S T A T E   O F   N E W   Y O R K
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                                  3197

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                            January 24, 2013
                               ___________

Introduced  by  M.  of  A.  FITZPATRICK -- read once and referred to the
  Committee on Housing

AN ACT to amend the administrative code of the city of New York and  the
  emergency  tenant protection act of nineteen seventy-four, in relation
  to providing an alternative hardship allowance

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

  Section 1. The opening paragraph of subparagraph (a) of paragraph 1 of
subdivision  g  of section 26-405 of the administrative code of the city
of New York is amended to read as follows:
  The rental income from a property yields a net annual return  of  less
than [six] EIGHT AND ONE-HALF per centum of the valuation of the proper-
ty.
  S 2. Subdivision c of section 26-511 of the administrative code of the
city  of  New  York  is amended by adding a new paragraph 6-b to read as
follows:
  (6-B) PROVIDES CRITERIA WHEREBY AS  AN  ALTERNATIVE  TO  THE  HARDSHIP
APPLICATION  PROVIDED  UNDER  PARAGRAPH  SIX  OR PARAGRAPH SIX-A OF THIS
SUBDIVISION OWNERS OF BUILDINGS ACQUIRED BY THE SAME OWNER OR A  RELATED
ENTITY  OWNED  BY  THE  SAME PRINCIPALS THREE YEARS PRIOR TO THE DATE OF
APPLICATION MAY APPLY TO THE STATE DIVISION  OF  HOUSING  AND  COMMUNITY
RENEWAL  FOR  INCREASES  IN  EXCESS OF THE LEVEL OF APPLICABLE GUIDELINE
INCREASES ESTABLISHED UNDER THIS LAW BASED ON A FINDING BY  THE  COMMIS-
SIONER  OF  HOUSING  AND COMMUNITY RENEWAL THAT SUCH GUIDELINE INCREASES
ARE NOT SUFFICIENT TO ENABLE THE OWNER TO MAINTAIN A NET  ANNUAL  RETURN
OF EIGHT AND ONE-HALF PER CENTUM OF THE VALUATION OF THE PROPERTY.  SUCH
VALUATION SHALL BE THE CURRENT ASSESSED VALUATION, WHICH IS IN EFFECT AT
THE  TIME  OF THE FILING OF THE APPLICATION FOR AN ADJUSTMENT UNDER THIS
PARAGRAPH PROPERLY ADJUSTED BY APPLYING THERETO  THE  RATIO  WHICH  SUCH
ASSESSED  VALUATION  BEARS  TO  THE  FULL VALUATION AS DETERMINED BY THE
COMMISSIONER OF TAXATION AND FINANCE.  NET ANNUAL RETURN  SHALL  BE  THE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05955-01-3
              

A. 3197                             2

AMOUNT  BY WHICH THE EARNED INCOME EXCEEDS THE OPERATING EXPENSES OF THE
PROPERTY, EXCLUDING MORTGAGE INTEREST AND  AMORTIZATION,  AND  EXCLUDING
ALLOWANCES FOR OBSOLESCENCE AND RESERVES, BUT INCLUDING AN ALLOWANCE FOR
DEPRECIATION  OF  TWO PER CENTUM OF THE VALUE OF THE BUILDINGS EXCLUSIVE
OF THE LAND, OR THE AMOUNT SHOWN FOR DEPRECIATION OF  THE  BUILDINGS  IN
THE  LATEST  REQUIRED  FEDERAL  INCOME  TAX  RETURN, WHICHEVER IS LOWER;
PROVIDED, HOWEVER, THAT NO ALLOWANCE FOR DEPRECIATION OF  THE  BUILDINGS
SHALL  BE  INCLUDED  WHERE THE BUILDINGS HAVE BEEN FULLY DEPRECIATED FOR
FEDERAL INCOME TAX PURPOSES OR ON THE BOOKS OF THE OWNER.
  S 3. Subdivision d of section 6 of section 4 of  chapter  576  of  the
laws  of 1974, constituting the emergency tenant protection act of nine-
teen seventy-four, is amended by adding a new paragraph  6  to  read  as
follows:
  (6) AS AN ALTERNATIVE TO THE HARDSHIP APPLICATION PROVIDED UNDER PARA-
GRAPH  FOUR  OR FIVE OF THIS SUBDIVISION OWNERS OF BUILDINGS ACQUIRED BY
THE SAME OWNER OR A RELATED ENTITY OWNED BY THE  SAME  PRINCIPALS  THREE
YEARS  PRIOR  TO THE DATE OF APPLICATION MAY APPLY TO THE STATE DIVISION
OF HOUSING AND COMMUNITY RENEWAL FOR INCREASES IN EXCESS OF THE LEVEL OF
APPLICABLE GUIDELINE INCREASES ESTABLISHED UNDER THIS  ACT  BASED  ON  A
FINDING  BY  THE COMMISSIONER OF HOUSING AND COMMUNITY RENEWAL THAT SUCH
GUIDELINE INCREASES ARE NOT SUFFICIENT TO ENABLE THE OWNER TO MAINTAIN A
NET ANNUAL RETURN OF EIGHT AND ONE-HALF PER CENTUM OF THE  VALUATION  OF
THE  PROPERTY.    SUCH VALUATION SHALL BE THE CURRENT ASSESSED VALUATION
ESTABLISHED BY A CITY, TOWN OR VILLAGE, WHICH IS IN EFFECT AT  THE  TIME
OF  THE FILING OF THE APPLICATION FOR AN ADJUSTMENT UNDER THIS PARAGRAPH
PROPERLY ADJUSTED BY APPLYING THERETO  THE  RATIO  WHICH  SUCH  ASSESSED
VALUATION  BEARS TO THE FULL VALUATION AS DETERMINED BY THE COMMISSIONER
OF TAXATION AND FINANCE. NET ANNUAL RETURN SHALL BE THE AMOUNT BY  WHICH
THE  EARNED  INCOME  EXCEEDS  THE  OPERATING  EXPENSES  OF THE PROPERTY,
EXCLUDING MORTGAGE INTEREST AND AMORTIZATION, AND  EXCLUDING  ALLOWANCES
FOR  OBSOLESCENCE  AND RESERVES, BUT INCLUDING AN ALLOWANCE FOR DEPRECI-
ATION OF TWO PER CENTUM OF THE VALUE OF THE BUILDINGS EXCLUSIVE  OF  THE
LAND,  OR  THE  AMOUNT  SHOWN  FOR  DEPRECIATION OF THE BUILDINGS IN THE
LATEST REQUIRED FEDERAL INCOME TAX RETURN, WHICHEVER IS LOWER; PROVIDED,
HOWEVER, THAT NO ALLOWANCE FOR DEPRECIATION OF THE  BUILDINGS  SHALL  BE
INCLUDED  WHERE  THE  BUILDINGS  HAVE BEEN FULLY DEPRECIATED FOR FEDERAL
INCOME TAX PURPOSES OR ON THE BOOKS OF THE OWNER.
  S 4. This act shall  take  effect  on  the  first  of  September  next
succeeding  the  date on which it shall have become a law, provided that
the amendment to section 26-405 of the city rent and rehabilitation law,
made by section one 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 further that the amendment to section  26-511  of  the
rent  stabilization  law of nineteen hundred sixty-nine, made by section
two 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 the administrative code of the city of New York; and  provided
further  that  the  amendment  to  section  6  of  the  emergency tenant
protection act of nineteen seventy-four, made by section three  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.