NY State Senate Bill 2017-S7030

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 03, 2018	referred to housing, construction and community development

co-Sponsors

2017-S7030 (ACTIVE) - Details

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-S7030 (ACTIVE) - Summary

Relates to adjustment of maximum allowable rent.

2017-S7030 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S7030

SPONSOR: KAVANAGH
 
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 sched-
ule of reasonable costs for repairs, based on regional costs.

*Create a process for DHCR to approve repairs that exceed the estab-
lished 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 chal-
lenged 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 consist-
ent 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 improve-
ments. 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 apart-
ment 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-S7030 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7030
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 3, 2018
                                ___________
 
 Introduced  by Sen. KAVANAGH -- 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
 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.
                                                            LBD01124-01-7

 S. 7030                             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

 S. 7030                             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 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.
   (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

 S. 7030                             4

 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
 or improvements or new furniture or furnishings, provided  in  or  to  a
 tenant's  housing  accommodation,  on written tenant consent to the rent

 S. 7030                             5
 
 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
 CHECKS,   INVOICES  AND  SIGNED  CONTRACTS  CONTEMPORANEOUSLY  WITH  THE
 IMPROVEMENTS ALLEGED AND A STATEMENT THAT ANY INCREASE ABOVE THE  PREVI-

 S. 7030                             6
 
 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
 useful  life of such new equipment, or new furniture or furnishings. The

 S. 7030                             7
 
 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 S7030

Sponsored By

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

co-Sponsors

2017-S7030 (ACTIVE) - Details

2017-S7030 (ACTIVE) - Summary

2017-S7030 (ACTIVE) - Sponsor Memo

2017-S7030 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S7030

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Sponsored By

Brian Kavanagh

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

co-Sponsors

Brad Hoylman-Sigal

2017-S7030 (ACTIVE) - Details

2017-S7030 (ACTIVE) - Summary

2017-S7030 (ACTIVE) - Sponsor Memo

2017-S7030 (ACTIVE) - Bill Text download pdf

Comments