NY State Senate Bill 2017-S498

Archive: Last Bill Status - In Senate Committee Housing, Construction And Community Development Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 04, 2017	referred to housing, construction and community development

co-Sponsors

2017-S498 (ACTIVE) - Details

See Senate Version of this Bill:: S7030
Current Committee:: Senate Housing, Construction And Community Development
Law Section:: New York City Administrative Code
Laws Affected:: Amd §§26-405 & 26-511, NYC Ad Cd; amd §6, Emerg Ten Prot Act of 1974; amd §4, Emerg Hous Rent Cont L
Versions Introduced in 2015-2016 Legislative Session:: S3285

2017-S498 (ACTIVE) - Summary

Relates to adjustment of maximum allowable rent.

2017-S498 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S498

 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 and the emergency housing rent control law, in relation
to adjustment of maximum allowable rent

 PURPOSE :

To make consistent the rental adjustment a landlord may charge a
tenant for the total cost incurred for individual apartment
improvements and to require landlords to provide documentation
explaining how adjustment was computed.

 SUMMARY OF SPECIFIC PROVISIONS :

Sections 1 - 6 amend the Administrative Code of the City of New York
and the Emergency Tenant Protection Act of nineteen seventy-four to:

*Make consistent the rental adjustment a landlord may charge a tenant
for the total cost incurred for an individual apartment improvement.
This bill provides that an adjustment shall be equal to 1/84th of the
total cost incurred for improvements, for buildings with 35 or fewer
apartments and buildings with over 35 apartments and excludes cosmetic
improvements from such adjustments.

*Require the Division of Housing and Community Renewal to issue a
schedule of reasonable costs for repairs, based on regional costs.

*Create a process for DHCR to approve repairs that exceed the
established schedule of reasonable costs.

*Require DHCR approve increases that exceed 10% of the rent charged to
the previous tenant.

*Require landlords to submit detail of proof to the tenant relating to
work that has been completed when rent is raised, rather than when
challenged by a tenant.

*Require landlords to submit detail of proof to DHCR relating to work
that has been completed when rent is raised, rather than when
challenged by a tenant.

*Provide that no increase in rent shall be collectible where DHCR has
determined that the owner has outstanding violations.

*Make IAI improvements temporary, rather than permanent.

Section 7 amends the emergency housing rent control law to make
consistent the rental adjustment a landlord may charge a tenant for
the total cost incurred for an individual apartment improvement. This
bill provides that an adjustment shall be equal to 1/60th of the total
cost incurred for improvements, for buildings with 35 or fewer
apartments and buildings with over 35 apartments.

Section 8 establishes the effective date.

 JUSTIFICATION :

The Individual Apartment Improvement increase allows a landlord to
raise the rent on an unoccupied rent stabilized apartment by passing
the cost of physical improvements to the next tenant by raising the
monthly rent an amount equal to 1/40th or 1/60th of the total cost of
the improvements. This increase can be taken in addition to any other
rent increase to which the landlord is statutorily entitled.

Landlords are able to use the increase to move the apartment above the
current decontrol threshold that allows them to permanently
de-regulate the apartment. To approach that threshold more quickly,
landlords can make improvements that exceed what would be considered a
reasonable cost. Although there are not absolutely clear government
records of the frequency with which these increases are used, it is
clear that rent regulated apartments are moving out of affordability
at a rate faster than statutory rent increases would allow.

The only present oversight mechanism is a tenant-initiated complaint.
The tenant may challenge the rent increase up to four years after the
installation. Only then, is a claimed individual apartment improvement
supported by adequate documentation.

This legislation would make consistent the rental adjustment a
landlord may charge a tenant for the total cost incurred for an
individual apartment improvement. It would also require DHCR to issue
a schedule of reasonable costs for repairs, based on regional costs,
so that landlords don't purposely try to deregulate an apartment
through improvements. DHCR is also given the authority to approve or
disapprove such increases related to the schedule in whole or in part
based upon the proof of expenses submitted by the landlord. Finally,
this legislation will also give new tenants and DHCR a breakdown of
how the increase in rent was computed and information that a tenant
needs to challenge an increase. This information will be given at the
time of the rental increase rather than after a tenant challenges an
increase.

 PRIOR LEGISLATIVE HISTORY :

2016: S3285B/A6069 - REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY
DEVELOPMENT/referred to ways and means
2015: S3285B/A6069 - REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY
DEVELOPMENT/referred to housing

 FISCAL IMPLICATIONS :

Some expense associated with DHCR administration of program.

 EFFECTIVE DATE :
This act takes effect on the 90th day after it becomes law.

2017-S498 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    498
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 4, 2017
                                ___________
 
 Introduced by Sens. SQUADRON, HOYLMAN -- 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 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 TEMPORARY UNTIL SUCH INCREASE OR MODIFICATION HAS BEEN PAID  FOR  AND
 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  thou-
 sand  eleven,] ONE EIGHTY-FOURTH of the total cost incurred by the land-
 lord 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 pursu-
 ant  to  this  subparagraph  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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD01124-01-7

 S. 498                              2
 
 furniture or furnishings. The owner shall give  written  notice  to  the
 city  rent  agency of any such adjustment pursuant to this subparagraph;
 or
   § 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

 S. 498                              3
 
   (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
 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 TEMPORARY 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 improvements or new furniture or furnishings  provided  in  or  to  a
 tenant's  housing accommodation, UNTIL SUCH MODIFICATION OR INCREASE HAS
 BEEN PAID FOR, 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] TEMPORARY 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-
 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  equip-
 ment,  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.

 S. 498                              4
 
   (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
 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

 S. 498                              5
 
 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) The [permanent] TEMPORARY 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-
 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 equip-
 ment, 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

 S. 498                              6
 
 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 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  TEMPORARY  rent increase UNTIL SUCH MODIFICATION OR INCREASE HAS BEEN
 PAID FOR where 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. The [permanent] TEMPORARY  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 hous-
 ing 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  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 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

 S. 498                              7
 
 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) 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.

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Senate Bill S498

Sponsored By

Archive: Last Bill Status - In Senate Committee Housing, Construction And Community Development Committee

co-Sponsors

2017-S498 (ACTIVE) - Details

2017-S498 (ACTIVE) - Summary

2017-S498 (ACTIVE) - Sponsor Memo

2017-S498 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S498

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Sponsored By

Daniel L. Squadron

Archive: Last Bill Status - In Senate Committee Housing, Construction And Community Development Committee

co-Sponsors

Brad Hoylman-Sigal

2017-S498 (ACTIVE) - Details

2017-S498 (ACTIVE) - Summary

2017-S498 (ACTIVE) - Sponsor Memo

2017-S498 (ACTIVE) - Bill Text download pdf

Comments