Assembly Bill A465A

2009-2010 Legislative Session

Prohibits an owner from adjusting the amount of preferential rent upon the renewal of a lease

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Archive: Last Bill Status - On Floor Calendar

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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Actions

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Aug 03, 2010	3rd reading cal.1426 substituted for s2251
Apr 27, 2010	referred to housing, construction and community development delivered to senate passed assembly
Feb 25, 2010	advanced to third reading cal.679
Feb 23, 2010	reported
Jan 19, 2010	committed to housing
Jan 06, 2010	ordered to third reading cal.28 returned to assembly died in senate
Jun 22, 2009	committed to rules returned to senate repassed assembly
Jun 01, 2009	amended on third reading 465a
Jun 01, 2009	vote reconsidered - restored to third reading returned to assembly recalled from senate
Feb 02, 2009	referred to housing, construction and community development delivered to senate passed assembly
Jan 22, 2009	advanced to third reading cal.9 reported
Jan 07, 2009	referred to housing

Bill Amendments

Original

A (Active)

2009-A465 - Details

See Senate Version of this Bill:: S2251
Law Section:: Emergency Tenant Protection Act of 1974
Laws Affected:: Amd §10, Emerg Ten Prot Act; amd §26-511, NYC Ad Cd
Versions Introduced in Other Legislative Sessions:: 2011-2012: A1364, S448
2013-2014: A5473, S1775
2015-2016: A3809, S2828
2017-2018: A741, A6285, S3712, S6527
2019-2020: A1509, A4349, S2845
2021-2022: A5770

2009-A465 - Summary

Prohibits an owner from adjusting the amount of preferential rent, rent charged and paid by the tenant which is less than the legal regulated rent for the housing accommodation, upon the renewal of a lease; only allows the owner to make such adjustments upon a vacancy which is not the result of the failure of the owner to maintain a habitable residence.

2009-A465 - Sponsor Memo

                                BILL NUMBER:A465

TITLE  OF BILL:   An act to amend the emergency tenant protection act of
nineteen seventy-four and the administrative code of  the  city  of  New
York, in relation to the regulation of rents

PURPOSE OR GENERAL IDEA OF BILL:
To prohibit an owner from adjusting the amount of preferential rent upon
the renewal of a lease.

SUMMARY OF SPECIFIC PROVISIONS:
Subdivision  a-2 of section 10 of section 4 of chapter 576 provides that
where the amount of rent charged to and paid by the tenant is less  than
the  legal  regulated  rent for the housing accommodation, the amount of
rent for such housing accommodation may only be increased to the  previ-
ously  established  regulated rent, as adjusted by all applicable guide-
lines increases and other increases authorized by law; provided,  howev-
er, that such vacancy shall not be caused by the failure of the owner or
an agent of the owner to maintain the housing accommodation in a habita-
ble  condition.  The law is also deletes provisions that permit an owner
to abandon a preferential rent upon renewal of a lease.

JUSTIFICATION:
As housing costs increase exponentially across the city of New York, the
displacement of working families and middle class residents  from  rent-
regulated  apartments  has reached crisis proportions. Without question,

the displacement is aggravated by the ability of landlords to abandon  a
preferential rent upon the renewal of a lease.

Prior  to  a  change  in  law, a preferential rent was permanent for the
duration of a tenancy, and could only be increased upon vacancy.  Howev-
er, as a result of an unfortunate provision inserted into the law during
the eleventh hour in 2003, landlords are  now  permitted  to  abandon  a
discounted, preferential rent and impose the statutory rent upon vacancy
or  renewal  of  a lease. Pursuant to this provision, tenants throughout
New York City have  faced  sudden,  unanticipated  and  staggering  rent
increases  upon  lease renewal, often forcing them out of rent-regulated
apartments.

Equally problematic, there is no  "clean  hands"  requirement  that  the
landlord  conduct  itself responsibly in order to abandon a preferential
rent and impose the maximum rent upon a vacancy.    Consequently,  if  a
tenant  leaves  an  apartment that is uninhabitable due to lack of heat,
hot water, electricity, repairs or  sanitary  conditions,  the  landlord
remains  eligible  to  dramatically increase the rent upon vacancy of an
apartment. As a result, current law encourages  bad  actors  to  deprive
tenants of a habitable apartment in order to benefit from the ability to
abandon a preferential rent.

In  order to stem the displacement crisis in New York City, and preserve
the affordable housing stock that remains available to working  families
and  moderate-income  residents, the rent regulation laws are in need of

comprehensive reform. Substantial modification of the preferential  rent
provisions is an important step in that direction.

PRIOR LEGISLATIVE HISTORY:
New Bill.

FISCAL IMPLICATIONS FOR STATE & LOCAL GOVERNMENTS:
None.

EFFECTIVE DATE:
This act shall take effect immediately.

2009-A465 - Bill Text download pdf

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

                                   465

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 7, 2009
                               ___________

Introduced by M. of A. JEFFRIES -- read once and referred to the Commit-
  tee on Housing

AN  ACT  to amend the emergency tenant protection act of nineteen seven-
  ty-four and the administrative code  of  the  city  of  New  York,  in
  relation to the regulation of rents

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

  Section 1. Subdivision a-2 of section 10 of section 4 of  chapter  576
of the laws of 1974, constituting the emergency tenant protection act of
nineteen  seventy-four,  as  added by chapter 82 of the laws of 2003, is
amended to read as follows:
  [a-2.] (A-2) Provides that where the amount of  rent  charged  to  and
paid by the tenant is less than the legal regulated rent for the housing
accommodation,  the  amount of rent for such housing accommodation which
may be charged [upon renewal or] upon vacancy thereof may, at the option
of the owner, be based upon such previously established legal  regulated
rent,  as  adjusted  by  [the  most  recent]  ALL  applicable guidelines
increases and other increases authorized by law; PROVIDED, HOWEVER, THAT
SUCH VACANCY SHALL NOT BE CAUSED BY THE FAILURE OF THE OWNER OR AN AGENT
OF THE OWNER, TO MAINTAIN  THE  HOUSING  ACCOMMODATION  IN  A  HABITABLE
CONDITION.   Where, subsequent to vacancy, such legal regulated rent, as
adjusted by the most recent  applicable  guidelines  increases  and  any
other  increases  authorized  by law is two thousand dollars or more per
month, such housing accommodation shall be excluded from the  provisions
of  this  act pursuant to paragraph thirteen of subdivision a of section
five of this act.
  S 2. Paragraph 14 of subdivision c of section 26-511 of  the  adminis-
trative code of the city of New York, as added by chapter 82 of the laws
of 2003, is amended to read as follows:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00221-01-9

A. 465                              2

  (14) provides that where the amount of rent charged to and paid by the
tenant  is  less  than the legal regulated rent for the housing accommo-
dation, the amount of rent for such housing accommodation which  may  be
charged [upon renewal or] upon vacancy thereof may, at the option of the
owner,  be  based upon such previously established legal regulated rent,
as adjusted by the most recent applicable guidelines increases  and  any
other  increases authorized by law; PROVIDED, HOWEVER, THAT SUCH VACANCY
SHALL NOT BE CAUSED BY THE FAILURE OF THE  OWNER  OR  AN  AGENT  OF  THE
OWNER,  TO  MAINTAIN THE HOUSING ACCOMMODATION IN A HABITABLE CONDITION.
Where, subsequent to vacancy, such legal regulated rent, as adjusted  by
[the  most  recent]  ALL  applicable  guidelines increases and any other
increases authorized by law is two thousand dollars or more  per  month,
such housing accommodation shall be excluded from the provisions of this
law pursuant to section 26-504.2 of this chapter.
  S  3.  This act shall take effect immediately; provided, however, that
the amendments to section 10 of the emergency tenant protection  act  of
nineteen  seventy-four  made  by section one 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;
and provided, further, that the amendments to section 26-511 of the rent
stabilization  law of nineteen hundred sixty-nine made by section two of
this act shall expire on the same date as such law expires and shall not
affect the expiration of such law as provided under  section  26-520  of
such law.

co-Sponsors

View additional co-sponsors

multi-Sponsors

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2009-A465A (ACTIVE) - Details

See Senate Version of this Bill:: S2251
Law Section:: Emergency Tenant Protection Act of 1974
Laws Affected:: Amd §10, Emerg Ten Prot Act; amd §26-511, NYC Ad Cd
Versions Introduced in Other Legislative Sessions:: 2011-2012: A1364, S448
2013-2014: A5473, S1775
2015-2016: A3809, S2828
2017-2018: A741, A6285, S3712, S6527
2019-2020: A1509, A4349, S2845
2021-2022: A5770

2009-A465A (ACTIVE) - Summary

2009-A465A (ACTIVE) - Sponsor Memo

                                BILL NUMBER:A465A

TITLE OF BILL:  An act to amend the emergency tenant protection act of
nineteen seventy-four and the administrative code of the city of New
York, in relation to the regulation of rents

PURPOSE OR GENERAL IDEA OF BILL:  To prohibit an owner from adjusting
the amount of preferential rent upon the renewal of a lease.

SUMMARY OF SPECIFIC PROVISIONS:  Subdivision a-2 of section 10 of
section 4 of chapter 576 provides that where the amount of rent charged
to and paid by the tenant is less than the legal regulated rent for the
housing accommodation, the amount of rent for such housing accommodation
may only be increased to the previously established regulated rent, as
adjusted by all applicable guidelines increases and other increases
authorized by law; provided, however, that such vacancy shall not be
caused by the failure of the owner or an agent of the owner to maintain
the housing accommodation in a habitable condition. The law is also
deletes provisions that permit an owner to abandon a preferential rent
upon renewal of a lease.

JUSTIFICATION:  As housing costs increase exponentially across the city
of New York, the displacement of working families and middle class resi-
dents from rent regulated apartments has reached crisis proportions.
Without question, the displacement is aggravated by the ability of land-
lords to abandon a preferential rent upon the renewal of a lease.

Prior to a change in law, a preferential rent was permanent for the
duration of a tenancy, and could only be increased upon vacancy.  Howev-
er, as a result of an unfortunate provision inserted into the law during
the eleventh hour in 2003, landlords are now permitted to abandon a
discounted, preferential rent and impose the statutory rent upon vacancy
or renewal of a lease. Pursuant to this provision, tenants throughout
New York City have faced sudden, unanticipated and staggering rent
increases upon lease renewal, often forcing them out of rent-regulated
apartments.

Equally problematic, there is no "clean hands" requirement that the
landlord conduct itself responsibly in order to abandon a preferential
rent and impose the maximum rent upon a vacancy.  Consequently, if a
tenant leaves an apartment that is uninhabitable due to lack of heat,
hot water, electricity, repairs or sanitary conditions, the landlord
remains eligible to dramatically increase the rent upon vacancy of an
apartment. As a result, current law encourages bad actors to deprive
tenants of a habitable apartment in order to benefit from the ability to
abandon a preferential rent.

In order to stem the displacement crisis in New York City, and preserve
the affordable housing stock that remains available to working families
and moderate-income residents, the rent regulation laws are in need of
comprehensive reform. Substantial modification of the preferential rent
provisions is an important step in that direction.

PRIOR LEGISLATIVE HISTORY: New Bill.

FISCAL IMPLICATIONS FOR STATE & LOCAL GOVERNMENTS:  None.

EFFECTIVE DATE:  This act shall take effect immediately.

2009-A465A (ACTIVE) - Bill Text download pdf

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

                                 465--A
                                                          Cal. No. 9

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 7, 2009
                               ___________

Introduced  by  M. of A. JEFFRIES, MAYERSOHN, ROBINSON, FARRELL, COLTON,
  O'DONNELL, JACOBS, JAFFEE, CLARK,  ORTIZ,  LANCMAN,  PERALTA,  POWELL,
  WRIGHT,  SPANO,  KAVANAGH,  ESPAILLAT,  CAMARA,  ROSENTHAL, KELLNER --
  Multi-Sponsored by -- M. of A. BOYLAND, BRENNAN, CASTRO, GLICK,  GOTT-
  FRIED,  HEASTIE,  HOOPER, J. RIVERA, SCHIMEL -- read once and referred
  to the Committee on Housing -- passed by Assembly and delivered to the
  Senate, recalled from the Senate,  vote  reconsidered,  bill  amended,
  ordered reprinted, retaining its place on the order of third reading

AN  ACT  to amend the emergency tenant protection act of nineteen seven-
  ty-four and the administrative code  of  the  city  of  New  York,  in
  relation to the regulation of rents

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

  Section 1. Subdivision a-2 of section 10 of section 4 of  chapter  576
of the laws of 1974, constituting the emergency tenant protection act of
nineteen  seventy-four,  as  added by chapter 82 of the laws of 2003, is
amended to read as follows:
  [a-2.] (A-2) Provides that where the amount of  rent  charged  to  and
paid by the tenant is less than the legal regulated rent for the housing
accommodation,  the  amount of rent for such housing accommodation which
may be charged [upon renewal or] upon vacancy thereof may, at the option
of the owner, be based upon such previously established legal  regulated
rent,  as  adjusted  by  [the  most  recent]  ALL  applicable guidelines
increases and other increases authorized by law; PROVIDED, HOWEVER, THAT
SUCH VACANCY SHALL NOT BE CAUSED BY THE FAILURE OF THE OWNER OR AN AGENT
OF THE OWNER, TO MAINTAIN THE HOUSING ACCOMMODATION IN  COMPLIANCE  WITH
THE WARRANTY OF HABITABILITY SET FORTH IN SUBDIVISION ONE OF SECTION TWO
HUNDRED  THIRTY-FIVE-B  OF  THE REAL PROPERTY LAW.  Where, subsequent to
vacancy, such legal regulated rent,  as  adjusted  by  the  most  recent
applicable  guidelines  increases  and any other increases authorized by

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                      [ ] is old law to be omitted.
                                                           LBD00221-02-9

A. 465--A                           2

law is two thousand dollars or more per  month,  such  housing  accommo-
dation  shall  be  excluded  from the provisions of this act pursuant to
paragraph thirteen of subdivision a of section five of this act.
  S  2.  Paragraph 14 of subdivision c of section 26-511 of the adminis-
trative code of the city of New York, as added by chapter 82 of the laws
of 2003, is amended to read as follows:
  (14) provides that where the amount of rent charged to and paid by the
tenant is less than the legal regulated rent for  the  housing  accommo-
dation,  the  amount of rent for such housing accommodation which may be
charged [upon renewal or] upon vacancy thereof may, at the option of the
owner, be based upon such previously established legal  regulated  rent,
as  adjusted  by the most recent applicable guidelines increases and any
other increases authorized by law; PROVIDED, HOWEVER, THAT SUCH  VACANCY
SHALL  NOT  BE  CAUSED  BY  THE  FAILURE OF THE OWNER OR AN AGENT OF THE
OWNER, TO MAINTAIN THE HOUSING  ACCOMMODATION  IN  COMPLIANCE  WITH  THE
WARRANTY  OF  HABITABILITY  SET  FORTH IN SUBDIVISION ONE OF SECTION TWO
HUNDRED THIRTY-FIVE-B OF THE REAL PROPERTY LAW.   Where,  subsequent  to
vacancy, such legal regulated rent, as adjusted by [the most recent] ALL
applicable  guidelines  increases  and any other increases authorized by
law is two thousand dollars or more per  month,  such  housing  accommo-
dation  shall  be  excluded  from the provisions of this law pursuant to
section 26-504.2 of this chapter.
  S 3. This act shall take effect immediately; provided,  however,  that
the  amendments  to section 10 of the emergency tenant protection act of
nineteen seventy-four made by section one 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;
and provided, further, that the amendments to section 26-511 of the rent
stabilization law of nineteen hundred sixty-nine made by section two  of
this act shall expire on the same date as such law expires and shall not
affect  the  expiration  of such law as provided under section 26-520 of
such law.

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Assembly Bill A465A

Sponsored By

Archive: Last Bill Status - On Floor Calendar

Actions

Bill Amendments

2009-A465 - Details

2009-A465 - Summary

2009-A465 - Sponsor Memo

2009-A465 - Bill Text download pdf

co-Sponsors

multi-Sponsors

2009-A465A (ACTIVE) - Details

2009-A465A (ACTIVE) - Summary

2009-A465A (ACTIVE) - Sponsor Memo

2009-A465A (ACTIVE) - Bill Text download pdf

Comments

Do you support this bill?

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Assembly Bill A465A

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Sponsored By

JEFFRIES

Archive: Last Bill Status - On Floor Calendar

Actions

Bill Amendments

2009-A465 - Details

2009-A465 - Summary

2009-A465 - Sponsor Memo

2009-A465 - Bill Text download pdf

co-Sponsors

Nettie Mayersohn

Annette Robinson

Herman D. Farrell

William Colton

multi-Sponsors

William Boyland

James F. Brennan

Nelson Castro

Deborah Glick

2009-A465A (ACTIVE) - Details

2009-A465A (ACTIVE) - Summary

2009-A465A (ACTIVE) - Sponsor Memo

2009-A465A (ACTIVE) - Bill Text download pdf

Comments