S T A T E O F N E W Y O R K
________________________________________________________________________
5751
2009-2010 Regular Sessions
I N A S S E M B L Y
February 19, 2009
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Introduced by M. of A. V. LOPEZ, GOTTFRIED, DINOWITZ, KAVANAGH --
Multi-Sponsored by -- M. of A. AUBRY, BOYLAND, COOK, GLICK, HOOPER,
MILLMAN -- read once and referred to the Committee on Housing
AN ACT to amend the administrative code of the city of New York and the
emergency housing rent control law, in relation to providing for the
establishment of rent guidelines
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subdivision a of section 26-405 of the administrative code
of the city of New York is amended by adding a new paragraph 10 to read
as follows:
(10) (A) NOTWITHSTANDING ANY CONTRARY PROVISIONS OF THIS SUBDIVISION,
EFFECTIVE JANUARY FIRST, TWO THOUSAND ELEVEN, MAXIMUM RENTS FOR HOUSING
ACCOMMODATIONS SUBJECT TO THIS CHAPTER SHALL NO LONGER BE ESTABLISHED
PURSUANT TO PARAGRAPHS THREE AND FOUR OF THIS SUBDIVISION, OR LIMITED BY
PARAGRAPH FIVE OF THIS SUBDIVISION, OR ADJUSTED BY SUBPARAGRAPH (L) OR
(N) OF PARAGRAPH ONE OF SUBDIVISION G OF THIS SECTION.
(B) EXCEPT AS OTHERWISE PROVIDED IN THIS PARAGRAPH, THE RENT GUIDE-
LINES BOARD ESTABLISHED PURSUANT TO SECTION 26-510 OF THIS TITLE SHALL
ESTABLISH ANNUAL GUIDELINES FOR THE CLASS OF HOUSING ACCOMMODATIONS
SUBJECT TO THIS CHAPTER, IN THE MANNER PROVIDED BY SUCH SECTION. THE
FACT THAT THE HOUSING ACCOMMODATION IS SUBJECT TO THIS CHAPTER MAY NOT
BE CONSIDERED AS A FACTOR IN DETERMINING THE RATE OF RENT ADJUSTMENT.
NOT LATER THAN OCTOBER FIRST, TWO THOUSAND TEN, AND NOT LATER THAN OCTO-
BER FIRST ANNUALLY THEREAFTER, THE RENT GUIDELINES BOARD SHALL FILE WITH
THE CITY CLERK ITS FINDINGS ESTABLISHED IN CONSIDERATION OF THE ECONOMIC
FACTORS LISTED IN SUBDIVISION B OF SECTION 26-510 OF THIS TITLE, AND
SHALL ACCOMPANY SUCH FINDINGS WITH A STATEMENT OF THE MAXIMUM RATE OR
RATES OF RENT ADJUSTMENT, IF ANY, FOR ONE OR MORE CLASSES OF ACCOMMO-
DATIONS SUBJECT TO THIS CHAPTER AUTHORIZED FOR THE ADJUSTMENT OF THE
MAXIMUM RENT OF THE HOUSING ACCOMMODATION FOR THE TWELVE MONTH PERIOD
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08975-01-9
A. 5751 2
COMMENCING JANUARY FIRST, TWO THOUSAND ELEVEN AND FOR EACH SUCCEEDING
TWELVE MONTH PERIOD.
(C) EFFECTIVE JANUARY FIRST, TWO THOUSAND ELEVEN, THE MAXIMUM RENT
COLLECTIBLE FROM THE TENANT SHALL BE THE MAXIMUM RENT COLLECTIBLE ON
DECEMBER THIRTY-FIRST, TWO THOUSAND TEN, INCLUDING ANY RENT ADJUSTMENTS
THEN COLLECTIBLE PURSUANT TO SUBPARAGRAPH (N) OF PARAGRAPH ONE OF SUBDI-
VISION G OF THIS SECTION, AS SUCH RENT MAY BE ADJUSTED PURSUANT TO
SUBPARAGRAPH (B) OF THIS PARAGRAPH ANNUALLY, WITHOUT AN ORDER OF THE
CITY RENT AGENCY, OR AS ADJUSTED PURSUANT TO ANY OTHER PROVISION OF THIS
CHAPTER, PROVIDED THAT WHERE THE LANDLORD WAS NOT GRANTED OR DID NOT
APPLY OR QUALIFY FOR AN INCREASE IN MAXIMUM RENT PURSUANT TO PARAGRAPHS
THREE AND FOUR OF THIS SUBDIVISION FOR THE YEARS NINETEEN HUNDRED NINE-
TY-NINE, TWO THOUSAND, TWO THOUSAND ONE, TWO THOUSAND TWO, TWO THOUSAND
THREE, TWO THOUSAND FOUR, TWO THOUSAND FIVE, TWO THOUSAND SIX, TWO THOU-
SAND SEVEN, TWO THOUSAND EIGHT OR TWO THOUSAND NINE A LANDLORD SHALL NOT
COLLECT ANY RENT INCREASE OR ADJUSTMENT OTHERWISE COLLECTIBLE UNDER THIS
SUBPARAGRAPH UNLESS AND UNTIL THE FIRST RENT PAYMENT DATE AFTER THE
LANDLORD CERTIFIES TO THE CITY RENT AGENCY THAT ALL RENT IMPAIRING
VIOLATIONS, AS DEFINED BY SECTION THREE HUNDRED TWO-A OF THE MULTIPLE
DWELLING LAW, AND AT LEAST EIGHTY PER CENTUM OF ALL OTHER VIOLATIONS OF
THE HOUSING MAINTENANCE CODE OR OTHER STATE OR LOCAL LAWS THAT IMPOSE
REQUIREMENTS ON PROPERTY AND WHICH WERE RECORDED AGAINST THE PROPERTY ON
JULY FIRST, TWO THOUSAND TEN, OR JULY FIRST OF THE YEAR PRECEDING THE
ADJUSTMENT, WHICHEVER IS LATER, HAVE BEEN CLEARED, CORRECTED OR ABATED
AND THE LANDLORD HAS RECEIVED A CERTIFICATE OF ELIGIBILITY FROM THE CITY
RENT AGENCY THAT THE VIOLATION CLEARING REQUIREMENTS SET FORTH ABOVE
HAVE BEEN MET AND FURTHER AUTHORIZING THE LANDLORD TO COLLECT ANY RENT
INCREASE OR ADJUSTMENT AUTHORIZED PURSUANT TO THIS SUBPARAGRAPH, AND THE
LANDLORD HAS SERVED SUCH CERTIFICATE UPON THE TENANT RESIDING IN THE
HOUSING ACCOMMODATION.
(D) MAXIMUM RATES OF RENT ADJUSTMENT SHALL NOT BE ESTABLISHED MORE
THAN ONCE ANNUALLY FOR ANY HOUSING ACCOMMODATION SUBJECT TO THIS CHAPTER
WITHIN THE BOARD'S JURISDICTION. ONCE ESTABLISHED, NO SUCH RATE SHALL BE
ADJUSTED BY ANY SURCHARGE, SUPPLEMENTARY ADJUSTMENT, REOPENER OR OTHER
MODIFICATION.
(E) NOTHING CONTAINED IN THIS PARAGRAPH SHALL ALTER, RESTRICT OR
IMPAIR AN OWNER'S RIGHT TO ESTABLISH THE INITIAL REGULATED RENT, SUBJECT
TO THE PROVISIONS OF SECTION 26-513 OF THIS TITLE, FOR ACCOMMODATIONS
SUBJECT TO THIS CHAPTER WHICH BECOME VACANT.
S 2. Paragraph 6 of subdivision h of section 26-405 of the administra-
tive code of the city of New York is amended to read as follows:
(6) (A) If at least six months before the effective date of any
adjustment or establishment of rents pursuant to paragraph three or four
of subdivision a of this section, the landlord has not certified to the
agency having jurisdiction that (a) all rent impairing violations (as
defined by section three hundred two-a of the multiple dwelling law),
and (b) at least eighty per centum of all other violations of the hous-
ing maintenance code or other state or local laws that impose require-
ments on property that were recorded against the property one year prior
to such effective date have been cleared, corrected, or abated, no
increase pursuant to such paragraphs shall take effect until he or she
shall have entered into a written agreement with the city rent agency to
deposit all income derived from the property into an escrow or trust
account pursuant to subparagraph (a) of paragraph four of this subdivi-
sion, in addition to the procedures set forth in this paragraph and all
other applicable penalties and procedures under this chapter, such
A. 5751 3
violation shall also be subject to repair or removal by the city pursu-
ant to the provisions of article five of subchapter five of the housing
maintenance code, the landlord to be liable for the cost thereof.
(B) ON OR AFTER JANUARY FIRST, TWO THOUSAND ELEVEN, TO BE ENTITLED TO
COLLECT ANY ANNUAL RENT ADJUSTMENTS PURSUANT TO THE PROVISIONS OF PARA-
GRAPH TEN OF SUBDIVISION A OF THIS SECTION, A LANDLORD MUST FILE WITH
THE CITY RENT AGENCY, AS PART OF EACH REGISTRATION REQUIRED PURSUANT TO
SUBDIVISION K OF SECTION 26-409 OF THIS CHAPTER, A WRITTEN CERTIFICATION
THAT HE OR SHE IS MAINTAINING AND WILL CONTINUE TO MAINTAIN SERVICES
FURNISHED OR REQUIRED TO BE FURNISHED PURSUANT TO THIS CHAPTER OR
REQUIRED TO BE FURNISHED BY ANY LAW, ORDINANCE OR REGULATION APPLICABLE
TO THE PREMISES.
S 3. Section 26-409 of the administrative code of the city of New York
is amended by adding a new subdivision k to read as follows:
K. EFFECTIVE JANUARY FIRST, TWO THOUSAND ELEVEN, THE CITY RENT AGENCY
SHALL REQUIRE THE LANDLORD OF A BUILDING OR PROPERTY CONTAINING HOUSING
ACCOMMODATIONS SUBJECT TO THIS CHAPTER, TO EXECUTE AND FILE REGISTRATION
STATEMENTS WITH RESPECT TO SUCH HOUSING ACCOMMODATIONS AS FOLLOWS:
(1) EACH HOUSING ACCOMMODATION SHALL BE REGISTERED BY THE LANDLORD
THEREOF ANNUALLY WITH THE CITY RENT AGENCY UPON FORMS AND IN SUCH MANNER
AS SHALL BE PRESCRIBED BY THE CITY RENT AGENCY. AT SUCH TIME, A LANDLORD
SHALL ALSO PROVIDE EACH TENANT THEN IN OCCUPANCY WITH A COPY OF THAT
PORTION OF SUCH REGISTRATION STATEMENT AS PERTAINS TO THE TENANT'S UNIT
BY PERSONAL DELIVERY WITH ACKNOWLEDGEMENT OF SERVICE, CERTIFIED OR
REGISTERED MAIL, OR FIRST CLASS MAIL WITH OFFICIAL PROOF OF SERVICE.
(2) REGISTRATION PURSUANT TO THIS SUBDIVISION SHALL NOT BE SUBJECT TO
THE FREEDOM OF INFORMATION LAW, PROVIDED THAT REGISTRATION INFORMATION
RELATIVE TO A TENANT OR LANDLORD SHALL BE MADE AVAILABLE TO SUCH PARTY
OR HIS OR HER AUTHORIZED REPRESENTATIVE.
(3) THE FAILURE TO FILE A PROPER AND TIMELY RENT REGISTRATION STATE-
MENT, PURSUANT TO THIS SUBDIVISION, SHALL, UNTIL SUCH TIME AS SUCH
REGISTRATION IS FILED, BAR A LANDLORD FROM APPLYING FOR OR COLLECTING
ANY RENT IN EXCESS OF THE MAXIMUM RENT IN EFFECT ON THE DATE OF THE LAST
PRECEDING REGISTRATION STATEMENT OR IF NO SUCH STATEMENTS HAVE BEEN
FILED, THE MAXIMUM RENT IN EFFECT ON THE DATE THAT THE HOUSING ACCOMMO-
DATION BECAME SUBJECT TO THE REGISTRATION REQUIREMENTS OF THIS SUBDIVI-
SION. THE FILING OF A LATE REGISTRATION SHALL RESULT IN THE PROSPECTIVE
ELIMINATION OF SUCH SANCTIONS AND PROVIDED THAT INCREASES IN THE LEGAL
REGULATED RENT WERE LAWFUL EXCEPT FOR THE FAILURE TO FILE A TIMELY
REGISTRATION, THE OWNER, UPON THE SERVICE AND FILING OF A LATE REGISTRA-
TION, SHALL NOT BE FOUND TO HAVE COLLECTED AN OVERCHARGE AT ANY TIME
PRIOR TO THE FILING OF A LATE REGISTRATION. IF SUCH LATE REGISTRATION IS
FILED SUBSEQUENT TO THE FILING OF AN OVERCHARGE COMPLAINT, THE OWNER
SHALL BE ASSESSED A LATE FILING SURCHARGE FOR EACH LATE REGISTRATION IN
AN AMOUNT EQUAL TO FIFTY PERCENT OF THE TIMELY RENT REGISTRATION FEE.
S 4. Section 4 of chapter 274 of the laws of 1946, constituting the
emergency housing rent control law, is amended by adding a new subdivi-
sion 3-b to read as follows:
3-B. EFFECTIVE JANUARY 1, 2011, THE COMMISSION SHALL REQUIRE THE LAND-
LORD OF A BUILDING OR PROPERTY CONTAINING HOUSING ACCOMMODATIONS SUBJECT
TO THIS CHAPTER, TO EXECUTE AND FILE REGISTRATION STATEMENTS WITH
RESPECT TO SUCH HOUSING ACCOMMODATIONS AS FOLLOWS:
(1) EACH HOUSING ACCOMMODATION SHALL BE REGISTERED BY THE LANDLORD
THEREOF ANNUALLY WITH THE COMMISSION UPON FORMS AND IN SUCH MANNER AS
SHALL BE PRESCRIBED BY THE COMMISSION. AT SUCH TIME, A LANDLORD SHALL
PROVIDE EACH TENANT THEN IN OCCUPANCY WITH A COPY OF THAT PORTION OF THE
A. 5751 4
REGISTRATION STATEMENT AS PERTAINS TO THE TENANT'S UNIT BY PERSONAL
DELIVERY WITH ACKNOWLEDGEMENT OF SERVICE, CERTIFIED OR REGISTERED MAIL,
OR FIRST CLASS MAIL WITH OFFICIAL PROOF OF SERVICE.
(2) REGISTRATION PURSUANT TO THIS SUBDIVISION SHALL NOT BE SUBJECT TO
THE FREEDOM OF INFORMATION LAW, PROVIDED THAT REGISTRATION INFORMATION
RELATIVE TO A TENANT OR LANDLORD SHALL BE MADE AVAILABLE TO SUCH PARTY
OR HIS OR HER AUTHORIZED REPRESENTATIVE.
(3) FOR HOUSING ACCOMMODATIONS SUBJECT TO THIS ACT WHICH ARE SUBJECT
TO RENT ADJUSTMENTS PURSUANT TO RENT GUIDELINES BOARD ORDERS, THE FAIL-
URE TO FILE A PROPER AND TIMELY RENT REGISTRATION STATEMENT, PURSUANT TO
THIS SUBDIVISION, SHALL, UNTIL SUCH TIME AS SUCH REGISTRATION IS FILED,
BAR A LANDLORD FROM APPLYING FOR OR COLLECTING ANY RENT IN EXCESS OF THE
MAXIMUM RENT IN EFFECT ON THE DATE OF THE LAST PRECEDING REGISTRATION
STATEMENT OR IF NO SUCH STATEMENTS HAVE BEEN FILED, THE MAXIMUM RENT IN
EFFECT ON THE DATE THAT THE HOUSING ACCOMMODATION BECAME SUBJECT TO THE
REGISTRATION REQUIREMENTS OF THIS SUBDIVISION. THE FILING OF A LATE
REGISTRATION SHALL RESULT IN THE PROSPECTIVE ELIMINATION OF SUCH SANC-
TIONS AND PROVIDED THAT INCREASES IN THE LEGAL REGULATED RENT WERE
LAWFUL EXCEPT FOR THE FAILURE TO FILE A TIMELY REGISTRATION, THE OWNER,
UPON THE SERVICE AND FILING OF A LATE REGISTRATION, SHALL NOT BE FOUND
TO HAVE COLLECTED AN OVERCHARGE AT ANY TIME PRIOR TO THE FILING OF THE
LATE REGISTRATION. IF SUCH LATE REGISTRATION IS FILED SUBSEQUENT TO THE
FILING OF AN OVERCHARGE COMPLAINT, THE OWNER SHALL BE ASSESSED A LATE
FILING SURCHARGE FOR EACH LATE REGISTRATION IN AN AMOUNT EQUAL TO FIFTY
PERCENT OF THE TIMELY RENT REGISTRATION FEE.
S 5. Section 4 of chapter 274 of the laws of 1946, constituting the
emergency housing rent control law, is amended by adding two new subdi-
visions 9 and 10 to read as follows:
9. NOTWITHSTANDING ANY CONTRARY PROVISIONS OF THIS ACT, EFFECTIVE
JANUARY 1, 2011, EXCEPT AS OTHERWISE PROVIDED IN THIS SUBDIVISION, THE
RENT FOR HOUSING ACCOMMODATIONS SUBJECT TO THIS ACT LOCATED IN THE COUN-
TIES OF WESTCHESTER AND NASSAU SHALL BE ADJUSTED AS FOLLOWS:
(A) THE RENT GUIDELINES BOARDS ESTABLISHED PURSUANT TO SECTION 4 OF
SECTION 4 OF THE EMERGENCY TENANT PROTECTION ACT OF NINETEEN
SEVENTY-FOUR, SHALL ESTABLISH ANNUAL GUIDELINES FOR THE CLASS OF HOUSING
ACCOMMODATIONS SUBJECT TO THIS ACT LOCATED IN THE COUNTIES OF WESTCHES-
TER AND NASSAU, IN THE MANNER PROVIDED BY SUCH SECTION. THE FACT THAT
THE HOUSING ACCOMMODATION IS SUBJECT TO THIS ACT MAY NOT BE CONSIDERED
AS A FACTOR IN DETERMINING THE RATE OF RENT ADJUSTMENT. NOT LATER THAN
OCTOBER 1, 2009, AND NOT LATER THAN OCTOBER FIRST ANNUALLY THEREAFTER,
THE COUNTY GUIDELINES BOARDS SHALL FILE WITH THE COMMISSION THEIR FIND-
INGS ESTABLISHED IN CONSIDERATION OF THE ECONOMIC FACTORS LISTED IN
SUBDIVISION B OF SECTION 4 OF SECTION 4 OF THE EMERGENCY TENANT
PROTECTION ACT OF NINETEEN SEVENTY-FOUR, AND SHALL ACCOMPANY SUCH FIND-
INGS WITH A STATEMENT OF THE MAXIMUM RATE OR RATES OF RENT ADJUSTMENT,
IF ANY, FOR ONE OR MORE CLASSES OF ACCOMMODATIONS SUBJECT TO THIS ACT
WITHIN SUCH COUNTIES AUTHORIZED FOR THE ADJUSTMENT OF THE MAXIMUM RENT
OF THE HOUSING ACCOMMODATION FOR THE TWELVE MONTH PERIOD COMMENCING
JANUARY 1, 2011, AND FOR EACH SUCCEEDING TWELVE MONTH PERIOD.
(B) EFFECTIVE JANUARY 1, 2011, THE MAXIMUM RENT COLLECTIBLE FROM THE
TENANT SHALL BE THE MAXIMUM RENT COLLECTIBLE ON DECEMBER 31, 2010, AS
SUCH RENT MAY BE ADJUSTED PURSUANT TO PARAGRAPH (A) OF THIS SUBDIVISION
ANNUALLY, WITHOUT AN ORDER OF THE COMMISSION, OR AS ADJUSTED PURSUANT TO
ANY OTHER PROVISION OF THIS ACT. HOWEVER, NO SUCH INCREASE PURSUANT TO
PARAGRAPH (A) OF THIS SUBDIVISION SHALL BE AUTHORIZED UNTIL THE EXPIRA-
TION OF TWELVE MONTHS FROM THE EFFECTIVE DATE OF ANY RENT ADJUSTMENT
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AUTHORIZED PURSUANT TO REGULATIONS ADOPTED FOR RENT ADJUSTMENTS TO
COMPENSATE FOR UNAVOIDABLE INCREASED COSTS OF OPERATIONS AS PROVIDED FOR
UNDER THIS ACT.
(C) MAXIMUM RATES OF RENT ADJUSTMENT SHALL NOT BE ESTABLISHED MORE
THAN ONCE ANNUALLY FOR ANY HOUSING ACCOMMODATION SUBJECT TO THIS ACT
WITHIN A BOARD'S JURISDICTION. ONCE ESTABLISHED, NO SUCH RATE SHALL BE
ADJUSTED BY ANY SURCHARGE, SUPPLEMENTARY ADJUSTMENT, REOPENER OR OTHER
MODIFICATION.
(D) NOTHING CONTAINED IN THIS PARAGRAPH SHALL ALTER, RESTRICT OR
IMPAIR AN OWNER'S RIGHT TO ESTABLISH THE INITIAL REGULATED RENT FOR
ACCOMMODATIONS SUBJECT TO THIS ACT WHICH BECOME VACANT.
10. ON OR AFTER JANUARY 1, 2011, TO BE ENTITLED TO COLLECT ANNUAL RENT
ADJUSTMENTS AUTHORIZED PURSUANT TO THE PROVISIONS OF SUBDIVISION NINE OF
THIS SECTION, A LANDLORD MUST FILE WITH THE COMMISSION, AS PART OF EACH
REGISTRATION REQUIRED PURSUANT TO SUBDIVISION 3-B OF THIS SECTION, A
WRITTEN CERTIFICATION THAT HE OR SHE IS MAINTAINING AND WILL CONTINUE TO
MAINTAIN ALL SERVICES FURNISHED OR REQUIRED TO BE FURNISHED PURSUANT TO
THIS ACT, OR ANY OTHER STATE OR LOCAL LAW, ORDINANCE OR REGULATION
APPLICABLE TO THE PREMISES.
S 6. This act shall take effect immediately; provided that:
(a) the amendments to sections 26-405 and 26-409 of the city rent and
rehabilitation law made by sections one, two and three 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 emer-
gency housing rent control act; and
(b) the amendments to section 4 of the emergency housing rent control
law made by sections four and five 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.