Senate Bill S906

2011-2012 Legislative Session

Relates to renewal of a lease under the stabilization code promulgated by the real estate industry stabilization association

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Archive: Last Bill Status - In Senate Committee Rules Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Mar 12, 2012	committee discharged and committed to rules
Feb 21, 2012	notice of committee consideration - requested
Jan 04, 2012	referred to housing, construction and community development
Jan 05, 2011	referred to housing, construction and community development

co-Sponsors

2011-S906 (ACTIVE) - Details

See Assembly Version of this Bill:: A3596
Current Committee:: Senate Rules
Law Section:: New York City Administrative Code
Laws Affected:: Amd §26-511, NYC Ad Cd
Versions Introduced in Other Legislative Sessions:: 2009-2010: S3854, A2558
2013-2014: S3176, A3904
2015-2016: S2856, A3602
2017-2018: S3193, A5901
2019-2020: S1920, A725
2021-2022: S490, A8278
2023-2024: S129, A3977
2025-2026: A1249

2011-S906 (ACTIVE) - Summary

Relates to renewal of a lease under the stabilization code promulgated by the real estate industry stabilization association; defines demolish.

2011-S906 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S906

TITLE OF BILL:
An act
to amend the administrative code of the city of New York, in relation to
renewal of a lease under the stabilization code

PURPOSE OR GENERAL IDEA OF BILL:
The purpose of this bill is to clarify the original intent of the Rent
Stabilization Law and to prohibit landlords from circumventing the
demolition provision included in the Rent Stabilization Law.
Landlords are attempting to circumvent rent stabilization by applying
for a demolition permit in order to move tenants out; when their real
purpose is to do a gut rehab so they can lease the apartments for
higher rents.

SUMMARY OF SPECIFIC PROVISIONS:
Section 1 of this bill constitutes a provision where the owner has
established to the satisfaction of the division of housing and
community renewal after a hearing that he or she intends in good
faith to demolish the building and has obtained a permit thereof from
the department of buildings.

Section 2 provides for an immediate effective date with qualifications.

EFFECTS OF PRESENT LAW WHICH THIS BILL WOULD ALTER:

This bill would amend Subparagraph (a) of paragraph 9 of subdivision c
of section 26-511 of the administrative code of the city of New York,
constituting a provision of the rent stabilization law of nineteen
hundred sixty-nine.

JUSTIFICATION:
It is in the State's economic and social interest that an adequate
supply of affordable housing be available. But as development
pressures continue to drive the competitive real estate market in New
York City and surrounding counties, there has been an increasing loss
of affordable housing units. Eager to increase profits on rent
stabilized housing units in particular, building owners have utilized
a variety of means to turn these units into more profitable luxury
housing or commercial units. The result has been that each year,
thousands of rent-stabilized units are permanently removed from the
housing stock. This trend continues as owners seek new ways to
manipulate the letter and spirit of the law in order to more
expeditiously eliminate the rent stabilized units in a building.
This bill addresses one method by which owners are increasingly
attempting to get rid of rent-stabilized housing. While the
Legislature intended that the demolition provision of the Rent
Stabilization law allow room for owners to demolish old, dilapidated
and dangerous housing
in order to replace it with new, safe housing, some owners are
attempting to redefine demolition as simple renovations where entire
floors are left intact, outer walls are untouched, or major
structural elements remain in place. Such uses of the term
"demolition" are inconsistent with both its common meaning and the
meaning that was intended by the Legislature.
This bill will clarify the definition of "demolition", making it


consistent with its common and intended definitions. Accordingly, it
will be clear that owners shall not be permitted to eliminate
rent-stabilized housing units by manipulating the demolition
provision in this manner.

PRIOR LEGISLATIVE HISTORY:
2006:    A.10944
2007-08: S.7571/A.5742
2009-10: S.3854-B/A.2558-B

FISCAL IMPLICATIONS:
To be determined.

EFFECTIVE DATE:
This act shall take effect immediately and shall apply to any action
or proceeding pending in any court and to any application, complaint,
or proceeding pending before an administrative agency on such
effective date, as well as to any action or proceeding commenced
thereafter;
provided, however that the amendments to subparagraph (a) of paragraph
9 of subdivision c of section 26-511 of the rent stabilization law of
nineteen hundred sixty-nine made by section one of this act shall
expire of such law as provided under section 26-520 of the
administrative code of the city of New York.

2011-S906 (ACTIVE) - Bill Text download pdf

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

                                   906

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 5, 2011
                               ___________

Introduced  by  Sen. KRUEGER -- 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, in
  relation to renewal of a lease under the stabilization code

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

  Section 1. Subparagraph (a) of paragraph 9 of subdivision c of section
26-511  of the administrative code of the city of New York is amended to
read as follows:
  (a) (1) where [he or she] THE OWNER HAS ESTABLISHED TO  THE  SATISFAC-
TION  OF  THE DIVISION OF HOUSING AND COMMUNITY RENEWAL, AFTER A HEARING
AT WHICH ALL PARTIES MAY PRESENT EVIDENCE THAT THE SUBJECT  BUILDING  IS
IN A SUBSTANDARD OR SERIOUSLY DETERIORATED CONDITION, AND THAT THE OWNER
intends  in  good  faith  to  demolish  the building and [has obtained a
permit therefor from the department of buildings] SUBMITS PROOF PRIOR TO
FILING THE APPLICATION  WITH  THE  DIVISION  OF  HOUSING  AND  COMMUNITY
RENEWAL  THAT  PLANS  AND  IF  POSSIBLE,  THE NECESSARY PERMITS, FOR THE
UNDERTAKING HAVE BEEN APPROVED BY AND OBTAINED FROM  THE  DEPARTMENT  OF
BUILDINGS.    SUCH APPLICATION SHALL BE FILED AT LEAST NINETY DAYS PRIOR
TO THE EXPIRATION OF THE LEASE TERM; FOR THE PURPOSE  OF  THIS  SUBPARA-
GRAPH,  "DEMOLISH"  MEANS  THE  COMPLETE  RAZING OF THE ENTIRE BUILDING,
INCLUDING ALL EXTERIOR WALLS, IN ORDER TO CONSTRUCT A NEW BUILDING  WITH
THE SAME OR GREATER NUMBER OF RENTAL HOUSING UNITS;
  (2)  THE  ORDER  GRANTING  THE  OWNER'S  DEMOLITION  APPLICATION SHALL
PROVIDE THAT THE OWNER MUST, AT THE TENANT'S OPTION, EITHER:  (I)  RELO-
CATE  THE  TENANT  TO  AN EQUIVALENT OR SUPERIOR RENT STABILIZED HOUSING
ACCOMMODATION IN A CLOSELY PROXIMATE  AREA,  OR  IF  A  NEW  RESIDENTIAL
BUILDING  IS BEING CONSTRUCTED ON THE SITE PROVIDE THE TENANT WITH SUIT-
ABLE INTERIM HOUSING AT NO ADDITIONAL COST UNTIL A UNIT IS AVAILABLE  IN

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

                                                           LBD04046-01-1

S. 906                              2

THE  NEW  BUILDING; PROVIDE THAT THE AMOUNT OF RENT CHARGED FOR THE UNIT
SHALL BE AT THE SAME OR LOWER LEGAL  REGULATED  RENT;  AND  PROVIDE  THE
TENANT,  IN  ADDITION  TO  REASONABLE MOVING EXPENSES, PAYMENT OF A FIVE
THOUSAND  DOLLAR  STIPEND,  PROVIDED THE TENANT VACATES ON OR BEFORE THE
VACATE DATE REQUIRED BY THE FINAL ORDER; OR (II) PROVIDE  RELOCATION  OF
THE  TENANT  TO  A SUITABLE HOUSING ACCOMMODATION AT A RENT IN EXCESS OF
THAT FOR THE SUBJECT HOUSING ACCOMMODATION; PROVIDE THE TENANT, IN ADDI-
TION TO REASONABLE MOVING EXPENSES, A STIPEND EQUAL TO THE DIFFERENCE OF
THE RENT CHARGED AT THE HOUSING ACCOMMODATION BEING VACATED AND THE RENT
CHARGED FOR THE HOUSING ACCOMMODATION TO WHICH THE TENANT IS RELOCATING,
MULTIPLIED BY SEVENTY-TWO MONTHS, PROVIDED  THE  TENANT  VACATES  ON  OR
BEFORE  THE  VACATE  DATE  REQUIRED BY THE FINAL ORDER; OR (III) PAY THE
TENANT A STIPEND WHICH SHALL BE  THE  DIFFERENCE  BETWEEN  THE  TENANT'S
CURRENT RENT AND AN AMOUNT TO BE CALCULATED USING THE DEMOLITION STIPEND
CHART,  CREATED BY THE DIVISION OF HOUSING AND COMMUNITY RENEWAL, MULTI-
PLIED BY SEVENTY-TWO MONTHS; or
  S 2. This act shall take effect immediately and  shall  apply  to  any
tenant  in  possession on or after such effective date and to any action
or proceeding pending in any court and to any application, complaint, or
proceeding pending before an administrative  agency  on  such  effective
date,  as  well  as  to  any  action or proceeding commenced thereafter;
provided, however that the amendments to subparagraph (a) of paragraph 9
of subdivision c of section 26-511 of chapter  4  of  title  26  of  the
administrative  code of the city of New York made by section one of this
act shall expire on the same date as such  law  expires  and  shall  not
affect  the  expiration  of such law as provided under section 26-520 of
such law.

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Senate Bill S906

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Archive: Last Bill Status - In Senate Committee Rules Committee

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co-Sponsors

2011-S906 (ACTIVE) - Details

2011-S906 (ACTIVE) - Summary

2011-S906 (ACTIVE) - Sponsor Memo

2011-S906 (ACTIVE) - Bill Text download pdf

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Sponsored By

Liz Krueger

Archive: Last Bill Status - In Senate Committee Rules Committee

Actions

co-Sponsors

Tony Avella

2011-S906 (ACTIVE) - Details

2011-S906 (ACTIVE) - Summary

2011-S906 (ACTIVE) - Sponsor Memo

2011-S906 (ACTIVE) - Bill Text download pdf

Comments