  IS  IN ACCORDANCE WITH ADJUSTMENTS
 PERMITTED BY LAW. UPON RECEIPT OF ALL DOCUMENTS SUBMITTED BY THE  OWNER,
 AND  AFTER  GIVING THE TENANT NAMED IN SUCH VACANCY LEASE AN OPPORTUNITY
 TO RESPOND, THE DIVISION OF HOUSING AND COMMUNITY RENEWAL SHALL ISSUE AN
 ORDER APPROVING OR DISAPPROVING SUCH INCREASE IN WHOLE OR IN PART. BASED
 UPON SUCH DETERMINATION, THE DIVISION OF HOUSING AND  COMMUNITY  RENEWAL
 SHALL  ORDER  A  REFUND  TO  THE TENANT EQUAL TO THE AMOUNT COLLECTED IN
 EXCESS OF THE RENT APPROVED BY THE DIVISION  OF  HOUSING  AND  COMMUNITY
 RENEWAL.
   (D)  NO INCREASE IN RENT SHALL BE COLLECTIBLE UNDER PARAGRAPH THIRTEEN
 OF THIS SUBDIVISION UNTIL:
   (I) THE LANDLORD HAS  PROVIDED  THE  TENANT  WITH  A  WRITTEN  NOTICE,
 INCLUDING  AN  EXPLANATION OF HOW THE RENT IN THE VACANCY LEASE HAS BEEN
 COMPUTED, AND THE SPECIFIC AMOUNTS OF ALL EXPENDITURES SUPPORTING A RENT
 INCREASE UNDER PARAGRAPH THIRTEEN OF THIS SUBDIVISION; AND
   (II) THE LANDLORD HAS FILED WITH THE DIVISION OF HOUSING AND COMMUNITY
 RENEWAL AN EXPLANATION OF HOW THE VACANCY RENT  WAS  COMPUTED,  AND  ALL
 DOCUMENTS  NECESSARY TO SUPPORT THE COLLECTION OF SUCH INCREASE, INCLUD-
 ING, BUT NOT LIMITED TO, CANCELLED CHECKS, INVOICES AND SIGNED CONTRACTS
 ENTERED INTO CONTEMPORANEOUSLY WITH  THE  IMPROVEMENTS  ALLEGED,  AND  A
 STATEMENT  THAT  ANY  INCREASE  ABOVE THE PREVIOUS RENT IS IN ACCORDANCE
 WITH ADJUSTMENTS PERMITTED BY LAW.
   (E) NO INCREASE SHALL BE COLLECTIBLE UNDER PARAGRAPH THIRTEEN OF  THIS
 SUBDIVISION  WHERE  THE  DIVISION  OF  HOUSING AND COMMUNITY RENEWAL HAS
 DETERMINED THAT THE OWNER IS NOT MAINTAINING ALL BUILDING-WIDE  REQUIRED
 SERVICES  OR  ALL REQUIRED SERVICES WITH RESPECT TO THE AFFECTED HOUSING
 ACCOMMODATION, OR WHERE  THERE  ARE  CURRENT  OR  OUTSTANDING  HAZARDOUS
 VIOLATIONS  OF  ANY MUNICIPAL, COUNTY, STATE OR FEDERAL LAW WHICH RELATE
 TO THE MAINTENANCE OF SUCH SERVICES.
   § 5. Paragraph 1 of subdivision d of section 6 of section 4 of chapter
 576 of the laws of 1974, constituting the  emergency  tenant  protection
 act  of  nineteen  seventy-four,  as  amended by section 18 of part B of
 chapter 97 of the laws of 2011, is amended to read as follows:
   (1) there has been a substantial modification or increase of  dwelling
 space  or  an increase in the services, or installation of new equipment
 or improvements or new furniture or furnishings, provided  in  or  to  a
 tenant's  housing  accommodation,  on written tenant consent to the rent
 increase. In the case of a vacant housing accommodation, tenant  consent
 shall not be required.

 A. 1628                             5
 
   (A)  The  permanent  increase  in  the  legal  regulated  rent for the
 affected housing accommodation shall be [one-fortieth, in the case of  a
 building with thirty-five or fewer housing accommodations, or one-sixti-
 eth, in the case of a building with more than thirty-five housing accom-
 modations where such permanent increase takes effect on or after Septem-
 ber  twenty-fourth, two thousand eleven,] ONE EIGHTY-FOURTH of the total
 cost incurred by the landlord in providing such modification or increase
 in  dwelling  space,  services,  furniture,  furnishings  or  equipment,
 including  the  cost  of installation, but excluding finance charges AND
 COSMETIC IMPROVEMENTS.
   (B) Provided further that an owner who is entitled to a rent  increase
 pursuant  to  this  paragraph  shall  not  be entitled to a further rent
 increase based upon the installation of similar equipment, or new furni-
 ture or furnishings within the useful life of such new equipment, or new
 furniture or furnishings.
   (C) THE OWNER SHALL GIVE WRITTEN NOTICE TO THE DIVISION OF HOUSING AND
 COMMUNITY RENEWAL AND THE TENANT NAMED  IN  A  VACANCY  LEASE  ON  FORMS
 PRESCRIBED BY THE DIVISION OF ANY SUCH ADJUSTMENT PURSUANT TO THIS PARA-
 GRAPH  AND THE FAILURE TO PROVIDE SUCH WRITTEN NOTICE AS PROVIDED HEREIN
 SHALL PRECLUDE THE COLLECTION OF ANY SUCH ADJUSTMENT. SUCH  NOTICE  MUST
 INCLUDE  A DETAILED BREAKDOWN OF THE NATURE AND COST OF ANY IMPROVEMENTS
 UNDERLYING AN INCREASE IN RENT UNDER THIS PARAGRAPH AND A STATEMENT THAT
 ANY INCREASE ABOVE THE PREVIOUS RENT IS IN ACCORDANCE  WITH  ADJUSTMENTS
 PERMITTED  BY LAW. THE OWNER SHALL FILE WITH THE DIVISION OF HOUSING AND
 COMMUNITY RENEWAL ALL DOCUMENTS NECESSARY TO SUPPORT THE  COLLECTION  OF
 SUCH INCREASE, INCLUDING, BUT NOT LIMITED TO, CANCELLED CHECKS, INVOICES
 AND  SIGNED  CONTRACTS  ENTERED INTO CONTEMPORANEOUSLY WITH THE IMPROVE-
 MENTS ALLEGED.
   § 6. Subdivision d 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, is amended by adding a new paragraph  6  to  read  as
 follows:
   (6)  (A)  WITHIN ONE HUNDRED TWENTY DAYS OF THE EFFECTIVE DATE OF THIS
 PARAGRAPH, THE DIVISION OF HOUSING AND COMMUNITY RENEWAL SHALL  ISSUE  A
 SCHEDULE  OF  REASONABLE COSTS FOR UPGRADES AND IMPROVEMENTS THAT MAY BE
 CLAIMED AS A BASIS FOR AN ADJUSTMENT OF RENT PURSUANT TO  PARAGRAPH  ONE
 OF  THIS  SUBDIVISION.  THE  SCHEDULE  OF REASONABLE COSTS SHALL EXCLUDE
 COSMETIC IMPROVEMENTS.  THE SCHEDULE OF REASONABLE COSTS SHALL BE  BASED
 ON THE AVERAGE COSTS FOR SIMILAR UPGRADES OR IMPROVEMENTS MADE TO COMPA-
 RABLE  PROPERTIES  LOCATED  IN EACH COUNTY, SUBJECT TO THE PROVISIONS OF
 THIS ACT, AND SHALL BE  UPDATED  AT  LEAST  ONCE  EVERY  TWO  YEARS.  NO
 INCREASE IN RENT SHALL BE COLLECTIBLE UNDER PARAGRAPH ONE OF THIS SUBDI-
 VISION  BASED  UPON  COSTS THAT EXCEED THE REASONABLE COSTS SET FORTH IN
 THE SCHEDULE, UNLESS APPROVED BY THE DIVISION PURSUANT  TO  SUBPARAGRAPH
 (B) OF THIS PARAGRAPH.
   (B)  WITHIN  THIRTY DAYS OF THE SIGNING OF A VACANCY LEASE INCLUDING A
 RENT INCREASE  PURSUANT  TO  PARAGRAPH  ONE  OF  THIS  SUBDIVISION  THAT
 INCLUDES  IMPROVEMENTS  THAT  EXCEED  THE  SCHEDULE  OF REASONABLE COSTS
 PURSUANT TO SUBPARAGRAPH (A) OF THIS PARAGRAPH, THE LANDLORD  WILL  FILE
 WITH THE DIVISION OF HOUSING AND COMMUNITY RENEWAL AN EXPLANATION OF HOW
 THE  VACANCY  RENT  WAS COMPUTED, AND ALL DOCUMENTS NECESSARY TO SUPPORT
 THE COLLECTION OF SUCH INCREASE, INCLUDING BUT NOT LIMITED TO, CANCELLED
 CHECKS,  INVOICES  AND  SIGNED  CONTRACTS  CONTEMPORANEOUSLY  WITH   THE
 IMPROVEMENTS  ALLEGED AND A STATEMENT THAT ANY INCREASE ABOVE THE PREVI-
 OUS RENT IS IN  ACCORDANCE  WITH  ADJUSTMENTS  PERMITTED  BY  LAW.  UPON
 RECEIPT OF ALL DOCUMENTS SUBMITTED BY THE LANDLORD, AND AFTER GIVING THE

 A. 1628                             6
 
 TENANT  NAMED  IN THE VACANCY LEASE AN OPPORTUNITY TO RESPOND, THE DIVI-
 SION OF HOUSING AND COMMUNITY RENEWAL SHALL ISSUE AN ORDER APPROVING  OR
 DISAPPROVING SUCH INCREASE IN WHOLE OR IN PART.
   (C)  WITHIN  THIRTY DAYS OF THE SIGNING OF A VACANCY LEASE INCLUDING A
 RENT INCREASE THAT EXCEEDS TEN PERCENT OF THE RENT CHARGED TO THE PREVI-
 OUS TENANT, THE LANDLORD WILL FILE WITH  THE  DIVISION  OF  HOUSING  AND
 COMMUNITY  RENEWAL  AN EXPLANATION OF HOW THE RENT WAS COMPUTED, AND ALL
 DOCUMENTS NECESSARY TO SUPPORT THE COLLECTION OF SUCH INCREASE,  INCLUD-
 ING  BUT NOT LIMITED TO, CANCELLED CHECKS, INVOICES AND SIGNED CONTRACTS
 CONTEMPORANEOUSLY WITH THE IMPROVEMENTS ALLEGED AND A STATEMENT THAT ANY
 INCREASE ABOVE THE PREVIOUS  RENT  IS  IN  ACCORDANCE  WITH  ADJUSTMENTS
 PERMITTED  BY LAW. UPON RECEIPT OF ALL DOCUMENTS SUBMITTED BY THE OWNER,
 AND AFTER GIVING THE TENANT NAMED IN SUCH VACANCY LEASE  AN  OPPORTUNITY
 TO RESPOND, THE DIVISION OF HOUSING AND COMMUNITY RENEWAL SHALL ISSUE AN
 ORDER APPROVING OR DISAPPROVING SUCH INCREASE IN WHOLE OR IN PART. BASED
 UPON  SUCH  DETERMINATION, THE DIVISION OF HOUSING AND COMMUNITY RENEWAL
 SHALL ORDER A REFUND TO THE TENANT EQUAL  TO  THE  AMOUNT  COLLECTED  IN
 EXCESS  OF  THE  RENT  APPROVED BY THE DIVISION OF HOUSING AND COMMUNITY
 RENEWAL.
   (D) NO INCREASE SHALL BE  COLLECTIBLE  UNDER  PARAGRAPH  ONE  OF  THIS
 SUBDIVISION  WHERE  THE  DIVISION  OF  HOUSING AND COMMUNITY RENEWAL HAS
 DETERMINED THAT THE OWNER IS NOT MAINTAINING ALL BUILDING-WIDE  REQUIRED
 SERVICES  OR  ALL REQUIRED SERVICES WITH RESPECT TO THE AFFECTED HOUSING
 ACCOMMODATION, OR WHERE  THERE  ARE  CURRENT  OR  OUTSTANDING  HAZARDOUS
 VIOLATIONS  OF  ANY MUNICIPAL, COUNTY, STATE OR FEDERAL LAW WHICH RELATE
 TO THE MAINTENANCE OF SUCH SERVICES.
   § 7. Clause 5 of the second undesignated paragraph of paragraph (a) of
 subdivision 4 of section 4 of chapter 274 of the laws of  1946,  consti-
 tuting  the emergency housing rent control law, as amended by section 25
 of part B of chapter 97 of the laws of  2011,  is  amended  to  read  as
 follows:
   (5)  the  landlord  and  tenant  by mutual voluntary written agreement
 agree to a substantial increase or  decrease  in  dwelling  space  or  a
 change  in the services, furniture, furnishings or equipment provided in
 the housing accommodations; provided that an owner shall be entitled  to
 a  rent  increase  where  there  has  been a substantial modification or
 increase of dwelling space or an increase in the services, or  installa-
 tion  of  new  equipment or improvements or new furniture or furnishings
 provided in or  to  a  tenant's  housing  accommodation.  The  permanent
 increase  in  the  maximum  rent  for the affected housing accommodation
 shall be [one-fortieth, in the case of a building  with  thirty-five  or
 fewer housing accommodations, or one-sixtieth, in the case of a building
 with  more  than thirty-five housing accommodations where such permanent
 increase takes effect on or after September twenty-fourth, two  thousand
 eleven,] ONE EIGHTY-FOURTH of the total cost incurred by the landlord in
 providing  such  modification  or  increase in dwelling space, services,
 furniture, furnishings or equipment, including the cost of installation,
 but excluding finance charges AND COSMETIC IMPROVEMENTS provided further
 that an owner who is entitled to a rent increase pursuant to this clause
 shall not be entitled to a further rent increase based upon the  instal-
 lation  of similar equipment, or new furniture or furnishings within the
 useful life of such new equipment, or new furniture or furnishings.  The
 owner shall give written notice to the commission of any such adjustment
 pursuant to this clause; or
   §  8.  This  act shall take effect on the ninetieth day after it shall
 have become a law; provided that:

 A. 1628                             7
 
   (a) the amendments to section 26-405 of the city  rent  and  rehabili-
 tation law made by sections one and two 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;
   (b) the amendments to section 26-511 of chapter 4 of title 26  of  the
 administrative  code  of the city of New York made by sections three and
 four 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;
   (c) the amendments to section 6 of the emergency tenant protection act
 of nineteen seventy-four made by sections five and six 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;
   (d) the amendments to section 4 of the emergency housing rent  control
 law  made  by section seven 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
   (e) effective immediately,  the  division  of  housing  and  community
 renewal is authorized to and shall promulgate all rules, regulations and
 standards necessary to implement the provisions of this act.