Senate Bill S5057A

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

                                 5057--A

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                               May 3, 2011
                               ___________

Introduced  by  Sen.  DUANE  -- read twice and ordered printed, and when
  printed to be committed to the Committee on Housing, Construction  and
  Community  Development  --  recommitted  to  the Committee on Housing,
  Construction and Community Development in accordance with Senate  Rule
  6,  sec. 8 -- committee discharged, bill amended, ordered reprinted as
  amended and recommitted to said committee

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 2012".
  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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08838-02-2
              

S. 5057--A                          2

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
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 THIR-
TEEN, 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
QUALIFIES FOR SUCH RENT EXEMPTION. A RENT EXEMPTION ORDER SHALL NO LONG-
ER 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

S. 5057--A                          3

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
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

S. 5057--A                          4

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-
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

S. 5057--A                          5

ALLOWANCE SHALL NOT BE IMPLEMENTED FOR A HOUSING ACCOMMODATION MORE THAN
ONE  TIME  IN  ANY  CALENDAR YEAR, NOTWITHSTANDING THE NUMBER OF VACANCY
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

S. 5057--A                          6

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,
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 LAW,
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 TWELVE 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 TWELVE OR
MORE THAN TWENTY PERCENT OF ALL OTHER VIOLATIONS OF RECORD  AS  OF  JULY
FIRST,  TWO  THOUSAND  TWELVE;  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  THIRTEEN  THE
RENT  ADJUSTMENTS ESTABLISHED PURSUANT TO THIS SECTION SHALL BE APPLICA-
BLE 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 TWELVE THE RENT BOARD
SHALL ESTABLISH TRANSITIONAL RENT ADJUSTMENTS APPLICABLE TO LEASES WHICH

S. 5057--A                          7

EXPIRE BETWEEN JANUARY FIRST, TWO THOUSAND THIRTEEN AND  DECEMBER  THIR-
TY-FIRST,  TWO THOUSAND THIRTEEN. NO LATER THAN OCTOBER FIRST, TWO THOU-
SAND THIRTEEN THE BOARD SHALL ESTABLISH  TRANSITIONAL  RENT  ADJUSTMENTS
APPLICABLE  TO  LEASES  WHICH EXPIRE BETWEEN JANUARY FIRST, TWO THOUSAND
FOURTEEN AND DECEMBER THIRTY-FIRST, TWO THOUSAND FOURTEEN. SUCH  TRANSI-
TIONAL  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

S. 5057--A                          8

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  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 THIRTEEN:
  (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
THIRTEEN.  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 TWELVE HAS EXPIRED, OR WHOSE VACANCY LEASE ENTERED INTO  ON  OR

S. 5057--A                          9

AFTER JANUARY FIRST, TWO THOUSAND THIRTEEN HAS EXPIRED AND WHO THEREAFT-
ER  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,  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
PERIOD 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 TWELVE SHALL BE ADJUSTED EFFECTIVE  JANU-
ARY FIRST, TWO THOUSAND THIRTEEN 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 THIRTEEN WHICH EXPIRES BETWEEN JANUARY FIRST,
TWO THOUSAND THIRTEEN AND DECEMBER THIRTY-FIRST, TWO  THOUSAND  FOURTEEN
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 EACH YEAR THEREAFTER BY THE RENT ADJUST-
MENT ESTABLISHED BY THE RENT BOARD.
  (C) THE LEGAL REGULATED RENT FOR ANY VACANCY LEASE ENTERED ON OR AFTER
JANUARY  FIRST,  TWO THOUSAND THIRTEEN SHALL, IN ADDITION TO ANY ADJUST-
MENT PROVIDED FOR IN PARAGRAPH FIVE OF THIS SUBDIVISION, BE ADJUSTED  ON
THE  FIRST  DAY  OF  JANUARY EACH YEAR THEREAFTER BY THE RENT ADJUSTMENT
ESTABLISHED 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 THIRTEEN, MAXIMUM RENTS FOR  HOUS-
ING  ACCOMMODATIONS  SUBJECT  TO  THIS CHAPTER SHALL NO LONGER BE ESTAB-
LISHED PURSUANT TO PARAGRAPHS THREE AND FOUR  OF  THIS  SUBDIVISION,  OR
LIMITED  BY  PARAGRAPH FIVE OF THIS SUBDIVISION, OR ADJUSTED BY SUBPARA-
GRAPH (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 TWELVE, 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 THIRTEEN AND FOR EACH SUCCEEDING TWELVE MONTH PERIOD.
  (C) EFFECTIVE JANUARY FIRST, TWO THOUSAND THIRTEEN, THE  MAXIMUM  RENT
COLLECTIBLE  FROM  THE  TENANT  SHALL BE THE MAXIMUM RENT COLLECTIBLE ON
DECEMBER THIRTY-FIRST, TWO THOUSAND TWELVE, INCLUDING ANY  RENT  ADJUST-
MENTS  THEN COLLECTIBLE PURSUANT TO SUBPARAGRAPH (N) OF PARAGRAPH ONE OF
SUBDIVISION 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

S. 5057--A                         10

CHAPTER, PROVIDED THAT A LANDLORD SHALL NOT COLLECT ANY RENT INCREASE OR
ADJUSTMENT OTHERWISE COLLECTIBLE UNDER SUBPARAGRAPH (B)  OF  THIS  PARA-
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  TWELVE,  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

S. 5057--A                         11

LAW shall serve on a rent [guidelines] board. [One  public  member,  one
member representative of tenants and one member representative of owners
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

S. 5057--A                         12

COUNTY  WITH  HOUSING  ACCOMMODATIONS SUBJECT TO THIS ACT, INCLUDING THE
AVAILABILITY OF AFFORDABLE, HABITABLE RENTAL HOUSING ACCOMMODATIONS; (2)
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

S. 5057--A                         13

OF  THE TYPES OF BUILDINGS, EXCLUDING BUILDINGS THAT HAVE BEEN CONVERTED
TO CO-OPERATIVE OR CONDOMINIUM STATUS, THAT ARE  SUBJECT  TO  REGULATION
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

S. 5057--A                         14

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.] 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 ELEVEN 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,  2012  OR MORE THAN TWENTY PERCENT OF ALL OTHER
VIOLATIONS OF RECORD AS OF JULY 1, 2012; 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. 5057--A                         15

  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:
  D.  NOTWITHSTANDING  ANY  CONTRARY PROVISIONS OF THIS ACT, ON OR AFTER
JANUARY 1, 2013:
  (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, 2013; 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, 2013 HAS EXPIRED,
OR WHOSE VACANCY LEASE ENTERED INTO ON OR  AFTER  JANUARY  1,  2013  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, 2012 SHALL BE ADJUSTED EFFECTIVE JANUARY  1,  2013  AND  ON  THE

S. 5057--A                         16

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  1, 2013 WHICH EXPIRES BETWEEN JANUARY 1, 2013 AND DECEMBER 31, 2014
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, 2013 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

S. 5057--A                         17

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
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,  2013, 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, 2012, 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, 2013, AND FOR EACH  SUCCEEDING
TWELVE MONTH PERIOD.
  (B)  EFFECTIVE  JANUARY 1, 2013, THE MAXIMUM RENT COLLECTIBLE FROM THE
TENANT SHALL BE THE MAXIMUM RENT COLLECTIBLE ON DECEMBER  31,  2012,  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.

S. 5057--A                         18

  (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-
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,  2012;  and  provided
further  that  the rent adjustments, if any, adopted in 2012 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, 2013 and during the

S. 5057--A                         19

next twelve months through December 31, 2013; 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-
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;  provided  that  the
amendments  to  section  26-405  of the city rent and rehabilitation law
made by section seven of this act shall remain in full force and  effect
only  as  long  as  the  public  emergency  requiring the regulation and
control of residential rents and evictions  continues,  as  provided  in
subdivision  3  of section 1 of the local emergency housing rent control
act; 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.