Senate Bill S3962

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

                                  3962

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                              April 7, 2009
                               ___________

Introduced  by  Sen.  OPPENHEIMER -- 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 emergency tenant protection act of  nineteen  seven-
  ty-four  and  the  administrative  code  of  the  city of New York, in
  relation to the rent guidelines board

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

  Section  1.  Subdivision b of section 4 of section 4 of chapter 576 of
the laws of 1974, constituting the emergency tenant  protection  act  of
nineteen  seventy-four,  as  amended by chapter 486 of the laws of 1976,
the opening paragraph as amended by chapter 403 of the laws of 1983  and
the  second  and third undesignated paragraphs as amended by chapter 330
of the laws of 1980, is amended to read as follows:
  b. A county rent guidelines board shall establish annually  guidelines
for  rent  adjustments  which,  at its sole discretion may be varied and
different for and within the several  zones  and  jurisdictions  of  the
board,  OR WITH RESPECT TO ONE OR MORE CLASSES OF HOUSING ACCOMMODATIONS
SUBJECT TO THIS ACT, and in determining whether rents for housing accom-
modations as to which an emergency has been declared  pursuant  to  this
act shall be adjusted, shall consider among other things (1) A REPRESEN-
TATIVE  STATISTICAL  SAMPLE OF AUDITED INCOME AND EXPENDITURE STATEMENTS
OF HOUSING ACCOMMODATIONS IN THE AFFECTED AREA, (2) the economic  condi-
tion  of  the  residential  real  estate  industry  in the affected area
including such factors as the prevailing and projected (i)  real  estate
taxes  and sewer and water rates, (ii) gross operating maintenance costs
(including insurance rates, governmental fees, cost of  fuel  and  labor
costs),  (iii)  costs and availability of financing (including effective
rates of interest), (iv) over-all supply of housing  accommodations  and
over-all  vacancy  rates,  [(2)] AND (V) FEDERAL, STATE AND LOCAL INCOME
TAX LAWS, (3) relevant data from  the  current  and  projected  cost  of

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09283-01-9
              

S. 3962                             2

living indices for the affected area, [(3)] AND (4) such other OBJECTIVE
AND RELIABLE data as may be made available to it. As soon as practicable
after  its  creation  and  thereafter  not later than July first of each
year,  a  rent  guidelines  board  shall file with the state division of
housing and community renewal its findings for  the  preceding  calendar
year,  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
accommodation subject to this act, authorized for leases or other rental
agreements  commencing  during  the  next  succeeding twelve months. The
standards for rent adjustments may be applicable for the  entire  county
or  may  be  varied according to such zones or jurisdictions within such
county as the board finds necessary to  achieve  the  purposes  of  this
subdivision.
  The  standards  for  rent  adjustments  established  annually shall be
effective for leases commencing on October first of each year and during
the next succeeding twelve months whether or not the board has filed its
findings and statement of the maximum rate or rates of  rent  adjustment
by  July  first  of each year. If such lease is entered into before such
filing by the board, it may provide for the rent to be adjusted  by  the
rates  then in effect, subject to change by the applicable rates of rent
adjustment when filed, such change to be effective as of the date of the
commencement of the lease. Said lease must  provide  that,  if  the  new
rates  of  rent  adjustment  differ  for  leases of different terms, the
tenant has the option of changing the original lease term to  any  other
term  for  which a rate of rent adjustment is set by the board, with the
rental to be adjusted accordingly.
  Where a city, town or village shall act to determine the existence  of
public emergency pursuant to section three of this act subsequent to the
establishment  of annual guidelines for rent adjustments of the accommo-
dations subject to this act, the rent guidelines board as soon as  prac-
ticable  thereafter shall file its findings and rates of rent adjustment
for leases or other rental agreements for the housing accommodations  in
such  a city, town or village, which rates shall be effective for leases
or other rental agreements commencing on or after the effective date  of
the determination.
  A  COUNTY RENT GUIDELINES BOARD, PRIOR TO THE ANNUAL ADJUSTMENT OF THE
LEVEL OF FAIR RENTS PROVIDED FOR UNDER  THIS  SUBDIVISION  FOR  DWELLING
UNITS  COVERED  BY THIS ACT, SHALL HOLD A PUBLIC HEARING OR HEARINGS FOR
THE PURPOSE OF COLLECTING INFORMATION RELATING TO ALL FACTORS SET  FORTH
IN  THIS  SUBDIVISION. NOTICE OF THE DATE, TIME, LOCATION AND SUMMARY OF
SUBJECT MATTER FOR THE PUBLIC HEARING OR HEARINGS SHALL BE PUBLISHED  AT
LEAST  ONCE  IN  ONE  OR MORE NEWSPAPERS OF GENERAL CIRCULATION AT LEAST
EIGHT DAYS IMMEDIATELY PRECEDING EACH HEARING DATE, AT  THE  EXPENSE  OF
THE  STATE  DIVISION  OF  HOUSING AND COMMUNITY RENEWAL, AND THE HEARING
SHALL BE OPEN FOR TESTIMONY FROM ANY INDIVIDUAL, GROUP,  ASSOCIATION  OR
REPRESENTATIVE THEREOF WHO WANTS TO TESTIFY.
  IN  FURTHERANCE  OF  ITS RESPONSIBILITY TO ESTABLISH ANNUAL GUIDELINES
FOR RENT ADJUSTMENTS, THE BOARD SHALL COMPILE A  REPRESENTATIVE  STATIS-
TICAL  SAMPLE  OF  AUDITED  INCOME AND EXPENDITURE STATEMENTS OF HOUSING
ACCOMMODATIONS IN THE COUNTY AND MAY REQUIRE THAT THE OWNERS OF  HOUSING
ACCOMMODATIONS SUBJECT TO THIS ACT FILE WITH IT RELEVANT DATA CONCERNING
THE  INCOME  AND  OPERATING  COSTS  OF THEIR BUILDINGS. AN OWNER WHO HAS
FAILED TO FILE SUCH DATA AFTER A REASONABLE NOTICE AND OPPORTUNITY TO DO
SO, OR TO SUBMIT EVIDENCE ESTABLISHING THAT THE DATA IS NOT AVAILABLE TO
THE OWNER, SHALL BE BARRED FROM COLLECTING ANY RENT WITH RESPECT TO  ANY
HOUSING  ACCOMMODATION IN THE BUILDING OR GROUP OF BUILDINGS OR DEVELOP-

S. 3962                             3

MENT AS TO WHICH SUCH DATA IS APPLICABLE UNTIL SUCH  DATA  IS  FILED  OR
SUCH  EVIDENCE  IS SUBMITTED.  THE LATE FILING OF SUCH DATA SHALL RESULT
IN THE PROSPECTIVE ELIMINATION OF SUCH SANCTIONS. THE BOARD  SHALL  HAVE
THE ADDITIONAL POWER TO SUBPOENA THE BOOKS AND RECORDS OF SUCH OWNERS IN
THE MANNER PROVIDED FOR IN THE CIVIL PRACTICE LAW AND RULES. IF A PERSON
SUBPOENAED  FAILS  TO OBEY THE COMMAND OF SUCH SUBPOENA, WITHOUT REASON-
ABLE CAUSE, HE SHALL BE GUILTY OF A MISDEMEANOR AND MAY BE PROSECUTED IN
ANY COURT OF COMPETENT CRIMINAL JURISDICTION.
  S 2. Subdivision b of section 26-510 of the administrative code of the
city of New York is amended to read as follows:
  b.  The rent guidelines board shall establish annually guidelines  for
rent  adjustments, and in determining whether rents for housing accommo-
dations subject to the  emergency  tenant  protection  act  of  nineteen
seventy-four  or  this law shall be adjusted shall consider, among other
things (1) A REPRESENTATIVE STATISTICAL SAMPLE  OF  AUDITED  INCOME  AND
EXPENDITURE  STATEMENTS  OF HOUSING ACCOMMODATIONS IN THE AFFECTED AREA,
(2) the economic condition of the residential real  estate  industry  in
the affected area including such factors as the prevailing and projected
(i)  real  estate  taxes and sewer and water rates, (ii) gross operating
maintenance costs (including insurance rates, governmental fees, cost of
fuel and  labor  costs),  (iii)  costs  and  availability  of  financing
(including effective rates of interest), (iv) over-all supply of housing
accommodations  and over-all vacancy rates, [(2)] AND (V) FEDERAL, STATE
AND LOCAL INCOME TAX LAWS,  (3)  relevant  data  from  the  current  and
projected  cost  of  living indices for the affected area, [(3)] AND (4)
such other OBJECTIVE AND RELIABLE data as may be made available  to  it.
Not  later than July first of each year, the rent guidelines board shall
file with the city clerk its findings for the preceding  calendar  year,
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 law,  authorized  for  leases  or  other  rental
agreements commencing on the next succeeding October first or within the
twelve  months  thereafter.    Such  findings  and  statement  shall  be
published in the City Record.
  S 3. Subdivision h of section 26-510 of the administrative code of the
city of New York is amended to read as follows:
  h.  The rent guidelines board prior to the annual  adjustment  of  the
level of fair rents provided for under subdivision b of this section for
dwelling  units and hotel dwelling units covered by this law, shall hold
a public hearing or hearings for the purpose of  collecting  information
relating  to  all  factors  set  forth in subdivision b of this section.
Notice of the date, time, location and summary of subject matter for the
public hearing or hearings shall be published in the City  Record  daily
for  a  period  of  not less than eight days and at least once in one or
more newspapers of general circulation at least eight  days  immediately
preceding each hearing date, at the expense of the city of New York, and
the  hearing  shall  be  open  for testimony from any individual, group,
association or representative thereof who wants to testify.
  IN FURTHERANCE OF ITS RESPONSIBILITY TO  ESTABLISH  ANNUAL  GUIDELINES
FOR  RENT  ADJUSTMENTS, THE BOARD SHALL COMPILE A REPRESENTATIVE STATIS-
TICAL SAMPLE OF AUDITED INCOME AND  EXPENDITURE  STATEMENTS  OF  HOUSING
ACCOMMODATIONS  IN  THE  CITY AND MAY REQUIRE THAT THE OWNERS OF HOUSING
ACCOMMODATIONS SUBJECT TO THIS LAW FILE WITH IT RELEVANT DATA CONCERNING
THE INCOME AND OPERATING COSTS OF THEIR  BUILDINGS.  AN  OWNER  WHO  HAS
FAILED TO FILE SUCH DATA AFTER A REASONABLE NOTICE AND OPPORTUNITY TO DO
SO, OR TO SUBMIT EVIDENCE ESTABLISHING THAT THE DATA IS NOT AVAILABLE TO

S. 3962                             4

THE  OWNER, SHALL BE BARRED FROM COLLECTING ANY RENT WITH RESPECT TO ANY
HOUSING ACCOMMODATION IN THE BUILDING OR GROUP OF BUILDINGS OR  DEVELOP-
MENT  AS  TO  WHICH  SUCH DATA IS APPLICABLE UNTIL SUCH DATA IS FILED OR
SUCH  EVIDENCE  IS SUBMITTED.  THE LATE FILING OF SUCH DATA SHALL RESULT
IN THE PROSPECTIVE ELIMINATION OF SUCH SANCTIONS. THE BOARD  SHALL  HAVE
THE ADDITIONAL POWER TO SUBPOENA THE BOOKS AND RECORDS OF SUCH OWNERS IN
THE MANNER PROVIDED FOR IN THE CIVIL PRACTICE LAW AND RULES. IF A PERSON
SUBPOENAED  FAILS  TO OBEY THE COMMAND OF SUCH SUBPOENA, WITHOUT REASON-
ABLE CAUSE, HE SHALL BE GUILTY OF A MISDEMEANOR AND MAY BE PROSECUTED IN
ANY COURT OF COMPETENT CRIMINAL JURISDICTION.
  S 4. This act shall take effect immediately provided that  the  amend-
ment  to  section  4  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, as
amended; provided that the amendments to  section  26-510  of  the  rent
stabilization  law  of  nineteen hundred sixty-nine made by sections two
and three 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.