S T A T E   O F   N E W   Y O R K
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                                  5566

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                              May 18, 2009
                               ___________

Introduced  by  Sen.  DUANE  -- 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  the  establishment  of
  rent  adjustments;  and  to  repeal  paragraph 5-a of subdivision c of
  section 25-511 of the administrative code of the city of New York  and
  subdivision  (a-1)  of  section  10 of section 4 of chapter 576 of the
  laws of 1974, constituting the  emergency  tenant  protection  act  of
  nineteen seventy-four, relating to vacancy leases

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

  Section 1. Short title. This act shall be known and may  be  cited  as
the "rent board reform act of 2009".
  S  2.  Legislative  findings  and  declaration. The legislature hereby
finds and declares that the public emergency which led to the  enactment
of  the  laws  regulating  residential  rents and evictions continues to
exist, that such emergency continues to necessitate the intervention  of
state and local governments in order to prevent speculative, unwarranted
and  abnormal  increases  in rents and unjust and arbitrary evictions so
long as such emergency exists, without further periodic authorization by
the legislature; that because of the shortage of decent, safe and avail-
able housing, market forces do not operate properly, and it is necessary
therefor to prevent the exaction of unjust  or  unreasonable  rents  and
rental  agreements, and to forestall eviction and other disruptive prac-
tices tending to produce threats to the public health, safety and gener-
al welfare; that the general welfare depends in part on the  maintenance
and  preservation  of the existing stock of privately owned rental hous-
ing, and to assure such maintenance and preservation, responsible owners
should be encouraged to own, invest in and maintain such housing without

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01591-03-9
              

S. 5566                             2

exacting unwarranted rent  increases  or  rental  agreements;  that  the
existing  laws  regulating  residential rents and evictions would better
promote equity and serve the public interest if certain amendments  were
made  thereto, including the restructuring of the system of promulgating
general rent adjustments, repeal of the statutory vacancy bonus and  the
substitution of statutory tenancies for the current renewal lease system
for rent stabilized housing accommodations.
  The legislature therefore declares that the provisions of this act are
necessary  to protect the public health, safety and general welfare. The
necessity in the public interest for the provisions hereinafter  enacted
is hereby declared as a matter of legislative determination.
  S 3. Paragraph 1 of subdivision b of section 26-509 of the administra-
tive  code  of the city of New York is amended and a new paragraph 10 is
added to read as follows:
  (1) No increase in the legal regulated rent shall be collectible  from
a  tenant to whom there has been issued a currently valid rent exemption
order pursuant to this subdivision, except as provided in such order, if
such increase is a lawful increase in the monthly legal  regulated  rent
over  the rent legally payable on the eligibility date which is provided
under a two year lease, or under such other  term  as  regards  dwelling
units subject to the hotel stabilization provisions of this chapter, for
an increase in rent:
  (i) pursuant to an order of the New York city rent [guidelines] board,
or
  (ii)  based  upon  an owner hardship rent increase order issued by the
state division of housing and community renewal.
  (10) NOTWITHSTANDING ANY PROVISIONS OF PARAGRAPHS ONE AND SIX OF  THIS
SUBDIVISION  TO THE CONTRARY, EFFECTIVE JANUARY FIRST, TWO THOUSAND TEN,
A TWO YEAR RENEWAL LEASE SHALL NOT BE A PREREQUISITE FOR A TENANT TO  BE
ELIGIBLE FOR A RENT EXEMPTION UNDER THIS SUBDIVISION WHO OTHERWISE QUAL-
IFIES  FOR  SUCH  RENT EXEMPTION. A RENT EXEMPTION ORDER SHALL NO LONGER
CONTAIN A PROVISION GIVING NOTICE THAT A TENANT MUST ENTER  INTO  A  TWO
YEAR  RENEWAL LEASE FOR CONTINUED ELIGIBILITY FOR A RENT EXEMPTION UNDER
THIS SUBDIVISION.
  S 4. Section 26-510 of the administrative code of the city of New York
is amended to read as follows:
  S 26-510 Rent [guidelines] board. a. There shall  be  a  rent  [guide-
lines] board to consist of nine members, appointed by the mayor UPON THE
ADVICE  AND  CONSENT  OF THE CITY COUNCIL.  [Two] THREE members shall be
representative of tenants, [two] THREE shall be representative of owners
of property, and [five] THREE shall be public members  [each  of  whom].
EACH OF THE PUBLIC MEMBERS shall have had at least five years experience
in  [either]  PUBLIC SERVICE, PHILANTHROPY, SOCIAL SERVICES, URBAN PLAN-
NING, ARCHITECTURE, SOCIAL SCIENCES, SERVICE WITH NOT-FOR-PROFIT  ORGAN-
IZATIONS,  finance,  economics  or  housing.  One public member shall be
designated by the mayor UPON THE ADVICE AND CONSENT OF THE CITY  COUNCIL
to  serve  as [chairman] CHAIR and shall hold no other public office. No
[member, officer or] employee of THE CITY OF NEW YORK OR OF any [munici-
pal rent regulation] MAYORAL OR NON-MAYORAL agency THEREOF or the  state
division  of  housing  and  community  renewal and no person who owns or
manages real estate covered by THE EMERGENCY TENANT  PROTECTION  ACT  OF
NINETEEN  SEVENTY-FOUR OR this law or [who is an officer of any owner or
tenant organization] THE CITY RENT AND REHABILITATION LAW  OR  WHO  OWNS
MORE THAN TWO RENTAL HOUSING ACCOMMODATIONS NOT COVERED BY THE EMERGENCY
TENANT  PROTECTION  ACT OF NINETEEN SEVENTY-FOUR OR THIS LAW shall serve
on [a] THE rent [guidelines]  board.  [One  public  member,  one  member

S. 5566                             3

representative  of tenants and one member representative of owners shall
serve for a term ending two years from January first next succeeding the
date of their appointment; one public member, one member  representative
of tenants and one member representative of owners shall serve for terms
ending  three  years  from the January first next succeeding the date of
their appointment and two public members shall serve  for  terms  ending
four  years  from  January  first  next  succeeding  the  dates of their
appointment. The chairman shall serve at the pleasure of the mayor.] ALL
MEMBERS OF THE BOARD SHALL SERVE TWO YEAR TERMS, BEGINNING THE LATER  OF
THE DATE OF APPOINTMENT OR THE EXPIRATION OF THE TERM OF THE MEMBER WHOM
THE  APPOINTEE  IS SUCCEEDING. Thereafter, all members shall continue in
office until their successors have been appointed and  qualified.    The
mayor,  UPON  THE ADVICE AND CONSENT OF THE CITY COUNCIL, shall fill any
vacancy which may occur by reason of death, resignation or otherwise  in
a  manner  consistent with the [original appointment] PROVISIONS OF THIS
SUBDIVISION. A member may be removed by the [mayor] COUNCIL  for  cause,
but  not  without an opportunity to be heard in person or by counsel, in
his or her defense, upon not less than ten days notice. A  SUCCESSOR  TO
SUCH MEMBER SHALL BE APPOINTED IN ACCORDANCE WITH THE PROVISIONS OF THIS
SUBDIVISION  TO  SERVE  THE  BALANCE  OF  THE TERM OF THE MEMBER WHO WAS
REMOVED.
  b. The rent [guidelines] board shall  establish  annually  [guidelines
for]  rent  adjustments,  and  in  determining whether rents for housing
accommodations subject to the emergency tenant protection act  of  nine-
teen  seventy-four  or  this law shall be adjusted shall consider, among
other things (1) THE STATE OF THE RENTAL REAL ESTATE MARKET AND  SUBMAR-
KETS WITHIN THE CITY OF NEW YORK, INCLUDING THE AVAILABILITY OF AFFORDA-
BLE, HABITABLE RENTAL HOUSING ACCOMMODATIONS; (2) the economic condition
of  the  residential real estate industry in the [affected area] CITY OF
NEW YORK including CHANGES IN THE VALUE OF RESIDENTIAL REAL ESTATE,  THE
PROFITABILITY  OF  OWNERSHIP  OF  RENTAL HOUSING AND such factors as the
prevailing and projected (i) INCREASES OR DECREASES IN RENTS  AND  GROSS
RENTAL  INCOME,  INCLUDING  INCOME FROM OTHER THAN RESIDENTIAL RENTS, AS
WELL AS THE IMPUTED RENTAL VALUE FOR APARTMENTS OCCUPIED  BY  OWNERS  OR
MEMBERS OR THEIR FAMILIES OR ASSOCIATES OF OWNERS, FOR BUILDINGS SUBJECT
TO  THE EMERGENCY TENANT PROTECTION ACT OF NINETEEN SEVENTY-FOUR OR THIS
LAW, (II) INCREASES OR DECREASES IN OPERATION AND MAINTENANCE  COSTS  OF
BUILDINGS  SUBJECT  TO  THE  EMERGENCY TENANT PROTECTION ACT OF NINETEEN
SEVENTY-FOUR OR THIS LAW  OR  THE  CITY  RENT  AND  REHABILITATION  LAW,
INCLUDING  real  estate  taxes [and], sewer and water rates, [(ii) gross
operating maintenance costs (including] insurance rates,  ADMINISTRATIVE
COSTS, governmental fees, [cost of] fuel, UTILITIES, and labor [costs)],
(iii)  costs and availability of financing (including effective rates of
interest) AND COSTS, AVAILABILITY AND PROFITABILITY OF REFINANCING, (iv)
ECONOMIC BENEFITS, OTHER THAN RENTAL INCOME, DERIVED FROM OWNERSHIP  AND
UPGRADING  OF  RENTAL PROPERTY, (V) RETURNS ON CAPITAL PLACED AT RISK BY
OWNERS, (VI) over-all supply  of  housing  accommodations  and  over-all
vacancy  rates,  [(2)]  (VII)  INCREASES  OR  DECREASES IN NET OPERATING
INCOME OF BUILDINGS SUBJECT TO THE EMERGENCY TENANT  PROTECTION  ACT  OF
NINETEEN  SEVENTY-FOUR  OR  THIS LAW OR THE CITY RENT AND REHABILITATION
LAW, (3) relevant data from the current and  projected  cost  of  living
indices  for  the affected area, [(3)] AND (4) such other data as may be
made available to it. NET OPERATING INCOME SHALL MEAN THE PERCENTAGE  OF
EACH  DOLLAR OF GROSS RENTAL INCOME REMAINING AFTER PAYMENT OF ALL COSTS
OF OPERATION AND MAINTENANCE. DEBT SERVICE  PAYMENTS,  CAPITAL  EXPENDI-
TURES AND DEPRECIATION SHALL NOT BE CONSIDERED TO BE OPERATION AND MAIN-

S. 5566                             4

TENANCE  COSTS,  AND  THE  RENT  BOARD  SHALL  NOT CONSIDER DEBT SERVICE
PAYMENTS, CAPITAL EXPENDITURES OR  DEPRECIATION  IN  DETERMINING  ANNUAL
RENT  ADJUSTMENTS.  THE  RENT  BOARD SHALL NOT CONSIDER A PRICE INDEX OF
OPERATING COSTS. IN CALCULATING LABOR AND ADMINISTRATIVE COSTS, THE RENT
BOARD  SHALL CONSIDER THE FEASIBILITY OF IMPUTING A VALUE TO THE ACTUAL,
VERIFIABLE UNSALARIED LABOR AND ADMINISTRATIVE TASKS PERFORMED BY BUILD-
ING OWNERS OR MEMBERS OF THEIR IMMEDIATE FAMILY WHO RESIDE WITH THEM  IN
A  HOUSING  ACCOMMODATION  IN A BUILDING SUBJECT TO THE EMERGENCY TENANT
PROTECTION ACT OF NINETEEN SEVENTY-FOUR OR THIS LAW OR THE CITY RENT AND
REHABILITATION LAW WITHIN THE CITY OF NEW YORK.  IF THE INCLUSION OF THE
VALUE OF SUCH LABOR AND ADMINISTRATIVE TASKS IS DEEMED FEASIBLE  BY  THE
BOARD,  IT  SHALL  BE  INCLUDED AS ONE OF THE FACTORS CONSIDERED HEREIN.
ALL OWNERS OF HOUSING ACCOMMODATIONS WITHIN THE CITY OF NEW YORK SUBJECT
TO THE EMERGENCY TENANT PROTECTION ACT OF NINETEEN SEVENTY-FOUR OR  THIS
LAW OR THE CITY RENT AND REHABILITATION LAW SHALL ANNUALLY SUBMIT INCOME
AND EXPENDITURE REPORTS TO THE RENT BOARD ON A FORM TO BE PROMULGATED BY
THE  BOARD.  OWNERS  WHO  FAIL  TO SUBMIT SUCH REPORTS TO THE RENT BOARD
SHALL BE BARRED FROM APPLYING FOR OR COLLECTING  ANY  RENT  INCREASE  TO
WHICH  THE  OWNER MIGHT OTHERWISE BE ENTITLED UNDER THE EMERGENCY TENANT
PROTECTION ACT OF NINETEEN SEVENTY-FOUR OR THIS LAW OR THE CITY RENT AND
REHABILITATION LAW DURING THE TWELVE-MONTH  PERIOD  BEGINNING  THE  NEXT
JANUARY  FIRST.  THE RENT BOARD SHALL ANNUALLY REQUIRE A SAMPLE OF LAND-
LORDS SUBJECT TO REGULATION UNDER THE EMERGENCY TENANT PROTECTION ACT OF
NINETEEN SEVENTY-FOUR OR THIS LAW OR THE CITY  RENT  AND  REHABILITATION
LAW TO MAKE AVAILABLE THEIR BOOKS AND RECORDS REGARDING INCOME, EXPENDI-
TURES,  TAX  BENEFITS  AND FINANCING ARRANGEMENTS FOR EXAMINATION BY THE
BOARD AND THE BOARD SHALL UTILIZE THE RESULTS OF THE  ANALYSIS  OF  SUCH
SAMPLE  AS  ONE  OF THE CRITERIA UPON WHICH ITS FINDINGS ARE BASED. SUCH
SAMPLE SHALL BE DESIGNED TO BE REASONABLY REPRESENTATIVE OF THE TYPES OF
BUILDINGS, EXCLUDING BUILDINGS THAT HAVE BEEN CONVERTED TO  CO-OPERATIVE
OR CONDOMINIUM STATUS, THAT ARE SUBJECT TO REGULATION UNDER THE EMERGEN-
CY  TENANT  PROTECTION  ACT  OF NINETEEN SEVENTY-FOUR OR THIS LAW OR THE
CITY RENT AND REHABILITATION LAW.  ANY INFORMATION PROVIDED BY LANDLORDS
PURSUANT TO THIS SUBDIVISION REGARDING AN INDIVIDUAL BUILDING  OR  GROUP
OF  BUILDINGS  SHALL NOT BE AVAILABLE TO THE PUBLIC UNDER THE FREEDOM OF
INFORMATION LAW AND THE RENT BOARD SHALL SAFEGUARD  THE  CONFIDENTIALITY
OF SUCH INFORMATION PROVIDED HOWEVER THAT THE BOARD SHALL MAKE AVAILABLE
TO  THE  PUBLIC CUMULATIVE AND STATISTICAL RESULTS OF THE REPRESENTATIVE
SAMPLE OF BOOKS AND RECORDS REQUIRED HEREIN.    Not  later  than  [July]
OCTOBER  first of each year, the rent [guidelines] board shall file with
the city clerk AND 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  adjust-
ment,  if any, for one or more classes of HOUSING accommodations subject
to THE EMERGENCY TENANT PROTECTION ACT OF NINETEEN SEVENTY-FOUR OR  this
law  OR  THE CITY RENT AND REHABILITATION LAW, authorized for [leases or
other rental agreements]  VACANCY  LEASES  OR  ANNUAL  RENT  ADJUSTMENTS
commencing  on the next succeeding [October] JANUARY first or within the
twelve months thereafter. Such findings and statement shall be published
in the City Record AND THE RENT BOARD SHALL  DISSEMINATE  SUCH  FINDINGS
AND  STATEMENTS  TO  CITYWIDE AND LOCAL NEWSPAPERS, RADIO AND TELEVISION
STATIONS AND OTHER MEDIA.  THE ADDITIONAL ALLOWANCE, IF ANY, FOR  LEASES
ON  VACANT  APARTMENTS  SHALL  NOT EXCEED FIVE PERCENT. ANY SUCH VACANCY
ALLOWANCE SHALL NOT BE IMPLEMENTED FOR A HOUSING ACCOMMODATION MORE THAN
ONE TIME IN ANY CALENDAR YEAR, NOTWITHSTANDING  THE  NUMBER  OF  VACANCY

S. 5566                             5

LEASES  ENTERED  INTO  FOR  SUCH  HOUSING ACCOMMODATION IN SUCH CALENDAR
YEAR.
  c.  Such  members  shall  be  compensated  on  a per diem basis of one
hundred FIFTY dollars per day for no more than twenty-five days  a  year
except that the [chairman] CHAIR shall be compensated at THE RATE OF one
hundred  [twenty-five] SEVENTY-FIVE dollars a day for no more than fifty
days a year. The [chairman] CHAIR shall be chief administrative  officer
of the rent [guidelines] board and among his or her powers and duties he
or  she  shall  have  the  authority to employ, assign and supervise the
employees of the rent [guidelines] board and SHALL, WITH THE ADVICE  AND
CONSENT  OF  FOUR  OR  MORE  OTHER MEMBERS OF THE RENT BOARD, enter into
contracts for consultant services. The department of  housing  preserva-
tion  and  development  shall cooperate with the rent [guidelines] board
and [may] SHALL assign personnel and perform such services in connection
with the duties of the rent [guidelines]  board  as  may  reasonably  be
required by the [chairman] BOARD.
  d. [Any housing accommodation covered by this law owned by a member in
good  standing of an association registered with the department of hous-
ing preservation and development pursuant  to  section  26-511  of  this
chapter  which  becomes  vacant for any reason, other than harassment of
the prior tenant, may be offered for rental at any price notwithstanding
any guideline level established by  the  guidelines  board  for  renewal
leases,  provided  the  offering  price  does not exceed the rental then
authorized by the guidelines board for  such  dwelling  unit  plus  five
percent  for  a  new  lease  not  exceeding two years and a further five
percent for a new lease having a minimum term of three years, until July
first, nineteen hundred seventy, at  which  time  the  guidelines  board
shall determine what the rental for a vacancy shall be.
  e.] With respect to hotel dwelling units, covered by this law pursuant
to section 26-506 of this chapter, the council, after receipt of a study
from  the  rent [guidelines] board, shall establish a guideline for rent
increases, irrespective of the limitations on  amount  of  increase  [in
subdivision  d  hereof],  which  guideline shall apply only to permanent
tenants. A permanent tenant is an individual or family who at  any  time
since  May thirty-first, nineteen hundred sixty-eight, or hereafter, has
continuously resided in the same hotel as a principal  residence  for  a
period of at least six months. On January first, nineteen hundred seven-
ty-one  and  once  annually  each  succeeding year the rent [guidelines]
board shall cause a review to be made  of  the  levels  of  [fair]  rent
[increases]  ADJUSTMENTS  provided under this subdivision and may estab-
lish different levels of [fair] rent [increases] ADJUSTMENTS  for  hotel
dwelling  units  renting  within  different rental ranges based upon the
board's consideration of conditions in the  market  for  hotel  accommo-
dations  and the economics of hotel real estate. Any hotel dwelling unit
which is voluntarily vacated by the tenant thereof may  be  offered  for
rental  at  the  [guideline]  RENT  level  [for vacancies] ADJUSTED BY A
VACANCY ALLOWANCE established by the rent [guidelines] board. If a hotel
dwelling unit becomes vacant because the prior tenant was evicted there-
from, there shall be no increase in the rental thereof except  for  such
increases  in  rental that the prior tenant would have had to pay had he
or she continued in occupancy.
  [g.] E. From September twenty-fifth, nineteen hundred sixty-nine until
the rate of permissible increase is established by the council  pursuant
to  subdivision [e] D of this section, there shall not be collected from
any permanent hotel tenant any rent increase in excess  of  ten  percent
over  the rent payable for his or her dwelling unit on May thirty-first,

S. 5566                             6

nineteen hundred sixty-eight, except for hardship  increases  authorized
by the conciliation and appeals board. Any owner who collects or permits
any  rent  to  be  collected  in excess of the amount authorized by this
subdivision  shall  not be eligible to be a member in good standing of a
hotel industry stabilization association.
  [h.] F. 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 individ-
ual, group, association or representative thereof who wants to testify.
  [i.] G. IN FURTHERANCE OF ITS RESPONSIBILITIES TO  ENFORCE  THIS  ACT,
THE  RENT BOARD SHALL BE EMPOWERED TO ADMINISTER OATHS, ISSUE SUBPOENAS,
CONDUCT INVESTIGATIONS AND MAKE INSPECTIONS.
  H. Maximum rates of rent adjustment shall not be established more than
once annually for any housing accommodation within the board's jurisdic-
tion. Once established, no such rate shall[, within the  one-year  peri-
od,]  be  adjusted  by  any surcharge, supplementary adjustment or other
modification.  NO RENT ADJUSTMENT SHALL BE ESTABLISHED BASED ON THE RENT
LEVEL  OF  HOUSING  ACCOMMODATIONS  SUBJECT  TO  THE  EMERGENCY   TENANT
PROTECTION ACT OF NINETEEN SEVENTY-FOUR OR THIS LAW OR THE CITY RENT AND
REHABILITATION  LAW  OR THE NUMBER OF HOUSING ACCOMMODATIONS IN AFFECTED
BUILDINGS.
  I. NO OWNER OF ANY HOUSING ACCOMMODATION SUBJECT TO THIS  LAW  OR  THE
NEW  YORK  CITY RENT AND REHABILITATION LAW MAY IMPOSE OR COLLECT DURING
CALENDAR YEAR TWO THOUSAND NINE AN ANNUAL  RENT  ADJUSTMENT  AS  ADOPTED
PURSUANT  TO  THE  PROVISIONS  OF SUBDIVISION B OF THIS SECTION IF THERE
EXIST OF RECORD WITH REGARD TO  THE  PROPERTY  CONTAINING  SUCH  HOUSING
ACCOMMODATION ON JANUARY FIRST OF SUCH YEAR ANY OUTSTANDING RENT IMPAIR-
ING  VIOLATIONS, AS DEFINED BY SECTION THREE HUNDRED TWO-A OF THE MULTI-
PLE DWELLING LAW, OF RECORD AS OF JULY FIRST, TWO THOUSAND NINE OR  MORE
THAN  TWENTY PERCENT OF ALL OTHER VIOLATIONS OF RECORD AS OF JULY FIRST,
TWO THOUSAND NINE; OR DURING A SUBSEQUENT CALENDAR YEAR IF  THERE  EXIST
OF RECORD WITH REGARD TO SUCH PROPERTY ON JANUARY FIRST OF SUCH YEAR ANY
OUTSTANDING  RENT IMPAIRING VIOLATIONS OF RECORD AS OF JULY FIRST OF THE
PRIOR YEAR OR MORE THAN TWENTY PERCENT OF ALL OTHER VIOLATIONS OF RECORD
AS OF JULY FIRST OF THE PRIOR YEAR.
  J. NOTWITHSTANDING ANY PROVISIONS OF THIS LAW TO THE CONTRARY:
  (1) EFFECTIVE ON AND AFTER JANUARY FIRST, TWO THOUSAND  TEN  THE  RENT
ADJUSTMENTS  ESTABLISHED PURSUANT TO THIS SECTION SHALL BE APPLICABLE TO
VACANCY LEASES WHICH COMMENCE DURING THE  CALENDAR  YEAR  FOLLOWING  THE
YEAR  IN  WHICH  THE  ADJUSTMENT IS ESTABLISHED AND UPON EXPIRATION SUCH
VACANCY LEASES  SHALL  BE  FURTHER  ADJUSTED  BY  THE  RENT  ADJUSTMENTS
PROVIDED  FOR  IN SUBDIVISION F OF SECTION 26-511 OF THIS CHAPTER EFFEC-
TIVE THE FIRST DAY OF JANUARY FOLLOWING THE YEAR IN WHICH THE ADJUSTMENT
IS ESTABLISHED.
  (2) NO LATER THAN OCTOBER FIRST, TWO  THOUSAND  NINE  THE  RENT  BOARD
SHALL ESTABLISH TRANSITIONAL RENT ADJUSTMENTS APPLICABLE TO LEASES WHICH
EXPIRE   BETWEEN   JANUARY   FIRST,   TWO   THOUSAND  TEN  AND  DECEMBER
THIRTY-FIRST, TWO THOUSAND TEN. NO LATER THAN OCTOBER FIRST,  TWO  THOU-

S. 5566                             7

SAND  TEN THE BOARD SHALL ESTABLISH TRANSITIONAL RENT ADJUSTMENTS APPLI-
CABLE TO LEASES WHICH EXPIRE BETWEEN JANUARY FIRST, TWO THOUSAND  ELEVEN
AND  DECEMBER  THIRTY-FIRST,  TWO  THOUSAND  ELEVEN.  SUCH  TRANSITIONAL
ADJUSTMENT  SHALL  BE  A PRO-RATA PORTION OF THE ONE OR TWO YEAR RENEWAL
ADJUSTMENTS.
  S 5. Paragraph 5-a of subdivision c of section 26-511 of the  adminis-
trative code of the city of New York is REPEALED.
  S  6.  Paragraph 12 of subdivision c of section 26-511 of the adminis-
trative code of the city of New York is amended and a new subdivision  f
is added to read as follows:
  (12)  permits  subletting  of  units  subject  to this law pursuant to
section two hundred twenty-six-b of the real property law provided  that
(a)  the  rental charged to the subtenant does not exceed the stabilized
rent plus a ten percent surcharge payable to  the  tenant  if  the  unit
sublet  was  furnished  with  the tenant's furniture; (b) the tenant can
establish that at all times he or she has maintained the unit as his  or
her primary residence and intends to occupy it as such at the expiration
of  the sublease; (c) an owner may terminate the tenancy of a tenant who
sublets or assigns contrary to the  terms  of  this  paragraph  [but  no
action  or proceeding based on the non-primary residence of a tenant may
be commenced prior to the expiration date of  his  or  her  lease];  (d)
where  an apartment is sublet the prime tenant shall retain the right to
a [renewal lease] STATUTORY TENANCY and  the  rights  and  status  of  a
tenant in occupancy as they relate to conversion to condominium or coop-
erative ownership; (e) where a tenant violates the provisions of subpar-
agraph  (a) of this paragraph the subtenant shall be entitled to damages
of three times the overcharge and may also be awarded attorneys fees and
interest from the date of the overcharge at the rate of interest payable
on a judgment pursuant to section five thousand four of the civil  prac-
tice  law and rules; AND (f) the tenant may not sublet the unit for more
than a total of two years, including the term of the proposed  sublease,
out  of  the  four-year  period  preceding  the  termination date of the
proposed sublease. The provisions of this subparagraph shall only  apply
to subleases commencing on and after July first, nineteen hundred eight-
y-three[;  (g)  for the purposes of this paragraph only, the term of the
proposed sublease may extend beyond the term of the tenant's lease].  In
such  event,  such  sublease shall be subject to the tenant's right to a
[renewal lease] STATUTORY TENANCY PURSUANT TO THIS LAW.   The  subtenant
shall  have no right to a renewal lease. It shall be unreasonable for an
owner to refuse to consent to a sublease solely  because  such  sublease
extends   beyond  the  tenant's  lease[;  and  (h)  notwithstanding  the
provisions of section two hundred twenty-six-b of the real property law,
a not-for-profit hospital shall have the right  to  sublet  any  housing
accommodation leased by it to its affiliated personnel without requiring
the  landlord's  consent to any such sublease and without being bound by
the provisions of subparagraphs (b), (c)  and  (f)  of  this  paragraph.
Commencing  with  the  effective  date  of this subparagraph, whenever a
not-for-profit hospital executes a renewal lease for a housing  accommo-
dation,  the  legal  regulated rent shall be increased by a sum equal to
fifteen percent of the previous lease rental for such  housing  accommo-
dation, hereinafter referred to as a vacancy surcharge, unless the land-
lord  shall  have  received  within  the  seven year period prior to the
commencement date of such renewal lease any vacancy increases or vacancy
surcharges allocable to the said housing accommodation. In the event the
landlord shall have received  any  such  vacancy  increases  or  vacancy
surcharges during such seven year period, the vacancy surcharge shall be

S. 5566                             8

reduced  by  the amount received by any such vacancy increase or vacancy
surcharges].
  NOTWITHSTANDING  ANY  PROVISIONS  OF  THIS  PARAGRAPH  OR  SECTION TWO
HUNDRED TWENTY-SIX-B OF THE REAL PROPERTY LAW TO THE  CONTRARY  RELATING
TO THE RIGHT TO SUBLEASE OR ASSIGN ANY TENANT OF A HOUSING ACCOMMODATION
COVERED  BY THE PROVISIONS OF THIS LAW SHALL BE ENTITLED TO THE BENEFITS
OF THIS PARAGRAPH EVEN IF THE TENANT DOES NOT HAVE A WRITTEN LEASE.  THE
PROVISIONS OF THIS PARAGRAPH AND SECTION TWO HUNDRED TWENTY-SIX-B OF THE
REAL PROPERTY LAW SHALL BE APPLIED ACCORDINGLY.
  F.  NOTWITHSTANDING  ANY  CONTRARY  PROVISIONS  OF THIS CHAPTER, ON OR
AFTER JANUARY FIRST, TWO THOUSAND TEN:
  (1) NO TENANT, SO LONG AS HE OR SHE CONTINUES TO PAY THE RENT TO WHICH
THE OWNER IS ENTITLED, SHALL BE REMOVED FROM ANY  HOUSING  ACCOMMODATION
WHICH  IS SUBJECT TO REGULATION UNDER THIS CHAPTER BY ACTION TO EVICT OR
TO RECOVER POSSESSION, OR OTHERWISE, NOR SHALL ANY PERSON  ATTEMPT  SUCH
REMOVAL  OR  EXCLUSION FROM POSSESSION NOTWITHSTANDING THE FACT THAT THE
TENANT HAS NO LEASE OR THAT HIS OR HER LEASE, OR OTHER RENTAL AGREEMENT,
HAS EXPIRED OR OTHERWISE TERMINATED, AND NOTWITHSTANDING  ANY  CONTRACT,
LEASE  AGREEMENTS,  OR  OBLIGATION  HERETOFORE OR HEREAFTER ENTERED INTO
WHICH CONFLICTS WITH THE PROVISIONS OF THIS CHAPTER, EXCEPT  ON  ONE  OR
MORE  OF  THE  GROUNDS  SET  FORTH IN THIS CHAPTER, OR THE CODE OR REGU-
LATIONS PROMULGATED PURSUANT TO THIS CHAPTER, INCLUDING  THE  PROVISIONS
OF THIS CHAPTER WHICH PERMIT AN OWNER TO REFUSE TO RENEW A LEASE.
  (2)  NO  OWNER SHALL, IN THE ABSENCE OF AN EXISTING LEASE, COMMENCE AN
ACTION OR PROCEEDING SEEKING TO REMOVE A TENANT FROM ANY HOUSING  ACCOM-
MODATION  WHICH  IS  SUBJECT  TO  REGULATION UNDER THIS LAW BY ACTION TO
EVICT OR TO RECOVER POSSESSION, OR OTHERWISE, ON A GROUND SET  FORTH  IN
THIS  LAW  PERMITTING  AN  OWNER  TO REFUSE TO RENEW A LEASE, UNLESS THE
OWNER SHALL HAVE GIVEN NINETY DAYS NOTICE TO THE TENANT OF  HIS  OR  HER
INTENTION TO COMMENCE AN ACTION OR PROCEEDING ON SUCH GROUND.
  (3)  ANY  ORDER OF THE STATE DIVISION OF HOUSING AND COMMUNITY RENEWAL
AUTHORIZED BY PROVISIONS OF THIS LAW PROVIDING THAT A  HOUSING  ACCOMMO-
DATION SHALL NOT BE SUBJECT TO THE PROVISIONS OF THIS LAW UPON THE EXPI-
RATION  OF  THE  EXISTING  LEASE  SHALL  PROVIDE THAT SUCH ORDER, IN THE
ABSENCE OF AN EXISTING LEASE, SHALL TAKE EFFECT ONE HUNDRED EIGHTY  DAYS
AFTER ITS ISSUANCE.
  (4)  PURSUANT  TO THE PROVISIONS OF PARAGRAPH ONE OF THIS SUBDIVISION,
OWNERS SHALL NO LONGER OFFER  OR  ENTER  INTO  RENEWAL  LEASES  FOR  ANY
RENEWAL  WHICH  WOULD  COMMENCE  ON OR AFTER JANUARY FIRST, TWO THOUSAND
TEN. HOWEVER, OWNERS SHALL BE REQUIRED TO GRANT AND  FURNISH  TO  A  NEW
TENANT A VACANCY LEASE, IN ACCORDANCE WITH SUBDIVISION E OF THIS SECTION
FOR  A  TERM  WHICH SHALL EXPIRE ON DECEMBER THIRTY-FIRST OF THE YEAR IN
WHICH IT COMMENCES.
  (5) WHERE A TENANT ENTERS INTO A VACANCY LEASE AS  PROVIDED  IN  PARA-
GRAPH FOUR OF THIS SUBDIVISION, THE RENTAL PROVIDED THEREIN SHALL BE THE
LEGAL  REGULATED  RENT, AS ADJUSTED BY ANY APPLICABLE VACANCY ALLOWANCE,
UNLESS A VACANCY ALLOWANCE WAS PREVIOUSLY  COLLECTED  DURING  THE  PRIOR
TWELVE MONTH PERIOD.
  (6)  THE  OWNER SHALL BE REQUIRED TO SERVE THE TENANT WITH A NOTICE OF
RIGHTS AND DUTIES OF OWNERS AND TENANTS PROMULGATED BY THE  STATE  DIVI-
SION  OF  HOUSING AND COMMUNITY RENEWAL AT THE TIME OF THE RENTAL OF THE
HOUSING ACCOMMODATION TO A NEW TENANT.
  (7) ANY TENANT WHOSE LEASE IN EFFECT  ON  DECEMBER  THIRTY-FIRST,  TWO
THOUSAND  NINE  HAS  EXPIRED,  OR WHOSE VACANCY LEASE ENTERED INTO ON OR
AFTER JANUARY FIRST, TWO THOUSAND TEN HAS  EXPIRED  AND  WHO  THEREAFTER
VACATES A HOUSING ACCOMMODATION WITHOUT GIVING THE OWNER AT LEAST THIRTY

S. 5566                             9

DAYS'  WRITTEN  NOTICE  BY  REGISTERED  OR  CERTIFIED MAIL OF HIS OR HER
INTENTION TO VACATE SHALL BE LIABLE TO THE OWNER FOR THE  LOSS  OF  RENT
SUFFERED  BY THE OWNER, BUT NOT EXCEEDING ONE MONTH'S RENT, EXCEPT WHERE
THE  TENANT VACATES PURSUANT TO THE PROVISIONS OF THIS SUBDIVISION. SUCH
NOTICE SHALL BE POSTMARKED ON OR BEFORE THE LAST DAY OF THE RENTAL PERI-
OD IMMEDIATELY PRIOR TO SUCH THIRTY DAY PERIOD.
  (8) (A) THE LEGAL REGULATED RENT FOR ANY LEASE WHICH EXPIRES ON DECEM-
BER THIRTY-FIRST, TWO THOUSAND NINE SHALL BE ADJUSTED EFFECTIVE  JANUARY
FIRST,  TWO  THOUSAND  TEN  AND ON THE FIRST DAY OF JANUARY OF EACH YEAR
THEREAFTER BY THE RENT ADJUSTMENT ESTABLISHED BY THE RENT BOARD.
  (B) THE LEGAL REGULATED RENT FOR ANY LEASE ENTERED INTO PRIOR TO JANU-
ARY FIRST, TWO THOUSAND TEN WHICH EXPIRES  BETWEEN  JANUARY  FIRST,  TWO
THOUSAND  TEN  AND  DECEMBER  THIRTY-FIRST, TWO THOUSAND ELEVEN SHALL BE
ADJUSTED EFFECTIVE THE FIRST DAY FOLLOWING ITS EXPIRATION BY THE  APPLI-
CABLE  TRANSITIONAL ADJUSTMENTS ESTABLISHED BY THE RENT BOARD AND ON THE
FIRST DAY OF JANUARY EACH YEAR THEREAFTER BY THE RENT ADJUSTMENT  ESTAB-
LISHED BY THE RENT BOARD.
  (C) THE LEGAL REGULATED RENT FOR ANY VACANCY LEASE ENTERED ON OR AFTER
JANUARY  FIRST,  TWO  THOUSAND  TEN SHALL, IN ADDITION TO ANY ADJUSTMENT
PROVIDED FOR IN PARAGRAPH FIVE OF THIS SUBDIVISION, BE ADJUSTED  ON  THE
FIRST  DAY OF JANUARY EACH YEAR THEREAFTER BY THE RENT ADJUSTMENT ESTAB-
LISHED BY THE RENT BOARD.
  S 7. 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 TEN,  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 BOARD
ESTABLISHED PURSUANT TO SECTION 26-510 OF  THIS  TITLE  SHALL  ESTABLISH
ANNUAL  RATES OF RENT ADJUSTMENT 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 NINE, AND NOT LATER THAN
OCTOBER FIRST ANNUALLY THEREAFTER, THE RENT BOARD SHALL  FILE  WITH  THE
CITY  CLERK  AND THE DIVISION OF HOUSING AND COMMUNITY RENEWAL ITS FIND-
INGS 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  ADJUST-
MENT,  IF ANY, FOR ONE OR MORE CLASSES OF ACCOMMODATIONS SUBJECT TO THIS
CHAPTER AUTHORIZED FOR THE ADJUSTMENT OF THE MAXIMUM RENT OF THE HOUSING
ACCOMMODATION FOR THE TWELVE MONTH PERIOD COMMENCING JANUARY FIRST,  TWO
THOUSAND TEN AND FOR EACH SUCCEEDING TWELVE MONTH PERIOD.
  (C)  EFFECTIVE  JANUARY  FIRST,  TWO  THOUSAND  TEN,  THE MAXIMUM RENT
COLLECTIBLE FROM THE TENANT SHALL BE THE  MAXIMUM  RENT  COLLECTIBLE  ON
DECEMBER THIRTY-FIRST, TWO THOUSAND NINE, 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 A LANDLORD SHALL NOT COLLECT ANY RENT INCREASE OR
ADJUSTMENT  OTHERWISE  COLLECTIBLE  UNDER SUBPARAGRAPH (B) OF THIS PARA-

S. 5566                            10

GRAPH 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 MAIN-
TENANCE CODE OR OTHER STATE OR LOCAL LAWS THAT  IMPOSE  REQUIREMENTS  ON
PROPERTY AND WHICH WERE RECORDED AGAINST THE PROPERTY ON JULY FIRST, TWO
THOUSAND  NINE,  OR  JULY  FIRST  OF  THE YEAR PRECEDING THE ADJUSTMENT,
WHICHEVER IS LATER, HAVE BEEN CLEARED, CORRECTED OR ABATED AND THE LAND-
LORD 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 SUBPARAGRAPH (B)  OF  THIS  PARAGRAPH,
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 OR IN SUBDIVISION F OF SECTION
26-511 OF THIS TITLE SHALL ALTER, RESTRICT OR IMPAIR AN OWNER'S RIGHT TO
ESTABLISH  THE INITIAL REGULATED RENT FOR ACCOMMODATIONS SUBJECT TO THIS
CHAPTER WHICH BECOME VACANT.
  S 8.  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,  subdivision  a  as
amended  by  chapter  349  of the laws of 1979, the opening paragraph of
subdivision b as amended and subdivision d as added by  chapter  403  of
the  laws  of  1983, and the second and third undesignated paragraphs of
subdivision b as amended by chapter 330 of the laws of 1980, is  amended
to read as follows:
  S  4.  Establishment  of  rent [guidelines] boards; duties. a. In each
county wherein any city having a population of less than one million  or
any  town or village has determined the existence of an emergency pursu-
ant to section three of this act, there shall be created a rent  [guide-
lines]  board  to consist of nine members appointed by the [commissioner
of housing and community renewal upon recommendation of]  COUNTY  EXECU-
TIVE UPON THE ADVICE AND CONSENT OF the county legislature which [recom-
mendation]  APPOINTMENT shall be made within thirty days after the first
local declaration of an emergency  in  such  county;  [two]  THREE  such
members  shall be representative of tenants, [two] THREE shall be repre-
sentative of owners of  property,  and  [five]  THREE  shall  be  public
members  [each  of  whom].  EACH OF THE PUBLIC MEMBERS shall have had at
least five years experience  in  either  PUBLIC  SERVICE,  PHILANTHROPY,
SOCIAL  SERVICES, URBAN PLANNING, ARCHITECTURE, SOCIAL SCIENCES, SERVICE
WITH NOT-FOR-PROFIT ORGANIZATIONS, finance, economics  or  housing.  One
public member shall be designated by the [commissioner] COUNTY EXECUTIVE
UPON  THE  ADVICE  AND  CONSENT  OF  THE  COUNTY LEGISLATURE to serve as
[chairman] CHAIR and shall hold no  other  public  office.  No  [member,
officer  or] employee of THE COUNTY OR OF any [municipal rent regulation
agency] MUNICIPALITY WITHIN THE COUNTY or OF the state division of hous-
ing and community renewal and no person who owns or manages real  estate
covered  by this law or [who is an officer of any owner or tenant organ-
ization] MORE THAN TWO RENTAL HOUSING ACCOMMODATIONS NOT COVERED BY THIS
LAW shall serve on a rent [guidelines] board. [One  public  member,  one
member representative of tenants and one member representative of owners

S. 5566                            11

shall serve for a term ending two years from January first next succeed-
ing  the date of their appointment; one public member, one member repre-
sentative of tenants and one member representative of owners shall serve
for  terms ending three years from the January first next succeeding the
date of their appointment and three public members shall serve for terms
ending four years from January first next succeeding the dates of  their
appointment.]  ALL  MEMBERS  OF A COUNTY RENT BOARD SHALL SERVE TWO-YEAR
TERMS, BEGINNING THE LATER OF THE DATE OF APPOINTMENT OR THE  EXPIRATION
OF  THE TERM OF THE MEMBER WHOM THE APPOINTEE IS SUCCEEDING. Thereafter,
all members shall [serve for terms of four years each.   Members  shall]
continue in office until their successors have been appointed and quali-
fied. The [commissioner] COUNTY EXECUTIVE UPON THE ADVICE AND CONSENT OF
THE  COUNTY LEGISLATURE shall fill any vacancy which may occur by reason
of death, resignation or otherwise  in  a  manner  consistent  with  the
[original  appointment]  PROVISIONS OF THIS SUBDIVISION. A member may be
removed by the [commissioner] COUNTY  LEGISLATURE  for  cause,  but  not
without  an  opportunity  to be heard in person or by counsel, in his OR
HER defense, upon not less than ten days notice.  A  SUCCESSOR  TO  SUCH
MEMBER  SHALL  BE APPOINTED IN ACCORDANCE WITH THIS SUBDIVISION TO SERVE
THE BALANCE OF THE TERM OF THE MEMBER WHO WAS REMOVED. Compensation  for
the members of the board shall be ON A PER DIEM BASIS at the rate of one
hundred  FIFTY  dollars  per  day, for no more than [twenty] TWENTY-FIVE
days a year, except that the [chairman] CHAIR shall  be  compensated  at
the  rate of one hundred [twenty-five] SEVENTY-FIVE dollars a day for no
more than [thirty] FIFTY days a year. [The board shall be provided staff
assistance by the division of housing and community renewal.] THE  CHAIR
SHALL  BE THE CHIEF ADMINISTRATIVE OFFICER OF THE COUNTY RENT BOARD, AND
AMONG HIS OR HER POWERS AND DUTIES, HE OR SHE SHALL HAVE  THE  AUTHORITY
TO  EMPLOY,  ASSIGN  AND SUPERVISE THE EMPLOYEES OF THE BOARD, AND HE OR
SHE SHALL, WITH THE ADVICE AND CONSENT OF FOUR  OR  MORE  OF  THE  OTHER
MEMBERS  OF THE BOARD, ENTER INTO CONTRACTS FOR CONSULTANT SERVICES. THE
DIVISION OF HOUSING AND COMMUNITY RENEWAL SHALL COOPERATE WITH THE  RENT
BOARD  AND  SHALL  ASSIGN  SUCH  PERSONNEL  AND PERFORM SUCH SERVICES IN
CONNECTION WITH THE DUTIES OF  THE  RENT  BOARD  AS  MAY  BE  REASONABLY
REQUIRED BY THE BOARD. The compensation of such members SHALL BE PAID BY
THE COUNTY and the costs of staff assistance PROVIDED BY THE DIVISION OF
HOUSING  AND  COMMUNITY RENEWAL shall be paid by the division of housing
and community renewal which shall be reimbursed in the manner prescribed
in THIS section [four of this act]. The local legislative body  of  each
city  having  a  population  of  less than one million and each town and
village in which an emergency has been determined  to  exist  as  herein
provided shall be authorized to designate one person who shall be repre-
sentative  of  tenants  and  one  person  who shall be representative of
owners of property to serve at its pleasure and without compensation  to
advise  and assist the county rent [guidelines] board in matters affect-
ing the adjustment of rents for housing  accommodations  in  such  city,
town or village as the case may be.
  b.  A  county rent [guidelines] board shall establish annually [guide-
lines for] rent adjustments which, at its sole discretion may be  varied
and  different for and within the several zones and jurisdictions of the
[board] COUNTY, and in determining whether rents  for  housing  accommo-
dations  as to which an emergency has been declared pursuant to this act
shall be adjusted, shall consider among other things (1)  THE  STATE  OF
THE  RENTAL  REAL ESTATE MARKET AND SUBMARKETS WITHIN THOSE AREAS OF THE
COUNTY WITH HOUSING ACCOMMODATIONS SUBJECT TO THIS  ACT,  INCLUDING  THE
AVAILABILITY OF AFFORDABLE, HABITABLE RENTAL HOUSING ACCOMMODATIONS; (2)

S. 5566                            12

the  economic  condition of the residential real estate industry in [the
affected area including] THOSE AREAS OF THE COUNTY WITH HOUSING ACCOMMO-
DATIONS SUBJECT TO THIS ACT OR THE EMERGENCY HOUSING RENT  CONTROL  LAW,
INCLUDING  CHANGES  IN THE VALUE OF RESIDENTIAL REAL ESTATE, THE PROFIT-
ABILITY OF OWNERSHIP OF RENTAL HOUSING AND such factors as the  prevail-
ing  and  projected (i) INCREASES OR DECREASES IN RENTS AND GROSS RENTAL
INCOME, INCLUDING INCOME FROM OTHER RESIDENTIAL RENTS, AS  WELL  AS  THE
IMPUTED  RENTAL  VALUE  FOR  APARTMENTS OCCUPIED BY OWNERS OR MEMBERS OF
THEIR FAMILIES OR ASSOCIATES OF OWNERS, FOR BUILDINGS  SUBJECT  TO  THIS
ACT  OR  THE  EMERGENCY HOUSING RENT CONTROL LAW WITHIN THE COUNTY, (II)
INCREASES OR DECREASES IN OPERATION AND MAINTENANCE COSTS  OF  BUILDINGS
SUBJECT TO THIS ACT OR THE EMERGENCY HOUSING RENT CONTROL LAW WITHIN THE
COUNTY  INCLUDING  real estate taxes [and], sewer and water rates, [(ii)
gross operating maintenance costs (including] insurance rates,  ADMINIS-
TRATIVE  COSTS,  governmental  fees, [cost of] fuel, UTILITIES and labor
[costs)], (iii) costs and availability of financing (including effective
rates of interest), AND COSTS, AVAILABILITY AND PROFITABILITY  OF  REFI-
NANCING,  (iv) ECONOMIC BENEFITS, OTHER THAN RENTAL INCOME, DERIVED FROM
OWNERSHIP AND UPGRADING OF  RENTAL  PROPERTY,  (V)  RETURNS  ON  CAPITAL
PLACED AT RISK BY OWNERS, (VI) over-all supply of housing accommodations
and  over-all  vacancy  rates, [(2)] (VII) INCREASES OR DECREASES IN NET
OPERATING INCOME FROM BUILDINGS SUBJECT TO THIS  ACT  OR  THE  EMERGENCY
HOUSING  RENT  CONTROL LAW WITHIN THE COUNTY, (3) relevant data from the
current and projected cost of living  indices  for  the  affected  area,
[(3)]  AND (4) such other data as may be made available to it. NET OPER-
ATING INCOME SHALL MEAN THE PERCENTAGE OF EACH DOLLAR  OF  GROSS  RENTAL
INCOME  REMAINING  AFTER  PAYMENT  OF ALL COSTS OF OPERATION AND MAINTE-
NANCE. DEBT SERVICE  PAYMENTS,  CAPITAL  EXPENDITURES  AND  DEPRECIATION
SHALL  NOT  BE  CONSIDERED  TO BE OPERATION AND MAINTENANCE COSTS, AND A
COUNTY RENT BOARD SHALL NOT  CONSIDER  DEBT  SERVICE  PAYMENTS,  CAPITAL
EXPENDITURES  OR  DEPRECIATION IN DETERMINING ANNUAL RENT ADJUSTMENTS. A
COUNTY RENT BOARD SHALL NOT CONSIDER A PRICE INDEX OF  OPERATING  COSTS.
IN  CALCULATING  LABOR  AND  ADMINISTRATIVE  COSTS, THE RENT BOARD SHALL
CONSIDER THE FEASIBILITY OF IMPUTING A VALUE TO THE  ACTUAL,  VERIFIABLE
UNSALARIED  LABOR  AND ADMINISTRATIVE TASKS PERFORMED BY BUILDING OWNERS
OR MEMBERS OF THEIR IMMEDIATE FAMILY WHO RESIDE WITH THEM IN  A  HOUSING
ACCOMMODATION IN A BUILDING SUBJECT TO THIS ACT OR THE EMERGENCY HOUSING
RENT  CONTROL  LAW  WITHIN THE COUNTY.  IF THE INCLUSION OF THE VALUE OF
SUCH LABOR AND ADMINISTRATIVE TASKS IS DEEMED FEASIBLE BY THE BOARD,  IT
SHALL  BE  INCLUDED AS ONE OF THE FACTORS CONSIDERED HEREIN.  ALL OWNERS
OF HOUSING ACCOMMODATIONS SUBJECT TO THIS ACT OR THE  EMERGENCY  HOUSING
RENT  CONTROL  LAW  WITHIN  THE  COUNTY SHALL ANNUALLY SUBMIT INCOME AND
EXPENDITURE REPORTS TO THE COUNTY RENT BOARD ON A FORM TO BE PROMULGATED
BY THE BOARD. OWNERS WHO FAIL TO SUBMIT SUCH REPORTS TO THE COUNTY  RENT
BOARD  SHALL BE BARRED FROM APPLYING FOR OR COLLECTING ANY RENT INCREASE
TO WHICH THE OWNER MIGHT OTHERWISE BE ENTITLED UNDER  THIS  ACT  OR  THE
EMERGENCY HOUSING RENT CONTROL LAW DURING THE TWELVE MONTH PERIOD BEGIN-
NING  THE  NEXT  JANUARY  FIRST.    THE COUNTY RENT BOARD SHALL ANNUALLY
REQUIRE A SAMPLE OF LANDLORDS SUBJECT TO REGULATION UNDER THIS ACT WITH-
IN THE COUNTY TO  MAKE  AVAILABLE  THEIR  BOOKS  AND  RECORDS  REGARDING
INCOME,  EXPENDITURES, TAX BENEFITS AND FINANCING ARRANGEMENTS FOR EXAM-
INATION BY THE BOARD AND THE BOARD SHALL  UTILIZE  THE  RESULTS  OF  THE
ANALYSIS  OF  SUCH SAMPLE AS ONE OF THE CRITERIA UPON WHICH ITS FINDINGS
ARE BASED. SUCH SAMPLE SHALL BE DESIGNED TO BE REASONABLY REPRESENTATIVE
OF THE TYPES OF BUILDINGS, EXCLUDING BUILDINGS THAT HAVE BEEN  CONVERTED
TO  CO-OPERATIVE  OR  CONDOMINIUM STATUS, THAT ARE SUBJECT TO REGULATION

S. 5566                            13

UNDER THIS ACT.  ANY INFORMATION PROVIDED BY LANDLORDS PURSUANT TO  THIS
SUBDIVISION REGARDING AN INDIVIDUAL BUILDING OR GROUP OF BUILDINGS SHALL
NOT  BE AVAILABLE TO THE PUBLIC UNDER THE FREEDOM OF INFORMATION LAW AND
THE COUNTY RENT BOARD SHALL SAFEGUARD THE CONFIDENTIALITY OF SUCH INFOR-
MATION  PROVIDED  HOWEVER,  THAT  THE  BOARD SHALL MAKE AVAILABLE TO THE
PUBLIC CUMULATIVE AND STATISTICAL  RESULTS  OF  THE  ANNUAL  INCOME  AND
EXPENDITURE SUBMISSIONS AND THE EXAMINATION OF THE REPRESENTATIVE SAMPLE
OF  BOOKS  AND RECORDS REQUIRED HEREIN. As soon as practicable after its
creation and thereafter not later than  [July]  OCTOBER  first  of  each
year,  a  COUNTY rent [guidelines] board shall file with the state divi-
sion 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 class-
es  of  HOUSING  accommodation  subject  to  this act WITHIN THE COUNTY,
authorized for VACANCY leases or [other rental agreements]  ANNUAL  RENT
ADJUSTMENTS  commencing [during] ON the next succeeding JANUARY FIRST OR
WITHIN THE twelve months THEREAFTER.  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 neces-
sary to achieve the purposes of this subdivision.  THE ADDITIONAL ALLOW-
ANCE,  IF  ANY,  FOR  LEASES  ON VACANT APARTMENTS SHALL NOT EXCEED FIVE
PERCENT. ANY SUCH VACANCY ALLOWANCE SHALL NOT BE IMPLEMENTED FOR A HOUS-
ING ACCOMMODATION MORE THAN ONE TIME IN ANY CALENDAR YEAR, NOTWITHSTAND-
ING THE NUMBER OF VACANCY LEASES ENTERED INTO FOR SUCH HOUSING  ACCOMMO-
DATION  IN  SUCH  CALENDAR YEAR.   A COUNTY RENT BOARD SHALL DISSEMINATE
SUCH FINDINGS AND STATEMENT TO COUNTYWIDE AND  LOCAL  NEWSPAPERS,  RADIO
AND TELEVISION STATIONS AND OTHER MEDIA.
  The  standards  for  rent  adjustments  established  annually shall be
effective  for  [leases]  VACANCY  LEASES  OR  ANNUAL  RENT  ADJUSTMENTS
commencing  on  [October] JANUARY 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]
OCTOBER  first  of  each  year. If such [lease] VACANCY 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 applica-
ble 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
A  public  emergency pursuant to section three of this act subsequent to
the establishment of annual [guidelines for] rent adjustments  [of]  FOR
the  HOUSING  accommodations  subject  to this act, the [rent guidelines
board as soon as practicable thereafter  shall  file  its  findings  and
rates  of  rent adjustment for leases or other rental agreements for the
housing accommodations in] RENT ADJUSTMENTS THEN IN EFFECT IN THE COUNTY
SHALL APPLY TO such a city, town or village, which rates shall be effec-
tive for [leases or other rental agreements] VACANCY  LEASES  OR  ANNUAL
RENT ADJUSTMENTS commencing on or after the effective date of the deter-
mination.
  c.  [In  a  city  having a population of one million or more, the rent
guidelines board shall be the rent guidelines board established pursuant
to the New York city rent stabilization law of nineteen  hundred  sixty-
nine  as  amended, and such board shall have the powers granted pursuant

S. 5566                            14

to the New York city rent stabilization law of nineteen  hundred  sixty-
nine as amended.] A COUNTY RENT BOARD, PRIOR TO THE ANNUAL ADJUSTMENT OF
THE  LEVEL OF RENTS PROVIDED FOR UNDER SUBDIVISION B OF THIS SECTION FOR
HOUSING ACCOMMODATIONS SUBJECT TO THIS ACT OR THE EMERGENCY HOUSING RENT
CONTROL  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  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 COUNTY, AND THE HEARING OR HEARINGS SHALL BE OPEN FOR TESTIMONY FROM
ANY  INDIVIDUAL,  GROUP, ASSOCIATION OR REPRESENTATIVE THEREOF WHO WANTS
TO TESTIFY.
  d. NO OWNER OF ANY HOUSING ACCOMMODATION SUBJECT TO THIS  ACT  OR  THE
EMERGENCY HOUSING RENT CONTROL LAW MAY IMPOSE OR COLLECT DURING CALENDAR
YEAR  TWO THOUSAND NINE AN ANNUAL RENT ADJUSTMENT AS ADOPTED PURSUANT TO
THE PROVISIONS OF SUBDIVISION B OF THIS SECTION IF THERE EXIST OF RECORD
WITH REGARD TO THE PROPERTY CONTAINING  SUCH  HOUSING  ACCOMMODATION  ON
JANUARY  FIRST  OF  SUCH  YEAR  ANY  OUTSTANDING HAZARDOUS VIOLATIONS OF
RECORD AS OF JULY 1, 2009 OR MORE  THAN  TWENTY  PERCENT  OF  ALL  OTHER
VIOLATIONS OF RECORD AS OF JULY 1, 2009; OR DURING A SUBSEQUENT CALENDAR
YEAR  IF  THERE  EXIST OF RECORD WITH REGARD TO SUCH PROPERTY ON JANUARY
FIRST OF SUCH YEAR ANY OUTSTANDING HAZARDOUS VIOLATIONS OF RECORD AS  OF
JULY  FIRST  OF  THE PRIOR YEAR OR MORE THAN TWENTY PERCENT OF ALL OTHER
VIOLATIONS OF RECORD AS OF JULY FIRST OF THE PRIOR YEAR,  AS  DETERMINED
PURSUANT TO REGULATIONS OF THE DIVISION OF HOUSING AND COMMUNITY RENEWAL
OR  ANY  AGENCY  ADMINISTERING  AND ENFORCING A BUILDING CODE OR HOUSING
MAINTENANCE CODE IN THE JURISDICTION IN WHICH THE PROPERTY IS LOCATED.
  E.  IN FURTHERANCE OF ITS RESPONSIBILITY TO ENFORCE THIS ACT, A COUNTY
RENT BOARD SHALL BE EMPOWERED  TO  ADMINISTER  OATHS,  ISSUE  SUBPOENAS,
CONDUCT INVESTIGATIONS AND MAKE INSPECTIONS.
  F. Maximum rates of rent adjustment shall not be established more than
once annually for any housing accommodation within a COUNTY RENT board's
jurisdiction. Once established, no such rate shall[, within the one-year
period,] be adjusted by any surcharge, supplementary adjustment or other
modification.  NO RENT ADJUSTMENT SHALL BE ESTABLISHED BASED ON THE RENT
LEVEL  OF  HOUSING  ACCOMMODATIONS  SUBJECT TO THIS ACT OR THE EMERGENCY
HOUSING RENT CONTROL LAW OR THE  NUMBER  OF  HOUSING  ACCOMMODATIONS  IN
AFFECTED BUILDINGS.
  G. A COUNTY RENT BOARD IS HEREBY EMPOWERED TO SEEK AND RECEIVE FUNDING
FROM  ANY  GOVERNMENT  SOURCE  FOR  ITS OPERATIONS. NOTWITHSTANDING THIS
PROVISION, THE DIVISION OF HOUSING AND COMMUNITY RENEWAL SHALL  CONTINUE
TO PROVIDE STAFF ASSISTANCE TO THE COUNTY RENT BOARDS PURSUANT TO SUBDI-
VISION A OF THIS SECTION.
  H.  IN  A  CITY  HAVING  A POPULATION OF ONE MILLION OR MORE, THE RENT
BOARD SHALL BE THE RENT BOARD ESTABLISHED PURSUANT TO THE NEW YORK  CITY
RENT  STABILIZATION  LAW  OF NINETEEN HUNDRED SIXTY-NINE AS AMENDED, AND
SUCH BOARD SHALL HAVE THE POWERS GRANTED PURSUANT TO THE NEW  YORK  CITY
RENT STABILIZATION LAW OF NINETEEN HUNDRED SIXTY-NINE AS AMENDED.
  S  9.  Subdivision  (a-1) of section 10 of section 4 of chapter 576 of
the laws of 1974, constituting the emergency tenant  protection  act  of
nineteen seventy-four, is REPEALED.
  S  10.  Section  10  of  section 4 of chapter 576 of the laws of 1974,
constituting the emergency tenant protection act  of  nineteen  seventy-
four, is amended by adding a new subdivision d to read as follows:

S. 5566                            15

  D.  NOTWITHSTANDING  ANY  CONTRARY PROVISIONS OF THIS ACT, ON OR AFTER
JANUARY 1, 2010:
  (1) NO TENANT, SO LONG AS HE OR SHE CONTINUES TO PAY THE RENT TO WHICH
THE  OWNER  IS ENTITLED, SHALL BE REMOVED FROM ANY HOUSING ACCOMMODATION
WHICH IS SUBJECT TO REGULATION UNDER THIS ACT BY ACTION TO EVICT  OR  TO
RECOVER  POSSESSION,  OR  OTHERWISE,  NOR  SHALL ANY PERSON ATTEMPT SUCH
REMOVAL OR EXCLUSION FROM POSSESSION NOTWITHSTANDING THE FACT  THAT  THE
TENANT HAS NO LEASE OR THAT HIS OR HER LEASE, OR OTHER RENTAL AGREEMENT,
HAS  EXPIRED  OR OTHERWISE TERMINATED, AND NOTWITHSTANDING ANY CONTRACT,
LEASE AGREEMENT OR OBLIGATION HERETOFORE OR HEREAFTER ENTERED INTO WHICH
CONFLICTS WITH THE PROVISIONS OF THIS ACT, EXCEPT ON ONE OR MORE OF  THE
GROUNDS  SET FORTH IN THIS ACT WHICH PERMITS AN OWNER TO REFUSE TO RENEW
A LEASE.
  (2) NO OWNER SHALL, IN THE ABSENCE OF AN EXISTING LEASE,  COMMENCE  AN
ACTION  OR PROCEEDING SEEKING TO REMOVE A TENANT FROM ANY HOUSING ACCOM-
MODATION WHICH IS SUBJECT TO REGULATION UNDER  THIS  LAW  BY  ACTION  TO
EVICT  OR  TO RECOVER POSSESSION, OR OTHERWISE, ON A GROUND SET FORTH IN
THIS LAW PERMITTING AN OWNER TO REFUSE TO  RENEW  A  LEASE,  UNLESS  THE
OWNER  SHALL  HAVE  GIVEN NINETY DAYS NOTICE TO THE TENANT OF HIS OR HER
INTENTION TO COMMENCE AN ACTION OR PROCEEDING ON SUCH GROUND.
  (3) ANY ORDER OF THE STATE DIVISION OF HOUSING AND  COMMUNITY  RENEWAL
AUTHORIZED  BY  PROVISIONS OF THIS LAW PROVIDING THAT A HOUSING ACCOMMO-
DATION SHALL NOT BE SUBJECT TO THE PROVISIONS OF THIS LAW UPON THE EXPI-
RATION OF THE EXISTING LEASE SHALL  PROVIDE  THAT  SUCH  ORDER,  IN  THE
ABSENCE  OF AN EXISTING LEASE, SHALL TAKE EFFECT ONE HUNDRED EIGHTY DAYS
AFTER ITS ISSUANCE.
  (4) PURSUANT TO THE PROVISIONS OF PARAGRAPH ONE OF  THIS  SUBDIVISION,
OWNERS  SHALL  NO  LONGER  OFFER  OR  ENTER  INTO RENEWAL LEASES FOR ANY
RENEWAL WHICH COMMENCED ON OR AFTER  JANUARY  1,  2010;  HOWEVER  OWNERS
SHALL  BE REQUIRED TO GRANT AND FURNISH TO A NEW TENANT A VACANCY LEASE,
IN ACCORDANCE WITH THE PROVISIONS  OF  SUBDIVISIONS  A  AND  C  OF  THIS
SECTION, FOR A TERM WHICH SHALL EXPIRE ON THE THIRTY-FIRST DAY OF DECEM-
BER OF THE YEAR IN WHICH IT COMMENCED.
  (5)  WHERE  A  TENANT ENTERS INTO A VACANCY LEASE AS PROVIDED IN PARA-
GRAPH FOUR OF THIS SUBDIVISION, THE RENTAL PROVIDED THEREIN SHALL BE THE
LEGAL REGULATED RENT, AS ADJUSTED BY ANY APPLICABLE  VACANCY  ALLOWANCE,
UNLESS  A  VACANCY  ALLOWANCE  WAS PREVIOUSLY COLLECTED DURING THE PRIOR
TWELVE MONTH PERIOD.
  (6) THE OWNER SHALL BE REQUIRED TO SERVE THE TENANT WITH A  NOTICE  OF
RIGHTS  AND  DUTIES OF OWNERS AND TENANTS PROMULGATED BY THE STATE DIVI-
SION OF HOUSING AND COMMUNITY RENEWAL AT THE TIME OF THE RENTAL  OF  THE
HOUSING ACCOMMODATION TO A NEW TENANT.
  (7) ANY TENANT WHOSE LEASE IN EFFECT ON DECEMBER 31, 2010 HAS EXPIRED,
OR  WHOSE  VACANCY  LEASE  ENTERED  INTO ON OR AFTER JANUARY 1, 2010 HAS
EXPIRED, AND WHO THEREAFTER  VACATES  A  HOUSING  ACCOMMODATION  WITHOUT
GIVING  THE  OWNER AT LEAST THIRTY DAYS' WRITTEN NOTICE BY REGISTERED OR
CERTIFIED MAIL OF HIS OR HER INTENTION TO VACATE, SHALL BE LIABLE TO THE
OWNER FOR THE LOSS OF RENT SUFFERED BY THE OWNER, BUT NOT EXCEEDING  ONE
MONTH'S  RENT,  WHERE  THE  TENANT VACATES PURSUANT TO THE PROVISIONS OF
THIS SECTION. SUCH NOTICE SHALL BE POSTMARKED ON OR BEFORE THE LAST  DAY
OF THE RENTAL PERIOD IMMEDIATELY PRIOR TO THE THIRTY DAY PERIOD.
  (8) (A) THE LEGAL REGULATED RENT FOR ANY LEASE WHICH EXPIRES ON DECEM-
BER  31,  2009  SHALL  BE  ADJUSTED EFFECTIVE JANUARY 1, 2010 AND ON THE
FIRST DAY OF JANUARY OF EACH YEAR  THEREAFTER  BY  THE  RENT  ADJUSTMENT
ESTABLISHED BY THE RENT BOARD.

S. 5566                            16

  (B) THE LEGAL REGULATED RENT FOR ANY LEASE ENTERED INTO PRIOR TO JANU-
ARY  1, 2010 WHICH EXPIRES BETWEEN JANUARY 1, 2010 AND DECEMBER 31, 2011
SHALL BE ADJUSTED EFFECTIVE THE FIRST DAY FOLLOWING  ITS  EXPIRATION  BY
THE  APPLICABLE  TRANSITIONAL  ADJUSTMENTS ESTABLISHED BY THE RENT BOARD
AND  ON  THE  FIRST  DAY  OF JANUARY OF EACH YEAR THEREAFTER BY THE RENT
ADJUSTMENT ESTABLISHED BY THE RENT BOARD.
  (C) THE LEGAL REGULATED RENT FOR ANY VACANCY LEASE ENTERED INTO ON  OR
AFTER  JANUARY 1, 2010 SHALL, IN ADDITION TO ANY ADJUSTMENT PROVIDED FOR
IN PARAGRAPH FIVE OF THIS SUBDIVISION, BE ADJUSTED ON THE FIRST  DAY  OF
JANUARY  OF  EACH  YEAR THEREAFTER BY THE RENT ADJUSTMENT ESTABLISHED BY
THE RENT BOARD.
  S 11. Section 10-a 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 940 of the laws of 1984, is amended to  read
as follows:
  S  10-a.  Right  to  sublease. Units subject to this law may be sublet
pursuant to section two hundred twenty-six-b of the  real  property  law
provided  that  (a)  the rental charged to the subtenant does not exceed
the legal regulated rent plus a ten percent  surcharge  payable  to  the
tenant if the unit sublet was furnished with the tenant's furniture; (b)
the tenant can establish that at all times he has maintained the unit as
his primary residence and intends to occupy it as such at the expiration
of  the sublease; (c) an owner may terminate the tenancy of a tenant who
sublets or assigns contrary to the terms of this section [but no  action
or  proceeding  based  on  the  non-primary residence of a tenant may be
commenced prior to the expiration date  of  his  lease];  (d)  where  an
apartment  is  sublet  the  prime  tenant  shall  retain  the right to a
[renewal lease] STATUTORY TENANCY and the rights and status of a  tenant
in  occupancy as they relate to conversion to condominium or cooperative
ownership; (e) where a tenant violates the provisions of subdivision (a)
of this section the subtenant shall be  entitled  to  damages  of  three
times the overcharge and may also be awarded attorneys fees and interest
from  the  date  of  the overcharge at the rate of interest payable on a
judgment pursuant to section five thousand four of  the  civil  practice
law  and rules; AND (f) the tenant may not sublet the unit for more than
a total of two years, including the term of the proposed  sublease,  out
of  the  four-year period preceding the termination date of the proposed
sublease. The provisions of this subdivision (f)  shall  only  apply  to
subleases  commencing  on and after July first, nineteen hundred eighty-
three[; (g) for the purposes of this  section  only,  the  term  of  the
proposed  sublease may extend beyond the term of the tenant's lease]. In
such event, such sublease shall be subject to the tenant's  right  to  a
[renewal  lease]  STATUTORY TENANCY PURSUANT TO THIS ACT.  The subtenant
shall have no right to a renewal lease. It shall be unreasonable for  an
owner  to  refuse  to consent to a sublease solely because such sublease
extends  beyond  the  tenant's  lease[;  and  (h)  notwithstanding   the
provisions of section two hundred twenty-six-b of the real property law,
a  not-for-profit  hospital  shall  have the right to sublet any housing
accommodation leased by it to its affiliated personnel without requiring
the landlord's consent to any such sublease and without being  bound  by
the  provisions  of  subdivisions  (b),  (c)  and  (f)  of this section.
Commencing with the effective date of this subdivision, whenever a  not-
for-profit  hospital  executes  a  renewal  lease for a housing accommo-
dation, the legal regulated rent shall be increased by a  sum  equal  to
fifteen  percent  of the previous lease rental for such housing accommo-
dation, hereinafter referred to as a vacancy surcharge, unless the land-

S. 5566                            17

lord shall have received within the  seven  year  period  prior  to  the
commencement date of such renewal lease any vacancy increases or vacancy
surcharges allocable to the said housing accommodation. In the event the
landlord  shall  have  received  any  such  vacancy increases or vacancy
surcharges during such seven year period, the vacancy surcharge shall be
reduced by the amount received by any such vacancy increase  or  vacancy
surcharges].
  NOTWITHSTANDING ANY PROVISIONS OF THIS SECTION OR SECTION 226-B OF THE
REAL PROPERTY LAW TO THE CONTRARY, ANY TENANT OF A HOUSING ACCOMMODATION
COVERED  BY THE PROVISIONS OF THIS ACT SHALL BE ENTITLED TO THE BENEFITS
OF SECTION 226-B OF THE REAL PROPERTY  LAW  RELATING  TO  THE  RIGHT  TO
SUBLEASE OR ASSIGN EVEN IF THE TENANT DOES NOT HAVE A WRITTEN LEASE. THE
PROVISIONS  OF  THIS  SECTION AND SECTION 226-B OF THE REAL PROPERTY LAW
SHALL BE APPLIED ACCORDINGLY.
  S 12. 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 9 to read as follows:
  9. NOTWITHSTANDING ANY CONTRARY  PROVISIONS  OF  THIS  LAW,  EFFECTIVE
JANUARY  1,  2010, EXCEPT AS OTHERWISE PROVIDED IN THIS SUBDIVISION, THE
RENT FOR HOUSING ACCOMMODATIONS SUBJECT TO THIS CHAPTER LOCATED  IN  THE
COUNTIES OF WESTCHESTER AND NASSAU SHALL BE ADJUSTED AS FOLLOWS:
  (A)  THE  COUNTY  RENT BOARDS ESTABLISHED PURSUANT TO SECTION 4 OF THE
EMERGENCY TENANT PROTECTION ACT OF NINETEEN SEVENTY-FOUR,  SHALL  ESTAB-
LISH  ANNUAL  RENT  ADJUSTMENTS  FOR THE CLASS OF HOUSING ACCOMMODATIONS
SUBJECT TO THIS CHAPTER LOCATED  IN  THE  COUNTIES  OF  WESTCHESTER  AND
NASSAU,  IN THE MANNER PROVIDED BY SUCH SECTION. THE FACT THAT THE HOUS-
ING ACCOMMODATION IS SUBJECT TO THIS LAW MAY  NOT  BE  CONSIDERED  AS  A
FACTOR  IN DETERMINING THE RATE OF RENT ADJUSTMENT. NOT LATER THAN OCTO-
BER 1, 2009, AND NOT LATER THAN OCTOBER FIRST ANNUALLY  THEREAFTER,  THE
COUNTY  RENT BOARDS SHALL FILE WITH THE COMMISSION THEIR FINDINGS ESTAB-
LISHED IN CONSIDERATION OF THE ECONOMIC FACTORS LISTED IN SUBDIVISION  B
OF  SECTION  4 OF THE EMERGENCY TENANT PROTECTION ACT OF NINETEEN SEVEN-
TY-FOUR, AND SHALL ACCOMPANY SUCH FINDINGS WITH A STATEMENT OF THE MAXI-
MUM RATE OR RATES OF RENT ADJUSTMENT, IF ANY, FOR ONE OR MORE CLASSES OF
ACCOMMODATIONS SUBJECT TO THIS LAW WITHIN SUCH COUNTIES  AUTHORIZED  FOR
THE  ADJUSTMENT OF THE MAXIMUM RENT OF THE HOUSING ACCOMMODATION FOR THE
TWELVE MONTH PERIOD COMMENCING JANUARY 1, 2010, AND FOR EACH  SUCCEEDING
TWELVE MONTH PERIOD.
  (B)  EFFECTIVE  JANUARY 1, 2010, THE MAXIMUM RENT COLLECTIBLE FROM THE
TENANT SHALL BE THE MAXIMUM RENT COLLECTIBLE ON DECEMBER  31,  2009,  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 LAW. 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
AUTHORIZED  PURSUANT  TO  REGULATIONS  ADOPTED  FOR  RENT ADJUSTMENTS TO
COMPENSATE FOR UNAVOIDABLE INCREASED COSTS OF OPERATIONS AS PROVIDED FOR
UNDER THIS LAW.
  (C) MAXIMUM RATES OF RENT ADJUSTMENT SHALL  NOT  BE  ESTABLISHED  MORE
THAN  ONCE  ANNUALLY  FOR  ANY HOUSING ACCOMMODATION SUBJECT TO THIS LAW
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  SUBDIVISION  OR  IN  SUBDIVISION  D  OF
SECTION   10   OF  THE  EMERGENCY  TENANT  PROTECTION  ACT  OF  NINETEEN
SEVENTY-FOUR SHALL ALTER, RESTRICT OR IMPAIR AN OWNER'S RIGHT TO  ESTAB-

S. 5566                            18

LISH  THE  INITIAL REGULATED RENT FOR ACCOMMODATIONS SUBJECT TO THIS LAW
WHICH BECOME VACANT.
  S  13.  Any reference in chapter 576 of the laws of 1974, constituting
the emergency tenant protection act of nineteen seventy-four, the admin-
istrative code of the city of New York, section 421-c of the real  prop-
erty tax law or section 286 of the multiple dwelling law to "rent guide-
lines  board"  shall be deemed to refer to the rent board as provided in
this act. Any reference in chapter 576 of the laws of 1974, constituting
the emergency tenant protection act of nineteen seventy-four, or in  the
administrative  code  of the city of New York to "rent guidelines" shall
be deemed to refer to rent adjustments as provided in  this  act.    Any
reference in chapter 576 of the laws of 1974, constituting the emergency
tenant  protection act of nineteen seventy-four, the administrative code
of the city of New York, the real property tax law or the public housing
law to "renewal lease" shall be deemed to refer to the statutory tenancy
as provided in this act.
  S 14. If any provision of this act or the application  thereof  shall,
for any reason, be adjudged by any court of competent jurisdiction to be
invalid  or  unconstitutional, such judgment shall not affect, impair or
invalidate the remainder of this act, but shall be confined in its oper-
ation to the provision directly involved in the controversy in which the
judgment shall have been rendered; provided, however, that in the  event
the  entire  system  of  rent  control or stabilization shall be finally
adjudged invalid or unconstitutional by a court of  competent  jurisdic-
tion  because  of  the  operation  of  any  provision  of this act, such
provision shall  be  null,  void  and  without  effect,  and  all  other
provisions  of  this  act which can be given effect without such invalid
provision, as well as provisions  of  any  other  law  relating  to  the
control or stabilization of rent, as in effect prior to the enactment of
this  act  and  as otherwise amended by this act, shall continue in full
force and effect for the period of effectiveness set  forth  in  section
26-520  of the rent stabilization law of nineteen hundred sixty-nine and
in section 17 of chapter 576 of the laws of 1974, constituting the emer-
gency tenant protection act of nineteen seventy-four, as amended.
  S 15. This act shall take effect immediately, provided that the amend-
ments to sections 26-509, 26-510 and 26-511 of  the  rent  stabilization
law  of nineteen hundred sixty-nine made by sections three, four and six
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; and provided further that the amendments to sections 4,  10
and 10-a of the emergency tenant protection act of nineteen seventy-four
made  by  sections eight, ten and eleven 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; and provided further that the rent boards  as  reconstituted
pursuant  to  sections four and eight of this act shall be appointed and
confirmed within sixty days after the effective date of this act and the
methodological and procedural changes made by sections four and eight of
this act shall become operational  on  October  1,  2009;  and  provided
further  that  the rent adjustments, if any, adopted in 2009 pursuant to
the rent stabilization law of nineteen hundred sixty-nine or  the  emer-
gency  tenant protection act of nineteen seventy-four shall be effective
for annual rent adjustments commencing on January 1, 2010 and during the
next twelve months through December 31, 2010; and provided further  that
the  rent  adjustments,  if any, adopted in subsequent years pursuant to
the rent stabilization law of nineteen hundred sixty-nine or  the  emer-

S. 5566                            19

gency  tenant protection act of nineteen seventy-four shall be effective
for annual rent adjustments commencing on January first of  each  subse-
quent  year  and  during  the  next  succeeding twelve months thereafter
through  December  thirty-first of each such year; and provided that the
amendments to section 4 of the emergency housing rent control  law  made
by  section twelve 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.